OctaFX vs XM

If you are reading this article, you’re likely having trouble deciding whether OctaFX or XM is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.

In this OctaFX & XM review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:

FeatureOctaFX (visit site)XM (visit site)
marketsXM
Headquarter:United KingdomCyprus
Regulation :
FSAIFSC, ASIC, CySEC, DFSA
Type of Broker:
ECN/STPMarket Maker
U.S. Clients Allowed:
Minimum Deposit:
$50$5 or a currency equivalent
Maximum Leverage:
1:5001:888
Commissions / Spreads:
BothBoth
Account 1:
MicroMicro
Account 2:
ProStandard
Account 3:
ECNXM Ultra-Low
Account 4:
Shares
Demo Account:
Islamic Account:
Segregated Account:
Managed Accounts:
Institutional Accounts:
Website Languages:
  • English
  • Chinese
  • Other
  • English
  • Chinese
  • Other
Support Hours:
24/724/7
E-mail Support:
SMS Support:
Chat:
Broker Offers:

Features and Platforms

OctaFX executes an excellent business model, attracting more than 6.6 million accounts, not clients, since 2011 to its MT4/MT5 and cTrader trading environment. It also benefits from its proprietary copy-trading platform and a generous bonus program, including the OctaFX Status Level reward program. XM, founded in 2009, established itself as one of the best overall brokers and is home to 3.5 million clients. They benefit from upgraded MT4/MT5 trading platforms, an excellent management team, bonuses, rewards, plus excellent research and trading tools. XM also maintains a quality educational section for beginner traders.

FeatureOctaFXXM
Type of Platform:MetaTrader 4, MetaTrader 5, cTraderMetaTrader 4, Web-based
Platform Languages:
  • English
  • English
  • Chinese
  • Russian
  • Other
OS Compatibility:
  • Windows
  • Mobile
  • Web
  • iPhone
  • iPad
  • Windows
  • Mobile
  • Web
  • iPhone
  • iPad
Trading Signals:
Charting Package:
Market Analysis:
Chart Trading:
Automated Trading:
Scalping:
Hedging:
Mobile Alerts:
Trailing Stops:
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Guaranteed Execution:
One-click Execution:
Interest on Margin:
Web-based Trading:
Mobile Trading:

Available Markets

One of the most distinct weaknesses at OctaFX is the asset selection, which ranks at the bottom compared to other brokers. It consists of 32 currency pairs, five cryptocurrencies, five commodities and ten index CFDs. XM provides Forex traders with 57 currency pairs, but cryptocurrencies remain notably missing. While the 15 commodities are below average, XM shines with 1,243 equity CFDs and 28 index CFDs. Completing the asset selection are 100 shares, the latest addition at XM. OctaFX fails to provided traders with a competitive asset selection. XM counters with more than 1,300 assets centered on equity trading.

FeatureOctaFXXM
ETFs:
CFDs:
Commodities:
Metals:
Stocks:
Oil:
Gold:
Binary Options:
Indices:

Typical Spreads and Fees

b>The commission-free pricing structure at OctaFX and XM both show a minimum mark-up of 0.6 pips. It translates to a trading cost of $6.00 per 1.0 standard lot. OctaFX provides a commission-based alternative, which is more expensive at a starting spread of 0.8 pips and a commission of $6.00. CFD traders at XM transact commission-free, while direct share dealing faces a minimum cost of $10.00 or 0.10%. XM forwards all corporate actions, and traders pay swap rates on leveraged overnight positions. OctaFX advertises no swaps but charges a series of other fees to compensate for it.

Security and Trust

Since the financial regulator of St. Vincent and the Grenadines, where OctaFX operates, does not regulate Forex brokers, OctaFX remains an unregulated entity. While this does not necessarily raise a red flag, as evident by the ten years of experience at OctaFX and 6.6M account openings, OctaFX does not take additional steps to secure its trading environment. XM has licenses from the UK FCA, the CySEC, the ASIC, the Belize IFSC, and the DFSA. Both brokers segregate client deposits, and traders get negative balance protection, but XM provides clients with more verifiable and enforceable security over OctaFX.

OctaFX vs XM – Verdict

OctaFX continues to attract traders with generous bonuses and promotions. It lists more than 6.6 million account openings, but the retention rate is unknown. Traders get the MT4, MT5 and cTrader trading platforms, plus the proprietary OctaFX Trading App. One of its unique features is OctaFX Copytrading. While the pricing environment is competitive, asset selection ranks among the worst compared to all brokers. XM presents an overall excellent trading environment, where all clients have access to upgraded MT4/MT5 trading platforms, including the XM MT4 Multiterminal. With more than 1,300 assets and a trader-friendly cost structure, where active traders can lower trading costs via the loyalty program, XM established itself as a reliable and trustworthy broker. The research and educational sections present a quality value-added service complemented by the XM bonuses. OctaFX has a sound foundation but pales in comparison to the products and services at XM.

Read full OctaFX Review
Read full XM Review

FAQs

Is OctaFX or XM safer for Forex and CFDs trading?

XM presents a safer Forex and CFD trading environment, as it operates with licenses from five global regulators. OctaFX remains an unregulated Forex broker with a clean history.

How many Forex pairs and CFDs are available to trade?

OctaFX only offers a dismal 32 Forex pairs and 20 CFDs. By comparison, XM features 57 currency pairs and 1,286 CFDs.

Which broker is better for beginner traders?

XM presents the better choice for beginner traders due to its quality educational content, including videos, webinars, and seminars. The trading tools and in-house research complement it well. OctaFX offers research and education, but the quality is inferior.

Which trading platform is better: OctaFX or XM?

Traders at XM get upgraded MT4/MT5 trading platforms, making it a better choice. OctaFX has the Autochartist plugin, but traders must qualify for it via trading volume.