Octa vs XM
If you are reading this article, you’re likely having trouble deciding whether Octa 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 Octa & XM review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Octa vs XM - Verdict
 |  | |
Headquarters | Comoros | Cyprus |
Regulators | CySEC, FSCA, MWALI International Services Authority | ASIC, CySEC, DFSA, FSC Belize |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2011 | 2009 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | $25 | $5 |
Negative Balance Protection | N/A | |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform |
Average Trading Cost EUR/USD | 0.9 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.3 pips | 0.2 pips |
Average Trading Cost WTI Crude Oil | $0.07 | $0.05 |
Average Trading Cost Gold | $0.30 | $0.19 |
Retail Loss Rate | 67.65% | N/A |
Minimum Raw Spreads | Not applicable | N/A |
Minimum Standard Spreads | 0.6 pips | N/A |
Minimum Commission for Forex | Commission-free | N/A |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Get Started | Get Started |
Features and Platforms
| | |
MT4 | ||
MT5 | ||
MT4/MT5 Add-Ons | N/A | |
cTrader | ||
Proprietary Platform | ||
Automated Trading | ||
Social/Copy Trading | N/A | |
DOM? | ||
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | ||
OCO Orders | ||
Interest on Margin | ||
| Get Started | Get Started |
Octa 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 Octa 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.
Available Markets
| | |
Currency Pairs | ||
Cryptocurrencies | ||
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks | N/A | |
Stocks (non-CFDs) | ||
Bonds | N/A | |
ETFs | ||
Options | N/A | |
Futures | ||
Synthetics | ||
| Get Started | Get Started |
One of the most distinct weaknesses at Octa 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. Octa fails to provided traders with a competitive asset selection. XM counters with more than 1,300 assets centered on equity trading.
Typical Spreads and Fees
| | |
Average Trading Cost EUR/USD | 0.9 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.3 pips | 0.2 pips |
Average Trading Cost WTI Crude Oil | $0.07 | $0.05 |
Average Trading Cost Gold | $0.30 | $0.19 |
Average Trading Cost Bitcoin | $11 | N/A |
Minimum Raw Spreads | Not applicable | N/A |
Minimum Standard Spreads | 0.6 pips | N/A |
Minimum Commission for Forex | Commission-free | N/A |
Deposit Fee | N/A | |
Withdrawal Fee | N/A | |
Inactivity Fee | No | N/A |
| Get Started | Get Started |
The commission-free pricing structure at Octa 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. Octa 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. Octa advertises no swaps but charges a series of other fees to compensate for it.
Security and Trust
| | |
Country of the Regulator | Cyprus, Comoros, South Africa | United Arab Emirates, Australia, The Bahamas, Belize, Cyprus, United Kingdom, United States |
Name of the Regulator | CySEC, FSCA, MWALI International Services Authority | ASIC, CySEC, DFSA, FSC Belize |
Regulatory License Number | 372/18, 51913, HY00623410 | 705428, 120/10, 443670, 000261/397, F003484, SIA-F201, 0516820 |
Regulatory Tier | N/A | 1,1,1,4,2,4,1 |
| Get Started | Get Started |
Octa operates branches in Cyprus, regulated by CySEC, and in St. Vincent and the Grenadines. 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.
Octa vs XM – Verdict
Octa 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 Octa Trading App. One of its unique features is Octa 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. Octa has a sound foundation but pales in comparison to the products and services at XM.
XM presents a safer Forex and CFD trading environment, as it operates with licenses from five global regulators. Octa remains an unregulated Forex broker with a clean history.
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. Octa offers research and education, but the quality is inferior.
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