IG Markets vs XM: Comparison and Analysis

IG Markets vs XM: A Comparison of Brokers

When it comes to choosing a broker, traders need to take into consideration several factors, such as security, account opening requirements, trading fees, available markets, platforms, and education/customer care. In this comparison, we will analyse and compare two popular brokers, IG Markets and XM, based on these factors.

Security

IG Markets has an excellent security rating, with regulations from ten different authorities, including FCA, ASIC, and NFA, making it available for US traders. XM, on the other hand, has a slightly lower security rating, with regulations from four authorities, including CySEC and ASIC.

Demo

Both brokers offer unlimited demo accounts, with virtual funds that can be restored by contacting customer support. However, IG Markets offers a more significant amount of virtual funds, $30,000, compared to XM’s $100,000.

Account Opening

IG Markets has a higher minimum deposit requirement, with most countries requiring a deposit of $300, while XM only requires a minimum deposit of $5. IG Markets offers a more extensive range of account types, including Standard, Limited Risk, Spread Betting, Option and Turbo24, Share Dealing, Islamic, Professional, and Select. In contrast, XM offers Standard, Micro, Zero, Ultra Low, Shares, and Islamic accounts.

Social-Copy Trading

IG Markets does not offer social or copy trading features, while XM doesn’t offer social trading.

Markets

IG Markets offers a more extensive range of markets, with 90 forex pairs, 35 commodities, 80+ indices, 12 cryptocurrencies, 16,000+ stocks, 5,400+ ETFs, and 30+ futures and options. XM, on the other hand, offers 57 forex pairs, 15 commodities, 30 indices, 150+ stocks, and no ETFs, futures, or options. This makes IG Markets a better option for both short and long-term investing, while XM is more suitable for short-term investing.

Trading Fees

IG Markets and XM both offer variable spreads, with IG Markets offering spreads from 0.6 pips on forex, while XM offers spreads from 0 pips on forex. However, XM’s spreads may be higher depending on the account type chosen. IG Markets charges no commission on real US stocks for FCA, ASIC, DFSA, and JFSA traders, while XM charges up to $7 per lot traded. These low spreads and commissions make XM a better option for scalping.

Platforms

Both IG Markets and XM offer MetaTrader 4 (MT4) via web, desktop, and mobile, with IG Markets also offering their proprietary platform, L2 Dealer, and ProRealTime, an advanced chart analysis software.

Education/Customer Care

IG Markets offers an extensive education section, including a dedicated Academy App, while XM offers a wide range of educational materials, including webinars in 19 languages, trading lessons, platform lessons, and more. Both brokers offer easy contact via email, phone, and live chat, with IG Markets offering customer care in 13 languages, while XM offers customer care in 21 languages.

Conclusion

In conclusion, both IG Markets and XM offer their own unique features and advantages. IG Markets has a higher security rating, a more extensive range of account types and markets, and is suitable for both short and long-term investing. On the other hand, XM has a lower minimum deposit requirement, lower spreads, and is better suited for short-term investing, particularly scalping. Ultimately, traders need to choose the broker that best fits their individual needs and preferences.