Between XM Forex And Broker X, Which Broker is Best for 2020?

XM Forex vs Broker X

As a newbie Forex trader, you will be overwhelmed with so many questions which though the internet already answers; have an extreme bias.

Example of such bias is when you ask google what the best Forex broker for beginners is, and instead of showing you XM Forex already (haha), it shows you 51,800,000 plus generic content from bloggers who are obviously inclined to those choice because either they are making money for referrals. Or probably because these brokers are indeed the best.

But the BIG question is, how do you really tell if a broker is good enough?

Here is a comparison of a broker which you already know too well (XM Forex), and 5 other brokers which in my view are quite as good as XM.

I have considered the number of instruments offered by each broker, spreads and trading conditions on each platform, ease of deposit and withdrawal, regulation, support; the time it takes to execute a trade among other factors.

As a newbie the first question you want to ask when choosing a broker is, “Is this broker regulated in my country?”

While it is OK to just open an account with any broker you find ease trading with; it is common sense to do your due diligence and find out if your preferred broker is really the best fit for your country.

Broker regulation is particularly important when you have issues with order execution, broker going bankrupt, denied payouts or other foul play by unscrupulous Forex Brokers.

The worst part, you can not take any legal action against an unregulated broker if they are not part of a body which insists on conformity to standards.

Therefore, before signing up with any broker, confirm that you are  OK with it’s regulation, reputation and izzat. 

Before you deposit money to any broker platform, confirm that they are regulated by either of these bodies.

    • Malta Financial Services Authority (MFSA) in Malta.
    • Finanstilsynet (FSA) in Denmark,
    • Comissão do Mercado de Valores Mobiliários (CMVM) in Portugal
    • Autorité des Marchés Financiers (AMF) in France
    • Comisión Nacional de Mercado de Valores (CNMV) in Spain
    • Financial Market Authority (FMA) in Austria
    • Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in Germany
    • Swiss Financial Market Supervisory Authority (FINMA) in Switzerland
    • Financial Conduct Authority (FCA). UK.
    • National Futures Association (NFA) USA
    • Commodity Futures Trading Commission (CFTC) USA
    • Australian Securities & Investments Commission (ASIC) Australia
    • Financial Sector Conduct Authority (FSCA) South Africa
    • Capital Markets Authority (CMA) Kenya

Note: – A broker that is registered in Cyprus and regulated by Cyprus Securities and Exchanged Commission (CySEC) may also operate legally in all European nations if it is registered in every local European regulatory body.

CySEC is widely known and supported by European regulatory authorities. This legitimizes it as one of the finest regulatory bodies in the world.

CySEC with its insistence on broker members to have an investor compensation fund also ensures that in case of broker bankruptcy, clients are guaranteed to recover up to €20,000.

Key Features of Regulated Forex Brokers 

    • They warn clients of risks involved in trading
    • Display their prices
    • Act honestly towards customers
    • They asses future client’s knowledge and risk before doing business with them (recommendation by MiFID II)
    • They comply with Know Your Customer (KYC) and Anti-money laundering (AML) procedures

With all these in mind, try to be as honest as possible when asked personal finance questions and requested for identity and residential verification during registration. It is for your own benefit as a trader. Trust me.Click To Tweet

2. Deposits and Withdrawals 

Another important feature to look for in a broker is it’s deposit and withdrawals systems. Ask these questions: –

    1. How easy is it to withdraw money from this broker platform?
    2. Does this broker accept deposits from local (mobile money systems)?
    3. How convenient are its deposit methods?
    4. How much can I withdraw per day?

Being able to fund your trading account instantly and conveniently makes a whole lot of a difference when you spot an opportunity in Forex.

Example,

if your broker accepts e Wallets such as skrill, Neteller, FasaPay, South East Asia Mobile Banking, Nganluong (E-wallet & banking channel), Online banking Malaysia, online banking Vietnam or Dusupay for Mpesa in Kenya and other local payments in Africa; they you can fund your account instantly and open your position in minutes.

On the flip side, if your broker only accepts deposit methods which take more than 24 hours to reflect then you are better off not trading with them because: –

Also Read: – Olymp Trade Broker Review | Start Trading With $1 Only

  1. It might also take more time when you want to withdraw
  2. Plus, what’s the essence of trading after the sure signal has lapsed?
  3. Where is the convenience in making the deposit 24 hours later?

Forex Brokers which accept mobile and online deposit methods are the most convenient for deposits and withdrawals. Click To Tweet

Examples of brokers that accept Mpesa deposits in Kenya: –

    1. XM
    2. Expert Option
    3. FXTM
    4. EGM Securities
    5. Hot Forex 
    6. Lite Forex
    7. Exness

Brokers That Accept Orange Money Deposits in Cameroon

    1. XM
    2. Expert Option
    3. FXTM
    4. Lite Forex

Top Brokers that Accept VISA in Nigeria 

    1. XM
    2. Expert Option
    3. FXTM
    4. Lite Forex
    5. IQ Option 
    6. Olymp Trade 
    7. Iron Fx
    8. IC Markets
    9. Admiral Markets
    10. Exness

Brokers That Accept MTN in Uganda 

    1. XM
    2. Expert Option
    3. FXTM
    4. EGM Securities
    5. Hot Forex 
    6. Lite Forex
    7. Exness

3. Trading Instruments Available 

Much as currency pairs and Forex trading dominate the market, they are not the only instruments you’ll want to trade in your entire trading life.

For a change, you will sometimes want to try stock CFD’s, futures or precious metals. But if you signed up with a broker with the least of instruments, won’t you be disadvantaged?

Besides, it is a fact that brokers platforms with a wide range of instruments are usually the most legit and offer the best experience in trading. Why, because there is no beating around the bush in getting into some financial markets. And in order for a broker to offer 1,000 + trading instruments like XM Forex does, then it must have gone through rigorous authentication procedures by liquidity providers.

4. Fixed Spreads Vs Variable Spreads, Which is Best?

Though not a common practice with new traders, it is very important to take a break and compare the trading conditions between broker “X” and broker “Y” before committing.

Confirm if your preferred broker offers fixed or variable spreads.

And note that, while fixed spreads are communicated in advance and are sometimes ZERO – like in the case of Olymp Trade Forex, they might cost you a commission if you hold them overnight to the next day.

These unnecessary commissions might in fact not be favorable if you are really serious about trading.

Variable spreads on the other hand are what you hear other traders referring to as tight spreads. They are the slight adjustments that brokers make between ASK and BID prices before retailing to you.

It is relative that if you are planning to day trade or scalp, then you pick a broker with the lowest spreads. This will lower costs for you when you open and close multiple positions during a trading session.

5. Support

When all else is figured, the last thing to be sure of is if your broker offers support — which should generally be a 24/5 thing all through.

This goes a long way when you need urgent help.

Forex Broker Comparison 

XM Forex

XM Forex Broker - Demo Account - Yes

- Min. Deposit - 5 $/€/£

- Regulated By FCA, CySec, ASIC

- MT4 Integration Yes

- Trading Instruments - 1000+

- Spreads as low as 0.6 pips

- Leverage - 888:1
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XM Forex Deposit/Withdrawal Methods – Credit cards, Visa (Credit/Debit cards), MasterCard, Maestro, Union pay, Electronic payment, Neteller, Skrill, Bitcoin, Bank wire, Mpesa.

Orbex FX

Orbex Forex- Demo Account - Yes

- Min. Deposit - 200 $/€/£

- Reg - FSC, CySec, MiFID

- MT4 Integration Yes

- Trading Instruments - 50+

- Fixed & Variable Spreads

- Leverage - 1:500
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Orbex Deposit/Withdrawal Methods – Credit cards, Visa (Credit/Debit cards), MasterCard, Maestro, Union pay, Electronic payment, Neteller, Skrill, Bitcoin and Bank wire

Olymp Trade Forex 

Olymp Trade - Demo Account - Yes

- Min. Deposit - 10 $/€/£

- Regulated By FinaCom, CySec,

- MT4 Integration NO

- Trading Instruments - 50+

- Fixed Spread

- Leverage - 1:200
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Olymp Trade Deposit/Withdrawal Methods – Credit cards, Visa (Credit/Debit cards), MasterCard, Maestro, Union pay, Electronic payment, Neteller, Skrill, Bitcoin and Bank wire

FXTM Forex 

FXTM Logo without background - Demo Account - Yes

- Min. Deposit - 10 $/€/£

- Regulated By FCA, CySec,

- MT4 Integration YES

- Trading Instruments - 100+

- Spread - 1.6 pips

- Leverage - 1:1000
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FXTM Deposit/Withdrawal Methods – Credit cards, Visa (Credit/Debit cards), MasterCard, Maestro, Union pay, Electronic payment, Neteller, Skrill, Bitcoin, Bank wire, Mpesa and other local payments

Iron FX

Iron FX- Demo Account - Yes

- Min. Deposit - 100 $/€/£

- Reg - FCA, ASIC, FSCA, CySEC

- MT4 Integration YES

- Trading Instruments - 200+

- Spread - Variable & fixed

- Leverage - 1:1000
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Iron FX Deposit/Withdrawal Methods – Credit cards, Visa (Credit/Debit cards), MasterCard, Maestro, Union pay, Electronic payment, Neteller, Skrill, Bitcoin & Bank wire

IQ Option Forex

IQ Option Broker - Demo Account - Yes

- Min. Deposit - 10 $/€/£

- Regulation - MiFID CySEC

- MT4 Integration NO

- Trading Instruments - 90+

- Spread - Variable

- Leverage - 1:100
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IQ Option Deposit/Withdrawal Methods – Credit cards, Visa (Credit/Debit cards), MasterCard, Maestro, Union pay, Electronic payment, Neteller, Skrill, Bitcoin & Bank wire

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