Updated: 01/03/2024

XM vs AvaTrade: A Comprehensive Broker Comparison

When it comes to choosing a forex broker, it’s essential to evaluate and compare different platforms…

XM vs AvaTrade
11 Nov 2023
WRITTEN BY Chad Smith
EDITED BY Henry Hicks
REVIEWED BY Chris Padgett

Table of Contents

When it comes to choosing a forex broker, it’s essential to evaluate and compare different platforms to find the right match for your trading needs. In this article, we will be discussing two popular brokers, XM and AvaTrade, to help you determine which one may be the better fit for you.

Both XM and AvaTrade are highly reputable platforms, offering an extensive range of trading features. XM is known for its user-friendly platform and a wider choice of shares, while AvaTrade boasts a broader selection of commodities and excels in offering various asset classes, including ETFs and options. Regulation-wise, XM is supervised by top-tier entities such as ASIC and CySEC, while AvaTrade is considered highly trusted with a Trust Score of 94 out of 99.

Apart from the core trading attributes, it is also essential to consider the additional tools, educational resources, and support services that these brokers provide. Weighing all the factors, such as fees, ease of use, support, and security, will help you make an informed decision on which broker aligns best with your investment objectives and personal preferences.

Key Takeaways

  • XM and AvaTrade are reputable brokers, offering a variety of trading features to cater to individual needs.
  • Comparing fees, platform ease of use, security, and more will help you select the best broker for your trading journey.
  • Educational resources and support services play a vital role in your overall trading experience and should not be overlooked.

Overview and Regulation

XM and AvaTrade are popular forex brokers with well-established regulatory compliance. In this section, you’ll learn about their regulatory guidelines, industry experience, and measures for ensuring trust and security for their clients.

Compliance and Trust

XM is regulated by multiple financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). These regulatory bodies ensure that XM adheres to the highest standards of transparency and integrity.

AvaTrade, on the other hand, is also under the supervision of several regulatory entities. These include the Central Bank of Ireland, the Australian Securities and Investments Commission (ASIC), the Financial Services Authority (FSA) in Japan, the Financial Sector Conduct Authority (FSCA) in South Africa, and the Dubai Financial Services Authority (DFSA). The range of regulatory oversight guarantees a high level of trustworthiness for AvaTrade.

Coverage and Experience

Both XM and AvaTrade have been in the forex brokerage industry for over a decade, with XM founded in 2009 and AvaTrade in 2006. Their experience is reflected through their reputations as reliable and secure brokers.

XM is well-known for its comprehensive trading services and strong industry presence. The broker provides access to a wide variety of trading instruments, including forex, stocks, commodities, indices, and cryptocurrencies.

AvaTrade also offers an extensive range of trading instruments, making it a suitable option for traders with varying preferences. In addition to forex, AvaTrade provides trading access to commodities, indices, stocks, cryptocurrencies, and more.

To conclude, in terms of regulatory compliance and industry experience, both XM and AvaTrade have established themselves as reputable brokers you can trust. Their adherence to global regulations and wide range of trading instruments give traders confidence in their security and service offerings.

Trading Features

Trading Platforms

  • Trading Platforms
  • No. of Trading Platforms
  • Proprietary Platform
  • Desktop Platform (Windows)
  • Web Platform
  • Social Trading / Copy Trading
  • MetaTrader 4 (MT4)
  • MetaTrader 5 (MT5)
  • cTrader
  • TradingView
  • DupliTrade
  • ZuluTrade
  • Review Link
  • No
  • No
  • Yes
  • Yes
  • No
  • Yes
  • Yes
  • Yes
  • Yes
  • No
  • No
  • No
  • Yes
  • Yes
  • No
  • Yes
  • Yes
  • Yes
  • Yes
  • No

Both XM and AvaTrade offer popular trading platforms for their clients. XM provides access to MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, allowing traders to manage forex, stocks, commodities, and other instruments. AvaTrade, on the other hand, offers its proprietary AvaTradeGo platform along with support for MT4 and MT5.

Both platforms provide support for various features like:

In addition, AvaTrade offers social trading options through DupliTrade and ZuluTrade, which enable traders to follow and copy the strategies of successful traders.

Account Types and Deposits

When it comes to account types, XM offers three main account types:

  1. Micro Account: Suitable for beginner traders as it requires a minimum deposit of just $5 and offers flexible leverage up to 1:500.
  2. Standard Account: Designed for more experienced traders with a minimum deposit of $5, access to more trading instruments, and leverage up to 1:200.
  3. XM Zero Account: Requires a higher minimum deposit of $100 but offers tight spreads and commissions as low as $3.5 per $100k traded, with leverage up to 1:200.

AvaTrade, on the other hand, offers two main account types:

  1. Standard Account: The minimum deposit for a standard account is $100, and the account provides access to a wide range of trading instruments, including forex, stocks, commodities, indices, and ETFs. The leverage offered on this account varies depending on the asset class but can go up to 1:400 for forex.
  2. Spread Betting Account: Exclusively available for UK and Ireland clients, this account allows tax-free trading of forex, indices, and commodities. A minimum deposit of £100 is required, and the leverage is up to 1:200.

Both brokers offer a range of deposit and withdrawal options, including bank transfers, credit/debit cards, and popular e-wallets like Skrill and Neteller. Keep in mind that your specific fees and options may vary depending on your region.

Educational and Support Services

Learning Materials

Both XM and AvaTrade offer a variety of educational resources to help you improve your trading skills. XM provides an extensive array of learning materials, including videos, podcasts, webinars, news, and market overviews. These resources cover topics such as trading for beginners, trading rules, and technical analysis indicators. On the other hand, AvaTrade’s educational content may not be as comprehensive as XM’s, but it still offers videos, trading for beginners, trading rules, and technical analysis indicators.

Customer Support

When it comes to customer support, both forex brokers excel in providing assistance to their clients. They offer multiple communication channels, such as phone, email, and live chat services. This ensures that you can easily reach their support teams whenever you need help or have any queries regarding your trading activities. In addition, both XM and AvaTrade offer mobile trading platforms, which allow you to access your account and manage your trades on the go, ensuring that you have access to support services even when you’re away from your computer.

In terms of additional services, XM has an edge over AvaTrade in research and trading tools, as well as a more complete offering for automated trading solutions. This allows you to benefit from a comprehensive trading platform that offers advanced features and resources to support your trading activities and help you make informed decisions.

In summary, both XM and AvaTrade provide valuable educational and support services to their clients, with XM having a slight advantage in terms of learning materials and additional tools. By choosing either broker, you can be confident that you will have access to useful resources, guidance, and support throughout your trading journey.

Financial Management

Deposits and Withdrawals

When it comes to depositing funds in your trading account, both XM and AvaTrade offer a variety of convenient methods. You can choose from bank transfers, credit/debit cards, and popular e-wallets such as Neteller, Skrill, and PayPal. The minimum deposit for both brokerages seems manageable at $100 for AvaTrade and a flexible amount dependent on the account type for XM, with their Micro account starting at just $5.

For withdrawals, you’ll find a similar range of options available, making it straightforward to access and manage your profits. It’s important to note that both brokers generally don’t charge withdrawal fees, although fees may still be incurred from your chosen payment method or financial institution.

Costs and Fees

In terms of costs and fees, XM and AvaTrade differ slightly concerning their pricing structures. XM primarily offers variable spread accounts, where the spread fluctuates depending on market conditions. On the other hand, AvaTrade provides fixed spread accounts, which may appeal to you if you prefer a consistent trading cost.

As for inactivity fees, both brokers charge them after a particular period of not trading. With AvaTrade, you can expect a quarterly inactivity fee of $50 after three months, while XM’s inactivity fee amounts to $5 per month after 90 days.

For Islamic account holders, both XM and AvaTrade offer swap-free accounts to comply with Sharia law. These accounts do not accrue interest on overnight positions, ensuring ethical trading conditions for observant Muslim traders.

Lastly, it’s essential to consider the costs associated with trading various financial instruments, such as metals, gold, energies, or cryptocurrencies. Depending on your trading preferences, you may find that one broker offers more competitive pricing than the other. Ensure to carefully review each platform’s trading conditions, and keep in mind the level of risk involved with each asset.

To summarise, both XM and AvaTrade offer a range of deposit and withdrawal options, with differing fee structures, account types, and trading conditions that can cater to a diverse range of clients. Remember to evaluate all relevant fees and trading costs before committing to either broker.

Frequently Asked Questions

What are the main differences in their trading platforms?

XM Group offers a trading platform with an overall score of 4.1/5, while AvaTrade has a slightly lower combined score of 3.5/5. The differences between their platforms may vary in terms of user interface, features, and available tools. It is essential to explore both platforms individually and see which one suits your trading style better.

How do XM and AvaTrade compare in fees and charges?

AvaTrade has a fee score of 3.7/5, while XM scores slightly higher with 4.4/5. The fees and charges may range from spreads to commissions, depending on the type of trading instrument you choose. It’s worth comparing the detailed fee structures of both brokers to determine which would be more economical for your specific trading strategies.

Which broker offers better customer support?

Both XM and AvaTrade provide customer support to assist traders with their needs. While exact ratings for their customer service departments may not be available, considering factors such as response time, availability of live chat, and helpfulness of support staff could help you gauge which broker would serve you better in terms of customer assistance.

What range of instruments can be traded on each platform?

Both XM and AvaTrade give traders access to various trading instruments, including Forex, CFDs, and other instruments. While the exact range may vary, it is crucial to explore the list of offerings from each broker to ensure they include the instruments you are interested in trading.

How do their account types differ?

XM requires a minimum deposit of $5, while AvaTrade’s minimum deposit requirement may vary. Account types could differ in terms of minimum deposits, leverage, spreads, or other fees. Evaluating each broker’s account offerings and their accompanying features will help you find an account type that suits your trading needs.

Are there any unique features that set them apart?

While both brokers have similarities in their offerings, there may be unique features provided by one that are not available with the other. Some of these features could include social trading, educational resources, or specific platform tools. It is advisable to research both XM and AvaTrade thoroughly to identify unique features that could enhance your trading experience.

author avatar image
Chad Smith

Chad Smith is the Director of Research & Analysis here at ForexBrokerListing.com. Chad previously served as an Editor for a number of websites related to finance and trading, where he authored a significant number of published articles about trading and the impact of technology in transforming investing as we know it. Overall, Chad is an active fintech and crypto industry researcher with more than 15 years of trading experience, and you can find him teaching his dog how to trade in his free time.

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