Comparing two brokers is seldom an easy task. In this article, we will compare IC Markets vs XM two forex brokers in terms of security, fees, investment options, etc. When searching for a broker with narrow spreads on prominent products like the EUR/USD, XM Group is perhaps a better choice. For investors who If you prefer ECN execution, though, IC Markets would be a better choice. IC Markets is an ECN broker that offers MetaTrader 4, MetaTrader 5, and cTrader trading platforms. On MetaTrader 4 and MetaTrader 5, XM offers a variety of account options, including a cents account, and can provide additional markets on MetaTrader 5.
IC Markets vs XM – Security
The XM Group isn’t publicly listed and does not run a bank. Two top-tier authorities (high trust), one tier-2 authority (medium trust), and one tier-3 authority have approved XM Group. The broker is licensed by ASIC (Australian Securities and Investment Commission) and the FCA (Financial Conduct Authority) under its main company’s subsidiary brand Trading.com.
IC Markets isn’t a publicly listed company, and it doesn’t run a bank. One top-tier authority (high trust), one tier-2 authority (medium trust), and one tier-3 authority have all given their approval to IC Markets. The mentioned tier-1 authorities have approved IC Markets: ASIC (Australian Securities & Investment Commission).
IC Markets vs XM – Investment Options
Aside from currency pairings, forex firms are well-known for offering different trading tools. The offer allows traders to expand their investment portfolios by allowing them to investigate various marketplaces that may be profitable to them.
In this scenario, IC Markets allows traders to trade Forex, CFDs, Bonds, and Cryptos, whereas XM allows traders to trade Forex, Gold, Silver, CFDs, Oil, and Cryptos.
Both brokers provide forex trading for users wanting to trade currency pairings. Having 60 currency pairings to choose from, IC Markets has a somewhat greater selection than XM Group, which only offers 55. In addition, if users want to trade cryptos, IC Markets has a number of cryptocurrency CFDs to choose from, like Bitcoin, Ethereum, & Ripple.
IC Markets additionally offers copy trading, that allows users to watch the actions of other traders, participate in discussions, and even duplicate their moves.
Finally, determining which broker is the best boils down to personal preference. Regarding frequent traders, they should look for a broker who offers a flexible spread rather than a set spread. MT4 is the industry standard trading platform for all traders. Traders must pick a broker that offers alternative platforms if they want a different feeling with a more complex platform. The same is true for investment options; if they want to experiment with new markets, they can look for a broker who offers more investment possibilities.
The list below outlines the available investment options:
| Feature | IC Markets | XM Group |
|---|---|---|
| Forex Trading | Ye | Ye |
| CFD Trading | Ye | Ye |
| Tradeable Symbols (Total) | 3583 | 1372 |
| Forex Pairs (Total) | 61 | 57 |
| US Stock Trading (Non CFD) | N | Ye |
| Int’l Stock Trading (Non CFD) | N | Ye |
| Cryptocurrency (Physical) | N | N |
| Cryptocurrency (CFD) | Ye | No |
| Social Trading / Copy-Trading | Ye | Ye |
IC Markets vs XM – Fees
Comparing the two brokers’ fee arrangements may be a maze sometimes. The most crucial element to think about is the spreads and costs on the products and account types users will be choosing.XM Group takes 0.10 points while trading EUR/USD, whereas IC Markets gets 0.00 points. As a result, IC Markets is the more cost-effective option for this instrument.
A further factor to consider is if the broker imposes inactivity fees, deposit/withdrawal fees, or trading commissions. Inactivity fees are rarely a problem if users trade frequently. Since spreads are a trading expense, the smaller the spread, the better for users. Spread data amongst brokers, on the other hand, is difficult to get by because not every broker provides their spreads data publicly.
Traders may still pick their preferred brokers based on the sort of spreads they provide. Set (fixed) and variable spreads are the two most common forms of spreads. For each trader, the advantages and disadvantages of the two spreads may differ. In this situation, IC Markets uses Variable spread pricing, whereas XM uses Variable spread.
Platforms
If someone is trading forex, they’re probably looking for a broker that supports the famous MetaTrader 4 trading platform. If this is the case, XM Group & IC Markets both provide this service. They also provide the MetaTrader 5 platform, which has been updated.
Because users can’t execute a deal without it, the trading platform is vital. Trading platforms also feature price charts and a variety of analysis tools to aid traders in their strategy development.
IC Markets offers MT4, MT5, cTrader, webIRESS, and ProDeal trading platforms to their users. XM, on the other hand, offers MT4 and MT5 trading platforms, as well as mobile trading, trailing stop, and pending orders.
| Feature | IC Markets | XM Group |
|---|---|---|
| Proprietary Platform | N | N |
| Desktop Platform (Windows) | Ye | Ye |
| Web Platform | Ye | Ye |
| Social Trading / Copy-Trading | Ye | Ye |
| MetaTrader 4 (MT4) | Ye | Ye |
| MetaTrader 5 (MT5) | Ye | Ye |
| cTrader | Ye | N |
| DupliTrade | N | N |
| ZuluTrade | Ye | N |
Account Types
IC Markets has a minimum deposit of $200, whereas XM requires a minimum deposit of $5. Swap-Free (Islamic) accounts are available from both brokers.
Standard, Raw Spread, Swap Free, as well as cTrader Raw accounts are available from IC Markets. On its webpage, IC Markets offers market research, Web TV (video market discussion and trade tips), instructional materials and instructional videos, and an economic calendar. Regarding social trading, IC Markets offers ZuluTrade & Myfxbook. IC Markets offers micro (0.01) lot trading and employs Equinix NY4 and London LD5 systems to provide low latency trading conditions.
The Standard account at IC Markets doesn’t require a commission, however, the Raw Spread & cTrader Raw accounts do. Trading strategies such as scalping, hedging, and automatic trading are all permitted.
Rather than the Zero account, XM provides the Ultra-Low account. Micro, Standard, and Ultra-Low accounts, as well as a Shares account, are all IFSC authorized at XM. The Ultra-Low account has a $50 minimum investment requirement. The Shares account has a $10,000 minimum deposit requirement.
An economic calendar, a private account supervisor, video lessons, regular technical analysis, Fx market analysis, daily Forex indicators, trading instruments, market outlook, and webinars are all available through XM. EAs, hedging, and scalping are all accessible with XM.
Conclusion
Although there is no such thing as a flawless broker, some will be a better fit for some people than others.
Judging by these criteria, IC Markets is objectively more dependable. The XM Group offers a larger selection of trading products. IC Markets has smaller spreads on major forex products such as the EUR/USD and is used by a larger number of traders.
Both of them have demo accounts so investors can try out their systems to discover which one is best for them.
See also: Which One Is Better: Forex vs. Crypto
