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eToro vs XM
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Compare eToro vs XM Side by Side
Can’t decide between eToro and XM and have doubts of which broker is actually suitable for your trading needs? Use our detailed comparison guide of eToro Review and XM Review, which includes a comparison of the safety and licenses, trading conditions with fees, trading platforms, instruments, deposit & withdrawal conditions, and all the essential details compared side by side.
Summary
| Feature | eToro | XM |
|---|---|---|
| Website | //www.etoro.com | //xm.com |
| Founded year | 2006 | 2009 |
| Headquarter | Israel | Cyprus, Australia, Belize |
| Licenses | UK, Australia, Cyprus, Seychelles | Cyprus, Australia, Belize, UAE |
| Minimum Deposit | 50 US$ | 5 US$ |
| Trading Platforms | eToro platform | MT4, MT5, XM WebTrader |
| Eurusd avg Spread | 0.97 pip | 1.6 pips |
Licenses
| Feature | eToro | XM |
|---|---|---|
| Licenses Countries Info (short) |
|
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Both eToro and XM are highly regarded brokers, governed by established financial regulatory bodies. They hold multiple top-tier licenses and maintain offshore entities to provide global services. Notably, eToro holds an advantage with its FCA UK license, renowned for its stringent regulations, and is eligible to offer services in the US.
Broker Types
| Feature | eToro | XM |
|---|---|---|
| Broker types |
|
|
eToro operates as a market maker broker, which facilitates trading by acting as the counterparty to its clients’ trades and is known for its unique social trading platform. On the other hand, XM follows the ECN/STP models, providing direct access to liquidity providers without acting as a counterparty, typically resulting in fast execution and competitive spreads.
Trading Conditions
| Feature | eToro | XM |
|---|---|---|
| Trading Conditions |
|
|
Both eToro vs XM trading conditions. Both brokers provide a choice between fixed and variable spreads, and notably, eToro does not charge any commissions. Both brokers support a range of trading strategies, including hedging and social trading. However, eToro places restrictions on scalping, so traders who favor this strategy may find XM to be a more suitable option.
Fees & Commissions
| Fees & Commissions | eToro | XM |
|---|---|---|
| Inactivity Feemonth | $10 | 15 $ |
| Deposit fee | 0$ | 0 $ |
| Withdrawal fee | 5$ | 0 $ |
| Rollover fee eurusd buy 1 lot | -0.00008269 | -0.083 |
| Rollover fee eurusd sell 1 lot | 0.00001841 | -0.543 |
| Avg Eurusd standard acc | 0.97 pip | 1.6 pips |
| Gold | 4.5 | 35 |
| Brent oil | 5 | 5 pips |
| Bitcoin | 102.71 | 60 |
Both brokers do have non-trading fees, with XM charging solely an inactivity fee of $15, whereas eToro imposes a $10 inactivity fee and a $5 withdrawal fee. It’s worth noting that eToro boasts lower spreads compared to XM, with XM’s spreads for EUR/USD exceeding the industry average of 1.2 pips. These fee and spread differences should be taken into account when considering your trading costs and preferences.
Account Types
| Feature | eToro | XM |
|---|---|---|
| Account types |
|
|
eToro classifies its account types according to traders’ experience levels and caters to both retail and corporate requirements. In contrast, XM provides a diverse range of trading accounts tailored to accommodate various trading preferences and needs. Additionally, both brokers offer Islamic accounts for traders who adhere to Sharia Law principles.
Markets & Instruments
| Markets & Instruments | eToro | XM |
|---|---|---|
| Forex | 52 | 55 |
| Indices | 21 | 28 |
| Commodities | 32 | 15 |
| Cryptocurrencies | 74 | 60 |
| Shares | 3203 | 600 |
| Bonds | ❌ | ❌ |
| Options | ❌ | ❌ |
| Binary options | ❌ | ❌ |
| Spread betting | ❌ | ❌ |
| Treasuries | ❌ | ❌ |
| Futures | ❌ | ❌ |
| Etfs | 325 | ❌ |
The selection of trading instruments provided by both eToro and XM is diverse and notably similar. However, eToro offers a broader range of assets, with a particular emphasis on cryptocurrencies, making it stand out as the preferred choice for traders seeking a more extensive variety of trading options.
Trading Platforms
| Feature | eToro | XM |
|---|---|---|
| Platforms |
|
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The platform range of XM is larger offering industry-standard MT4 and MT5 as well as WebTrader, while eToro offers only its proprietary platform which is more catered to beginners and is not that sophisticated. We recommend that advanced traders consider XM as their preferred trading platform.
Deposit & Withdrawal Methods
| Feature | eToro | XM |
|---|---|---|
| Payment methods |
|
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Both eToro and XM provide numerous funding options, including credit/debit cards and various e-wallets. Nevertheless, eToro stands out by offering a more extensive array of e-payment methods.
Others
| Feature | eToro | XM |
|---|---|---|
| Others |
|
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Both eToro vs XM brokers excel in delivering excellent customer support via telephone, live chat, and email, albeit with availability limited to business days. In terms of educational resources, our evaluation highlights XM’s superior offering, featuring educational materials catering to traders of all experience levels. Conversely, eToro’s educational content primarily targets novice traders. Additionally, XM’s research tools are known for their advanced and sophisticated features.
Conclusion on XM vs eToro
In summary, both eToro and XM are reputable and globally regulated brokers. XM is a versatile choice suitable for traders of all experience levels, offering sophisticated tools, diverse trading accounts, and scalping capabilities, all within a fee structure that excludes non-trading commissions. On the other hand, eToro stands out with its broad array of instruments, especially appealing to cryptocurrency traders and competitive spreads. Your selection should align with your specific trading needs and expertise level. Here is our final recommendation:
- eToro – 🥇Best Broker for Social trading for a number of top traders and Best Industry Social Trading Broker
- XM –
Best Best Micro Account Broker for Beginners for bringing opportunity to trade with lower margin and investment.
