Which Broker Wins in the FBS vs XM Showdown for Forex Traders?
Choosing a reliable and suitable forex broker is one of the most important decisions for any forex trader. A forex broker acts as an intermediary between the trader and the market, providing trading platforms, tools, education, and support.
A forex broker also determines the trading costs, such as spreads, commissions, and fees, that affect the trader’s profitability.
In this article, we will compare two popular forex brokers: FBS and XM. FBS is a Belize-based broker that was founded in 2009 and has over 16 million clients worldwide. XM is a Cyprus-based broker that was established in 2009 and has over 3.5 million clients across 196 countries.
Both brokers are regulated by reputable authorities and offer a wide range of trading instruments, platforms, and services. However, they also have some significant differences that may appeal to different types of traders.
We will compare them based on the following criteria: regulation, trading costs, instruments, platforms, and customer service.
Which broker wins the FBS vs XM showdown for forex traders? Let’s find out.
Regulation
Regulation is one of the most important factors to consider when choosing a forex broker. Regulation ensures that the broker follows the rules and standards of the financial industry and protects the interests and rights of the traders. Regulation also provides a level of security and trust for the traders, as they can rely on the regulatory authority to intervene in case of any disputes or issues with the broker.
FBS and XM are both regulated by reputable authorities in different jurisdictions. FBS is regulated by the International Financial Services Commission (IFSC) of Belize, the Australian Securities and Investments Commission (ASIC) of Australia, and the Cyprus Securities and Exchange Commission (CySEC) of Cyprus.
XM is also regulated by the ASIC of Australia, the CySEC of Cyprus, and the Financial Conduct Authority (FCA) of the United Kingdom. Both brokers are also members of the Investor Compensation Fund (ICF), which covers up to 20,000 EUR per client in case of the broker’s insolvency.
Based on the regulation criterion, we can say that both FBS and XM are trustworthy and reliable brokers that comply with the high standards of the financial industry.
However, XM has a slight edge over FBS, as it is regulated by the FCA, which is one of the most respected and strict regulators in the world.
The FCA imposes rigorous rules and requirements on the brokers, such as maintaining a minimum capital of 730,000 EUR, segregating client funds from the broker’s own funds, and submitting regular reports and audits. The FCA also offers a Financial Services Compensation Scheme (FSCS), which covers up to 85,000 GBP per client in case of the broker’s insolvency. Therefore, XM may be a better choice for traders who value regulation and security above all else.
Trading Costs
Trading costs are another important factor to consider when choosing a forex broker. Trading costs include the fees, spreads, and commissions that the broker charges for each trade. Trading costs affect the profitability of the traders, as they reduce the net gains or increase the net losses of each trade. Therefore, traders should look for brokers that offer low and transparent trading costs.
FBS and XM both offer competitive and variable trading costs, depending on the account type and the trading instrument. FBS offers five account types: Cent, Micro, Standard, Zero Spread, and ECN.
XM offers four account types: Micro, Standard, Ultra Low, and Shares.
The table below summarizes the main features and costs of each account type for both brokers:
| Account Type | FBS | XM |
|---|---|---|
| Cent | Minimum deposit: $1 | N/A |
| Spreads: from 1 pip | ||
| Commissions: none | ||
| Micro | Minimum deposit: $5 | Minimum deposit: $5 |
| Spreads: from 3 pips | Spreads: from 1 pip | |
| Commissions: none | Commissions: none | |
| Standard | Minimum deposit: $100 | Minimum deposit: $5 |
| Spreads: from 0.5 pips | Spreads: from 1 pip | |
| Commissions: none | Commissions: none | |
| Zero Spread | Minimum deposit: $500 | N/A |
| Spreads: 0 pips | ||
| Commissions: from $20 per lot | ||
| ECN | Minimum deposit: $1000 | N/A |
| Spreads: from -1 pip | ||
| Commissions: from $6 per lot | ||
| Ultra Low | N/A | Minimum deposit: $50 |
| Spreads: from 0.6 pips | Commissions: none | |
| Shares | N/A | Minimum deposit: $10,000 |
| Spreads: from 0.1 pips | Commissions: from $0.04 per share |
Based on the trading costs criterion, we can say that both FBS and XM offer affordable and flexible trading costs for different types of traders. However, FBS has a slight edge over XM, as it offers lower minimum deposits, lower spreads, and more account options than XM. F
BS also offers a Cent account, which is ideal for beginners who want to trade with micro lots and minimal risk. FBS also offers a Zero Spread account, which is suitable for scalpers and high-volume traders who want to trade with zero spreads and fixed commissions.
Therefore, FBS may be a better choice for traders who value trading costs and account diversity above all else.
Trading Platforms
Trading platforms are the software or applications that allow traders to access the financial markets and execute their trades. Trading platforms are essential for traders, as they provide the tools and features that enable them to analyze the market, manage their orders, and monitor their performance. Therefore, traders should look for brokers that offer reliable, user-friendly, and advanced trading platforms.
FBS and XM both offer the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, which are widely used and trusted by millions of traders around the world. MT4 and MT5 are powerful and versatile platforms that support multiple languages, chart types, indicators, expert advisors, and trading robots.
MT4 and MT5 are also compatible with various devices, such as Windows, Mac, Android, and iOS. Both brokers also offer WebTrader, which is a web-based version of MT4 and MT5 that can be accessed from any browser without downloading or installing any software.
In addition to MT4 and MT5, FBS also offers FBS Trader, which is a proprietary mobile trading platform that is designed to provide a convenient and fast trading experience for traders on the go. FBS Trader allows traders to trade forex and other instruments with competitive spreads and ultra-fast order execution from 0.3 seconds.
FBS Trader also features a simple and intuitive interface, a built-in economic calendar, live market updates, and a loyalty program that rewards traders with cashback and other benefits.
Based on the trading platforms criterion, we can say that both FBS and XM offer excellent and reputable trading platforms that cater to the needs and preferences of different types of traders. However, FBS has a slight edge over XM, as it offers FBS Trader, which is a unique and innovative mobile trading platform that enhances the trading experience and convenience for traders who prefer to trade on their smartphones or tablets.
Therefore, FBS may be a better choice for traders who value trading platforms and mobility above all else.
Asset Selection
FBS and XM both offer various financial instruments, such as forex, commodities, stocks, indices, energies, CFDs, metals, and cryptocurrencies. However, XM has a broader asset selection, with more currency pairs, stocks, indices, and energies than FBS. FBS, on the other hand, has more cryptocurrencies than XM.
FBS offers five account types: Cent, Micro, Standard, Zero Spread, and ECN. XM offers four account types: Micro, Standard, XM Ultra-Low, and Shares. The main differences between the account types are in the spreads, commissions, leverage, and execution. For example,
FBS has a Zero Spread account with a $20 commission per lot, while XM has a XM Zero account with a $3.5 commission per lot. FBS also offers higher leverage (up to 1:3000) than XM (up to 1:888).
The account types also vary in the minimum deposit, lot size, and number of instruments. For example, FBS has a Cent account with a $1 minimum deposit, a 0.01 lot size, and 35 currency pairs.
XM has a Micro account with a $5 minimum deposit, a 0.01 lot size, and 57 currency pairs. Both brokers offer Islamic accounts for traders who follow the Sharia law and do not want to pay or receive interest. FBS also offers a VIP account for traders who deposit more than $10,000 and get exclusive benefits such as priority processing, personal manager, and VIP gifts.
| Criteria | FBS | XM |
|---|---|---|
| Number of account types | 5 | 4 |
| Spreads | From 0 pips | From 0 pips |
| Commissions | From $0 to $20 per lot | From $0 to $3.5 per lot |
| Leverage | Up to 1:3000 | Up to 1:888 |
| Minimum deposit | From $1 | From $5 |
| Lot size | From 0.01 | From 0.01 |
| Number of instruments | From 35 to 75 | From 57 to 1200 |
| Islamic accounts | Yes | Yes |
| VIP accounts | Yes | No |
| Platforms | MT4, MT5 | MT4, MT5, WebTrader, Mobile App |
FBS and XM have different advantages and disadvantages in terms of asset selection. FBS may be more suitable for traders who want to trade with low deposits, high leverage, and zero spreads.
XM may be more suitable for traders who want to trade with more instruments, lower commissions, and better execution. Both brokers use the MetaTrader 4 and MetaTrader 5 platforms, which are the most popular and user-friendly platforms in the forex industry
Customer Service
Customer service is the support and assistance that the broker provides to the traders before, during, and after their trading activities. Customer service is important for traders, as it helps them to resolve any issues or problems that they may encounter while trading, such as technical difficulties, account verification, deposit and withdrawal, etc. Therefore, traders should look for brokers that offer responsive, professional, and multilingual customer service.
FBS and XM both offer high-quality and comprehensive customer service, which includes various channels of communication, such as phone, email, live chat, and social media. Both brokers also offer customer service in multiple languages, such as English, Arabic, Chinese, Spanish, etc. Both brokers also provide educational and informational resources, such as articles, videos, webinars, seminars, etc., to help traders improve their trading skills and knowledge.
However, FBS has a slight edge over XM, as it offers customer service 24 hours a day, 7 days a week1, while XM offers customer service only 24/5. FBS also offers customer service in more languages than XM, such as Indonesian, Malay, Thai, Vietnamese, etc. FBS also offers more convenient payment methods for traders in Indonesia, such as local bank transfers, e-wallets, etc.
Based on the customer service criterion, we can say that both FBS and XM offer excellent and reliable customer service that meets the expectations and needs of different types of traders.
However, FBS has a slight edge over XM, as it offers more availability, diversity, and convenience in its customer service than XM. Therefore, FBS may be a better choice for traders who value customer service and accessibility above all else.
Trading Conditions
Trading conditions are the terms and features that the broker offers to the traders for their trading activities, such as spreads, commissions, leverage, execution, etc. Trading conditions are important for traders, as they affect the profitability and efficiency of their trades. Therefore, traders should look for brokers that offer competitive and favorable trading conditions.
FBS and XM both offer various account types designed to meet the needs and preferences of different types of traders, such as Cent, Micro, Standard, Zero Spread, ECN, and Crypto accounts.
Both brokers also offer demo accounts for beginners who want to practice and learn trading without risking real money. Both brokers also offer a wide range of trading instruments, such as forex, metals, indices, energies, stocks, etc.
However, FBS has a slight edge over XM, as it offers lower spreads and commissions than XM on some account types and instruments.
For example, FBS offers spreads starting from 0.5 pips for volatile forex pairs, such as EURUSD, XAUUSD, GBPUSD, USDJPY, and AUDUSD, while XM offers spreads starting from 0.6 pips for the same pairs.
FBS also offers zero commission on its Zero Spread account, while XM charges $3.5 per lot per side on its Zero account. FBS also offers higher leverage than XM on some account types and instruments.
For example, FBS offers leverage up to 1:3000 on its Cent and Standard accounts, while XM offers leverage up to 1:888 on its Micro and Standard accounts.
Based on the trading conditions criterion, we can say that both FBS and XM offer various and flexible trading conditions that cater to the needs and preferences of different types of traders. However, FBS has a slight edge over XM, as it offers lower costs and higher leverage than XM on some account types and instruments. Therefore, FBS may be a better choice for traders who value trading conditions and profitability above all else.
Conclusion
FBS and XM are both reputable and reliable forex brokers that offer various features and advantages for traders. However, they have different strengths and weaknesses that may suit different preferences and needs.
In our opinion, XM wins the showdown in terms of market coverage, regulation, and asset selection. XM has a wider and more diverse client base, more licenses and credibility, and more instruments and options than FBS.
However, FBS is not far behind, as it has a low minimum deposit, high leverage, and zero spread account that may appeal to some traders.
Alternatives and Recommendations
For traders who are looking for other options, there are some alternatives and recommendations that we can suggest. One of them is OctaFX (read OCTAFX review), which is a forex broker that has a local office and website. OctaFX also accepts deposits and withdrawals via bank transfers, e-wallets, and cryptocurrencies. OctaFX offers three account types: Micro, Pro, and ECN. OctaFX has low spreads, no commissions, and high leverage.
OctaFX also has a good reputation and regulation, as it is licensed by the CySEC and the Financial Services Authority (FSA) of Saint Vincent and the Grenadines.
Another option is Exness (read Exness review), which is a forex broker that has a dedicated website for clients. Exness also supports various payment methods, such as bank wires, cards, e-wallets, and local bank transfers. Exness offers four account types: Standard, Standard Cent, Pro, and Raw Spread. Exness has low spreads, low commissions, and high leverage.
Exness also has a high level of regulation and protection, as it is licensed by the FCA, the CySEC, the FSA, and the Financial Sector Conduct Authority (FSCA) of South Africa. Exness also offers a compensation scheme of up to €20,000 per client in case of insolvency.
We hope that this article has helped you to compare FBS and XM and to find the best forex broker for your trading needs. Remember to always do your own research and analysis before choosing a broker and opening an account.
Happy trading! ????
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