Compare Forex Brokers side by side

How do AvaTrade and XM stack up against each other?

The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.

At FxScouts, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.

To compare AvaTrade and XM, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.

Does AvaTrade or XM have a better trust and regulation rating?

Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.

In our comparison, we found that AvaTrade holds two Tier 1 and three Tier 2 licences, and XM holds one Tier 1 and two Tier 2 licences.

 

Is AvaTrade financially regulated?

Yes AvaTrade was founded in 2006 and is regulated by ASIC, CBI, CySEC, FRSA, FSA-Japan and FSCA.

 

Is XM financially regulated?

Yes XM was founded in 2009 and is regulated by ASIC, CySEC, DFSA, FSCA and FSC.

 

Based on these findings, 0 earned a higher trust rating than 0.

Does AvaTrade or XM have lower costs?

Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged. 

Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that XM has overall lower trading costs than AvaTrade. 

 

Does AvaTrade or XM offer a better choice of trading platforms?

Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms. 

In this case, 0 offers support for and 0 offers support for . 

Do the brokers offer copy trading?

In this case both AvaTrade and XM offer copy trading.

 

Which broker offers a better choice of trading instruments?

A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that XM offers a greater range and depth of instruments to trade than AvaTrade. XM offers 57 Forex pairs to trade and AvaTrade offers 55 Forex pairs to trade.

And what about Cryptocurrencies?

In this case, XM offers 60 cryptocurrencies while AvaTrade offers 20 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with XM.

Which broker offers better deposit and withdrawal processes?

Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals. 

We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that neither AvaTrade nor XM charges a withdrawal fee. Overall, 0 has better deposit and withdrawal processes than 0. 

Which broker offers better educational support?

We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas. 

AvaTrade and XM both have very good educational support. Both AvaTrade and XM offer educational support for more experienced traders.

 

Which broker offers better market analysis materials?

To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field. 

We found that 0 offers better research analysis than 0 and that both AvaTrade and XM offer frequent webinars.

 

Our overall Verdict on AvaTrade

Considered one of the best all-round brokers, Avatrade will be an attractive choice for most traders. In our review, we found that Avatrade has a wide range of tradable assets, low trading fees, and a choice of four different trading platforms. In addition, Avatrade offers some of the best trading tools in the industry, alongside a world-class selection of educational and market analysis materials, providing traders with everything they need to make trading decisions.

Avatrade is also popular for its award-winning mobile app, AvatradeGO, which has excellent risk management tools and a direct connection to AvaSocial, AvaTrade’s popular social trading system.

Malaysian traders may have an issue with Avatrade: because they are onboarded through Avatrade’s British Virgin Islands-based entity, they will have no recourse in the event of a dispute with the company. Additionally, none of the website materials are translated into Malay.

Our overall Verdict on XM

A popular global broker with a large customer base and a good reputation, XM is a good option for most Malaysian traders. It has some of the lowest fees in the industry, provides excellent research and education, and has a beginner-friendly trading app. It also has an outstanding range of trading tools and offers traders generous bonuses and incentives. Malaysian traders will also be pleased to note that XM offers Islamic swap-free accounts.

XM offers four trading accounts, three of which have a minimum deposit of 5 USD and have no commissions for Forex trading. The highlight is the commission-free Ultra Low Account with spreads that start at 0.6 pips (EUR/USD).

The main drawback is that XM’s Malaysian clients will be trading through XM’s company in Belize, which has poor regulatory oversight. However, Malaysian traders still have negative balance protection and can rest assured that their funds are kept in segregated accounts.

 

Which broker has the highest overall rating?

AvaTrade has an overall rating of 4.49 and XM has an overall rating of 4.35. For more detail please read our reviews of AvaTrade and XM.