Welcome to our article titled Plus500 vs XM: An Overview. If you are looking for reliable and regulated online trading brokers, you have probably come across these two names. Plus500 and XM are two well-known trading platforms that offer access to global markets and a wide range of trading instruments. In this article, we will compare the history, trading platforms, instruments and markets, account types and fees, regulation and security, customer support, and education of Plus500 and XM. By the end of this article, you will have a better understanding of which trading platform might be the best fit for your investment needs. Let’s get started!
History and Overview of Plus500
Established in 2008, Plus500 has become a well-known online trading platform. With a headquarters in Israel, the firm is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC). Offering a user-friendly interface and a straightforward trading system, Plus500 enables investors to take part in Contracts for Difference (CFDs) across a broad selection of markets, including forex, commodities, indices, and cryptocurrencies. Its innovative features and competitive prices have won the platform numerous awards, making it a favorite among both experienced and novice traders.
In contrast, XM Group was founded a year later in 2009 with its headquarters in Cyprus. Boasting a similar regulatory framework, this trading platform has established a worldwide presence with offices in the UK, Australia, Singapore, and Israel, while providing support for over 40 languages. XM Group offers a wide range of trading instruments, including forex, commodities, indices, and cryptocurrencies. Additionally, the firm has earned a reputation for its outstanding customer support and educational resources, making it an attractive option for those just starting to explore the world of online trading.
Plus500 has a noteworthy history and track record, having become a public company on the London Stock Exchange in 2013 and enjoying a net profit of $354.5 million in 2020. Furthermore, the platform has extended its product range to include shares and Exchange Traded Funds (ETFs). Alongside a strong financial position, Plus500’s user-friendly interface and competitive prices continue to make it a global favorite.
When selecting between Plus500 and XM Group, it is important to consider the differences between the two platforms. From the trading platforms to account types, fees, and regulation, both offer unique features and advantages that should be carefully evaluated. XM Group, for example, has a well-deserved reputation for providing excellent customer support and educational resources, making it an ideal choice for those new to online trading.
History and Overview of XM
XM is a widely acclaimed online trading platform that was founded in 2009 and is based in Cyprus. Since its establishment, XM has amassed over 3.5 million registered clients from more than 196 countries. It offers a broad array of trading instruments, including foreign exchange, stocks, commodities, and cryptocurrencies. XM is also renowned for its competitive spreads, which are variable and start from as little as 0 pips.
The platform is regulated by various governing bodies, such as the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC). XM provides various account types, including a demo account that enables clients to experience the platform before investing real funds. Additionally, it furnishes customers with a plethora of educational resources, like webinars, video tutorials, and market analysis, to help them make informed decisions when trading. With its worldwide presence and comprehensive range of features, XM is a popular choice for both new and experienced traders.
Differences in Trading Platforms
When it comes to selecting an online trading platform, traders need to consider the differences between the options. In this article, we are examining the contrasting platforms of Plus500 and XM.
The availability of mobile apps is one of the most important factors to consider. Plus500 offers apps for both iOS and Android, while XM only offers an app for iOS. Additionally, while both provide web-based trading, the mobile app offers more flexibility and convenience.
In terms of trading instruments, Plus500 offers a wide range of CFDs across stocks, indices, commodities, and currencies. XM, on the other hand, offers CFDs on forex, stocks, indices, metals, and energy. Plus500 also provides a demo account to practice trading without risking real money, however, XM’s is limited to 30 days.
Finally, a major distinction between the two platforms is their leverage. Plus500 provides a leverage of up to 1:30 for retail traders, whereas XM offers up to 1:888. Therefore, it is important for traders to consider their risk tolerance before deciding between Plus500 vs XM.
Trading Instruments and Markets
When it comes to investing, Plus500 and XM offer a variety of options. Plus500 provides access to over 2,000 financial products, covering Forex, indices, commodities, cryptocurrencies, shares, and options. XM, on the other hand, offers a more extensive range of trading instruments, with over 1,000 instruments, including Forex, indices, precious metals, commodities, energies, and stocks. Both platforms offer leverage and margin trading, allowing traders to maximize their gains.
A key distinction between Plus500 and XM is the markets they provide. Plus500 provides access to worldwide markets, including Asia, Europe, and North America. Meanwhile, XM gives access to global markets, including Asia, Europe, Africa, and the Middle East. Plus500 provides a more extensive selection of markets, including emerging markets such as China, which is unavailable on XM. However, XM offers more Forex pairs, including exotic pairs that are not offered on Plus500.
It is essential to note that both Plus500 and XM offer trading instruments and markets that suit different trading styles and preferences. Plus500 focuses on CFD trading, while XM brings a more traditional approach to trading. Plus500’s platform is more user-friendly, making it ideal for novice traders, while XM offers a more comprehensive trading experience that is suitable for experienced traders. Ultimately, both platforms offer a wide selection of trading instruments and markets, allowing traders to diversify their portfolios and maximize their gains.
Account Types and Fees
When it comes to account types and costs, Plus500 and XM have different offers for their customers. Plus500 has one type of account, while XM provides three options: Micro, Standard, and XM Zero. Both the Micro and Standard accounts feature no commissions and offer variable spreads, whereas the XM Zero has tighter spreads but carries a fee. Plus500 offers fixed spreads, but there are no commissions. Moreover, each platform offers a demo account to allow users to practice their strategies without the risk of losing real money. In addition, Plus500 has a welcome bonus, while XM has a loyalty program to reward long-term traders. Ultimately, these account types and costs are tailored to different types of traders and their trading preferences.
Spread betting is another factor to consider when looking at account types and fees. Plus500 provides this feature on some instruments, while XM does not. Spread betting allows users to speculate on the price movements of financial instruments without owning the underlying asset, which can be a useful tool for traders seeking to capitalize on short-term market fluctuations. Plus500’s spread betting feature is included in the fixed spreads, without any extra charges. However, it is important to keep in mind that spread betting comes with a higher level of risk than traditional trading methods and may not be suitable for all traders. In conclusion, the account types and fees of each platform are designed to meet the needs of different types of traders and their trading goals.
Regulation and Security
Regulation and safety are two major aspects to consider when selecting an online trading platform. Plus500 and XM are both monitored by top-tier financial authorities such as the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC). This guarantees that the brokers adhere to strict rules and apply best practices, which offers peace of mind to traders. Additionally, both platforms make use of SSL encryption to protect customers’ private and financial data.
When it comes to account security, Plus500 and XM provide distinct features to ensure the security of their customers’ funds. Plus500 uses segregated accounts to isolate customers’ money from the company’s operational funds. This implies that in the event of insolvency, customers’ funds are safeguarded and can be returned to them. In contrast, XM offers negative balance protection, providing traders with the assurance that they can’t lose more than their account balance. This is a helpful feature for beginners or those who take high risks.
Another significant factor to take into account is the minimum deposit required to open an account. Plus500 requires a minimum deposit of $100, while XM has a minimum deposit of $5. This implies that XM is more accessible to traders with limited funds. However, it’s worth noting that Plus500 provides a demo account with virtual funds, which can be a valuable tool for beginners to practice trading strategies before investing real money.
In conclusion, both Plus500 and XM prioritize regulation and security to provide a secure and reliable trading environment for their customers. Although they present different features, such as segregated accounts and negative balance protection, they both abide by top-tier financial regulations and use SSL encryption to protect customers’ information. Traders can select the platform that best suits their needs based on factors such as minimum deposit, account security, and accessibility.
Customer Support and Education
When selecting an online trading platform, it is essential to consider the quality of customer support and education. Plus500 and XM both furnish a range of resources to assist traders, such as video tutorials, e-books, and customer service hotlines. However, there are distinctions in the level of guidance provided by each platform. Plus500 provides around-the-clock help in multiple languages, while XM furnishes comparable service during market hours. On top of that, Plus500 offers a detailed FAQ section on their website, which may be invaluable for traders who prefer to discover answers on their own.
Education is also a critical aspect of successful trading. Plus500 and XM both offer instructional materials for traders, which include webinars, video tutorials, and e-books. Plus500’s educational materials are more concentrated on the mechanics of trading, while XM’s materials are more comprehensive, covering different topics from beginner to advanced. Both platforms offer demonstration accounts, which enable traders to practice trading with virtual funds before investing real money. This can be a useful tool for novice traders who want to gain experience without risking their own funds.
Another significant point to ponder when contrasting Plus500 and XM is the range of account types and fees. Both platforms provide a range of account types to suit different trading styles and levels of experience. Plus500 charges no commission on trades, but rather makes money through the spread. XM charges a small commission on trades, yet offers lower spreads. Traders should carefully consider these factors when choosing a platform, as accounts lose money in different ways depending on the fees and spreads charged.
Lastly, regulation and security are key factors to consider when choosing an online trading platform. Both Plus500 and XM are regulated by reputable authorities, which provides a level of security for traders. Plus500 is regulated by the Financial Conduct Authority (FCA) in the UK, while XM is regulated by multiple authorities including the FCA and the Australian Securities and Investments Commission (ASIC). Additionally, both platforms employ advanced encryption technology to protect traders’ personal and financial information. Before opening an account, traders must make sure that the platform they choose is properly regulated and secure.
Conclusion
After a thorough comparison between Plus500 and XM, it is clear that both online trading brokers have their strengths and weaknesses. Plus500 is known for its user-friendly platform and access to a wide range of global markets, while XM offers a comprehensive range of account types and educational resources for traders. However, it is important to note that retail CFD trading carries a high level of risk and may not be suitable for all investors. Traders should always conduct their own research and carefully consider the risks involved before making any investment decisions. Ultimately, the choice between Plus500 and XM will depend on individual trading preferences and priorities.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Trade Responsibly: Derivative products are highly leveraged, carry a high level of risk and are not suitable for all investors.
