AvaTrade vs XM 2026: Which Broker is Better?

Regulation & Safety

AvaTrade, established in 2006 and headquartered in Dublin, Ireland, is regulated by a comprehensive array of authorities, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Monetary Authority of Singapore (MAS). This extensive regulation across six jurisdictions ensures a high level of safety and security for traders. AvaTrade also offers fund protection schemes, adhering to stringent regulatory requirements, which include client fund segregation and negative balance protection.

On the other hand, XM, founded in 2009 and based in Limassol, Cyprus, holds licences from reputable entities such as the Cyprus Securities and Exchange Commission (CySEC), ASIC, and FCA. XM also provides negative balance protection and segregates client funds to ensure enhanced security. While both brokers are well-regulated, AvaTrade offers a slightly wider coverage in terms of jurisdictions, which could be a deciding factor for risk-averse traders.

Fees & Spreads

AvaTrade offers spreads starting from 0.9 pips, with no commissions charged on most trading accounts, making it an attractive option for traders seeking a simple cost structure. However, it is worth noting that AvaTrade imposes an inactivity fee of $50 after three months of dormancy. The minimum deposit required is $100, and the maximum leverage offered is 1:400. While their spreads are wider compared to ECN brokers, the lack of commission balances this out for many traders.

Conversely, XM provides spreads starting from 0.6 pips, with no commission charges, which can be a significant advantage for cost-conscious traders. XM stands out with its remarkably low minimum deposit of just $5, making it easily accessible for beginners. Additionally, XM does not charge any deposit or withdrawal fees, and it offers a maximum leverage of 1:1000. However, XM’s standard account spreads can be wider, which might affect frequent traders.

Trading Platforms

Both AvaTrade and XM offer robust trading platforms, including MetaTrader 4 (MT4) and MetaTrader 5 (MT5), alongside their proprietary mobile apps. AvaTrade provides additional features such as copy trading via ZuluTrade and DupliTrade, which could be beneficial for traders looking to mimic successful strategies. XM’s platforms are noted for their strong educational resources, which might appeal to beginners seeking to improve their trading skills. Both brokers deliver competitive platform offerings, though AvaTrade's additional copy trading options provide added flexibility.

Who Should Choose AvaTrade?

• Traders seeking multi-regulatory protection and safety.
• Investors interested in copy trading via ZuluTrade or DupliTrade.
• Traders preferring a no-commission trading model.
• Individuals looking for diverse market exposure including crypto CFDs.

Who Should Choose XM?

• Beginners benefiting from a low minimum deposit requirement.
• Traders who appreciate no deposit or withdrawal fees.
• Investors interested in high leverage options up to 1:1000.
• Individuals seeking comprehensive educational resources.

Our Verdict

For beginners, XM is the winner due to its very low minimum deposit and strong educational offerings. Professional traders might prefer AvaTrade for its comprehensive regulatory environment and copy trading capabilities. On fees, XM takes the lead with tighter spreads and no deposit or withdrawal fees.