City Index vs XM 2026: Which Broker is Better?

Regulation & Safety

City Index, established in 1983 and headquartered in London, UK, is a highly regulated broker. It holds licences from several top-tier regulatory bodies, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Monetary Authority of Singapore (MAS). These regulations ensure robust client fund protection schemes, including segregated accounts and investor compensation schemes, providing a high level of safety for traders.

In contrast, XM, founded in 2009 and based in Limassol, Cyprus, is regulated by the Cyprus Securities and Exchange Commission (CySEC), ASIC, and the FCA. XM is known for its stringent adherence to regulatory standards and offers negative balance protection, which adds a layer of security for retail clients. However, the investor compensation scheme under CySEC is limited compared to the FCA’s Financial Services Compensation Scheme (FSCS).

Fees & Spreads

City Index offers competitive pricing with spreads starting from 0.5 pips on forex pairs, making it an attractive option for traders focused on cost efficiency. The broker charges no commissions on trades and maintains a zero minimum deposit requirement, which is particularly appealing for new traders. However, an inactivity fee applies, which could affect those who trade infrequently.

XM has slightly wider spreads, beginning at 0.6 pips for standard accounts, but compensates with no deposit or withdrawal fees and a very low minimum deposit of $5. This makes XM accessible to traders with limited initial capital. XM also does not impose commissions, but its wider spreads might be less favourable for high-frequency traders seeking the lowest trading costs.

Trading Platforms

City Index provides a proprietary web and mobile platform alongside the popular MetaTrader 4 (MT4), offering a solid mix of customisation and advanced trading tools. However, the platform may appear less modern compared to newer rivals. XM supports both MT4 and MetaTrader 5 (MT5), in addition to its proprietary mobile platform, providing flexibility and a comprehensive suite of analytical tools, although it lacks TradingView integration.

Who Should Choose City Index?

• Traders who prefer a broker with an extensive market history and robust regulatory oversight.
• Investors interested in accessing a wide range of markets (13,500+) with no minimum deposit.
• Individuals seeking strong research tools, particularly those powered by Refinitiv.
• Traders looking for a broker that is part of a large, publicly listed company (StoneX Group).

Who Should Choose XM?

• New traders or those with limited capital, due to the $5 minimum deposit.
• Traders who value educational resources and utilise them to enhance trading skills.
• Investors who require negative balance protection for added account security.
• Forex traders looking for high leverage options up to 1:1000.

Our Verdict

For beginners, XM is the better choice due to its low minimum deposit and strong educational resources. Professional traders might prefer City Index for its lower spreads and extensive market range. On fees, City Index edges ahead with tighter spreads and no commissions.