If you are looking for a way to make money while you are at home, trading is a good option. This money-making system is easy to adapt to if you know what you are doing. You also need enough knowledge so you can trade well and make more wins than losses. To be able to start trading, you need a broker that can assist you with your needs. A broker, who usually has an online trading platform, allows you to use a system where you can easily enter the stock or forex market in case you want to trade. You will find a lot of features once you become a user of a particular broker.
In case you need to choose among the brokers that exist on the internet, here’s our verdict on eToro and XM Forex Broker and some information that can help you decide in choosing what’s better between the two.
eToro vs. XM Forex Broker Comparison
What is eToro?
eToro is a social trading and multi-asset brokerage company that is taking over the online trading industry right now. More and more users are getting hyped up about it because of its good features and low minimum deposit. Both manual and social trading can be done on this platform. When we say manual trading, you can open your own positions and study on your own. Social trading, on the other hand, is done by giving users information about what’s trending in the market and using copy trade.
What is XM Forex?
XM Forex is another trading broker like eToro. This broker offers forex, energies, metals, and equity indices. According to its website, you can open an account with XM with only $5 as the minimum deposit. That’s quite the cheapest deposit you will find as you scout the internet for possible forex brokers.
Also Read: Forex Brokers with Low Minimum Deposits
Now that you know what eToro and XM are, here are some essential points to compare.
eToro vs. XM – Instruments
The best broker for you will depend on your trading needs and what instruments you are going to trade. Are you focusing on foreign exchange? Indices? CFDs? Stocks? There are some traders that focus on one portfolio alone but there are some who want their investments to be diversified.
eToro offers Stocks, Cryptocurrencies, CFDs, Commodities, and Indices. There’s quite a number of options with this broker if you want your investments to be diversified. If you want to trade foreign exchange and try playing stocks while you are getting serious with forex, you can definitely choose eToro as your broker.
XM, on the other hand, offers forex, commodities, equity indices, precious metals, and energies. You can’t trade crypto and stocks on XM’s platform. If you want to narrow down your portfolio choices, you might find XM a good alternative.
eToro vs. XM – Minimum Deposit
A minimum deposit is usually required for you to start your trade. Once you open an account with a broker, you will be required to cash in and start trading. With eToro, the standard minimum deposit is $200. The amount will still depend on your location as there are some countries where $1,000 is required as the minimum deposit.
With XM, you can start trading with $5. Sounds good, right? This broker is best for people who just want to try forex but don’t want to cash in a lot of money. If you are just starting and you don’t have enough money to lose, XM is the one.
eToro vs. XM – Regulator
The two brokers have different regulators. eToro is regulated by the Financial Conduct Authority (FCA) while XM is regulated by the International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySec), and Australian Securities and Investments Commission (ASIC).
eToro vs. XM – Automation
Another good point to consider when choosing between eToro and XM is automation. eToro allows copy trading while XM doesn’t. Copy trading is best for beginners who are yet to open their own positions. If you are looking for a broker that will give you peace of mind and convenience without the need to rush your learning about trading, then eToro is a better choice.
Choosing between eToro and XM is up to you. Both brokers have their own strengths and weaknesses. We hope this comparison will help you decide on who’s the better one for your trading preferences.