OCTAFX vs. XM

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Forex trading is one of the most interesting activities on the internet for traders and investors. Although stock trading is more common for newbies, forex has been attracting investors because of its uniqueness. Some traders find forex trading more fascinating than stock trading although there are more challenges in forex. If you are planning to venture into this, you should have a trusted forex broker first. OctaFX and XM Forex Broker are two popular brokers among forex traders. For those who are stuck between these two, here’s a comparison that can help you decide which one to choose.

OctaFX Vs XM: Who are they?

OCTAFX vs XM forex brokers comparison

OctaFX was established in 2011. This broker provides Forex ECN trading, metals and cryptocurrencies, and CFD Trading. It was registered in St. Vincent while its domain octafx.eu was approved and registered with the Cyprus Securities and Exchange Commission (CySEC) under the company name Octa Markets Cyprus Ltd. Meanwhile, XM is a regulated broker by CySEC, IFSC, FCA UK and ASIC Australia. This company has been providing forex, equity, commodities, and indice trading service since its establishment in 2009.

OCTAFX forex broker
Spread: From 0.2 Pips
Leverage: 500:1
Min Deposit: $5
Regulated: FSA (Saint Vincent and the Grenadines), CySEC
xm best forex broker
Spread: From 0 Pips
Leverage: 500:1
Min Deposit: $5
Regulated: ASIC, CySEC, FCA (UK), IFSC Belize

XM

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How long have they been in business?

The longer the broker has been in business, the more reliable it is. Those brokers who have just been around for several years are likely to be scams. Also, the stronger the business is, the better its risk management processes.

OctaFX has just been around for 9 years while XM has been in business for 11 years now.

Do they require a separate bank account?

Most brokers require a separate bank account where they can hold your fund. Of course, no one wants to deposit their money into the same account the broker uses to pay their staff and other company expenses. Luckily, OctaFX and XM use separate bank accounts for trader deposits.

How popular the broker is?

Some traders and investors rely on the popularity of the broker. It’s good to assume that the more famous the broker is, the more reputable it is. The number of users using the platform is a good metric to determine if you can really trust them with your money.

OctaFX has more than 300,000 users while XM has over 700,000 users. Clearly, XM is more popular with traders and investors.

OctaFX Vs XM: Services and Instruments

For those who are looking to trade currency pairs, both OctaFX and XM are offering forex trading. However, XM has more currency pairs than OctaFX. XM trades 55 pairs while OctaFX trades 28. If you want to trade cryptocurrencies, OctaFX has a variety of cryptocurrency CFDs such as Bitcoin, Ripple, and Ethereum. OctaFX doesn’t offer commodities so if you prefer to trade silver, gold, or oil, XM offers this service.

OctaFX Vs XM: Platform & Account Types

MT4 trading platform is popular with traders. And yes, they choose brokers with the MT4 trading platform. Fortunately, both brokers have this, as well as the newest designed MT5 platform. While it’s important to consider the platform, you might want to discover the account types as well. OctaFX and XM offer different accounts from basic to VIP. They have different requirements and benefits. It is recommended that you choose based on your needs so you can have a smoother forex trading.

OctaFX Vs XM: Other trading features

Aside from currency pairs, you might want to check if the broker you prefer offers other trading features such as hedging, scalping, or utilizing EAs. Some are providing these services, some are not. For instance, both XM and OctaFX offer hedging and scalping. Another thing is that XM has negative balance protection to prevent you from using more than the fund you deposited. OctaFX doesn’t have this.

Which is more affordable?

Fees matter in forex trading. You don’t get to take home all your proceeds because there are fees and taxes that you need to pay when you withdraw your money. XM charges 0.10 points when you trade EUR/USD while OctaFX requires points. OctaFX tends to be more affordable.

XM vs OCTAFX in 2020 Comparison

BrokerInfoBonusOpen Account
OCTAFX forex broker Min Deposit: $5
Spread: From 0.2 Pips
Leverage: 500:1
Regulation: FSA (Saint Vincent and the Grenadines), CySEC
50% Deposit Bonus, Real contest 1st prize Luxury car BMW X5 M, Copy trading, Trade&Win.Visit Broker
xm best forex broker Min Deposit: $5
Spread: From 0 Pips
Leverage: 500:1
Regulation: ASIC, CySEC, FCA (UK), IFSC Belize
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What’s the best broker?

There’s no perfect broker. To find the right one for you, there are factors to consider. It also depends on your needs and preferences as a trader. To find the best broker that will work for you, take into account the information discussed above. Do your own research so you can discover more about your preferred broker.

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Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.