Is XM better than AvaTrade? Who offers lower spread, better trading conditions and is a safe broker to trade?
We provide answers to all questions in this XM vs AvaTrade Comparison Review. For this Review we opened real accounts and deposit over US$ 6,000 in total to compare both offerings, account opening process at XM vs AvaTrade, also the fees, trading conditions, platform selection and withdrawal process.
What is XM and AvaTrade
XM is a global Forex and one of the regulated CFD brokers, offering trading with Forex pairs, indices, stocks, and commodities.
AvaTrade is a large and popular broker that offers trading with forex, indices, commodities, bonds, cryptocurrencies, stocks, and ETFs.
Some of the highlights of XM vs AvaTrade are:
| XM | AvaTrade | |
| 💻 Website | www.xm.com | www.avatrade.com |
| 🛡️Founded year | 2009 | 2006 |
| 🏦 Headquarter | Limassol, Cyprus | Dublin, Ireland |
| 🗺️ Authorized & Regulated in | UK, Cyprus, Australia, UAE, Belize | Ireland, Japan, Australia, UAE, South Africa, British Virgin Islands |
| 🔒 Is Broker safe | Yes | Yes |
| 💰 EUR/USD Spread | 1.6 | 0.87 |
| 💳 Minimum deposit | US$5 | US$100 |
| 💰 Withdrawal fee | US$0 | US$0 |
| 🖥️ Trading Platform | MT4, MT5 | MT4, MT5, AvaTradeGO, AvaOptions |
| 📈 Markets offered | Forex, Indices, Stocks, Commodities | Forex, Indices, Commodities, Bonds, Cryptocurrencies, Stocks, ETFs |
| 📉 Number of Products | 1336 | 796 |
| 🔎 Our Detailed Review | XM Review | AvaTrade Review |
Licenses and Regulation
Both Brokers are safe to trade and are highly reliable, low risk trading Brokers due to regulations and are not a scam.
XM is regulated by the top-tier ASIC, and Cyprus’ CySEC, which have strict rules and enforcement mechanisms.
AvaTrade has gained 7 regulatory licenses from some of the top regulators, including Australia, Ireland, Abu Dhabi, and Japan.
For this review, we opened an account with XM Trading Point of Financial Instruments Limited, regulated by the Cyprus Securities and Exchange Commission (CySEC) and with Ava Trade EU Ltd which is regulated by the Central Bank of Ireland.
We recommend that you open your account with the XM Cyprus entity since it is the only one that offers deposit protection to traders if it is available to you and with the AvaTrade Irish, Australian, or Abu Dhabi entities.
| XM | AvaTrade | |
| 🔒 Licenses | ASIC, CySEC, DFSA FCA, FSC | ASIC, ADGM, FRSA, FSA, FFAJ, FSCA, BVI FSC |
| Top Tier License | ✔️ | ✔️ |
| Publically Traded | ❌ | ❌ |
| Compensation Scheme | ✔️ (depending on entity) | ✔️ (depending on entity) |
XM vs AvaTrade Fees
XM and AvaTrade fees are almost similar and built into a spread basis, however, XM has also commission based accounts.
There are no additional fees charged by XM, moreover, the broker charges average fees for trading the main instruments and the fees charged on stocks and commodities are lower than industry averages.
AvaTrade, on the other hand, charges an inactivity fee of $50 or €50 or £50 every quarter after 3 months of account inactivity. In addition, the broker charges administration fees of US$100 or €100 or £100 after a year of inactivity.
| XM Fees | AvaTrade Fees | |
| Fees based on spread | ✔️ | ✔️ |
| Floating Spread | ✔️ | ✔️ |
| Fixed Spread | ❌ | ❌ |
| Commission based fees | ✔️ | ❌ |
| Inactivity Fee | $0 | $50 or €50 or £50 |
| Deposit fee | $0 | $0 |
| Withdrawal fee | $0 | $0 |
| Active trader/ VIP Programs | ✔️ | ❌ |
Spreads Charged in Our Trades
For our test trades on XM vs AvaTrade accounts, we chose popular instruments in each market. We placed 3 trades for each instrument to get the average spread and we were able to find both negative and positive sides for each Broker spreads.
A closer look at the spreads charged in our XM trades revealed that they were all aligned with industry benchmarks. None of XM’s average spreads were above industry averages. Moreover, the broker’s spreads on stocks and commodities were slightly lower than those of its peers.
Through our testing we found that AvaTrade’s spreads for forex are much below the industry standards. The offered spreads on indices and commodities are also below the average industry benchmark. On the negative side, cryptocurrency and stock spreads are above the industry average.
| Markets | Instruments | XM Avg. spread | AvaTrade Avg. spread | Industry avg. spread |
| Indices | FTSE 100 | 1.5 | 1.17 | 1.65 |
| Forex | EUR/USD | 1.6 | 0.87 | 1.16 |
| Commodities | Gold | 3.5 | 3.67 | 3.53 |
| Stocks | AAPL | 1.35 | 2.1 | 1.75 |
| Cryptocurrencies | Bitcoin | – | 57.93 | 72.81 |
| ETFs | QQQ | – | 0.13 | 0.45 |
Account Types Compared
AvaTrade offers a single account with access to all tools and services from one account. On the contrary, XM offers 5 account types with different fee structures, that is, the Micro, Standard, XM Zero, XM Ultra-low and Shares accounts.
XM account opening is quick and effortless. The registration process took exactly 14 minutes, and our account was approved two days later.
Opening a new account with AvaTrade is fast and easy. The registration process took merely 15 minutes. Our account was verified after 1 business day, which was very satisfying.
| XM Accounts | AvaTrade Accounts | |
| Standard Account | ✔️ | ✔️ |
| ECN / Commission Based Account | ❌ | ❌ |
| Islamic Account | ✔️ | ✔️ |
| PAMM Account | ❌ | ❌ |
Markets and Products
AvaTrade offers a wider range of instrument selection, however all are traded as CFDs. XM, in its turn, offers trading multiple tradable instruments in the Forex, indices, stocks and commodities markets.
| Markets | XM Instruments | AvaTrade Instruments |
| Indices | 26 | 23 |
| Forex | 57 | 55 |
| Commodities | 17 | 29 |
| Stocks | 1236 | 614 |
| Cryptocurrency | – | 14 |
| ETFs | – | 59 |
| Bonds | – | 2 |
Trading Conditions
Trading conditions on XM are great. AvaTrade is also quite impressive in this regard. Moreover, traders can execute most strategies since both brokers allow high-risk strategies such as hedging and scalping. AvaTrade also offers copy trading services with two third-party services: DupliTrade and ZuluTrade.
| Trading Method | XM | AvaTrade |
| Hedging | ✔️ | ✔️ |
| Scalping | ✔️ | ✔️ |
| Change Leverage | ✔️ | ❌ |
| Copy trading/ Social trading | ✔️ | ✔️ |
| Beginners Trading | ✔️ | ✔️ |
| Professional Trading | ✔️ | ✔️ |
Deposit and Withdrawal
XM processes client withdrawals via the same payment methods available for deposits making it easy for clients to withdraw their funds. It also does not charge any withdrawal fees. AvaTrade does not charge withdrawal fees as well.
The deposit methods offered by XM are instant and free. Anyway, the first deposit has to be made via credit card.
We have tested the deposit process on AvaTrade using multiple payment modes. There was no deposit fee and for most of the payment methods, funding was instant. Find info about no deposit bonus forex India.
| XM | AvaTrade | |
| 💰 Deposit Fee | ❌ | ❌ |
| 💰 Withdrawal fee | $0 | ❌ |
| 💳 Minimum deposit | US$5 | US$100 |
| Bank Transfer | ✔️ | ✔️ |
| Debit/ Credit Cards | ✔️ | ✔️ |
| PayPal | ✔️ | ✔️ |
| Skrill | ✔️ | ✔️ |
| Neteller | ✔️ | ✔️ |
Trading Platform
XM offers the popular MetaTrader 4 (MT4 platform) and MetaTrader 5 (MT5) platforms to its clients and does not have a proprietary trading platform.
AvaTrade also offers multiple trading platforms like MetaTrader 4 and MetaTrader 5, also, it offers WebTrader (AvaTrade’s proprietary web-based platform), AvaOptions (for forex vanilla options), AvaTradeGo (for mobile trading).
While the XM MT4 platform is a bit dated, we found the MT5 platform to be more than adequate for traders who prefer a modern platform.
AvaTrade’s own web trading platform and its mobile trading platform are also very clear and easy to use for the traders.
| XM | AvaTrade Platform | |
| Proprietary Platform | ❌ | ✔️ |
| Web Platform | ✔️ | ✔️ |
| Desktop Platform | ✔️ | ❌ |
| Mobile App | ✔️ | ✔️ |
| Alternative Platforms | ❌ | ✔️ |
| MetaTrader4 | ✔️ | ✔️ |
| Simple to use platform | ✔️ | ✔️ |
| Demo Account Trading | ✔️ | ✔️ |
| Execution Agency Model | ❌ | ✔️ |
| Research | ✔️ | ✔️ |
| Advanced Research tools | ✔️ | ✔️ |
Education and Support
XM has a great education offering for beginners under its Tradepedia video course that provides an in-depth guide to the markets. AvaTrade, likewise, offers excellent trading educational materials for new traders.
XM runs over 40 webinars weekly in different languages that its clients can join and learn about the markets. The webinars are based on experience level and take place in different timezones to suit its clients.
AvaTrade offers tutorial videos on trading and platform-tools, eBooks and web-based guides on trading, as well as webinars.
| XM Support | AvaTrade Support | |
| Trading School for Beginners | ✔️ | ✔️ |
| Tutorials | ✔️ | ✔️ |
| Trading Videos | ❌ | ✔️ |
| Webinars | ✔️ | ✔️ |
| Daily News and Analysis | ✔️ | ✔️ |
| Economic Calendar | ✔️ | ✔️ |
| Live Chat | ✔️ | ✔️ |
| Email Support | ✔️ | ✔️ |
| 24/7 availability | ❌ | ✔️ |
Conclusion on XM vs AvaTrade
Comparing XM vs AvaTrade side by side we found both brokers reliable and with good standing. The proposals have similarities, as both XM vs AvaTrade are CFD Trading Brokers with a large number of instruments and easy-to-use platforms.
XM provides great customer support response times and the spreads on most instruments are aligned with industry averages. AvaTrade offers impressive spreads on forex pairs.
Overall, we had a smooth experience with XM starting from the account opening, to the deposit, trading and withdrawal processes.
We recommend XM to traders who prefer the MT4/5 platforms and to those who run EAs due to the free VPS service. The broker is also suitable for beginner traders because of its detailed educational materials.
Overall, our experience with AvaTrade is positive. Our experience with customer support was also good.
We also recommend AvaTrade to traders who focus on trading currencies and traders who would like to run hedging or scalping as their trading strategies.
| XM | AvaTrade | |
| Recommended for | ✔️ CFD Stocks trading ✔️ Beginning Traders ✔️ Experienced traders ✔️ Trading Currency Pairs ✔️ EAs trading ✔️ Scalping trader ✔️ Hedging trader ✔️ Trading through MT4 / MT5 | ✔️CFD Trading ✔️ Experienced traders ✔️ Beginning Trader ✔️ Scalping trader ✔️ Hedging trader ✔️ EA trader ✔️ Trading through MT4/MT5 platform |
| Might not be fit for | ❌ Commission based trading ❌ Real Stock / Futures Trading | ❌ Futures Trading ❌ Trading of real Stocks ❌ Commission based trading |