XM vs Interactive Brokers Compared (2024)

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Forex traders always wish to trade with trusted and reliable forex brokers. XM and Interactive Brokers are top-tier regulated forex brokers offering online trading services globally. XM is regulated in two Tier-1, one tier-2, and one tier-4 jurisdictions, including the two tier-1, two tier-2, and one tier-4 jurisdictions, including the ASIC, CySEC, FSCA, FSC-Belize, and DFSA. On the other hand, Interactive Brokers is regulated in eight Tier-1 jurisdictions and two Tier-2 jurisdictions  including ASIC,IIROC , MNB,SFC,SEBI,, CBI,,FSA-Japan, MAS,FCA , FINRA,SEC. These two brokers offer almost similar services. However, each broker has its strengths and weaknesses.

In this article, we will compare XM with Interactive Brokers regarding trading pros and cons,  trading platforms, regulations, tradable assets, fees, customer support, and overall trading experience score. We will also explore if XM is better than Interactive Brokers and vice versa. This comparison lets you understand which broker is better for your trading style and preferences.

XM vs Interactive Broker: In a Nutshell

XM

XM is a multiple award-winning broker that allows its clients to trade forex, CFDs, and real stocks on its MetaTrader platforms. Founded in 2009, XM has over 1000 trading instruments and multiple account types which are designed for newbies, and experienced and professional traders. Trading tools are also provided to assist the traders with market analyses. 

XM Overview
  • Founded In: 2009
  • Minimum Deposit: $5
  • Maximum Leverage: 1000:1
  • Regulations: FSC
  • Trading platform: MT4, MT5
  • Account Types: Ultra Low, Micro, Standard, Islamic
  • Payment Options: Bank Wire (BankTransfer/SWIFT), VISA, MasterCard, Neteller, Skrill
  • US Traders: Not Accept

Interactive Broker

Founded in New York, USA in 1978 by Thomas Peterffy, Interactive Broker has grown into a global brand with over 2.1 million clients. It has become one of the leading online trading solutions for traders, investors, and advisors. The brokers give access to over 5000+ tradable assets including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, and Bonds. To trade online, IBKR offers WebTrader, FIX API, MobileTrader (MobileApp), and TWS trading platforms.

Interactive Brokers Overview
  • Founded In: 1978
  • Minimum Deposit: None
  • Maximum Leverage: 500:1
  • Regulations: SEC , CFTC ,FCA, FSCS, ASIC , IIROC , FSA
  • Trading platform: WebTrader, FIX API, MobileTrader
  • Account Types: Family Office Account ,UGMA/UTMA, IRA, Trust ,Joint, Individuals
  • Payment Options: Bank Wire (BankTransfer/SWIFT), ACH (Automated Clearing House), BPAY, Check, Direct Debit, Local Bank Deposits, Transfer from Existing Broker
  • US Traders:  Accepted 

XM vs Interactive Broker: Pros and Cons

XM

Pros
  • Regulated by CySEC, ASIC, DFSA in UAE, and FSC Belize.
  • Easy and fast account opening
  • Minimum deposit is $5
  • Over 1000 forex/CFDs are available for trading.
  • MT4 and MT5 are the available trading platforms.
  • Quality research, market analysis, and access to trading tools like Autochartist.
  • Quality training for newbies and ‘ultra-low micro account’ for beginners.
  • High leverage up to 1000:1 (this leverage is not available to all the entities of the Group)
Cons
  • Dormant fees are charged after 3 months of no account activity.
  • Trading of real stocks is not available to European traders.
  • Traders have no other choice apart from the MetaTrader platforms.
  • Limited tradable assets.
  • No passive investment services (social trading platform, PAMM accounts);
  • Funding with PayPal is unavailable

Interactive Broker

Pros
  • IBK is a Forex and Stock Broker 
  • Excellent reputation (founded in 1978)
  • Regulated by top regulators like  ASIC, FCA, FSA, SFC, IIROC 
  • A wide range of products offered warrants, ETFs, Options, Futures, Mutual Funds, Bonds 
  • Over 18,000 no-transaction-fee mutual funds.
  • No monthly inactivity fee
  • Low trading fees and high interest (up to 4.58% for USD) on cash balances
  • Access to international markets and exchanges 
  • Mobile apps are convenient for individual investors.
Cons
  • Complicated account opening 
  • Learning Curve for Beginners
  • The maximum leverage is only 1:40 
  •  No Metatrader platforms (MT4, MT5) offered 
  • High minimum deposit requirements for some account types 
  • Interactive Advisors (Robo-advisor feature) is only available for US customers
  • No fixed spread is available 

XM vs Interactive Broker: Side-by-Side Comparison

XM
Interactive Broker
Product
Founded In
Founded In
2009
1978
Founded By
Founded By
Constantinos Cleanthous
Chairman Thomas Peterffy
Headquarters
Headquarters
Limassol, Cyprus
Greenwich, Connecticut, United States
Regulations
Regulations
ASIC, CySec , FSC , DFSA, FSCA
SEC , CFTC ,FCA, FSCS
Min Deposit
Min Deposit
$5
None
Max Leverage
Max Leverage
1000:1
40:1
Tradable Assets
Tradable Assets
Forex , Commodities, Stock ,Indices , Crypto , Turbo Stocks Equity indices , Precious Metals , Energies
Stocks, options, futures, futures options, SSFs, ETFs, EFPs, currencies, fixed income, warrants and funds
Fees
Fees
Spreads as low as 0.6 pips
Spread from
Platforms and Tools
Platforms and Tools
MT4, MT5
WebTrader, FIX API, MobileTrader
US Traders
US Traders
Not Allowed
Allowed

XM Vs Interactive Broker: Our Scores and Ratings

We rated both brokers, XM and Interactive Broker, on a scale of 1 to 10, with 0.1 increments. To achieve a comprehensive rating, we broadly grouped all services offered by brokers into 6 macro categories and assigned percentage weights to them. Each macro category is subdivided into several data points which contributes to the total score of 1.0-10.0 assigned to each macro category. Since all categories are not equally important, our weight percentage plays a significant role in assessing the broker accurately. For example, Regulation and Security contributes a total weight of 40% to the whole ratings because this is the most important rating category. To learn more, read our methodology.

XM :

9.3
Total Score
Regulation and Security (40%)9.6
Fees and Commissions (20%)9.5
Trading (15%)8.4
Trading tools (10%)8.6
Customer Support (10%)9.5
Trading Education (5%)9.4

Interactive Broker

9.1
Interactive Brokers Score
Regulation and Security (40%)10
Fees and Commissions (20%)8
Trading (15%)9
Trading tools (10%)7
Customer Support (10%)9.5
Trading Education (5%)9

Final Verdict :

XM and Interactive Brokers are regulated forex and CFD brokers in the industry. They offer similar trading services, including forex and CFDs. Both allow scalping, hedging, EA trading and Copy trading, with a minimum order size of 0.01.

However, there are a few areas where you may find some differences. For example, the minimum deposit for XM is $5, whereas the minimum deposit for Interactive Brokers is $0. Additionally, the maximum leverage for XM is generally from 1000:1. On the other hand, the maximum leverage for Interactive Brokers is 40:1. XM offers passive investment programs or copy trading programs like MAM and Zulutrade,  while Interactive Brokers does not have any passive investment programs.Our score for XM is 9.3, and for Interactive Brokers, it is 9.1. If you are looking for a trusted forex broker with social trading services, you may choose XM. However, if you are a US citizen, or prefer US regulated forex broker, you may choose Interactive Brokers.

Written by

Jason Paine is a forex trader, researcher, and tech enthusiast. He is passionate about financial markets and cutting-edge technology. With a dynamic 16-year trading career, he's on a mission to guide fellow traders. Having navigated diverse forex brokers, Jason shares his insights at Brokersway to bridge the gap between traders and the right brokerage.

DisclosureAt Brokersway we're committed to delivering unbiased information. our opinions are our own and are not influenced by the payment we receive from our advertising partners. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money.

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