XM vs LMFX Compared in 2024

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Forex traders always look for trading with brokers that suit their trading needs and preferences. XM and LMFX are online forex brokers that offer their trading services to traders and investors. XM is a  regulated and trusted forex broker. It is regulated in two tier-1, two tier-2, and one tier-4 jurisdictions including ASIC, CySEC, FSCA, FSC-Belize, and DFSA. On the other hand, LMFX is an offshore forex broker which is not regulated by any regulatory bodies. 

In this article, we will review and compare the brokerage services offered by XM and LMFX. We will explore options such as regulations, reputations, fees, features, leverage, and more. Additionally, we will analyze and rate the brokers based on macro and micro categories and options. By reviewing these aspects, you will get a clear idea of which broker suits you best for your trading journey.

XM vs LMFX: In a Nutshell

XM

XM is a well-regulated Australian broker founded in 2009. On its MT4 and MT5 platforms, you can trade over 1,000 forex, CFDs and even real stocks. Its ultra-low standard and micro accounts come with low trading fees. Trading tools like Autochartist, market news and analysis are provided.

Risk warning: 72.89% of CFD accounts lose money

XM Overview

XM Overview
  • Founded In: 2009
  • Founder: Constantinos Cleanthous
  • Headquarters: Limassol, Cyprus.
  • Trading Instruments: 1000+ trading instruments including forex, cryptocurrencies, stock CFDs turbo stocks, commodities, equity indices, thematic indices, precious metals, energies, shares
  • Minimum Deposit: $5 for Micro, Standard, Ultra low accounts, and $10,000 for share accounts
  • Maximum Leverage: up1000:1 for Standard, Micro, and Ultra-low accounts, No leverage for share account
  • Regulations: FSC, ASIC, CySEC, DFSA, FSCA
  • Trading platform: MT4, MT5, XM trading apps 
  • Spreads: As low as 0.6pips 
  • Account Types: Standard, Micro, Ultra-low, Share  accounts
  • Trading Styles: Allows all trading styles including scalping, news trading, copy trading, EA trading
  • Payment Options: Bank Wire (BankTransfer/SWIFT), VISA, MasterCard, Neteller, Skrill
  • Funding Currencies: USD, EUR, GBP, JPY, CHF,‎ AUD, HUF, PLN, SGD, ZAR
  • US Traders: Not Accepted

LMFX

Traders who desire high leverage, multiple payment options, or even fixed spreads should consider trading with LMFX. Founded in 2015, the broker has successfully operated without hitches while growing its client base through the delivery of excellent services. Trading fees are low and there is an account type for every broker. 

XM vs LMFX: Pros and Cons

XM Pros & Cons

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

LMFX Pros & Cons

Pros
  • The maximum leverage is as high as 1:1000.
  • Tight Spread Starting from 0  pips 
  • Free VPS for high-volume traders.
  •  Allow Scalping, News Trading, EA Trading
  • Does not have any FIFO Restrictions 
  • Deposit bonus and other bonuses.
  • Due to the absence of regulatory restrictions, the broker is open to clients worldwide
  • Multiple payment options including crypto and e-wallets.
  • 4 Types of accounts available ( Premium, Micro, Fixed Zero)
  • Traders are supported with trading tools like calculators, economic calendars, etc.
Cons
  • Not Regulated by Any Authority 
  • Crypto CFDs are not available to Trade 
  • No Investor Protection Scheme 
  •  No access to MetaTrader 5. Only MT4 and Webtrader are available. 
  • The minimum deposit for bank wire transfers is $250
  • Managed Accounts and Social Trading (MAM, PAMM Accounts) are not Available

XM vs LMFX: Side-by-Side Comparison

XM
LMFX
Product
Product
XM
LMFX
Founded In
Founded In
2009
2015
Founded By
Founded By
Constantinos Cleanthous
Carter Anthony Smith
Headquarters
Headquarters
Limassol, Cyprus
Skopje, North Macedonia
Regulations
Regulations
ASIC, CySec , FSC , DFSA, FSCA
None
Min Deposit
Min Deposit
$5
$50
Max Leverage
Max Leverage
1000:1
1:1000
Tradable Assets
Tradable Assets
Forex , Commodities, Stock ,Indices , Crypto , Turbo Stocks Equity indices , Precious Metals , Energies
Forex, stocks, indices, and commodities.
Fees
Fees
Spreads as low as 0.6 pips
Spread from
Platforms and Tools
Platforms and Tools
MT4 , MT5
MT4
US Traders
US Traders
Not Allowed
Allowed

XM Vs LMFX: Our Scores and Ratings

We rated both brokers, XM and LMFX, 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

LMFX

3.6
LMFX Scores
Regulation and Security (40%)1.5
Fees and Commissions (20%)6.5
Trading (15%)6
Trading tools (10%)1
Customer Support (10%)5
Trading Education (5%)3

Final Verdict :

Both XM and LMFX offer similar trading services worldwide. However, there are differences in their regulations, reputation, and operation. XM is a highly regulated and trusted forex broker. It is regulated by top-tier regulatory authorities, including ASIC, CySEC, FSCA, FSC-Belize, and DFSA. On the other hand, LMFX is an unregulated offshore forex broker. XM provides Multiple trading platforms including MT4, MT5, WebTrader, NinjaTrader, MotiveWave, MultiCharts, TradingView, and more. On the Contrary, LMFX Offers MT4, Webtrader, Mobile Trader.. 

As XM is not licensed in the USA, it cannot accept US clients. Being an unregulated offshore forex broker, LMFX can onboard clients from anywhere in the world, including the USA. Therefore, non-US traders may opt for XM, while US traders looking for offshore forex brokers may consider LMFX. However, Trading with offshore forex brokers is risky and not recommended.

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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