Forex traders always look for trading with brokers that suit their trading needs and preferences. XTB and LMFX are online forex brokers that offer their trading services to traders and investors. XTB is a highly regulated and trusted forex broker. It is regulated in three tier-1 jurisdictions and one tier-4 jurisdictions. 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 XTB 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
XTB vs LMFX: In a Nutshell
XTB
Founded in 2002, XTB is an exchange-listed forex and CFD broker with headquarters in Poland and offices in over 13 countries. The broker offers more than 5,800 forex, CFDs as well as real stocks and ETFs for trading on its proprietary platforms. XTB boasts of over 800,000 clients from all over the world. However, the broker offers only the xStation platform. The broker also offers real stocks with 0% commissions.Â
XTB Overview
- Founded In: 2002
- Founder: Jakub Zablocki
- Locations: UK, Cyprus, Belize, Poland.
- Minimum Deposit: $0
- Maximum Leverage: 1:500
- Regulations:CySEC, FCA , KNF , IFSC
- Trading platform:xStation 5 , xStation Mobile
- Account Types: Standard, Pro, Islamic
- Payment Options: Bank Wire (BankTransfer/SWIFT), VISA, MasterCard, Maestro, Neteller, Paysafe, SafetyPay, Skrill
- US Traders: Not Accept
LMFX
Founded in 2015, LMFX is a forex and CFD broker that provides online trading services globally. It offers around 100 trading instruments through the MetaTrader 4 (MT4) platform. LMFX provides low spreads and fast execution speeds as an ECN/STP broker. The broker offers three account types: Premium, Fixed, and Zero. The broker offers a demo account for practice. The broker provides trading tools, including multiple calculators, an economic calendar, and a blog featuring market news and trading insights.
LMFX runs a monthly demo contest with a total prize pool of $1,750, awarded as live trading funds. It offers a 100% deposit match bonus for deposits of at least $100 and a Phoenix bonus for first-time deposits. The broker provides a free VPS service for traders who meet specific criteria. LMFX operates without regulation from any major financial authority. It accepts clients from various countries, except the USA and Canada.
LMFX Overview
- Founded In: 2015
- Trading Instruments: 100+ trading instruments including Forex, CFDs (Indices, Commodities, Metals, Shares)
- Minimum Deposit: $50
- Maximum Leverage: 1:1000
- Regulations: None
- Trading platform: MT4 on desktop, web, mobile
- Bonus: Available
- Account Types: Premium, Fixed, Zero, Micor, Islamic
- Payment Options: Crypto, Credit Card,
- Trading Styles: Scalping, hedging, EA Trading, News trading are allowed.
- Trading Tools:Economic calendar, Free VPS, trading calculators
- US Traders: Accepted
XTB vs : LMFX Features
XTB:
- Trading Instruments: 5800+Trading instruments including Real stocks, ETFs, CFDs on forex, CFDs on Indices, CFDs on Commodities
- Maximum leverage: The maximum leverage of XTB is as high as 500:1. Leverage may vary based on jurisdiction and tradable assets. For example, for CySEC jurisdiction the maximum leverage is 30:1.
- Minimum Deposit: No Minimum Deposit. You may deposit as low as possible.
- Account Types: Two ( Stocks &ETFS, and CFD Instruments)
- Trading Fees: The fees of CFD instruments start from as low as 0.5 pips spread. 0% commission on Stock Accounts
- PAMM/ MAM: No
- Scalping: Allowed
- News Trading: Allowed
- EA/ Robot Trading: Allowed
LMFX
- Trading Instruments: Forex, Metals, Oil, Indices, Commodities, Shares
- Trading Platforms: Mt4, Web Trading, Mobile
- Minimum Deposit: $5
- Maximum Leverage: 1:1000
- Trading Fees: Spreads starting from 1 pips. LMFX charges a fixed commission for every lot traded. A lot is equal to 100,000 units of currency. If you have a zero account, the commission is $4 per lot which means $8 for a round lot.
- Minimum Trade Size: 0.01 lot.
- Maximum Trade Size (Lot restriction per Ticket): 50 Lots
- Funding Currencies: USD/EUR
- Trading Style Allowed: Almost all trading styles including Scalping, hedging, copy trading, and EA Trading.
- Stop Out Level (retail): 20%
- Margin Call Level: 50%
- Negative balance Protection: Yes
- Investor Protection: No
- Account Opening: Fully Online Account opening. It may take only 5 to 7 Minutes.
- KYC Verification: Required
XTB vs LMFX: Pros and Cons
XTB Pros & Cons
- Regulated by FCA, FSC, KNF, DDM-M, DNMV,
- The Minimum deposit is as low as $1
- The Maximum Leverage is as high as 1:500
- Allows scalping, EA/Robot Trading, News Trading
- Trade stocks, ETFs, indices, commodities, cryptocurrencies, and forex
- 0% commission on stock and ETF trading (only applicable to some EU countries)
- Traders can enjoy commission-free trading with spreads as low as 0.25 pips
- XTB does not offer cTrader, MT4/MT5, or Ninja Trader which are the most popular platforms in the world
- No passive investment programme ( PAMM, MAM Accounts)
- Withdrawal fees for transfers below $100 or €200
- Inactivity fee (€10/monthly after 1+ year with no activity plus no deposit in the last 90 days)
- Complex trading platform for a beginner
- CFDs only – so traders do not own the underlying asset
LMFX Pros & Cons
- 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.
- 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
XTB vs LMFX: Side-by-Side Comparison
XTB Vs LMFX: Our Scores and Ratings
We rated both brokers, XTB 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.
XTB :
LMFX
Final Verdict :
Both XTB and LMFX offer similar trading services worldwide. However, there are differences in their regulations, reputation, and operation. XTB is a highly regulated and trusted forex broker. It is regulated by top-tier regulatory authorities, including CySEC, FCA , KNF, FSC. On the other hand, LMFX is an unregulated offshore forex broker. XTB provides Multiple trading platforms including xStation 5,xStation Mobile. On the other hand, LMFX offers MT4, Webtrader, Mobile Trader. As XTB 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 XTB, while US traders looking for offshore forex brokers may consider LMFX. Trading with offshore forex brokers is risky and not recommended.
