XM vs Eightcap: A Comprehensive Comparison

When it comes to choosing a forex broker, the decision can significantly impact your trading success. Two well-known brokers in the forex and CFD trading space are XM vs Eightcap, both of which have built strong reputations for reliability, competitive pricing, and diverse trading offerings. This article provides an in-depth comparison of XM vs Eightcap, covering key aspects such as regulation, trading platforms, fees, account types, tradable assets, leverage, customer support, and more. By the end, you’ll have a clear understanding of which broker suits your trading style and goals.

💥 Trade with XM now: Open An Account or Visit Brokers 🏆

Overview of XM vs Eightcap

XM: A Trusted Multi-Asset Broker

Founded in 2009, XM is a Cyprus-based broker that has grown into one of the most accessible and beginner-friendly brokers globally. With a minimum deposit of just $5, XM caters to traders of all experience levels. It is regulated by multiple top-tier authorities, including the Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), and the Dubai Financial Services Authority (DFSA). XM is renowned for its low trading costs, extensive educational resources, and a robust selection of over 1,300 tradable instruments.

Eightcap: A Crypto-Focused Innovator

Also established in 2009, Eightcap is an Australian broker headquartered in Melbourne. It has gained traction for its competitive spreads, advanced trading tools, and a strong focus on cryptocurrency CFDs, offering over 155 crypto CFDs. Eightcap is regulated by ASIC, CySEC, the Financial Conduct Authority (FCA), and the Securities Commission of the Bahamas (SCB). With a minimum deposit of $100, Eightcap appeals to traders seeking innovative platforms and algorithmic trading solutions like Capitalise AI.

Regulation and Trustworthiness

XM: Robust Global Regulation

XM operates under stringent regulatory oversight, ensuring a high level of trust and security for traders. Its licenses include:

·         ASIC (Australia): A Tier-1 regulator known for strict compliance standards.

·         CySEC (Cyprus): Offers investor compensation funds for EU clients.

·         DFSA (UAE): Enhances XM’s presence in the Middle East.

·         FSC (Belize): Supports its international operations.

XM segregates client funds from corporate accounts and provides negative balance protection, ensuring traders cannot lose more than their deposited funds. Its long-standing reputation and clean regulatory track record make it a reliable choice.

Eightcap: Strong but Slightly Less Extensive

Eightcap is also well-regulated, with licenses from:

·         ASIC (Australia): Ensures high standards of transparency.

·         FCA (UK): Provides investor compensation for UK clients.

·         CySEC (Cyprus): Aligns with EU regulations.

·         SCB (Bahamas): Offers flexibility for international traders.

Like XM, Eightcap segregates client funds and offers negative balance protection. However, its Bahamas-regulated entity may provide fewer safeguards compared to Tier-1 jurisdictions. With a Trust Score of 85 from Forex Brokers.com, Eightcap is considered “Trusted,” but XM’s broader regulatory coverage gives it a slight edge.

Verdict: XM has a slight advantage due to its more extensive regulatory framework, particularly for traders prioritizing investor compensation funds.

Trading Platforms

XM: MetaTrader with Social Trading

XM offers the industry-standard MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, known for their reliability, advanced charting, and support for Expert Advisors (EAs). These platforms are available on desktop, web, and mobile, catering to traders who value customization and algorithmic trading. Additionally, XM provides a Social Trading feature, allowing beginners to copy trades from experienced traders. However, XM lacks proprietary platforms or advanced third-party integrations like TradingView.

Eightcap: Diverse and Innovative Options

Eightcap also supports MT4 and MT5, ensuring compatibility with algorithmic trading and EAs. However, it stands out by offering TradingView, a highly intuitive platform popular for its advanced charting and community-driven insights. Eightcap further enhances its offering with Capitalise AI, a code-free automation tool that allows traders to create and automate strategies without programming knowledge. These additions make Eightcap a strong choice for tech-savvy traders.

Verdict: Eightcap takes the lead for its diverse platform offerings, especially for traders interested in TradingView and automation tools. XM’s social trading feature is a plus for beginners but doesn’t match Eightcap’s innovation.

Fees and Spreads

XM: Competitive and Transparent

XM is known for its low trading costs, particularly in its commission-based accounts. Key fee highlights include:

·         Spreads: Average RAW spreads are tight, with EUR/USD at 0.02 pips and GBP/USD at 0.27 pips.

·         Commissions: $3.50 per lot per side on USD trades, with a volume-based rebate program to reduce costs further.

·         Standard Account: Spreads start at 1.6 pips with no commissions, suitable for beginners.

·         Non-Trading Fees: No deposit or withdrawal fees, though inactivity fees apply after 90 days.

XM’s pricing structure is transparent, and its low minimum deposit makes it accessible for new traders.

Eightcap: Tight Spreads with Flexibility

Eightcap also offers competitive pricing, particularly for cryptocurrency CFDs. Key fee details include:

·         Spreads: RAW spreads are slightly less competitive than XM’s, with EUR/USD at 0.06 pips and GBP/USD at 0.23 pips.

·         Commissions: $3.50 per lot per side, matching XM, but Eightcap offers flexibility with commissions in AUD, GBP, and EUR, reducing conversion fees for non-USD traders.

·         Standard Account: Spreads start at 1.0 pip, outperforming XM’s 1.6 pips.

·         Non-Trading Fees: No deposit fees, but withdrawal fees may apply depending on the method.

Eightcap’s localized commission rates and low crypto CFD spreads make it attractive for diversified traders.

Verdict: XM has a slight edge for forex traders due to tighter RAW spreads, but Eightcap’s lower Standard account spreads and crypto pricing make it competitive.

Account Types

XM: Flexible and Beginner-Friendly

XM offers four account types to suit different trading styles:

·         Micro Account: Ideal for beginners with a $5 minimum deposit and micro-lot trading.

·         Standard Account: Balances accessibility and competitive spreads, also with a $5 minimum deposit.

·         Ultra-Low Account: Offers tighter spreads for experienced traders, with a $5 minimum deposit.

·         Shares Account: Designed for stock trading with a $10,000 minimum deposit and no leverage.

XM’s low entry barrier and diverse account options make it highly accessible.

Eightcap: Streamlined Options

Eightcap provides two main account types:

·         Standard Account: No commissions, spreads from 1.0 pip, and a $100 minimum deposit.

·         Raw Account: Commission-based with spreads from 0.0 pips, also requiring a $100 minimum deposit.

Eightcap’s accounts are straightforward but less varied than XM’s, which may limit options for beginners or niche traders.

Verdict: XM wins for its diverse and beginner-friendly account types, particularly for those with limited capital.

Tradable Assets

XM: Broad and Balanced

XM offers over 1,300 instruments, including:

·         Forex: 57 currency pairs.

·         CFDs: Stocks, commodities, indices, precious metals, and energies.

·         Cryptocurrencies: Limited crypto CFDs compared to Eightcap.

·         Thematic Indices: Unique offerings for diversified portfolios.

XM’s asset selection is well-suited for forex and equity traders seeking variety.

Eightcap: Crypto Leader

Eightcap provides over 800 instruments, with a standout focus on cryptocurrencies:

·         Forex: 56 currency pairs, slightly fewer than XM.

·         CFDs: Indices, stocks, commodities, and over 155 cryptocurrency CFDs.

·         Crypto Indices: Unique offerings for broader crypto market exposure.

Eightcap’s extensive crypto CFD selection makes it a top choice for crypto traders, though its overall asset range is narrower than XM’s.

Verdict: XM offers a broader asset selection, but Eightcap excels for cryptocurrency enthusiasts.

Leverage

XM: High Leverage for Flexibility

XM offers maximum leverage up to 1:1000 for Standard, Micro, and Ultra-Low accounts (depending on the region and regulation). This high leverage is ideal for traders with small accounts but carries significant risk. The Shares account has no leverage.

Eightcap: Moderate Leverage

Eightcap provides maximum leverage up to 1:500, which is lower than XM but still competitive. Leverage varies by region and asset class, with crypto CFDs often having lower ratios.

Verdict: XM is better for traders seeking higher leverage, while Eightcap’s moderate leverage suits those prioritizing risk management.

💥 Trade with XM now: Open An Account or Visit Brokers 🏆

Education and Research

XM: Beginner-Focused Resources

XM excels in education, offering:

·         Webinars, seminars, and video tutorials.

·         Daily market analysis and trading signals.

·         Podcasts and articles for all experience levels.

Its resources are particularly valuable for beginners looking to build trading knowledge.

Eightcap: Practical but Limited

Eightcap’s Eightcap Labs provides:

·         Articles and guides on trading strategies, risk management, and technical analysis.

·         eBooks and third-party content with Capitalise AI.

·         No webinars or advanced video tutorials.

While Eightcap’s resources are practical, they lack the depth and variety of XM’s offerings.

Verdict: XM is the clear winner for educational content, especially for new traders.

Customer Support

XM: Reliable and Multilingual

XM offers 24/5 customer support via live chat, email, and phone, with multilingual assistance in over 25 languages. Its dedicated account managers ensure personalized support, and response times are generally quick.

Eightcap: Responsive with Dedicated Managers

Eightcap also provides 24/5 support through live chat, email, and phone. Each client is assigned a dedicated account manager, and its customer service is noted for responsiveness and professionalism.

Verdict: Both brokers offer comparable support, with no significant differences.

Pros and Cons

XM

Pros:

·         Low minimum deposit ($5).

·         Extensive regulatory coverage.

·         Broad asset selection (1,300+ instruments).

·         Comprehensive educational resources.

·         High leverage up to 1:1000.

Cons:

·         Limited cryptocurrency CFDs.

·         No TradingView or proprietary platforms.

·         Inactivity fees after 90 days.

Eightcap

Pros:

·         Extensive cryptocurrency CFD offerings.

·         TradingView and Capitalise AI integration.

·         Competitive Standard account spreads.

·         Flexible commission currencies.

·         Strong focus on algorithmic trading.

Cons:

·         Higher minimum deposit ($100).

·         Fewer tradable assets than XM.

·         Limited educational content.

Which Broker Should You Choose?

Choose XM If:

·         You’re a beginner or have limited capital (low $5 minimum deposit).

·         You prioritize a broad range of assets, especially forex and equities.

·         You value extensive educational resources and social trading.

·         You prefer higher leverage for smaller accounts.

Choose Eightcap If:

·         You’re focused on cryptocurrency CFD trading.

·         You want access to TradingView and code-free automation tools.

·         You prefer competitive Standard account spreads.

·         You’re an experienced trader seeking advanced platform integrations.

Conclusion

Both XM vs Eightcap are reputable brokers with distinct strengths. XM stands out for its accessibility, extensive asset selection, and beginner-friendly features, making it ideal for new traders or those seeking a balanced multi-asset broker. Eightcap, on the other hand, excels in cryptocurrency trading and innovative platform offerings, appealing to tech-savvy and crypto-focused traders.

Ultimately, the choice depends on your trading priorities. If education, low entry barriers, and forex trading are your focus, XM is the better option. For cryptocurrency CFDs, TradingView, and automation, Eightcap is the stronger contender. Evaluate your goals, test both brokers with demo accounts, and choose the one that aligns with your trading strategy.

💥 Note: To enjoy the benefits of the partner code, such as trading fee rebates, you need to register with XM through this link: Open An Account or Visit Brokers 🏆