10 minute read
XM vs Ic Markets: A Comprehensive Comparison
When choosing a forex broker, traders face a myriad of options, each with unique strengths and offerings. Two prominent names in the industry, XM vs IC Markets, consistently rank among the top choices for retail traders worldwide. Both brokers cater to beginners and seasoned traders, but their approaches to fees, platforms, regulation, and trading conditions differ significantly. In this detailed comparison, we’ll explore XM vs IC Markets across key criteria to help you decide which broker aligns best with your trading goals in 2025.
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Introduction to XM vs IC Markets
XM: A Beginner-Friendly Powerhouse
Founded in 2009, XM is a Cyprus-based broker operating under Trading Point Holdings. With over 10 million clients across 190 countries, XM has built a reputation for accessibility and robust educational resources. Regulated by top-tier authorities like CySEC (Cyprus), ASIC (Australia), and DFSA (Dubai), XM prioritizes client safety and transparency. Its low minimum deposit of $5 and flexible account types make it a go-to choice for new traders.
IC Markets: The Choice for Advanced Traders
Established in 2007 in Sydney, Australia, IC Markets is renowned for its ECN (Electronic Communication Network) model, offering ultra-low spreads and fast execution. Regulated by ASIC, CySEC, and the FSA (Seychelles), IC Markets appeals to high-volume traders, scalpers, and those using algorithmic strategies. With a minimum deposit of $200, it targets traders seeking cost-effective, high-speed trading environments.
Both brokers excel in their respective niches, but how do they stack up against each other? Let’s dive into a side-by-side comparison based on regulation, account types, fees, platforms, instruments, and more.
1. Regulation and Trustworthiness
Trust is paramount when choosing a forex broker. Both XM vs IC Markets boast strong regulatory oversight, but their licenses and trust scores differ slightly.
XM Regulation
XM operates through multiple entities, each regulated by reputable authorities:
· CySEC (Cyprus): Ensures compliance with EU financial regulations.
· ASIC (Australia): Known for stringent oversight.
· DFSA (Dubai): A Tier-2 regulator for Middle Eastern clients.
· FSC (Belize): A Tier-3 regulator for global clients.
XM’s Trust Score of 88/99, as rated by ForexBrokers.com, places it in the “trusted” category. The broker segregates client funds, offers negative balance protection, and adheres to strict client categorization policies.
IC Markets Regulation
IC Markets is regulated by:
· ASIC (Australia): A top-tier regulator.
· CySEC (Cyprus): Aligns with EU standards.
· FSA (Seychelles): Oversees its global entity.
With a Trust Score of 84/99, IC Markets falls slightly below XM but remains highly reputable. Client funds are segregated, and the Seychelles entity offers additional insurance up to $1M through Lloyd’s of London.
Verdict
XM edges out IC Markets due to its broader regulatory coverage (four licenses vs. three) and higher trust score. However, both brokers are safe and reliable, making them suitable for traders prioritizing security.
2. Account Types and Minimum Deposits
Account flexibility is crucial for traders with varying capital and strategies. Let’s compare the account offerings of XM vs IC Markets.
XM Account Types
XM offers four main account types tailored to different trading styles:
· Micro Account: Ideal for beginners, with a $5 minimum deposit and trade sizes as low as 0.0001 lots.
· Standard Account: Suited for retail traders, also with a $5 minimum deposit.
· XM Ultra-Low Account: Offers tighter spreads starting at 0.6 pips, with a $5 minimum deposit.
· Shares Account: Designed for stock trading, requiring a $10,000 minimum deposit.
XM’s low entry barrier makes it accessible to traders with limited capital.
IC Markets Account Types
IC Markets provides three account types:
· Standard Account: Commission-free with spreads from 0.6 pips, requiring a $200 minimum deposit.
· Raw Spread Account: Offers spreads from 0 pips with a $7 commission per lot, also with a $200 minimum deposit.
· cTrader Raw Spread Account: Similar to the Raw Spread Account but uses the cTrader platform, with a $6 commission per lot.
IC Markets’ higher minimum deposit caters to traders comfortable with larger initial investments.
Verdict
XM is the clear winner for beginners due to its $5 minimum deposit and micro-lot trading options. IC Markets suits traders with more capital and those prioritizing low spreads over low entry costs.
3. Trading Fees and Spreads
Trading costs directly impact profitability, so comparing spreads and commissions is essential.
XM Fees
XM’s fee structure varies by account type:
· Standard and Micro Accounts: Commission-free, but spreads are higher (e.g., 1.6 pips on EUR/USD).
· Ultra-Low Account: Lower spreads (from 0.6 pips) with no commissions.
· XM Zero Account: Spreads from 0 pips with a $3.50 commission per lot per side.
XM’s spreads are competitive but less transparent for the XM Zero Account, as average spreads aren’t published. The broker ranks #33 out of 62 brokers for commissions and fees.
IC Markets Fees
IC Markets is known for its low-cost trading environment:
· Standard Account: Commission-free with spreads starting at 0.6 pips.
· Raw Spread Account: Spreads from 0 pips with a $7 commission per lot.
· cTrader Raw Spread Account: Spreads from 0 pips with a $6 commission per lot.
IC Markets ranks #5 for commissions and fees, offering some of the tightest spreads in the industry, especially for minor and exotic pairs like AUD/JPY (0.4 pips vs. XM’s 1.9 pips).
Non-Trading Fees
· XM: Charges a $15 inactivity fee after 12 months of no trading.
· IC Markets: No inactivity, deposit, or withdrawal fees, making it more cost-effective for infrequent traders.
Verdict
IC Markets offers lower overall trading costs, particularly for high-volume traders and scalpers, due to its tight spreads and competitive commissions. XM’s fees are reasonable but less attractive for active traders.
4. Trading Platforms
A broker’s platform can make or break your trading experience. Both XM vs IC Markets support industry-standard platforms, but their offerings differ.
XM Platforms
XM focuses on MetaTrader 4 (MT4) and MetaTrader 5 (MT5), available on:
· Desktop (Windows, Mac)
· WebTrader
· Mobile (iOS, Android)
· XM’s proprietary app
XM enhances MT4/MT5 with exclusive technical indicators and tools like the Discover tool, which includes Market Pulse and Strategy Builder. However, it lacks advanced platforms like cTrader.
IC Markets Platforms
IC Markets offers a broader selection:
· MetaTrader 4 (MT4)
· MetaTrader 5 (MT5)
· cTrader: Popular for its advanced charting and fast execution.
· TradingView: Ideal for technical traders.
· Social trading platforms like ZuluTrade and IC Social.
IC Markets’ use of Equinix NY4 and London LD5 servers ensures low-latency execution, averaging under 40 milliseconds.
Verdict
IC Markets provides more platform options, making it ideal for traders seeking advanced tools like cTrader or TradingView. XM’s focus on MT4/MT5 is sufficient for most traders but lacks variety.
5. Tradable Instruments
The range of assets a broker offers impacts diversification and trading opportunities.
XM Instruments
XM provides over 1,300 instruments, including:
· Forex: 57 currency pairs.
· Commodities: Gold, silver, oil.
· Indices: 30 indices.
· Stocks: 1,200+ stock CFDs.
· Cryptocurrencies: 31 crypto CFDs.
XM does not offer ETFs or bonds, limiting its appeal for some diversified traders.
IC Markets Instruments
IC Markets boasts over 2,250 instruments:
· Forex: 64 currency pairs.
· Commodities: 28 commodities, including gold and oil.
· Indices: 25 indices.
· Stocks: 2,100+ stock CFDs.
· Cryptocurrencies: 18 crypto CFDs.
· Bonds, ETFs, and Futures: Unique offerings not available at XM.
IC Markets’ broader range, especially in stocks and bonds, makes it a leader for multi-asset trading.
Verdict
IC Markets offers a wider and deeper selection of instruments, particularly for traders interested in bonds, ETFs, and futures. XM’s crypto offering is stronger, but its overall range is narrower.
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6. Educational Resources and Support
Education and customer support are critical, especially for beginners.
XM Education
XM excels in educational resources:
· Over 10 beginner and advanced videos.
· Monthly webinars and archived sessions.
· In-person seminars in select regions.
· Market Pulse, Newsdesk, and Strategy Builder tools.
XM’s focus on education makes it a top choice for new traders.
IC Markets Education
IC Markets offers:
· Articles and video tutorials on trading psychology and strategies.
· Live webinars and market analysis.
· An investor dictionary with over 50 terms.
While comprehensive, IC Markets’ educational content is less extensive than XM’s.
Customer Support
· XM: 24/5 support via email, live chat, and phone in over 21 languages. Responses are prompt and reliable.
· IC Markets: 24/7 support via email and live chat in over 18 languages. Phone support is less consistent.
Verdict
XM leads in educational resources and support, making it ideal for beginners. IC Markets’ support is robust but falls short of XM’s accessibility.
7. Leverage and Trading Conditions
Leverage and execution models affect trading strategies and risk.
XM Leverage
XM offers flexible leverage up to 1:888 (depending on the region and account type). As a market maker, XM operates a dealing desk, which may introduce conflicts of interest but ensures fast execution.
IC Markets Leverage
IC Markets provides leverage up to 1:500. As a true ECN broker, it connects traders directly to liquidity providers, offering transparent pricing and no price manipulation. This makes it ideal for scalping and high-frequency trading.
Trading Conditions
· XM: Supports micro-lot trading (0.0001 lots on Micro Accounts) and offers bonuses for high-volume traders.
· IC Markets: Excels in fast execution (under 40ms) and supports VPS hosting for 24/7 algorithmic trading.
Verdict
IC Markets is better for advanced traders due to its ECN model and lower latency. XM’s higher leverage and micro-lot trading suit beginners and low-capital traders.
8. Bonuses and Promotions
Bonuses can attract new traders but often come with conditions.
XM Bonuses
XM offers:
· No-deposit bonus (up to $30 for new clients).
· Deposit bonuses for specific regions.
· Loyalty rewards for high-frequency traders.
These promotions are subject to terms like minimum trading volumes.
IC Markets Bonuses
IC Markets does not offer traditional bonuses, focusing instead on low-cost trading. It provides VPS services and copy trading platforms like ZuluTrade, which can be seen as indirect benefits.
Verdict
XM’s bonuses make it more appealing for traders seeking incentives. IC Markets prioritizes cost efficiency over promotional offers.
Final Verdict: XM vs IC Markets
Choosing between XM vs IC Markets depends on your trading style, experience, and priorities:
· Choose XM if:
· You’re a beginner with limited capital ($5 minimum deposit).
· You value extensive educational resources and live webinars.
· You want high leverage (up to 1:888) and bonuses.
· You prefer trading cryptocurrencies or need micro-lot options.
· Choose IC Markets if:
· You’re an experienced trader or scalper seeking low spreads (from 0 pips).
· You use advanced platforms like cTrader or TradingView.
· You trade a wide range of assets, including bonds and ETFs.
· You prioritize fast execution and an ECN trading environment.
Both brokers are reputable, regulated, and cater to global traders. XM shines for accessibility and beginner support, while IC Markets excels in cost efficiency and advanced trading conditions. Evaluate your goals—whether it’s low-cost scalping or learning the ropes—and select the broker that best fits your needs in 2025.
FAQs
1. Is XM or IC Markets safer for trading?
Both are highly regulated, but XM’s broader regulatory coverage (four licenses) and higher trust score (88/99) give it a slight edge.
2. Which broker has lower fees?
IC Markets offers lower trading costs, with spreads from 0 pips and competitive commissions, ranking #5 for fees. XM’s fees are higher, especially for minor pairs.
3. Can I trade cryptocurrencies with both brokers?
XM offers 31 crypto CFDs, while IC Markets offers 18. If crypto trading is a priority, XM has a stronger selection.
4. Which broker is better for beginners?
XM is more beginner-friendly due to its $5 minimum deposit, micro-lot trading, and extensive educational resources.
5. Do both brokers support MetaTrader?
Yes, both offer MetaTrader 4 and MetaTrader 5. IC Markets also supports cTrader and TradingView.
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