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XM and FBS are two popular market maker brokers with over 10 years of experience. Both brokers offer competitive trading conditions and diverse portfolios and are authorized by some of the top-tier market regulators. While they have similar customer bases, these two brokers differ a lot when digging into the depth of their features. Established in 2009, both XM and FBS have more than a million international clients registered on their trading platforms. However, FBS broker mostly operates in Central America, whereas XM traders can be found in Europe, Africa, and Asia.
Both companies are Forex brokers, however, they offer other financial instruments, as well. With XM, you can trade commodities, stocks, indices, energies, CFDs, metals, and cryptocurrencies. Whereas, FBS offers metals, indices, energies, and stocks. The spreads on popular Forex currency pairs are tighter with XM than with FBS. However, FBS also offers unprecedented maximum leverage of 1:3000 compared to XM’s maximum limit of 1:888.
Our FBS vs XM broker comparison review will discuss the major features of the brokers, their fee structures, trading platforms, safety, and regulations, as well as the promotional campaigns.
|Min. Deposit||5 USD||1 USD|
|Regulations||IFSC, CySEC||IFSC, CRFIN|
|Trading Platforms||MT4, MT5||MT4, MT5, FBS Trader|
|Bonuses||30 USD no deposit||100 USD no deposit|
First of all, let’s see which broker allows you to start trading Forex with low costs. In fact, both FBS and XM have low minimum deposit requirements with XM requiring only 5 USD and FBS even going lower for 1 USD minimum deposit threshold. However, the brokers have various live trading account types that come with different deposit requirements. The cheapest account with FBS is a Cent account type, whereas XM has a similar concept on Micro trading account type. Other account types with FBS include Micro account, Standard account, Zero Spread account, and ECN account. XM offers three other account types that are Standard, XM Ultra-low, and Shares accounts.
XM and FBS charge commissions on premium account types only. Their cheaper alternatives, such as Standard and Micro accounts allow commission-free trading. Otherwise, the commissions depend on the type of the account and trading benefits attached to a specific account type. However, XM might have an edge in terms of trading costs, since the broker only charges commission on the Shares account. FBS on the other hand has two commissionable account types: Zero spread and ECN account. Zero Spread account type comes with a commission rate of 20 USD per lot, whereas the ECN account has a fixed commission fee of 6 USD.
The spreads are variable with both brokers and are much tighter than the market average. For instance, the most popular Forex currency pair of EUR/USD XM offers spreads starting at 0.6 pips on non-commissionable XM Ultra-low accounts. FBS, on the other hand, provides the lowest spread for non-commissionable of 0.5 pips on Standard accounts. However, it should be noted that the XM Ultra-low account can be registered with a 5 USD minimum deposit, whereas the FBS Standard account requires a 100 USD initial deposit. Furthermore, FBS’s commissioned account of Zero Spread offers spreads starting at 0 pips on Forex currency pairs.
Get your XM Standard account with $5 deposit
As expected from the best Forex brokers, XM and FBS provide the ground-breaking trading platform – MetaTraders. In contrast to most Forex brokers, XM and FBS do not limit their traders to a single option and instead support both MetaTrader 4 and MetaTrader 5 trading software. These two platforms are highly common in Forex trading due to abundance of the complex functions and analytical tools, numerous indicators, and charting systems. MetaTrader 4 is often used for trading currency pairs, whereas MetaTrader 5 is a multi-asset trading platform.
Generally, this two software are compatible with desktop only. It means that they essentially need downloading and installing on the PC of the user. To make the trading experience more convenient, XM and FBS offer various modifications of these original platforms and offer browser trading terminals called WebTraders, as well as mobile trading apps compatible with both IOS and Andriod devices. The platforms of these two brokers are highly secure and equipped with all the necessary security measures.
In addition to MetaTrader 4 and MetaTrader 5 modifications, FBS also offers an innovative FBS trader app which is the newest addition to the broker’s platform. Over 50 Forex currency pairs and metals can be accessed on the app with real-time rates using the advanced price charts. The app comes with a smart interface. Users can easily order and access account settings in a few clicks.
Start trading with the FBS Trader app
FBS and XM are reliable brokers since they both hold multiple licenses from regulatory organs. Since they hold more than one regulatory body authorization they can serve clients from multiple locations globally. FBS broker is operated by the FBS Markets Inc which is registered in Belize. The broker holds an official license from the local market regulator – the International Financial Services Commission (IFSC) with the license number IFSC/000102/198. Additionally, the broker is also authorized by the Centre for Regulation in OTC Financial Instruments and Technologies (CRFIN). FBS brokerage services are not available in the United States, the United Kingdom, the Islamic Republic of Iran, Israel, Malaysia, Brazil, Myanmar, Canada, and Japan.
XM Forex broker resides in Belize, as well. Similarly, the broker holds a license by the International Financial Services Commission in Belize with the license number 000261/158. In addition to local authorization, XM also has authorization from the Cyprus Securities and Exchange Commission (CySEC) with the license number 120/10. XM Global Limited is a member of the Trading Point Group. The services of the XM broker are not available in the United States, Canada, Israel, and the Islamic Republic of Iran.
Luckily, XM vs FBS review on bonuses shows that brokers offer a plethora of promotional programs. The brokers do not limit their clients to a single choice only. But instead, they provide different types of campaigns including various bonus schemes, referral programs, loyalty programs, and trading contests. However, we have to mention that some of the regulatory bodies restrict the use of promotional campaigns. Therefore, according to their respective licenses, XM and FBS have limited options.
XM broker has two types of bonus schemes. Firstly, the broker offers no deposit bonus in the amount of 30 USD. This bonus does not require any deposit from the client and can be claimed upon registration. Secondly, XM also runs a deposit bonus program in two parts. When clients make an initial deposit of up to 500USD they receive an additional 50% bonus amount. For deposits up to 4,500 USD traders are eligible for an extra 20% bonus. The referral program of XM grants 35 USD for each referred person. There is no limit to how many referrals you can accumulate. The referral earnings can be withdrawn at any moment.
If we compare broker XM vs FBS bonuses, we can see that both brokers equal points. However, the bonus amounts of FBS can be bigger than of XM. For instance, on deposit bonuses, FBS provides a 100% bonus, but with a bit stricter terms and conditions. Similarly, the broker offers a free 140 USD level-up bonus for the special level-up account. However, both the eligibility criteria and withdrawal terms are slightly complicated. On the other hand, for beginner traders, we still recommend signing up for FBS quick start bonus. The quick start bonus offers a 100 USD no deposit bonus. It also comes with the inbuilt guide on Forex trading basics lessons.
Claim XM $30 no deposit bonus here
|Pros||- tight spreads||- advanced platforms|
|- diverse bonus programs||- flexible leverage|
|- low trading cost||- generous bonuses|
|Cons||- geographic restrictions||- less diverse portfolio|
|- no Zero spread account||- fewer regulations|
|- restricted leverage||- geographic restrictions|
XM broker is better than FBS in terms of lower minimum deposit requirements, simplicity of bonus terms and conditions, and a more diverse trading asset portfolio. Furthermore, XM is actively positioning itself in African and Asian regions, therefore, we suggest trading with the brokers if you come from any of the two regions. FBS on the other hand has a nicer cost structure with lower spreads and more flexible leverage. Also, if you read and follow the instructions carefully the promotional campaigns are more generous with FBS. The FBS broker is a popular choice for Central American Forex traders. Therefore, if you come from this region trading with FBS is strongly recommended.
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