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The Forex industry is becoming more and more important financial sector every day. The volume of the market is rapidly expanding making it extremely difficult for the traders and participant institutions to keep up with the updating standards and trends. Therefore, it requires outstanding performance and dedication to survive in the Forex market. XM and HotForex are two of the most exceptional brokers that have managed to stay on top despite everything. These brokers are recognized as transparent and high-quality brokerage service providers by millions of traders worldwide. Both companies hold multiple regulations within different jurisdictions and provide groundbreaking security features for their clients.
|Min. Deposit||5 USD||5 USD|
|Regulations||FCA, DFSA, FSCA, FSA||IFSC, ASIC, CySEC|
|Trading Platforms||MT4, MT5||MT4, MT5|
|Bonuses||100% supercharged, 100% credit bonus, 30% rescue bonus||30 USD no deposit|
Before we move on to discussing the trading costs and fees with these two brokers, we shall first define what their trading assets portfolios look like. XM offers more than 1000 financial instruments to its clients, whereas HotForex increases the number up to 1200 assets. Both brokers dedicate most of their efforts to providing Forex currency pairs. The traders can choose from over 50 currency pairs available with XM and HotForex. Commodities and Precious Metals are also available on the trading platforms of these two brokers, as well as some of the most popular shares and stock indices. The difference between HotForex and XM is that HotForex offers cryptocurrency trading, while XM does not.
When it comes to XM and HotForex spread comparison, we should note that the spreads with both of these brokers vary according to trading account types. XM broker offers three types of trading accounts are Micro, Standard, and Zero trading accounts. Micro and Standard trading account types offer standard spreads that are slightly below market average, whereas Zero account provides ultra-tight spreads on Forex currency pairs. The spreads start from 0 pip for this account type. Similarly, HotFrex also offers several account types: Micro, Premium, Zero Spread, Auto, PAMM, and HFCopy. Micro account is the cheapest account with standard spreads. For ultra-tight spreads, clients need to open a Zero Spread trading account to enjoy spreads starting at 0.0 pip.
The commissions are applicable to the accounts of XM and HotForex that offer low or ultra-tight spreads. For HotForex’s Zero Spread account, the commission fee is 6 US dollars per round turn lot. XM Zero account comes with a commission rate of 5 US dollars per 100,000 USD traded. There is another account at HotForex platform, PAMM Premium Plus account type which comes with 10 USD per round turn commission due to the sophistication level of the account. The rest of the account types with these two brokers operate without commission fees.
|EUR/USD||1.3 pips||1.7 pips|
|USD/JPY||1.7 pips||1.6 pips|
|GBP/USD||1.7 pips||2.2 pips|
|USD/CAD||1.8 pips||2.2 pips|
|AUD/USD||1.5 pips||1.8 pips|
Trading platforms and software is one of the few things that HotForex and XM have in common. These two brokers support MetaTrader platforms that are the most popular options among the traders globally for all financial sectors. However, MetaTrader 4 is still the most recommended software for trading Forex. The reason behind its popularity is the fact that the platform was specifically designed to suit the needs and requirements of all kinds of Forex traders. Various indicators, charting mechanisms, and tools are at the disposal of the users of MetaTrader 4.
On the other hand, MetaTrader 5 is the newest release of the developer. Therefore, some of the traders prefer to use MT5 instead of the original MT4 software, especially for trading financial instruments other than currency pairs. Furthermore, some of the trading strategies work best with this specific platform, such as hedging. That is why the brokers still decide to support both of the MetaTrader platforms. Moreover, as these two trading systems need downloading and install and run on desktops of the users, HotForex and XM brokers also support various modifications of MT4 and MT5. The clients of these two brokers can use WebTrader which runs through any browser without the need to download and install it, or mobile trading apps that are compatible with both IOS and Android devices.
One of the most important features of the Forex brokers that we have to assess is the safety of traders, their funds, and their privacy. We have to give credit to both HotForex and XM for providing one of the most reliable platforms and services to their clients. HotForex and XM hold several licenses from the regulatory authorities located in different regions of the world. They are authorized and recognized by numerous financial institutions and both HotForex and XM are multiple-award-winner brokerage companies.
The list of the regulations for XM broker includes:
HotForex, on the other hand, is regulated by the following authorities:
Promotions are the favorite features of the Forex brokers for many traders. Especially, if you are just getting started in Forex then you need a little bit of encouragement from the company. That is why, both XM and HotForex offer promotional campaigns for their existing or new registering clients. Both brokers run more than a single bonus scheme which makes trading with them even more attractive. The most popular promotional products that HotForex and XM offer are deposit and no-deposit bonuses.
However, no deposit bonus is a type of bonus that can be found with XM broker, only. The terms and conditions state that upon registering on XM’s trading platform, a user is eligible to receive a 30 USD welcome bonus without any investment from the client’s side. However, the bonus amount cannot be withdrawn and should be traded instead. In case the users generate profits through trading bonuses and satisfy the volume requirements it becomes withdrawable at any moment. XM also runs deposit bonus programs in the amount of 50% of the initial investment. Similar terms and conditions apply to the deposit bonus of XM brokers.
HotForex, on the other hand, offers three types of bonuses: 100% supercharged bonus, 30% rescue bonus, and 100% credit bonus. While the first and the last categories of bonuses serve as standard deposit bonuses, a rescue bonus is a new concept developed by the broker. The rescue bonus serves as a guard against the major losses of the broker’s clients. It is activated when the trader enters the loss-making zone. HotForex also runs multiple trading contests with extremely generous prizes that award cash prizes, gadgets, or even luxury trips.
|Pros||Numerous bonus programs||Low min. deposit|
|Flexible leverage||Low trading cost|
|Mutiple regulations||Tight spreads|
|Cons||Geographic restrictions||Limited portfolio|
|Only MT platforms||Geographic restrictions|
|Average spreads||Only MT platforms|
It is not simple to give priority to one of these two brokers as they are both leading brokerage companies and have hundreds of thousands of loyal customers. Their quality of service is indeed outstanding and they offer high-class security features for their clients. That is why we recommend that you choose between these two brokers according to your trading goals and needs. For instance, if you are interested in trading Cryptocurrencies you can choose HotForex instead of XM. If you want to have more options in currency pairs then XM is the better option. Similarly, you can decide which broker to choose according to the regulations that these two brokers have. If any of them holds a license from your local regulatory body then it is better to stick with that one. Otherwise, there are no risks with trading on either HotForex or XM trading platform.
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