FP Markets Vs XM Standard Account

Maya: I think XM's goal is to have more regulations for many countries not to show that they are more compliant with regulations and "regulated" than other brokers. But with this regulation, it means that they can operate in certain countries and receive clients from the country they enter.

This means you can say more users of XM than FP Market because XM can attract traders from Germany, France, Spain, Italy, UK, Australia, Greece, from New Zealand and many countries. And again, all traders in the country I mentioned can legally trade with XM and treat XM as a local broker and not a foreign broker. This means that if they need to make a complaint in person, they can go to the office or get government assistance. So, merchants there also have customer protection from governments.

The first is to reach more traders and the second is to show how well they regulated.

Bryce:For me, I think the regulation that brokers really need is a top regulator. So for me, it doesn't matter if you only have one settlement, as long as you can have one, the brokers will be verified as trustworthy brokers. For example, if you are regulated from London (FCA) or if you are regulated from another country, where do you trust?

FCA from London, one of the strictest regulators, or from another country like Rep. Dominica for example? So, it doesn't matter how much regulated brokers are as long as they are regulated by ASIC, FCA or even US regulator and in this case FP and XM are very reliable because they have the license of this country. 

Yoshua A: Man, there are 2 things that become an indicator for you to know if your money is enough to trade or not.

By finding the margin call and stop levels set by the broker and calculate your own margin.

To calculate your margin, it's simple with the following formula:

((Equity-margin)/margin x 100%))

Equity is your deposit and margin is the amount used in trading. Margin can be found simply using the formula (Price x Lot Size / Leverage) or you can simply visit the Forex Margin Calculator on this website

All details about margin call and how to calculate it, you just need to go to this article: Forex Margin Call and Stop Out.

Okay, back to the topics :

For example, trading with $5, leverage 1:888 and trade in most common traded currency pairs, EUR/USD with standard account and with 0.01 lot. The margin you will get $1.32.

And margin level that currently yours is 278%.

And meanwhile The margin call notification level for the XM forex broker or XM margin level is 50%. XM margin call level means that if account equity drops below 50 percent, the trader will get a notification that the margin call level is shallow and that there are possibilities shortly that positions be liquidated (forcibly closed). XM stop out level is 20%.

It is enough to do 1-2 entry in there since the margin call level if you trade 2 times is only at 178% and remember to trade with 0.01 lot!

I think for the beginners it is better to use this $5 deposit to practice. I don't see any chance of profiting from it. I mean you also need to calculate the spread that occurs in the trade.

Yes, you can trade with 5 dollars but with a note, only 1 out of 2 trades, right? I think both of these exchanges must be profitable. If you lose once your margin will be limited to 1 and if you don't manage your risk your loss can be bigger and with just one trade you will be required deposit.

Ok Imagine if we are trading with 0.01 with leverage of 1:888, the required margin is $1.32. The pip value if you trade with 0.01 lots is $0.10 (Standard = $10, Mini = $1 and Micro = $0.10).

Remaining equity is $3.68 and also margin free is also $3.68. For example, if you lose 25 pips, the loss you get is 25 pips x 0.1 USD = 2.5 USD, the free margin you have left is 1.18 USD. And based on the calculation, your margin on a trade that lost 30 pips is 89%, which is the margin call. So the maximum number of pips you can lose if you trade for 2 trades is 12 pips. You have to be very careful with trading, especially day trading and this is very limited trading.

Fernandes: So you said in the comment above about the pip value, right? On what basis can you say that the standard lot has $10 and the micro lot has $0.10? How to determine pip value.

And if based on how much value your pip has, I can get $0.1 for every 1 pip move. And if I have a risk/reward ratio, the best ratio uses 1 : 2. I mean the trade with 0.01 lot will get very little profit, but I think it is worth it for a new trader who wants to risk money to learn Forex and may find it more challenging 

Kenz: To count pip's value is very simple.

Just use this formula :

Pip value = size tick x size contract

Usual, you can find the size tick at the broker's website. And normally for the size ticks for Direct Pair is 0.0001. The size contracts are standard lot which has 100.000 unit; the mini has 10.000 lot; the micro has 1000 lot.

If you trade 1 lot for example, the pips value you will get 0.001 x 100.000 = $10

If you trade 0.1 lot for example, the pips value you will get 0.001 x 10.000 = $1

If you trade 0.01 lot for example, the pips value you will get 0.001 x 1.000 = $0.1

Lonard: Yes, I also agree with the author about the demo account. Yes, you need a demo account to test some brokers. However, for some reason traders will not find it difficult with a demo account as some demo accounts do not spread and with higher virtual funds this does not describe real trading at all. .

So if I were you, after using enough demo accounts never be afraid to try the real one, this is where your mindset and physicality will affect your trading and can give you the best trading experience. I think it's the live market that can make you feel like the real Forex market is not a demo account 

@Hamin Islam: Based on the article above, I can tell you about the difference between those account. 

When comparing FP Markets and XM Standard Account, there are some important differences to consider.

• First, FP Markets has one type of account, while XM offers different account options.
• In terms of spreads, both brokers have variable spreads, but FP Markets charges a commission of $3 per trade, while XM charges $3.50.
• Minimum position sizes are the same for both brokers at 0.01 lot, allowing for smaller trades.
• FP Markets has a higher rating and more positive feedback on Trustpilot, showing that users trust them more. However, XM has been around for a longer time since 2009.
• Both brokers offer popular trading platforms like MetaTrader 4 and 5, which provide tools for analysis and trade execution.
• When it comes to support, XM offers more resources like testimonials, news, bonuses, and promotions.

To choose a broker, consider your trading goals and risk tolerance. Look for good trading conditions, reliable regulation, competitive spreads, user-friendly platforms, and responsive support that suit to your preference. Dont forget to try demo trading or start with a small deposit to test a broker before committing more money.

By making an informed decision, you can create a trading plan that suits your needs and increases your chances of success.

@Shohage Bin Adel: I believe it's tough to definitively answer your question about the best choice for beginner traders because it really depends on your trading style. Finding the right broker is a bit like finding a compatible partner; it's a matter of personal fit. If you're just kicking off your trading journey, both FP Markets and XM's Standard Account can be suitable options. FP Markets has various account types, but their Standard one is pretty straightforward. They're regulated, offer user-friendly platforms like MetaTrader, and provide educational resources. On the other hand, XM's Standard Account is beginner-friendly, with low minimum deposits and access to a wide range of trading tools. They're also well-regulated and use the same easy MetaTrader platforms. XM offers educational materials too. The choice ultimately comes down to what feels right for you – they're both solid choices for new traders. But remember, take your time to learn the ropes and make good use of demo accounts before diving into live trading. Wishing you happy and successful trading!

@Enji:  Let me help you to answer the questions! So, marking up spreads and offering commission-based pricing, these are like the two main flavors in the forex world.

Marking Up Spreads on No-Commission Accounts: When brokers mark up spreads, they're basically tucking their profit into those spreads. It might look a bit fuzzy because it's not so transparent, but the advantage is you can see your costs right there. Simple, right? The flip side is, spreads can get wider, and that can ding your trading costs, especially if you're into frequent, quick trades.

Variable Spreads with Commissions: Now, if you're into transparency, you might dig variable spreads with a separate commission. You're basically getting the raw, real-deal spread from the market. It's like looking under the hood. You pay a separate commission for each trade, and it's great if you've got a good grip on your trading volume. For big traders, this can be cost-effective because the commission can often be lower than those marked-up spreads. But if you're just doing smaller trades, the commission can make things a bit pricier.

So, here's the deal - which one you choose depends on how you roll as a trader. If you like things straightforward and don't want to think too much about costs, marked-up spreads might be your jam. But if you're all about seeing what's really happening in the market and know your trade volumes, variable spreads and commissions could be your go-to. It's all about what suits your style and your pocket. And hey, read those terms and conditions to really know what you're getting into

Hey man, great question! It's super important to pick a solid broker, especially with all the shady ones out there nowadays. FP Market is top-notch according to Investment Trends, a big financial research firm. They've won awards for customer service, education, and value for money. Even though the last awards were in 2016, it shows their commitment to customers. The registration process with account verification is standard for security, protecting your funds.

Copy trading is like social trading on autopilot. You basically find a seasoned trader whose moves you dig and then mimic their trades in your own account. It's like having a mentor without all the complicated stuff. Great for newbies who want to ride on someone else's coattails and learn the ropes without diving into complex trading strategies.

You can sift through a list of pro traders, check out their track record—win rates, average returns, and such—and once you spot one you like, you set up your account to copy their moves automatically. FP Markets and other brokers offer this feature. But remember, copy trading isn't a shortcut to riches. You still gotta do your homework and be smart about it. Take the time to pick the right traders to follow and be aware of the risks. It's all about learning from the best while staying savvy in the markets.

Some brokers let you copy what hotshot traders are doing. Basically, you pick a trader to follow, and their moves are mirrored in your account. Cool for beginners to learn from the pros, but gotta choose wisely! Not all traders are winners, and there can be fees involved. So, do your research before you copy blindly.

If you are beginner at trading, you can read this article as preference: Your Definitive Guide to FP Markets Copy Trading