Two of the most popular forex broker for beginners are XM and FBS. The two are commonly chosen by beginners across Asia. But which one is better?
Choosing the best forex broker for a beginner is no trifling matter. A beginner trader should choose a forex broker that provides educational resources, low fees, and a user-to-user trading platform. The trader also should not underestimate the importance of legalities. Even the most beginner-friendly broker may take away all of your money needlessly if you are unaware.
Two of the most popular forex broker for beginners are XM and FBS. Due to legal constraints, they are not preferred by US traders. But the two are commonly chosen by beginners across Asia and have quite a lot of fans in Europe and Africa as well.
So, how does the two forex broker compare? Which forex broker is better for a beginner? Let's examine their facilities and services in detail.
Educational Resources
In terms of educational resources, XM broker wins hands down. Its learning center is full of live training, educational videos, forex webinars, and platform tutorials for beginner stage, intermediate, and beyond. Trader may choose to study at their own pace or following scheduled live webinars with XM experts, or both.
FBS provides a relatively simpler form of educational resources, consists of a guidebook and tutorials that focus on how to start trading with the broker's platform. There are also webinars and seminars that are usually held in cooperation with local IBs.
Forex Trading Fees
Forex trading fees comparison is rarely straightforward. One of the most pressing matter is that different forex brokers offer different account types. In the case of FBS and XM broker, this is even more prominent.
XM broker offers four account types: Micro Account, Standard Account, XM Ultra-Low Account, and Shares Account. FBS provides five account types: Cent, Micro, Standard, Zero Spread, and ECN Account. Obviously, each account bears different spreads and commission fees.
Since this article aims to examine which forex broker is better for beginners, we will compare XM Micro Account against FBS Cent Account.
| Broker | XM Micro Account | FBS Cent Account |
| Base Currency | USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR | US Cent |
| Minimum Initial Deposit | $5 | $1 |
| Forex Spread | floating, starting from 1 pip | floating, starting from 1 pip |
| Commission per lot | $0 | $0 |
| Leverage | tiered, up to 1:888 | non-tiered, up to 1:1000 |
The main difference between both accounts is in the base currency of each account. By using US Cent as the base currency, FBS enable account opening for lower deposit requirement. However, this difference is moot because you will need between $100-$500 to actually profit from forex trading. Trading fees between both forex brokers are also approximately similar.
See Also:
Forex Trading Platform
Both XM and FBS equally rely on Metaquotes-produced Metatrader4 and Metatrader5. Each is available for desktop, web, and mobile, with the addition of powerful multiterminal for Metatrader4.
Metatrader4 and Metatrader5 are quite standardized, so there is nothing that can be said better or worse here. As long as you could use Metatrader, you will be able to trade with any broker without looking for tutorials again.
However, FBS platform might be more suitable if you are looking to explore copy trading (copying trades from professionals with a certain fee). FBS offers copy trading services directly from their proprietary mobile app. XM does not provide similar services on its platform.
Fund Safety
In terms of legal guarantee for your fund safety, XM might be more reliable. The broker has received licenses from Australian ASIC, UK FCA, Cyprus CySEC, Dubai DFSA, aside from several other offshore licenses. On the other hand, FBS has registered under Cyprus CySEC and IFSC Belize only (both are known as less reliable offshore regulatory agencies).
It also needs to be said that XM has a relatively better reputation among forex traders. FBS broker has repeatedly suffered under criticism of late withdrawal and treacherous bonus program. XM rarely award freebies and roadshow, but their long-time loyalty program has long hooked a lot of experienced traders.
So, which forex broker will you choose? If you are looking to play it safe, then XM might be the better option. But if you need the convenience of copy trading, then FBS should be more attractive. In either case, it is better if you start low. Make sure you could navigate around your chosen broker's services easily before making large deposits.
See more about them in extensive reviews about XM broker and FBS.
36 Comments
Brandon
Oct 31 2022
Actually, I Absolutely agree wiht the author! XM and FBS are indeed among the most popular forex brokers for beginners. While they may not be preferred by US traders due to legal constraints, they have gained significant popularity among beginners in Asia. Moreover, they also have a substantial fan base in Europe and Africa. Many traders appreciate their user-friendly platforms, educational resources, and customer support, making them go-to choices for those starting their forex trading journey. So, if you're a beginner trader hailing from Asia, Europe, or Africa, XM and FBS can be solid options to consider. And one more thing that very important too, Both of the brokers really need very little funds to do the trading too!
Alex
Dec 1 2022
In the article, it mentioned that Metatrader 4 and Metatrader 5 are pretty much standard platforms, so there's no real better or worse in terms of functionality. Once you know how to use Metatrader, you can trade with any broker without needing to learn a new platform all over again.
However, as a beginner, I've also come across brokers that offer alternative platforms like cTrader and TradingView. So, what exactly makes Metatrader 4 and Metatrader 5 the go-to choices for traders? And how do they differ from other trading platforms out there?
Thanks for your help in clarifying this, dude!
Fajar
Dec 31 2022
Yudha
Dec 31 2022
Antoinne
Dec 31 2022
Antoinne
Dec 31 2022
Yoko
Dec 31 2022
Antoinne
Dec 31 2022
Junaedi
Feb 7 2023
Antoinne: Yep, XM has offered mobile trading plaform for their trader and FBS offered to trade with Metatrader Mobile, and I think for real, there is almost no different between metatrader mobile and XM mobile trading platform. I mean the smaller screen and limited tools that we can use.
But, if your mobile trading platform's criteria is to trade and do managing account in one application, XM can be the best mobile trading platform.
You can read the review of the XM Trading application in here : XM Mobile APP
daniel
Feb 7 2023
"FBS broker has repeatedly suffered under criticism of late withdrawal and treacherous bonus program"
The words in there really made me wonder why FBS would do such things. I mean I've known FBS for a long time, especially its ads that always spamming my social media accounts such as Facebook and Youtube. The contain of their ads are offers many bonuses including a double deposit or other bonus reward. I don't think that's really true or not
In fact, I have never used FBS before and at that moment I started searching for Forex knowledge and found this article. I guess as a newbie, I need to know about the bonus program offered by FBS, right?
Torino
Feb 7 2023
daniel: In fact yes! You should pay attention to the bonus program offered by FBS. I mean I'm the one who fell into their bounty program. Okay, first of all, FBS doesn't harm my money and it never scams. It is a regulated broker although its regulator is weaker than that of XM Broker.
It started with me, opening new account on FBS but without any deposit. So FBS offered me to trade without deposit by following their $140 program. Basically, this is a program you need to follow the rule of covering the need to trade every day for as long as possible. So you just get profits in one month with $140 deposit. Deposits come from them. If you trade in this timeframe and get $100 for example, then $100 will be yours. Sounds easy, doesn't it?
Actually not! Trading conditions are crazy. I mean you need to trade 5 lots per month and you can only open 0.01 lots up to 5 times in one trade. It's crazy, to gain 1 lot you have to trade 100 times while to gain 5 lots you have to trade 500 times. that means in one day you have to trade 17 times and open position is limited to only 5 times. This means you cannot scalp to achieve this.
After trading for a few days, I realized that it is not possible to hit the target even though some traders can hit the target and others are disqualified for some unknown reason.
Enzo
Feb 7 2023
Torino: wow man, that's a long story. So the author spoke the truth about the treacherous program that FBS created. Looks like I have to choose XM instead of FBS. I mean, based on your experience, I can say that dealing with them may not be safe en ough.
But I'm curious about the trading conditions offered by FBS because for me, as a searcher for lower fees, FBS really has a low minimum deposit and high leverage, after all the spreads also seem very competitive and the commission in FBS also low. If it weren't for that program, I think FBS could be a good broker.
Torino
Feb 7 2023
Enzo: I disagree if you say dealing with them is not secure. My old account can still be activated in the personal area of their mobile app. There is also some deposit in it. I almost forgot that I have a FBS account. So I previously had a disclaimer that FBS is a regulated broker and not a scam. In fact, it is very safe to trade with them. I have no complaints about live trading. Leverage can also be changed according to your condition. The freedom provided by FBS is also sufficient.
And I heard that FBS sponsored Leicester Football Club, one of the clubs playing in the Premier League. This shows that FBS really has strong money management capabilities.
But of course, what makes me very dissapointed is the bonus program that they offered. It is better to avoid it.
Nodi Chakmin
Mar 25 2023
What are the key differences between FBS and XM in terms of their trading platforms, account types, fees and commissions, and other important features for beginner traders? Specifically, how do the two brokers compare in terms of the quality and accessibility of their educational resources, customer support, and trading tools and indicators? Additionally, how can beginner traders evaluate their own trading goals and needs to determine which broker will be the best fit for their individual circumstances, and what are some best practices for opening and funding a trading account with either FBS or XM?
Kashidul Rahaman
Mar 25 2023
How does FBS or XM compare to other forex brokers in the industry that are also popular among beginner traders, and what are the relative advantages and disadvantages of each broker in this context? Specifically, how do FBS and XM compare to brokers such as eToro, Plus500, and IG, in terms of their user-friendliness, trading costs, regulation and safety, and other important factors for beginner traders? Additionally, what are some common mistakes that beginner traders should avoid when choosing a forex broker, and how can they conduct their own research and due diligence to ensure that they make an informed and responsible choice?
Xavier
Apr 14 2023
@Kashidul Rahaman: In my opinion, when it comes to ing a broker, the two most important factors to consider are the minimum deposit required and the trading fees offered. For instance, as can be seen in the articles, brokers such as FBS and XM offer low spreads and minimum deposits, making them an attractive option for traders. In terms of regulation and safety, you can check their respective sites or use this website to find out which regulatory bodies oversee them. Additionally, this website also allows you to compare different brokers directly by navigating to the 'broker' section and ing 'compare'. By ing the brokers you are interested in, you can easily see the differences between them and make an informed decision.
Sonny
Apr 4 2023
Hey there! So, I was reading this article about FBS and XM, and it mentioned something called "offshore" brokers. As a beginner, I'm a bit confused about what that actually means. Can you shed some light on what offshore brokers are and how they differ from other brokers?
I mean, I know that FBS and XM are popular brokers, but this offshore thing has got me wondering. Are they like brokers who operate on some tropical island or something? And what are the implications of trading with offshore brokers? Are there any risks or benefits that I should be aware of?
Thanks a bunch for your help!
Victor
May 17 2023
Absolutely, dude! Offshore brokers are basically brokers that are based in a country other than the one you reside in. They are often located in countries with more relaxed financial regulations and lower tax burdens. It doesn't necessarily mean they're chilling on a tropical island, though it does sound kinda cool!
Now, when it comes to trading with offshore brokers, there are some things you should know. On the positive side, offshore brokers may offer certain advantages like lower trading costs, higher leverage options, or even access to markets that are otherwise restricted in your country. It can be tempting for traders looking for more flexibility and potentially better trading conditions.
However, there are risks involved too. Offshore brokers might not have the same level of regulatory oversight and investor protection as brokers operating within your own country. In case of any disputes or issues, it could be more challenging to seek legal recourse or get your concerns addressed.
Roger
May 20 2023
Hey! About the offshore brokers, Not all offshore brokers are unsafe, and some of them actually have measures in place to keep your money safe. One of those measures is having segregated accounts. These accounts keep your funds separate from the broker's own operational funds, providing an extra layer of protection.
Now, when it comes to offshore brokers, it's important to do your research and choose a reputable one. Look for brokers that have a solid reputation, good reviews from other traders, and maybe even recommendations from the trading community. You want to make sure they prioritize the safety of your money and follow proper regulations. (read : Trading In An Offshore Brokers : Pro and Cons)
Happy trading, my friend, and may the markets be forever in your favor!
Peter
Apr 14 2023
Hello! I was just curious about cent accounts, as I recently learned about them and had only previously heard of micro accounts. Interestingly, according to the comparison above, it seems that only FBS offers a cent account while XM offers a micro account. I'm wondering what the differences are between these two types of accounts and which one would be more suitable for beginners. Can anyone explain to me then? I am waiting for the reply, thank you!
Yudha
May 4 2023
As a newcomer in the world of trading, I have found this website to be an incredibly useful resource in helping me choose the right broker. The website provides detailed comparisons between different brokers, which has made it easy for me to identify which brokers are best suited to my needs. By focusing on factors like low deposit requirements and high leverage, I have been able to narrow down my options to brokers that are most likely to help me succeed.
In regards to XM and FBS, the article mentioned that both brokers offer the popular trading platforms, MT4 and MT5. However, you may be wondering what the difference is between the two platforms and which one is more advanced?
Gibbs
May 6 2023
Yo! If you're looking to get into trading, you'll probably come across MT4 and MT5. They're two of the most popular trading platforms used by brokers. Although they share some similarities, there are some significant differences you should know.
MT4 is the older platform and has been around since 2005. It's known for its simplicity and easy-to-use interface, which is perfect for beginners. But it has some limitations, like you can't execute trades on multiple markets simultaneously, and its charting capabilities are somewhat limited. On the other hand, MT5 is a newer platform that came out in 2010. It's designed to be more advanced and versatile than MT4, with better charting tools, more order types, and the ability to trade on multiple markets simultaneously. Plus, MT5 allows for more in-depth analysis and strategy testing than MT4.
So, there you have it! Both platforms have their pros and cons, but generally, MT5 is considered the more advanced one. It's up to you to decide which one is the right fit for your trading style and goals.
Xavier
May 4 2023
Hello there, I would like to inquire about the availability of brokers XM and FBS in the US. Although I found an article that seemed to have answered my question already, it appears that it is difficult for US traders to use brokers that are available outside of the US. As a beginner, I find XM and FBS to be very beginner-friendly due to their low deposit and higher leverage. However, it seems that most brokers in the US require higher deposits and offer lower leverage, which means that traders need to provide more money to trade there. Additionally, brokers in the US seldom offer promotional bonuses such as welcome or deposit bonuses.
Indra
May 5 2023
It is because there are several reasons why US traders may have difficulty trading with brokers based outside of the US. One reason is that the US has strict regulations and requirements for financial institutions, including brokers, which are designed to protect investors and prevent fraudulent activities. These regulations can make it difficult for foreign brokers to comply with US laws and standards. Additionally, US traders may face tax implications when trading with foreign brokers, and there may be issues with currency exchange rates and fees. As a result, many foreign brokers may choose not to accept US clients or may have limited services available to them.
Mark
May 5 2023
I will explain more about If a broker were to accept US traders without following these regulations, they could face penalties and legal consequences, such as fines and even revocation of their license to operate. As a result, many brokers choose not to accept US traders to avoid these potential penalties and legal issues.
Additionally, brokers may also choose not to accept US traders due to the high cost of complying with US regulations, as well as the competition from established US-based brokers. This can make it difficult for foreign brokers to compete in the US market and make it less attractive for them to accept US traders.
Patrick
Jun 1 2023
Galaxy
Jun 5 2023
Xiumin
Jun 6 2023
you're welcome bro. In fact, micro accounts are used by many beginners who want to feel the live market with minimal risk. As I said earlier, wins and losses at micro account count equally. So if you lose $10 with 0.01 lot on standard account, at micro account you need to loss 100 times with 100% loss rate to achieve $10 loss. One more suggest, since scalping requires opening many positions and each position opened is calculated by the spread, we choose zero spread to do the scalping. Therefore, if you are familiar with forex, I recommend opening a ultra low standard account, as the spread is only 0.6 pips. If you choose the standard account, the spread is 1 pip, which is very is expensive for scalping.
Rachel
Jun 7 2023
The requirements and regulations for obtaining this License differ from country to country. Once obtained, this License can be useful for Brokerage firms, mutual funds, or hedge funds that may have clients who wish to invest their funds securely. but something makes me curious about security jurisdiction, why Offshore Jurisdiction?
Marcail
Jun 8 2023
While traders are now more accustomed to offshore forex brokers, regulators notoriously make it impossible for people outside of Australia, New Zealand and the US to trade spot FX.
All jurisdictions, both onshore and offshore, may grant a Forex Brokers License to qualified applicants. Generally, in-country jurisdictions impose much higher capital requirements on applicants so the costs of setting up a brokerage in those jurisdictions are very high when compared to some offshore financial centers. Offshore jurisdictions offer many interesting possibilities as many countries will allow Forex Brokers to operate tax free on profits. As a result, the prices and trading fees you offer retail traders and investors are much lower and attractive.
J Somi
Jun 14 2023
A popular global broker with a large customer base and a good reputation, XM is a good choice for both beginners and more experienced traders. This broker offers some of the lowest fees in the industry, provides an excellent research and education section, and has a beginner-friendly trading app. This broker also has an excellent range of trading tools and offers traders bonuses and incentives.
The main drawback is that XM's Indonesian clients will be trading through XM's Belize company, which has less regulatory oversight. XM offers five live accounts, which is more than any other broker, and has relatively average trading fees. All XM accounts, except the stock accounts, have a minimum deposit of 5 USD, making them accessible to beginners. No commission is charged for Forex trading on three of the five accounts, and traders will find spreads between 0.8 pips and 1.7 pips (EUR/USD), depending on the account.
Octa
Jul 31 2023
Hey, I've been doing some research on both FBS and XM brokers, and I must say, it's been quite a journey of discovery! The comparison table they provided is pretty insightful, covering everything from minimum deposits to leverage.
But you know what caught my attention the most? It's those terms "tiered up to 1:888" and "non-tiered up to 1:1000" in relation to the Micro Account on XM and the Cent Account on FBS. Now, I'm totally curious about what these "tiered" and "non-tiered" things mean for leverage, and how they impact us traders. I mean, it sounds like some secret sauce to boost our trading game!
So, I was wondering if you could shed some light on this mystery. What's the deal with tiered and non-tiered leverage? How does each type of leverage structure affect our trading capabilities? I'm eager to learn more about it before I take the plunge into the world of trading. Thanks a ton for your insights!
Hans
Aug 2 2023
Hey there! I will try to explain in simple ways! In XM's Trading Account, the maximum leverage is "tiered up to 1:888," meaning it can vary for different traders based on position size and trading volume. On the other hand, FBS's Cent Account offers a "non-tiered up to 1:1000" leverage, providing a consistent 1:1000 leverage to all traders.
The difference lies in the approach to maximum leverage. XM's tiered system can offer up to 1:888, while FBS's non-tiered structure always provides 1:1000.
The impact on traders is that XM's Account might have different leverage levels for different traders, offering potentially higher leverage but also variability. In contrast, FBS's Account gives a fixed high leverage for all, providing simplicity.
Keep in mind, higher leverage can increase both profits and losses, so it's essential to manage risk wisely regardless of the structure chosen.
Bahar
Jul 31 2023
I'm really interested in checking out both XM and FBS accounts because they seem like awesome options, especially for beginners like us. But here's the thing - the article mentioned something about being surprised by the "multiterminal" feature on these platforms. Now, I'm curious as heck! What on earth is this multiterminal thing, and how can it actually benefit traders like you and me who are just starting out? Before we dive headfirst into the trading world, I'd love to get the scoop on this multiterminal magic. Can you share some insight with me? Thanks a bunch, buddy!
Tonny
Aug 31 2023
Absolutely, I got you covered! The "multiterminal" feature is like a secret weapon for traders who handle multiple accounts. It's all about convenience and efficiency, my friend.
Imagine you have multiple trading accounts on XM or FBS, and it feels like a juggling act to manage them all separately. Well, the multiterminal comes to the rescue! It's like having a superpowered dashboard where you can control and monitor all your accounts from one place.
With the multiterminal, you can execute trades, keep an eye on positions, and even watch the market in real-time for all your accounts - no more logging in and out like crazy! It's a game-changer for traders who manage several accounts, like fund managers or social traders.
Liam
Aug 2 2023
I agree with your statement, dude! For us beginners, this is pure gold. It means we can allocate more time to study the market, analyze trends, and make informed decisions without the constant distraction of managing multiple accounts.
And let's be real - when you're trading with multiple accounts, having the multiterminal in your arsenal becomes a real game-changer. Whether you're a fund manager, social trader, or just someone with an ambitious portfolio, this feature is an absolute lifesaver.