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.
In terms of educational resources, XM 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
|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.
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 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.
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 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.