FBS or XM: Which Forex Broker is Better for Beginners?

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: 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. 

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. 

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.

@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.

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.

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: Hey there! Let me break down the concept for you: Cent accounts and micro accounts are designed with beginners in mind, providing a safer entry point into the trading world. The key distinction lies in the type of currency used for your account. In a cent account, you work with cents as your base currency, resulting in very low-risk trading and the ability to start with minimal capital. Conversely, a micro account operates with the smallest unit of the base currency, offering trade sizes that are a tad larger than cents but still smaller compared to standard accounts. For beginners, cent accounts are often seen as the more user-friendly choice because they allow you to practice real trading conditions with minimal risk. Micro accounts come into play as you gain experience and confidence, with slightly larger trade sizes. The decision ultimately hinges on your risk tolerance and the amount of capital you're comfortable starting with, so pick the option that aligns with your preferences.

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.

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.

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.

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.

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.

Hey there! I will try to explain in simple terms! In XM's Trading Account, the maximum leverage is "tiered up to 1:888," which means it can vary for different traders based on position size and trading volume. On the other hand, FBS's Cent Account offers "non-tiered up to 1:1000" leverage, ensuring a consistent 1:1000 leverage for all traders.

The difference lies in the approach to maximum leverage. XM's tiered system can provide leverage of up to 1:888, while FBS's non-tiered structure consistently offers 1:1000.

The impact on traders is that XM's Account might have varying leverage levels for different traders, potentially offering higher leverage but also introducing variability. In contrast, FBS's Account provides a fixed high leverage for everyone, offering simplicity.

Keep in mind that higher leverage can amplify both profits and losses, so it's crucial to manage risk wisely, regardless of the structure you choose.

Read more: Beginner's Guide to XM Account Types

Absolutely, I've 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 can feel 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, such as fund managers or social traders.

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.

Read more: What is MetaTrader Multiterminal?

Pay attention to this, mate. Firstly, you gotta think about which trading platform suits you best, 'cause XM gives you two options: MetaTrader 4 and MetaTrader 5. Make sure you pick an account type that works with your chosen platform.

Now, XM offers three main account types: Micro, Standard, and XM Ultra Low. Each type comes with different features and trading conditions to match various trading styles and goals. If you're just starting out, the Micro account is perfect for dipping your toes in with small amounts of cash. The Standard account suits those with more experience, offering bigger contract sizes and access to extra tools and features. And if you're all about tight spreads and no commissions, the XM Ultra Low account is the way to go.

Keep an eye on the leverage levels offered by XM, too. High leverage can pump up your potential profits, but it also ramps up the risk. Choose a level that matches your comfort zone and trading plan.

Also, check out the range of trading instruments available at XM—Forex, CFDs, and cryptocurrencies. Make sure the account type you choose has the stuff you wanna trade.

Lastly, look into the trading conditions for each XM account type, like spreads, commissions, and trading hours. It's all about finding the right fit for you, mate.

In my opinion, if you are a scalper, then XM's Ultra Low account might be a suitable choice for you. This account type is specifically designed for scalping and offers some of the lowest spreads on the market, starting from 0.0 pips. Additionally, the Ultra Low account does not charge any commissions, which can further reduce trading costs.

It's important to note that XM offers some of the tightest spreads on the market, which can be beneficial for scalping. Furthermore, XM allows hedging and scalping strategies, allowing traders to take advantage of short-term price movements in the markets.

As a beginner and scalper, the Ultra Low account may be the best option for you. However, it's important to remember that when choosing an account, you should consider your individual needs and trading goals to ensure that the account type you choose meets your requirements.

To ensure the security of your funds while trading with FBS and XM, verify that both brokers are regulated by reputable authorities like Cyprus CySEC and IFSC Belize. Confirm the legitimacy of their licenses by checking official regulatory websites. Assess the financial stability of the brokers through financial reports and client reviews. Transparent communication and responsive customer support are essential indicators of a trustworthy broker. Additionally, inquire about any insurance or compensation schemes offered for added protection. Diversifying your funds across different brokers can also mitigate risks. Stay informed and consult with a financial advisor if needed to make well-informed decisions about your investments. (also read : How to Avoid Forex Broker Scams )