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Here is a comparison of XM vs FP Markets. Both are reputable international brokers that offer commodity trading at affordable prices.
Commodity trading is an attractive investment alternative for retail traders nowadays, in addition to the more popular forex and stock markets, for many reasons.
First, commodity trading has always been a profitable business for millennia. Second, the development of financial technology has further allowed commodity trading to expand through financial derivatives, such as Contracts for Differences (CFDs).
Traders can benefit from price fluctuations by paper trading on financial derivatives instead of directly buying energy, metals, and agricultural products. We don't have to bother with all the fuss as consequences of owning the actual goods, but we can take profit from speculation on both future uptrends and downtrends. Interesting, isn't it?
Commodity trading may also contribute to improving portfolio diversification and risk management for businesses. Even in times of inflation or economic uncertainty, investing in contract-based tradable commodities is a tried-and-tested strategy to reduce risks. It protects both the contract buyer and seller from sharp price changes that could result in increased losses.
XM and FP Markets are two reputable international brokers that offer commodity trading at affordable prices through Contracts for Differences (CFDs).
The following comparison table describes the two brokers' services for commodity trading in general.
| Features | XM | FP Markets |
| 💰Minimum deposit | USD$5 | AUD$100 or equivalent |
| ⚖Leverage | up to 1:1000 | up to 1:500 |
| Instruments | Gold, Silver, Crude Oil, Natural Gas, Cocoa, Coffee, Corn, Cotton, High-grade Copper, Soybeans, Sugar, Wheat | Gold, Silver, Platinum, Palladium, Copper, Iron, Steel, Aluminium, Crude Oil, Natural Gas, Coffee, Soybeans, Corn, Wheat |
| 🔢Spreads | vary, starting from 0.0 pip | vary, starting from 0.0 pip |
| 💸Commissions | free | free on the Standard account, or USD$3 per side on the Raw account |
| 💻Platforms | MT4, MT5, XM App | MT4, MT5, IRESS |
| Social trading | unavailable | MyFXBook, MAM/PAMM, FP Markets Copy Trading |
| Trading signals | MQL5 Community | Autochartist |
To explore further how XM and FP Markets provide commodity trading for their clients, this article will examine both brokers for you.
Commodity Trading at XM Broker
XM broker offers access to commodity trading at extremely low costs, so it is ideal for beginners. You can start by depositing any amount of money you deem sufficient, choosing leverage up to 1:1000, and trading sizes starting from 1 micro lot. Spreads are generally low, while commissions are not charged at all.
There are many more advantages to commodity trading with XM. You can get free regular intraday market updates and technical analysis, high execution quality for all accounts, multilingual support, and your own Personal Account Manager. All in all, XM is suitable for all traders, especially beginners.
XM Group is a group of regulated brokers and it is owned by Trading Point Holdings Ltd. Entities under XM Group have significant experience as financial services providers worldwide.
Trading Point of Financial Instruments Ltd was established in 2009 with headquarters in Limassol, Cyprus, Trading Point of Financial Instruments Pty Ltd was established in 2015 with headquarters in Sydney, Australia, XM Global Limited was established in 2017 with headquarters in Belize and Trading Point MENA Limited was established in 2019 with headquarters in Dubai.
XM Group is regulated by the CySEC (Cyprus Securities and Exchange Commission) - Trading Point of Financial Instruments Ltd, FSC (Financial Services Commission) – XM Global Limited, the ASIC (Australian Securities and Investments Commission) - Trading Point of Financial Instruments Pty Ltd and DFSA (Dubai Financial Services Authority) - Trading Point MENA Limited.
XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and EN Live Edu that is instructed by 16 global experts.
In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Crypto, Stock CFDs, Turbo Stocks, Commodities, Equity Indices, Precious Metals, Energies, & Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.
Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip.
To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. Minimum deposit of $5 applies to Standard, Micro, and also Ultra-Low Accounts. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.
For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.
To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).
All in all, there is no doubt that XM has gone global with its deep commitment to providing services in more than 30 different languages across the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.
For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.
Commodity Trading at FP Markets
FP Markets also offers low spreads starting at 0.0 pips and a minimum trade size of 1 micro lot. However, the lowest spread is available for Raw accounts that charge you a commission fee of USD$3 per side. The other option, the Standard account, offers zero-commission trading at relatively higher spreads.
FP Markets also requires a relatively higher minimum deposit for commodities trading (AUD$100) and a lower maximum leverage (1:500). But all of that comes along with several advantageous extras, including access to Autochartist, free VPS subscription for clients who fulfill monthly trading volume requirements, multilingual support, and several options for social trading.
Overall, opening an account at FP Markets is an excellent choice for beginners and experienced traders alike. Beginners can freely choose to start trading manually or by following pro traders. Experienced traders can provide strategies through social trading facilities to gain additional income.
Keeping positions open overnight won't result in the overnight/rollover fee reducing your earnings, so you don't have to worry about it. FP Markets offers the most competitive swap rates in the industry by introducing Swaps Points in the form of a live swap rates list on the MT4 and MT5 platforms. Here are some examples:
- ACWI: -5.00 for long positions and -2.50 for short positions.
- ADAUSD: -20.00 for long positions and -20.00 for short positions.
- AGG: -5.00 for long positions and -2.50 for short positions.
XM vs FP Markets, Which is the Best for Commodity Trading?
Both XM and FP Markets are suitable for commodity trading (CFDs), but both target different segments.
- XM provides services at lower deposit requirements and cheaper costs, making them more suitable for beginners.
- FP Markets excels at providing extra conveniences, such as social trading, that may be preferred by beginners and experienced traders alike.
Apart from commodity trading, XM broker is also competitive in the way they offer mobile trading app. To see the comparison, you can go to Comparing Exness Vs XM Trading App.
10 Comments
Alex
Jul 17 2023
Hey there! So, I was checking out FP Markets in this article, and they've got these interesting options for trading accounts. They offer low spreads starting at 0.0 pips and a minimum trade size of 1 micro lot. But here's the catch: the lowest spreads are for their Raw accounts, which come with a commission fee of USD$3 per side. On the other hand, they have the Standard account, where you get zero-commission trading but with slightly higher spreads. Now, I'm a bit torn, mate. Is it really a solid choice to go for the Standard account? How does the trade-off between spreads and commission fees affect the overall appeal and cost-effectiveness of the Standard account compared to the Raw account? Would love to hear your thoughts on this trading dilemma!
Ramos
Jul 18 2023
Hey mate! I hear ya, it's a bit of a trading dilemma with FP Markets, isn't it? So, they offer these low spreads starting at 0.0 pips, which is pretty enticing. But here's the kicker: if you want the absolute lowest spreads, you gotta go for their Raw accounts, which come with a commission fee of USD$3 per side. On the flip side, they have the Standard account where you can enjoy zero-commission trading, but the spreads are a tad higher.
Now, the big question is, is it worth going for the Standard account? Well, it all boils down to your trading style and preferences, mate. In my opinion, If you're a frequent trader who's all about those tight spreads, the Raw account with the commission fee might be the way to go. It could potentially save you some cash in the long run, especially if you're making a lot of trades.
But, if you're more of a casual trader or you're not too fussed about the absolute tightest spreads, the Standard account could be a solid choice. With zero-commission trading, it simplifies things and removes that extra fee hassle. Just keep in mind that the spreads might be a touch higher, so you gotta weigh up the cost-effectiveness and determine if it aligns with your trading goals.
Larson
Jul 19 2023
In my opinion, if you're a beginner in the trading game, opting for the Standard account could be a smart move. It offers simplicity and removes the hassle of commission fees, making it easier for newcomers to focus on learning the ropes of trading. Although the spreads may be slightly higher compared to the Raw account, as a beginner, your trade volumes are likely to be smaller, minimizing the impact of those higher spreads. The Standard account provides a straightforward approach, allowing you to develop your trading skills, understand market dynamics, and refine your strategies without getting overwhelmed by complex fee structures. It serves as a stepping stone towards building your trading experience. So, if you're starting out, my advice is to go for the Standard account and enjoy the journey of learning and growing as a trader.
Thiery
Jul 17 2023
So, I came across this article and especially about XM because they have some interesting options for beginners. But here's the thing, mate, they offer leverage up to 1:1000, which sounds pretty high and risky, right? However, XM claims to be ideal for beginners, especially in commodity trading, with low-cost deposits and no commissions. They provide free market updates, technical analysis, and even a personal account manager. But the big question is, can beginners effectively handle the risks associated with high leverage while benefiting from all the perks XM offers? Should we dive in headfirst or approach it with caution? What do you reckon, mate?
Hans
Jul 19 2023
In my opinion, when it comes to that high leverage of 1:1000, it's like playing with fire, you know? XM says they're beginner-friendly, but we can't ignore the risks involved.
With high leverage, you can score big wins, but it also means bigger potential losses. It's a bit of a rollercoaster ride, my friend. XM offers some awesome perks like low-cost deposits, no commissions, and free market updates, which can be tempting for beginners. But we gotta be smart about it.
As a newbie, it's wise to dip your toes in the water with lower leverage first. Gain some experience, get a feel for the market, and then, if you're confident, you can gradually crank up that leverage. It's all about finding that sweet spot where you can manage the risks and still enjoy the benefits XM brings to the table.
Remember, though, risk management is crucial. Take the time to educate yourself, create a solid trading plan, and always keep an eye on your risk exposure. By doing that, you'll be able to ride the wave of high leverage without wiping out. (also read : Pros And Cons Of High Leverage In Forex Trading)
So, my advice is to proceed with caution, mate. XM may offer some enticing perks, but make sure you're ready to handle the potential risks that come with that high leverage. Stay smart, stay informed, and trade responsibly. Good luck out there!
Bobby
Jul 28 2023
Is commodity trading suitable for beginners, considering its potential benefits for portfolio diversification and risk management? I've read in this article that commodity trading can help improve portfolio diversification and act as a tried-and-tested strategy to reduce risks during times of inflation or economic uncertainty. By investing in contract-based tradable commodities, it seems that both the contract buyer and seller can be protected from sharp price changes that could lead to increased losses. But as a beginner, I want to make sure if commodity trading is a viable option and how it can be beneficial for someone like me who is just starting in the trading world. Any insights or tips on getting started with commodity trading would be greatly appreciated. Thanks!
Vharlie
Jul 29 2023
In my opinion, Commodity trading can be good for beginners because it helps diversify your investment portfolio and manage risks. When inflation or economic uncertainty hits, investing in tradable commodities can be a smart way to protect your money from potential losses. Commodities have their own value and often move differently than other investments, making them a useful addition to your portfolio.
Just remember to start with a small investment and learn about the commodities you want to trade. Be aware that commodity markets can be volatile, so be careful and set realistic goals. It's also essential to keep learning and seek advice from experts or experienced traders. Happy trading!
Bima
Jul 30 2023
I have to respectfully disagree with the idea that commodity trading is suitable for all beginners. While it can offer benefits like portfolio diversification and risk management, it comes with its fair share of challenges. Commodity markets can be complex and highly volatile, making it difficult for inexperienced traders to navigate successfully. Predicting the price movements of commodities can be a daunting task, especially for those new to trading.
Moreover, commodity trading demands a deep understanding of the underlying assets, market trends, and trading strategies. Beginners might find it overwhelming and risky to jump into commodity trading without the necessary knowledge and experience.
Instead, for beginners, starting with simpler and less volatile assets like stocks or ETFs might be a wiser choice. These markets are generally more beginner-friendly, with ample educational resources available to help them get started.
Gordon
Jul 28 2023
Can we rely on news when trading commodities with XM? Considering the various advantages offered by XM, such as free intraday market updates and technical analysis, it seems like they provide valuable information to traders. However, how accurate and reliable is the news provided by XM, especially when it comes to making informed decisions in commodity trading? Can we trust the news updates as a reliable source of market insights, particularly for beginners who may heavily rely on such information to navigate the commodity markets effectively? Any insights or experiences regarding the reliability of XM's news updates would be helpful. Thanks!
Tanaka
Jul 29 2023
XM offers some cool perks for commodity trading, like free market updates and analysis. But, let's keep it real, relying solely on news might not be the best move. The commodity markets are wild and influenced by tons of stuff. So, it's essential to cross-check the news with other reliable sources and do your own research.
Sure, XM's updates can give you insights, but don't forget to use your own trading skills and technical analysis too. Combine everything like a boss! And if you're a beginner, consider getting advice from experienced traders or experts. They'll drop some wisdom bombs on you!
XM is great for all traders, no doubt, but take the news as just one piece of the puzzle. Stay curious, dig deeper, and make those smart moves in the commodity markets. You got this!