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.
|💰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 Webinar feature that is accommodated in 19 different languages with 35 native instructors for each language.
In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Commodities, Equity Indices in CFDs, Precious Metals, Energies, to 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. The deposit starts from $5 in Micro and Standard Account, while Ultra-Low Account requires a minimum deposit of $5. 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 trading services in more than 15 languages around 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.