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XM vs Avatrade
XM vs AvaTrade: XM starts at $5 with a bonus and copy trading; AvaTrade asks $100 but adds options, AvaProtect and wider regulation.
WriterAbir KhanWriterWrites the guides · checks every figure against primary sources View profileAbout Abir →
Market analysisTanbir Habib RiyadForex & Crypto AnalystForex and crypto analyst · technical and fundamental analysis View profileAbout Tanbir →
Fact-checking & riskJannatul FerdaushFact-Checker & Risk AnalystFact-checks every figure · risk analysis · Applied Statistics, University of Dhaka View profileAbout Jannatul →
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XM and AvaTrade are both beginner-friendly brokers that make their money through the spread rather than a commission. They differ in entry cost, extra tools, regulation and fees. XM lets you start with $5; AvaTrade’s minimum deposit is $100.
Here’s how the two brokers compare and which type of trader each one is best suited for.
Here’s how the two brokers compare and which type of trader each one suits, using each broker’s own published conditions (checked 30 September 2026).
How Each Broker Charges You
Neither broker offers a commission-based raw-spread account; both build their cost into the spread. XM’s Standard account quotes EUR/USD from 1.6 pips (2.0 on average), and its Ultra Low account from 0.8 pips, both commission-free. AvaTrade earns through the spread too; its forex table showed EUR/USD at 0.8 pips on 30 September 2026.
If raw spreads with a commission matter to you, neither broker is the best fit; if you prefer simple spread-only pricing, both work, and XM’s Ultra Low and AvaTrade’s published EUR/USD spreads are similar.
Comparison Table
| XM | AvaTrade | |
|---|---|---|
| Founded | Not stated (XM says 15+ years in the industry) | 2006 |
| Minimum deposit | $5 (Shares account $10,000) | $100 (€100, £100, AUD 100) |
| Pricing | Spread only (Standard, Ultra Low) | Spread only; market maker |
| EUR/USD spread | From 1.6 pips Standard, 0.8 Ultra Low | 0.8 pips on its forex table (30 Sep 2026) |
| Raw/ECN account | No | No |
| Platforms | MT4, MT5, XM App | MT4, MT5, WebTrader, AvaTrade app, AvaOptions |
| Copy trading | XM Copy Trading | AvaSocial, DupliTrade, ZuluTrade |
| Extras | Deposit bonus, Traders Club, competitions | Vanilla options (AvaOptions), AvaProtect, futures |
| Max leverage | Up to 1:1000 (XM Global); 1:30 EU | 400:1 on forex (international); 30:1 EU, ADGM, ASIC retail |
| Regulators | CySEC, DFSA, FSC Belize, FSA Seychelles, FSC Mauritius | Central Bank of Ireland, ASIC, CySEC, FSCA, Japan FSA, ADGM FSRA, BVI FSC, CMA Kenya, ISA |
| Inactivity fee | $10 a month after 90 days | $50 after every 3 months of non-use, plus $100 after 12 months |
Spreads vary with market conditions; treat the figures as a snapshot.
Watch both video reviews
Our XM and AvaTrade reviews on video. Tap a chapter to jump straight to safety, costs, withdrawals or the verdict.
XM review 8:42
AvaTrade review 5:21
What AvaTrade Does Better?
Regulation depth. AvaTrade’s companies are licensed in Ireland, Cyprus, Australia, South Africa, Japan, Abu Dhabi, Kenya, Israel and the BVI, including ASIC for Australian residents, which XM doesn’t cover. XM’s companies are licensed by CySEC, the DFSA, the FSC in Belize, the FSA in Seychelles and the FSC in Mauritius.
More trading tools. AvaOptions lets you trade vanilla options, AvaProtect lets you pay a premium to have losses on a protected position reimbursed, and AvaFutures offers futures through CQG, TradingView and MT5. XM offers none of these.
What XM Does Better?
Lower entry requirement. XM’s minimum deposit is $5, against AvaTrade’s $100.
Lower inactivity fees. XM charges $10 a month once an account has been dormant for 90 days. AvaTrade charges $50 after every 3 months of non-use and a further $100 after 12 months, so XM is cheaper if you trade occasionally.
Bonuses and rewards. XM runs a deposit bonus (50% up to $100, then up to $5,000 a month, depending on region), the XM Traders Club and trading competitions. AvaTrade’s first-deposit bonus is not available in many countries, including Bangladesh, India and Pakistan.
Education for newcomers. Both offer education: XM through live education and daily analysis, AvaTrade through AvaAcademy courses and its education centre.
Which Broker Suits You?
| If you are | Pick | Why |
|---|---|---|
| A beginner with limited starting capital | XM | $5 entry and a deposit bonus in many regions |
| A casual trader who wants simple costs | Either | Both use spread-only pricing |
| After options, loss cover or futures | AvaTrade | AvaOptions, AvaProtect and AvaFutures |
| Living in Australia and wanting ASIC regulation | AvaTrade | XM has no ASIC-licensed company |
| Someone who trades occasionally | XM | Lower inactivity fees |
Which One Should You Choose?
Both brokers suit retail traders but with different strengths. XM is the cheaper place to start and to leave an account idle, and it runs a deposit bonus in many regions. AvaTrade offers more tools, such as options, AvaProtect and futures, and broader regulation, as long as you stay active enough to avoid its inactivity fees.
XM may suit traders seeking a low entry cost and bonuses, while AvaTrade may appeal to traders looking for extra trading tools and broader regulatory coverage.
Why you can trust FX Recap?
FX Recap is an independent Forex media platform. Our broker ratings are based on a published methodology that includes regulatory research, hands-on testing where applicable, and trader feedback.
Why you can trust FX Recap
FX Recap is an independent Forex media platform. Every broker score comes from our published methodology, including live account testing, regulatory verification, and real trader feedback, so you can make smarter trading decisions.
Read our methodologyAdvertising Disclosure
We prioritize rigorous, unbiased broker testing through our published methodology. Forex and CFD trading carries significant risk of loss, so read our Risk Notice before you trade. While our ratings stay objective, we receive compensation that may influence list placement. Learn how we make money.
More XM and AvaTrade comparisons
Each one sets the same checks side by side: regulation, costs, platforms and leverage.
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