Is XM better than Degiro? The answer to this question invariably depends on your individual trading needs. While XM offers a good range of assets and a very low minimum deposit, Degiro offers trading in Crypto Funds, which XM does not, and there is no inactivity fee, which will appeal to less active traders. If you trade exclusively in forex, then XM will be the best broker for you, as Degiro is a general multi-asset brokerage and not a forex broker.
We compare XM vs Degiro, so read on to find out which of these brokers will work best for you.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Investing involves risks. You can lose (a part of) your deposit. We advise you to only invest in financial products which match your knowledge and experience.
This is not an easy question to answer as different brokers have different ways of calculating their trading costs. The costs that apply to you depend on a wide variety of factors. Therefore, it is not a case of one broker being ‘cheaper’, but rather a case of a particular broker being more cost-effective for a particular trader, depending on the details of their trading activities.
XM has a choice of account types, including a commission-free account and an account with very low spreads and a commission per trade. Degiro aims to be the lowest-cost firm when it comes to traditional stockbrokers, with fees that follow a typical banking transactional model. The broker publishes its fee models, so its pricing is transparent. However, the ways that the fees are calculated can seem a little complicated if you are used to the standard CFD model of simply speculating on the price movement of an underlying asset. With Degiro, you are buying, and selling the asset itself.
Degiro is essentially a bank, so while account opening is very straightforward, it may be a little different from opening an account at most brokers. You will need to open a Trader account or a Day Trader account in order to trade on margin, and it will take one to two business days to get an account set up. At XM, you can set up a Standard, Micro, Zero or Ultra Low account, usually within one business day, and all can be used for trading activities, though the features of each account are different.
XM offers a risk-free demo account for new customers, which will include up to $100,000 in virtual funds to place practice trades. This can be very useful for traders to get a feel for the broker, and the trading platform, before investing real money in a live account. Degiro does not offer a demo account.
Degiro offers a very user-friendly trading platform that can be used to easily access trading markets and execute orders quickly. Degiro does not offer MT4 and MT5 trading, which is not surprising given the lack of a forex offering at this broker. XM offers the MT4 and MT5 platforms to all forex traders, and also allows for social and copy trading. The internally developed trading platform at Degiro offers great features and functionality. However, the lack of a demo account means that there is no opportunity to try it out in advance.
XM is a highly accessible platform, allowing traders to open an account with a deposit of as low as $5. Degiro has no minimum deposit, so account opening can be completed without making a deposit at all.
Degiro offers trading in a variety of assets, including shares, ETFs, leveraged products, bonds and derivatives, and Crypto Funds. The main drawback is that it does not offer forex trading, except under very limited circumstances for experienced options traders. Forex traders who want to trade other assets at Degiro will therefore need to maintain a separate forex trading account at another broker.
XM, in contrast, offers its clients more than 55 currency pairs and more than 1,000 instruments in total, with access to a range of different assets, including forex, CFDs, stocks, commodities and indices. XM does not yet offer cryptocurrencies.
When comparing XM vs Degiro, both are well-regarded brokers with plenty of features. However, the main drawback for forex traders, or multi-asset traders who like to trade forex pairs, is that Degiro does not offer them. For trading a number of different assets, including forex, under one roof, XM is therefore much more suitable. Degiro is, however, an excellent broker for those trading other assets, so many traders will want to consider its features and look at what is on offer with a Degiro trading account. As always, take a close look at the aspects of each broker that are relevant to you and your trading objectives before making a decision.