Pepperstone vs. XM Broker Comparison

Pepperstone vs. XM Broker Comparison

Pepperstone versus XM Comparison Table
Online BrokerMinimum DepositTrading PlatformsMarketsRegulated
$200MT4, MT5, cTrader95+FCA, ASIC
$5MT4, MT51000+FCA, ASIC, CySEC

Pepperstone and XM Comparison

Pepperstone and XM are no dealing desk brokers which each provide online trading accounts which have very low spreads with a commission charged, with no requotes or price rejections. Both brokers also offer accounts where spreads can be higher but no commissions are charged. One of XM's accounts which does not charge commissions lets the trader trade with small trade sizes and has a very low minimum deposit.

Pepperstone can offer more markets to trade when its ECN accounts are compared with the XM Zero account (which charges commissions), but XM can provide more markets overall. They are each regulated by the FCA in the United Kingdom and the ASIC in Australia. XM is additionally regulated by the CySEC in Cyprus.

Thus comparatively speaking, Pepperstone could be viewed as offering ECN trading with a wider range of markets, though both provide no dealing desk intervention trading, allowing a range of styles including automated trading.

Quick comparison

Pepperstone and XM both offer MT4 and MT5. On MT5, XM provides considerably more markets to trade. Pepperstone additionally offers cTrader.

Minimum deposit and account types

The minimum deposit for Pepperstone is AU$/$200 or £200. The minimum deposit for XM is $5, but the minimum deposit for its XM Zero account is $100. Both brokers offer Islamic accounts.

  • Pepperstone offers four account types. These are Standard, Razor, Islamic (Swap Free) and Active Traders. Pepperstone provides trading guides, a market review and an economic calendar its website and allows scalping, hedging and EAs.
  • Pepperstone's Standard and Islamic accounts do not charge commissions and hence offer higher spreads as they include a mark up. The Razor account charges commissions and allows scalping.
  • Pepperstone's Active Traders account is for active traders and institutions depositing at least $25,000 and trading at least 250 lots a month. It offers EDGE ECN Execution, a dedicated relationship manager, a segregated customer account, advanced reporting, VPS hosting services and custom solutions.
  • XM offers three account types, a Micro and a Standard account, both with minimum deposits of $5 and the XM Zero account, with a minimum deposit of $100. An Islamic account is available for each of these account types. The Micro and Standard accounts do not charge commissions, the XM Zero account does charge commissions. The Micro and Standard accounts differ in terms of order sizes available.
  • XM also offers a personal account manager, video tutorials, daily technical analysis, Forex market research and daily Forex signals, market outlook and webinars. XM allows EAs, hedging and scalping. XM offers free VPS for clients who have a minimum balance of $5000 in their account, terms and conditions apply. For clients who do not meet the conditions for a free VPS, it is available for a monthly fee of $28.

Minimum trade size

Both brokers offer micro lot trading (0.01 lots) on all their account types. However on its Micro account, XM has a smaller minimum trade size (0.001 lots).

Markets

  • On MT4 and MT5, Pepperstone offers 95+ covering Forex, Indices, Energy, Soft Commodities, Metals and Cryptocurrencies.
  • On MT4, XM offers 100+ covering Forex, Indices, Energy, Soft Commodities and Metals and 1000+ on MT5 since it also includes Stock and Cryptocurrency CFDs. The XM Zero account offers Forex and Precious Metals (Gold and Silver), for a total of 60+ markets.

While both have a similar number on MT4, Pepperstone has a wider range of markets on this platform. On MT5, XM has considerably more markets to trade.

Cryptocurrency CFDs

  • Pepperstone provides Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple and Dash.
  • XM provides Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ripple.

Spreads and leverage

  • Spreads at Pepperstone are variable and are from 0.0 for EUR/USD, 1 for UK100, 0.6 for Gold and 0.05 for US Crude Oil. For the Standard account EUR/USD spreads are from 1.
  • Spreads at XM are variable. For the Standard and Micro accounts spreads are from 1 for EUR/USD, 1.5 for UK 100, 0.4 for Gold and 0.05 for US Crude Oil. XM also offers Futures, with UK100 spreads from 4.5.
  • For the XM Zero accounts, spreads have a low of 0 for EUR/USD. On the XM Zero account Gold has an average spread of 0.21.

Maximum leverage for Pepperstone (FCA regulated) is . Maximum leverage for XM (FCA or CySEC regulated) is . Maximum leverage for Pepperstone (ASIC regulated) is 500:1. Maximum leverage for XM (ASIC regulated) is 500:1.

Commissions

  • Pepperstone charges a commission of $3.76 or AU$3.5 or €2.61 per lot per side on the Razor account, depending on the account currency. cTrader commissions are 7 units per lot round trip of the first quoted currency in the traded currency.
  • XM charges a commission of $3.50 per lot per side on the XM Zero account.

Platforms

Both brokers offer MT4 and MT5 for desktop download and as web traders. Pepperstone also provides cTrader, available for desktop download or as a web trader. All these platforms also have apps for mobile and tablet use.

Why Pepperstone or XM ?

Pepperstone is an ECN broker, offering MT4, MT5 and cTrader. XM has a range of account types and offers MT4 and MT5. On MT5, XM has considerably more markets to trade. A trader wanting to trade Stocks CFDs on MT5 could consider XM, as Pepperstone does not provide Stocks CFDs, but XM does, with a relatively large number. Both brokers have platforms and accounts suited to traders who trade with automated trading strategies (online trading robots). MT4 and MT5 offer Expert Advisors, while cTrader (available at Pepperstone) has cBots. As noted in the introduction, Pepperstone has a focus on ECN trading, using Equinix infrastructure for high speed order processing and on its XM Zero account, XM has less markets than Pepperstone. Both use algorithms for matching orders, so neither intervenes in the order process. Traders who wish to trade with trade sizes smaller than micro lots can do so on XM's Micro account. Small order sizes may let the trader trade with smaller account sizes, thus this account has a very low minimum deposit. For trader who wish to trade with larger volumes, Pepperstone offers its Active Trader Program.

Comparison summary

  • Both of these brokers offer low Forex and Metals spreads with commissions charged as well as tight variable spreads without commissions charged
  • XM has a very low minimum deposit on its Micro and Standard accounts, but has a higher deposit for its XM Zero account
  • XM's Micro account has a smaller minimum trade size than Pepperstone
  • XM is regulated in the UK, Australia and Cyprus and Pepperstone is regulated in the UK and in Australia
  • Both brokers allow scalping, hedging and EAs
  • Pepperstone can offer more markets comparing its ECN accounts vs XM's XM Zero account
  • XM can provide more markets overall (on MT5)
  • Pepperstone provides MT4, MT5 and cTrader, while XM offers MT4 and MT5

Search this site

Translate