XM vs FP Markets: Which Broker Is Better?

XM operates through a group of regulated entities that includes Trading Point of Financial Instruments Pty Ltd, authorised by ASIC under licence number 443670, and Trading Point of Financial Instruments Ltd, regulated by CySEC under licence number 120/10. The group also has entities connected to the DFSA in Dubai, the FSCA in South Africa and the FSC in Belize to serve clients in different regions.

The ASIC, CySEC and DFSA licences give XM a multi-level regulatory structure, but account conditions are not globally identical. Leverage limits, available products, complaint procedures and investor-protection arrangements may differ between the European, Australian and UAE entities and the international entity registered in Belize.

Before opening an XM account, traders should review the legal company name and licence number shown on the registration page and in the client agreement rather than relying only on the brand name. This identifies the entity responsible for the account, funds and regulatory rights and helps traders choose the structure that best matches their needs.

Regulated XM entities hold eligible client funds in accounts separate from company operating capital under the requirements applying to each legal company. XM also provides negative balance protection, an important safeguard during sharp market volatility because it can prevent eligible clients from remaining liable after their trading-account balance falls below zero.

Certain clients registered under European entities may qualify for additional statutory protection, subject to eligibility requirements and legal limits. Fund segregation, investor compensation and complaint procedures may differ between the ASIC, CySEC, DFSA and FSC entities. Traders should confirm the legal company responsible for their XM account before depositing.

FP Markets operates through entities that include First Prudential Markets Pty Ltd, authorised by ASIC under licence number 286354, and FP Asset Management Cyprus Ltd, regulated by CySEC under licence number 371/18. The group also has entities connected to the FSCA in South Africa and the FSA in Seychelles, allowing it to provide services across different international markets.

ASIC and CySEC licences support the group’s overall regulatory profile, but an account opened with a Seychelles or South African entity may be subject to different leverage limits, investor-protection arrangements and complaint procedures. Available instruments, funding methods and certain account features may also vary according to the legal company serving the client.

Before choosing FP Markets Standard or Raw accounts, or trading through MT4 or MT5, traders should verify the responsible entity and its licence number. This makes it possible to compare execution costs and commissions with the applicable level of regulatory oversight instead of assuming that all FP Markets clients receive the same protection.

FP Markets states that eligible client funds are held in segregated bank accounts under the requirements of the regulatory entity responsible for the account. Negative balance protection may also be available under the conditions applied by certain FP Markets group companies, helping eligible clients limit liability resulting from a negative trading-account balance.

Client-money rules, investor compensation arrangements and complaint procedures may differ between the ASIC-regulated Australian entity, the CySEC-regulated European entity and international entities supervised by FSCA or FSA. Traders should match the legal company and licence number in their client agreement with the relevant regulatory register before transferring funds.