IC Markets vs XM 2026 — Complete Broker Comparison

Two of the world's most popular forex brokers compared head-to-head. IC Markets excels in tight spreads and execution while XM targets beginners with low deposits. Here is how they really compare — from an IB with 10+ years of experience.

Quick Verdict — IC Markets vs XM

IC Markets and XM serve different types of traders. XM is accessible and beginner-friendly with a $5 minimum deposit, generous bonuses, and extensive educational content. IC Markets is built for performance — tighter spreads, faster execution, more instruments, and a true ECN/STP model with no dealing desk.

For any trader who trades regularly, IC Markets is the clear winner on cost. When you combine IC Markets already-tight spreads with TradersFXPartner's commission discount (up to 21% off), the all-in cost per trade is dramatically lower than anything XM offers. This cost advantage matters more than deposit bonuses for long-term profitability.

XM wins on accessibility (lower minimum deposit, more languages, larger bonus program) but loses on the fundamentals that determine trading profitability: spread width, execution quality, and total trading costs.

Spreads & Trading Costs

The cost difference is striking. On XM's Standard account, a single lot on EUR/USD costs approximately $12-14 in spread. On IC Markets Raw Spread with our discount, the same trade costs around $5.70 all-in. That is a saving of $6-8 per lot — money that goes directly back into your trading capital.

XM does publish competitive spreads on their Zero account, but it comes with a $7.00/lot commission and is not available in all regions. IC Markets' Raw Spread account with our discount offers consistently lower all-in costs across all tradable pairs.

Execution & Trading Infrastructure

IC Markets operates a true ECN/STP model where orders are routed directly to a pool of 25+ liquidity providers including major Tier-1 banks. There is no dealing desk intervention. Average execution speed is under 40 milliseconds with servers in Equinix NY4 (New York) and LD5 (London) data centers. IC Markets processes over $20 billion in daily volume.

XM uses a hybrid execution model. While they offer fast execution, their Standard and Micro accounts may involve dealing desk intervention. XM has expanded their server infrastructure globally but does not match IC Markets' institutional-grade ECN routing for the most demanding trading strategies.

For scalpers, algorithmic traders, and anyone using Expert Advisors, IC Markets' ECN infrastructure provides a measurable advantage. IC Markets has no restrictions on trading styles, no requotes, and no minimum stop distances. XM allows scalping but the execution model may not suit the most latency-sensitive strategies.

Bonuses & Promotions Compared

XM is known for promotional bonuses — deposit matches, loyalty programs, and occasional no-deposit bonuses. These sound attractive but come with significant conditions. Typically, you need to trade a certain volume (often 10-50 standard lots) before the bonus or profits can be withdrawn. The bonus may be removed if certain conditions are not met within a time limit.

Through TradersFXPartner, IC Markets offers a $100 cash welcome bonus with after trading 30 lots on a standard account and no withdrawal conditions — or a permanent commission discount (save up to $1.50/lot) that saves you money on every trade forever. These are fundamentally different value propositions.

Consider the math: XM's typical 50% deposit match on $200 gives you $100 in bonus credit — but you need to trade 10+ lots to withdraw it, paying higher spreads the whole time. Our $100 cash bonus requires trading 30 lots on a standard account. And the commission discount saves $1.50/lot permanently — trade just 67 lots and you have already saved more than $100. See our full promotions breakdown for details.

Regulation & Client Protection

IC Markets is regulated by ASIC (AFSL 335692), CySEC (license 362/18) via IC Trading for EU clients, and FSA Seychelles (SD018). XM operates under CySEC, ASIC, DFSA (Dubai), and IFSC (Belize). Both brokers have Tier-1 regulation through ASIC and CySEC, providing strong client fund protection with segregated accounts and negative balance protection.

IC Markets holds client funds with major Australian banks (Westpac and NAB) in segregated accounts. XM also uses segregated accounts. EU clients at both brokers benefit from the Investor Compensation Fund up to €20,000. Both brokers have maintained clean regulatory records with no major compliance issues.

IC Markets has been regulated since 2009 and has operated continuously for over 17 years without regulatory sanctions. Our 761 clients have never reported fund security issues. For a detailed assessment, see our full IC Markets review.

Our Recommendation

Choose IC Markets through TradersFXPartner if: you trade forex regularly, need tight spreads and fast execution, want access to cTrader or TradingView, or plan to use automated trading strategies. Our commission discount (up to 21% off) makes IC Markets one of the cheapest brokers available — significantly cheaper than XM on an all-in cost basis.

Choose XM if: you are a complete beginner with less than $200 to start (XM's $5 minimum is more accessible), you want deposit match bonuses despite their conditions, or you specifically need the XM educational ecosystem.

The bottom line: XM may attract you with marketing and bonuses, but IC Markets delivers where it counts — in the actual cost and quality of your trading. Active traders save thousands of dollars per year with IC Markets + TradersFXPartner compared to XM. That saving compounds into real, measurable improvements in trading profitability over time.

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IC Markets vs XM — FAQ