Choosing the right forex broker can be challenging, especially when you’re comparing well-known names like XM and Vault Markets. Both brokers have unique offerings, but which one is better suited for your trading needs? In this article, we will break down the differences between XM vs Vault Markets to help you make an informed decision.
Before we jump into our full review, let’s take a quick look at the table below which provides a clear side-by-side comparison of the key features of both XM and Vault Markets to help you quickly see the differences.
| Feature | XM | Vault Markets |
|---|---|---|
| Year Established | 2009 | N/A (Relatively new) |
| Regulation | CySEC, ASIC, IFSC | FSCA (South Africa) |
| Leverage | Up to 1:888 | Up to 1:1000 |
| Minimum Deposit | $5 | ZAR 100 (~$5) |
| Trading Platforms | MetaTrader 4 (MT4), MetaTrader 5 (MT5) | MetaTrader 4 (MT4) |
| Assets Available | Forex, Stocks, Commodities, Indices | Forex, Commodities |
| Spreads | Starting from 0.6 pips | Variable spreads (depending on account) |
| Account Types | Micro, Standard, XM Zero | Multiple account types (leverage and spread vary) |
| Commission | Commission-free (except XM Zero Account) | Commission varies with account type |
| Customer Support | 24/5, Multiple Languages | Regional Support (Africa focused) |
| Deposit Methods | Bank Transfer, Credit/Debit Cards, E-Wallets | Bank Transfer, Credit/Debit Cards |
| Withdrawal Fees | None (for most methods) | Varies depending on method |
| Bonus Offers | 50% Deposit Bonus (Terms Apply) | Bonus offers vary |
XM Overview
XM is a globally recognized forex broker, established in 2009. It’s known for its reliability, large client base, and regulation by top-tier financial authorities like the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC). XM offers trading in various assets, including forex, stocks, commodities, and indices.
Some key features of XM include:
- Leverage: Up to 1:888 (depending on the region)
- Minimum Deposit: $5
- Trading Platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5)
- Regulation: CySEC, ASIC, and IFSC
- Spreads: Tight spreads starting from 0.6 pips on major currency pairs
XM’s strong global presence and user-friendly platform make it popular among both new and experienced traders.
Vault Markets Overview
Vault Markets is a South African-based forex broker, primarily targeting traders in Africa. Although Vault Markets is relatively new compared to XM, it has gained attention for offering high leverage options and localized services catering to African traders.
Some key features of Vault Markets include:
- Leverage: Up to 1:1000
- Minimum Deposit: ZAR 100 (about $5)
- Trading Platforms: MetaTrader 4 (MT4)
- Regulation: FSCA (Financial Sector Conduct Authority) in South Africa
- Spreads: Variable spreads depending on the account type
Vault Markets has attracted traders looking for more aggressive leverage options and the ability to trade with smaller capital.
XM vs Vault Markets: Key Comparisons
Let’s dive into the main aspects that separate XM vs Vault Markets, so you can see which broker aligns better with your trading needs.
1. Regulation and Security
- XM is a highly regulated broker, monitored by CySEC, ASIC, and IFSC, giving it credibility in various regions globally.
- Vault Markets, on the other hand, is regulated by the FSCA, which is a reputable authority but less stringent than regulators like CySEC or ASIC.
Verdict: XM offers more security for international traders, given its multiple regulatory licenses. However, Vault Markets may be sufficient for traders based in Africa, especially those looking for a broker focused on their region.
2. Leverage
- XM provides leverage of up to 1:888, which is suitable for traders looking for high leverage without taking excessive risk.
- Vault Markets offers significantly higher leverage, up to 1:1000, appealing to risk-takers who want to maximize profits with small account sizes.
Verdict: If you’re an experienced trader comfortable with high-risk strategies, Vault Markets may be the better option. However, XM offers a safer range of leverage that caters to both conservative and moderate traders.
3. Account Types and Minimum Deposits
- XM requires a minimum deposit of just $5, making it accessible for beginners who don’t want to commit large sums. It offers several account types, including Micro, Standard, and XM Zero accounts, each catering to different trading preferences.
- Vault Markets has a minimum deposit of ZAR 100 (~$5), which is equally beginner-friendly. They also offer various account types, with spreads and leverage varying depending on the account.
Verdict: Both brokers are suitable for new traders with small deposits. However, XM’s variety in account types and transparent fee structure may give it an edge for traders seeking more customization.
4. Trading Platforms
- XM offers both MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are among the most popular and reliable trading platforms globally. Both platforms offer advanced charting tools, one-click trading, and access to a wide range of markets.
- Vault Markets only supports MetaTrader 4 (MT4), which, although robust, does not offer some of the advanced features available on MT5.
Verdict: If you’re a trader who needs advanced trading features, XM’s support for both MT4 and MT5 gives it an advantage. For basic forex trading, Vault Markets with MT4 will still suffice.
5. Spreads and Fees
- XM is known for offering tight spreads, starting as low as 0.6 pips on major currency pairs. XM also provides commission-free trading on most accounts, though the XM Zero Account does have commissions but lower spreads.
- Vault Markets offers variable spreads, but they tend to be higher, especially on smaller accounts. However, the broker offers more flexibility with leverage, which can make up for the higher spreads for aggressive traders.
Verdict: XM is the clear winner if you’re looking for tighter spreads and lower trading costs, especially for large trades. Vault Markets may not be as competitive in this area unless you’re focused on high-leverage trading.
6. Customer Support
- XM has a reputation for excellent customer support, available 24/5 in multiple languages. Their support team is responsive through live chat, email, and phone.
- Vault Markets offers localized customer support for African traders, which is beneficial for those in the region. However, they don’t have the same level of global reach as XM.
Verdict: If you need global customer support in multiple languages, XM is the better option. Vault Markets is more suitable for African traders looking for regional expertise.
Bottom Line
When comparing XM vs Vault Markets, the right choice depends on your personal trading style and needs.
- XM is ideal for traders seeking a well-regulated broker with global reach, low spreads, and access to both MT4 and MT5. It’s also a great option for beginners due to its low minimum deposit and multiple account types.
- Vault Markets is better suited for traders in Africa who want high leverage and localized support. If you’re comfortable with higher risk and want to trade with smaller capital, Vault Markets may be the broker for you.
In conclusion, XM stands out as the more versatile and globally trusted broker, while Vault Markets is a niche player for traders seeking higher leverage and a regional focus.
Key Takeaway: Choosing between XM vs Vault Markets depends on your trading goals. XM offers more robust global features, while Vault Markets caters to traders looking for more aggressive leverage options in the African market.
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.