Understanding Inactivity Fees
Inactivity fees are charges levied by brokers on trading accounts that have remained dormant for a specified period, typically several months. These fees are designed to cover administrative costs associated with maintaining an account, even when it's not generating trading revenue for the broker. They can vary significantly in amount and the conditions under which they are applied. For active traders, these fees are rarely a concern, but for those who trade infrequently or maintain multiple accounts, they can add up.
Exness Inactivity Fees
At the time of writing, Exness does *not* charge inactivity fees. This is a significant advantage for traders who prefer to maintain an account but may not trade consistently. It means you can open an account with Exness, fund it, and take your time before making your first trade, or pause trading for extended periods, without worrying about being penalised for dormancy.
XM Inactivity Fees
XM, on the other hand, *does* implement an inactivity fee. If there is no trading activity (including open positions, trades, or deposits/withdrawals) for a period of 90 calendar days, a monthly fee of $15 (or equivalent in other currencies) is charged to the account. If the account balance falls below $15, XM will deduct the remaining balance and archive the account. This policy means that traders using XM need to be mindful of their trading frequency to avoid these charges.
Exness vs XM: A Broader Comparison for UK Traders
Beyond inactivity fees, Exness and XM offer distinct features that might appeal to different types of traders. Here's a more comprehensive look:
Regulatory Environment
Both brokers operate globally, but their regulatory standing for UK clients is important. While Exness has a strong international presence with licenses from multiple bodies (including CySEC, FCA (for some entities), FSA, FSC, CMA), XM also holds significant licenses (ASIC, CySEC, IFSC, DFSA). UK traders should always ensure they are signing up with an entity regulated by a reputable authority relevant to their location, which offers appropriate protections.
Trading Platforms
Both brokers offer industry-standard platforms. Exness primarily focuses on MetaTrader 4 (MT4) and MetaTrader 5 (MT5), offering a robust and familiar environment for most forex traders. XM also provides MT4 and MT5, alongside their XM WebTrader, offering flexibility across devices and operating systems.
Spreads and Commissions
Costs are a crucial factor. Spreads are the difference between the buy and sell price of a currency pair, and commissions are a direct charge per trade. These can vary significantly based on account type.
#### Comparison Table: Exness vs XM (Typical, at time of writing — check broker site)
| Feature | Exness (Standard Account) | XM (Standard Account) |
| :------------------------ | :------------------------------------------------- | :---------------------------------------------------- |
| Spreads EUR/USD | From 0.9 pips | From 1.0 pips |
| Spreads GBP/USD | From 1.2 pips | From 1.9 pips |
| Spreads XAU/USD | From 10 pips | From 35 pips |
| Commission | Zero on Standard accounts; Raw Spread accounts have commission | Zero on Standard accounts; Ultra Low accounts may have commission |
| Minimum Deposit | $1 (varies by payment method) | $5 |
| Regulators | FCA (for some entities), CySEC, FSA, FSC, CMA etc. | ASIC, CySEC, IFSC, DFSA etc. |
| Platforms | MT4, MT5, Exness Terminal | MT4, MT5, XM WebTrader |
*Note: Figures are typical and subject to change. Always verify current conditions on the broker's official website.*
Verdict by Trader Type
For the Casual or Infrequent Trader: Exness has a clear advantage due to its lack of inactivity fees. If you only trade occasionally, or like to keep an account open without immediate plans to trade, Exness allows you to do so without incurring extra charges.
For the Active Trader: Both brokers offer competitive conditions for active traders. Exness may offer tighter spreads on its Raw Spread or Zero accounts with a commission structure. XM's Ultra Low accounts also aim for competitive spreads. The choice here might come down to specific instrument pricing and platform preference.
For the Budget-Conscious Trader: Exness's lower minimum deposit and absence of inactivity fees make it highly accessible. XM's minimum deposit is also very low, but the potential for inactivity fees is a consideration.
For the Trader Seeking Variety: Both brokers offer a good range of currency pairs, commodities, indices, and cryptocurrencies (as CFDs). XM often highlights its larger number of instruments.
Conclusion
When comparing "Exness vs XM inactivity fees," Exness stands out as the more favourable option for traders concerned about dormant account charges, as it does not impose them. XM, while a reputable broker, does charge a monthly inactivity fee after 90 days of dormancy. Beyond this specific point, both brokers offer robust trading environments with industry-standard platforms and a variety of instruments. Your final choice should depend on your trading style, frequency, preferred cost structure (spreads vs. commissions), and specific regulatory needs. We recommend visiting both brokers' websites to get the most up-to-date information on their offerings and terms.
As our featured partner, we recommend Vantage for competitive trading conditions and a reliable platform. Open a Vantage account today.
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CFD trading carries a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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