XM Review 2024
Website: www.xm.com
Min. Deposit: US$ 5
Leverage: 1:30 to 1:1000
Trading Platforms: MT4, MT5, XM WebTrader
Regulation: CySEC, ASIC, FSC, DFSA
Headquarters: Cyprus
Founded: 2009
Regulatory Licenses:
- Trading Point of Financial Instruments Ltd - authorized by CySEC (Cyprus) registration no 120/10
- Trading Point of Financial Instruments Pty Ltd - authorized by ASIC (Australia) registration no 443670
- Trading Point MENA Limited - authorized by Dubai Financial Services Authority (DFSA) reference No. F003484
- XM Global Limited - authorized by FSC (Belize) registration no. FSC000261/397
Updated on May 16, 2024
Quick Links
XM stands out as a prominent forex broker since its inception in 2009, catering to clients from over 196 countries. The broker boasts a multilingual support staff fluent in 30 languages, cementing its place among the most trusted and regulated brokers with favorable trading conditions and a comprehensive offering.
XM emerges as a broker with a stellar reputation, backed by multiple regulations and a vast range of trading instruments, highlighting its main advantages. The platform is user-friendly, and XM is renowned for having one of the lowest deposit requirements in the industry. While CFD costs are found to be average, the trading platforms are exceptionally welcoming to traders of all backgrounds. The account opening process at XM is inclusive, allowing anyone to start trading with as little as $5, regardless of their financial background or trading experience. With its global outreach and exploration of new markets, XM actively supports webinars and research materials, fostering a conducive environment for beginning a trading career. However, it's noted that XM's portfolio for EU clients is limited, and outside the EU, the investor protection offered is not as robust.
Pros
Multiregulated broker with a strong foundation
Offers a wide range of trading opportunities, including in the ASIA, MENA, and Africa regions
Provides excellent education and research materials
Features a low minimum deposit requirement
Boasts competitive trading conditions
Cons
Limited portfolio for EU clients
Outside EU, investor protection may not be as comprehensive
Over the years, XM has consistently prioritized client needs, offering competitive conditions and a wide array of services that appeal to global traders. This focus has led to significant company development and a steady accrual of prestigious awards. XM's reputation within the trading community is further solidified by its global recognition and numerous awards for industry achievements, including titles such as Best Forex Broker for Europe and Most Trusted Broker.
XM is definitively not a scam. The broker is considered safe for trading Forex and CFDs, courtesy of its regulation and licensing by top-tier financial authorities including the FCA, ASIC, and CySEC. This multi-layered regulatory framework ensures a secure and low-risk trading environment.
Is XM Broker regulated?
Operating as a group of regulated online brokers, XM Group's foundation was laid in 2009 under the regulation of the Cyprus Securities and Exchange Commission (CySEC). Another arm, Trading Point of Financial Instruments, launched in 2015 in Australia, falls under the regulatory purview of the Australian Securities and Investments Commission (ASIC), akin to FP Markets. The global operations are further expanded through XM Global Limited, established in 2017 and regulated by the Financial Services Commission. Although the IFSC is considered an offshore license with less stringent oversight, the additional heavy regulation elsewhere makes XM a viable choice.
Is XM a reliable broker?
Regulation ensures that traders can engage in trading securely, with the assurance that client funds are managed according to stringent rules, minimizing the risk of fraud or misuse. XM's trading environment adheres to regulatory standards, making it a trustworthy broker. Furthermore, client funds are stored in investment-grade banks and segregated accounts, with the additional safety net of the Investor Compensation Fund, offering coverage up to €20,000 in the event of insolvency. A notable advantage for traders is the provision of Negative Balance Protection, eliminating the risk of losing more than the available balance.
Leverage options at XM vary by account type and regulatory entity, ranging from 1:1 to 1000:1. It's crucial for traders to understand which leverage levels they're entitled to use, which can differ based on residency. The maximum leverage available to clients under EU and AU-regulated entities is 30:1. Each XM entity enforces different conditions due to regulatory obligations, so leverage depends on the financial instrument traded. While the EU-regulated entity allows for up to 30:1 leverage, the Australian entity permits the same, and the international entity offers a high leverage of 1000:1. However, traders are advised to choose their leverage wisely and inform themselves through XM's educational resources.
XM presents a diverse range of account options, catering to different trading styles and strategies. Traders can opt for micro lots with the Micro account for smaller trade sizes, or the Standard account for regular trade sizes based on a spread-only basis. Additionally, the Zero Account offers a distinct fee strategy, featuring interbank spreads starting from 0 pips and a commission charge of up to $3.5 per lot. It's important to note that the availability of these account types may vary depending on the XM entity, so traders are advised to verify applicable conditions specific to their region.
Can traders from South Africa open an XM account? Yes, as XM has been registered with the local regulator since 2016, appealing to South African traders and offering a truly global trading experience with customer-oriented features.
XM Account Base Currencies
By selecting an XM Account, traders have the option to choose their preferred base currency from a wide selection, including the South African Rand (ZAR) and the Singapore Dollar (SGD), to avoid conversion fees for both deposits and withdrawals.
XM boasts a vast array of trading products, experiencing significant growth in its instrument offerings, including an increase in Cryptocurrencies and CFDs. Offering a single multi-asset account, traders have access to 6 asset classes, approximately 55 currency pairs, and a total of over 1000+ trading markets. This includes Forex, CFDs on stock indices, commodities, stocks, metals, energies, and Cryptocurrencies, all accessible from the same account. Under its XMGlobal brand, XM provides a selection of 60 cryptocurrency pairs, highlighting its commitment to meeting the diverse needs of traders.
Is XM a stock broker? While XM offers a range of Stocks for trading, primarily based on CFDs, the real stock trading or investment is not available. The offerings and conditions differ based on the XM entity, as discovered through research. XM's Trading Markets Range Score is rated at 4.0 out of 5.
XM operates with variable spreads similar to the interbank forex market, with no trading restrictions during news releases. The broker offers a flexible fee structure with all trading costs calculated into the spread, ensuring transparency with no hidden fees. It is essential for traders to consider not only the spread but also non-trading fees, withdrawal fees, and other applicable charges to fully understand the total cost of trading. XM's fees are considered average to low, with an overall rating of 4.0 out of 5, based on comparisons with over 1000 other brokers.
XM's pricing is based on a spread for those opening Micro or Standard accounts, with the addition of a fractional pip price for more precise pricing from various liquidity providers. Below is a reference to average spreads for popular products on a Standard account, demonstrating that, while some spreads might be higher compared to industry competitors, the overall fee structure for Forex products and CFDs is competitively low. XM's spread rating is 4.0 out of 5.
What is XM's commission? The commission fee applies only to XM Zero Accounts, trading with interbank spread quotes from 0 pips, plus a commission charge as the trading fee. XM offers a transparent and competitive fee of $3.5 per lot per 100,000 USD traded.
XM prioritizes a customer-oriented approach to fund transactions, supporting a multitude of payment methods across all countries. This includes the option for local bank transfers, which is a significant advantage for many traders, allowing them to fund their account through local banks and currency without incurring conversion charges. XM's funding methods are rated excellent, with an overall rating of 5.0 out of 5. The minimum deposit is among the lowest in the industry, and fees are minimal or non-existent, depending on the entity with which you trade.
Deposit Options
XM supports a wide array of deposit options, including credit cards, bank wire, local bank transfer, and e-wallets like Neteller and Skrill. The minimum deposit for a Micro or Standard Account is only $5, while the Zero account requires a competitive minimum of $100. The amount may vary based on the chosen payment method and account validation status.
XM Withdrawal
Withdrawal options at XM mirror the deposit methods, including bank wire transfers, e-wallets, and credit/debit cards, with a 0% withdrawal fee policy. This policy covers all transfer fees, including e-wallets and major credit cards, without any hidden fees or commissions. Withdrawal requests are processed by the XM accounting team within 1-3 business days, depending on the country and payment method used.
XM offers a robust trading experience through its deployment of the MetaTrader 4 and MetaTrader 5 platforms, in addition to its proprietary platform. This selection ensures traders have access to highly developed trading environments, recognized for their extensive capabilities and broad acceptance within the trading community. The inclusion of both MT4 and MT5 caters to a wide spectrum of trading preferences, providing a wealth of extensions, educational resources, and tools. XM's platforms are distinguished by their comprehensive features, such as copy trading, robot trading, expert advisors (EAs), and efficient execution, earning an excellent rating of 5.0 out of 5.0 in comparison to over 1000 other brokers.
Pros
Industrypopular platforms MT4 and MT5
A proprietary platform with advanced features
Cons
Limited to MetaTrader platforms and its own, with no other thirdparty options
Web Trading
XM's web trading platform is easily accessible from a single account and comes in various versions, all of which are integrated with a full suite of technical analysis tools, indicators, and comprehensive trading functionalities like stop or trailing orders. This platform enables traders to access XM's trading environment directly through a browser, without the need for downloads or installations.
Pros
Direct browser access without downloads
Comprehensive suite of tools and indicators
Cons
May lack some advanced features found in desktop versions
Desktop Trading Platform
XM enhances its platform offering with 16 trading platforms, designed to cater to virtually any device, including mobile and multi-account trading setups. By leveraging the capabilities of MT4 and its successor, MT5, XM provides powerful automated trading options, unlimited chart usage for techno-savvy traders, and excellent manual trading tools to support various trading strategies.
Pros
Supports automated and manual trading
Compatible with a wide range of devices
Cons
May be overwhelming for beginners with its extensive options
Platform trading tools
XM enriches its trading platforms with numerous add-ons, offering extra benefits like XM VPS for continuous trading without the need for constant monitoring or even having the PC on. Clients maintaining a balance of $5,000 or equivalent can request a free VPS, while others may access the tool at a monthly fee of $28.
Pros
Free VPS for eligible clients
A variety of addons for enhanced trading
Cons
VPS comes at a cost for clients not meeting the minimum balance requirement
Mobile Trading Platform
XM's mobile trading capabilities are robust, with dedicated MT4 and MT5 apps for Android and iOS devices, ensuring full account functionality on the go. The apps feature advanced charting, over 30 technical indicators, and a comprehensive trading history journal, facilitating trading from virtually anywhere.
Pros
Full account functionality on mobile apps
Advanced charting and technical indicators
Cons
Mobile platforms may offer slightly fewer features compared to desktop versions
XM's customer support team is available in over 25 languages, including Chinese, Russian, Hindi, Arabic, Portuguese, Thai, and Tagalog, covering a broad spectrum of global trading needs. The broker offers 24/5 support through email, phone, or live chat, delivering fast, knowledgeable responses. This client-oriented approach earns XM a good rating of 4.0 out of 5.0 in customer support.
Pros
Multilingual support in over 25 languages
Various channels for support including live chat
Cons
Limited weekend support
XM extends its commitment to trader education through the XM Learning Center, offering a wide range of educational materials designed to elevate trading skills across all levels. The broker's educational offerings include live sessions, educational videos, webinars, and seminars in various locations, complemented by well-organized tutorials and tools. This comprehensive approach to forex education earns XM a perfect score of 5.0 out of 5.0.
Pros
Comprehensive educational materials for all levels
Live education sessions and regional seminars
Cons
Information can be overwhelming for absolute beginners
XM's research tools and market materials are well-organized, offering traders access to news feeds, technical summaries, fundamental analysis, and trade ideas. The broker provides exclusive technical indicators compatible with its platforms, supporting both manual and algorithmic trading strategies. This thorough approach to market research is highly beneficial for both novice and advanced traders.
Pros
Comprehensive research tools and materials
Exclusive technical indicators for subscribers
Cons
Algorithmic trading tools may have a steep learning curve
In sum, XM stands out as a highly regulated, transparent, and customer-centric forex broker. Its no re-quotes and no hidden fees or commissions policy, coupled with negative balance protection, make it a highly attractive option for traders. With its competitive costs, favorable trading conditions, and diverse trading instrument offerings, XM caters to a wide range of trading preferences, including beginners, professional traders, and those interested in a variety of trading strategies. XM's strong focus on education and research further enhances its appeal, making it a top choice for traders seeking comprehensive support and advanced trading platforms.
