XM review by - TopAsiaFX
In 2009, XM emerged as the parent company of Trading Point Holding, establishing its global presence as a prominent Forex and CFD brokerage firm. Since then, XM has garnered recognition for its operations worldwide.
XM Global, regulated by the International Financial Services Commission (IFSC) under license number (000261/106), entered the scene in late 2017, surpassing expectations.
Notably, XM achieved regulatory compliance with three additional bodies, namely ASIC and CySEC, cementing its position as one of the most reliable brokerages in operation today.
With a vast network encompassing 196 countries, XM Global boasts a staggering 1.5 million traders. Upholding fairness as its guiding principle, XM garners admiration from countless retail market traders.
XM Pros & Cons
Pros
- Regulated and reputable broker with a strong track record.
- Wide range of account types to cater to different trading preferences.
- User-friendly trading platforms (MT4 and MT5) are available across devices.
- Extensive selection of tradable instruments, including Forex, commodities, indices, cryptocurrencies, and shares.
- Comprehensive educational resources and analysis tools for trader development.
- Multilingual customer support is available 24/5.
Cons
- Limited availability of XM Zero account (tight spreads with commission) compared to other account types.
- Inactivity fees may apply if an account remains dormant for an extended period.
- US-based traders are not accepted due to regulatory restrictions.
XM Account Types
| Accounts | Currencies | Min. deposit | Leverage | Starting Spreads | Demo Account | Rollover Free | Decimal Pricing | Commission per trade | Max. Lot Size Per Trade | Min. Lot Size Per Trade |
|---|---|---|---|---|---|---|---|---|---|---|
| Micro Account | USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, SGD, ZAR | $5 | Up to 1000:1 | As Low as 1 Pip | No | No | 100 Lots | 0.1 Lots (MT4), 0.1 Lots (MT5) | ||
| Standard Account | USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, SGD, ZAR | $5 | Up to 1000:1 | As Low as 1 Pip | No | No | 50 Lots | 0.01 Lots | ||
| XM Ultra Low Account | EUR, USD, GBP, AUD, ZAR, SGD | $5 | Up to 1000:1 | As Low as 0.6 Pips | No | No | Standard Ultra: 50 Lots, Micro Ultra: 100 Lots | Standard Ultra: 0.01, Lots Micro Ultra: 0.1 Lots | ||
| Shares Account | USD | $10,000 | No Leverage | As per the underlying exchange | No | Yes | Depending on each share | 1 Lot |
Account Options
| Broker Type | Minimum Deposit | Forex Majors Spread | Maximum Leverage | Min. Trade Size | Scalping | Hedging | Free Demo | USA Traders |
|---|---|---|---|---|---|---|---|---|
| CFD | 5 | 0.1 | 1000:1 | 0.01 lots | Yes | Yes | Yes | No |
XM Trading Platforms, Fees & Regulation
XM, renowned for its stringent regulation and competitive spreads, offers two distinct trading platforms for retail market traders. These platforms are:
MetaTrader 4 (MT4): This platform has earned numerous accolades over the years, making it a trusted and widely recognized choice. MT4 boasts a persuasive interface and a comprehensive set of features. Some notable features include:
- Advanced trading tools
- Customizable charts and indicators
- Expert Advisors (EAs) for automated trading
- One-click trading execution
- Backtesting capabilities
MetaTrader 5 (MT5): MT5 represents a technologically advanced trading platform that provides traders with the advantage of trading multiple asset classes simultaneously, including stocks, indices, and precious metals. Alongside this broader asset range, MT5 offers a range of features such as:
- Multiple trading indicators
- In-depth market views
- Diverse trading charts
- Multiple time frames
- Enhanced order execution capabilities
With XM's comprehensive selection of trading platforms, traders can choose the platform that best aligns with their trading style and preferences.
Source: Forexbrokers.com
Mobile Trading:
When it comes to trading platforms, XM only prefers the MetaTrader platforms over all the trading platforms. And by MetaTrader platforms we mean the MT4 and MT5 trading platforms. Which is for a fact also available for mobile devices including both android and ios versions.
The installation process is also quite easy and hassle-free compared to all the other mobile trading platforms provided by all the other brokers. Just go to the play store or App store and search for it. After that, the next process is completely automatic.
Apart from all this, XM offers several features on its mobile trading platform. Which includes:
Source: Forexbrokers
Regulation
- ( CySEC, IFSC, FCA, ASIC, DFSA )
Fees
- Yes
Platforms
- MT4, MT5
XM Top Features
Tradable Instruments:
XM goes above and beyond in providing an extensive range of trading instruments to cater to the diverse needs of retail market traders. To ensure a comprehensive trading experience, they offer access to the following:
- Forex: XM offers a vast selection of over 57 currency pairs, including exotic options, allowing traders to explore various opportunities in the forex market.
- Metals: Precious metals like gold and silver are available for trading, providing investors with the chance to engage in this valuable asset class.
- Energies: Traders can participate in the energy market through the trading of instruments such as Brent crude oil, GSOIL, NGAS, and OILMn.
- Commodities: XM enables traders to access and trade 15 different commodity stocks, offering exposure to a variety of commodity markets.
- Stocks: With XM, traders can experience the excitement of trading major company shares, with up to 28 well-known companies available, along with 1240 stock CFDs.
- Indices: A wide range of popular indexes is accessible for trading, allowing investors to tap into the performance of various markets and indices.
Please note that due to regulatory considerations, trading on cryptocurrencies, especially BTC, is not available through XM.
With such an extensive selection of trading instruments, XM ensures that retail market traders have ample opportunities to diversify their portfolios and explore various financial markets.
XM Compliance & Regulation
XM stands out as one of the most heavily regulated brokerages in the industry, instilling confidence among retail market traders. Tight regulations serve as a powerful testament to the trust established between XM and its clients.
The regulatory oversight of XM extends to three esteemed bodies:
- The IFSC (International Financial Services Commission)
- The CySEC (Cyprus Securities and Exchange Commission)
- The ASIC (Australian Securities and Investments Commission)
Rest assured that when choosing XM for your trading endeavors, security concerns become a thing of the past. Embrace the opportunity to trade with peace of mind.
XM Service Details
| Supported Languages | English, Greek, Simplified Chinese, Traditional Chinese, Bahasa Malay, Bahasa Indonesia, Korean, Russian, French, Spanish, Italian, German, Polish, Hindi, Arabic, Portuguese, Czech, Slovakian, Bulgarian, Romanian, Bengali, Urdu, Thai, Nepali, Tagalog, Vie |
| Customer Service By | Live Chat, Email, Call |
| Service Hours | 24/7 |
| Email Response | support@xm.com |
XM Trading And Investment Tools
| One Click Trading | Yes |
| Stop Order | Yes |
| Limit Order | Yes |
| Trade off Charts | Yes |
| Market Order | Yes |
| 24hr Trading | Yes |
| Email Alerts | Yes |
| Trailing Stop Order | Yes |
| Charting Package | No |
| Mobile Alerts | Yes |
| OCO Orders | Yes |
| Streaming News Feed | Yes |
XM Pricing
Account Types and Spreads:
XM presents five distinct types of trading accounts tailored to meet the needs of retail market traders. Let's explore them briefly:
- Micro Accounts: Ideal for new traders, Micro accounts require a minimum deposit of only $5. Despite the modest amount, traders can access trading on various base currencies, including AUD, USD, GBP, CHF, JPY, EUR, PLN, and HUF. It's important to note that 1 micro lot represents 1,000 units of the base currency.
- Standard Accounts: Similar to Micro accounts, Standard accounts also have a minimum deposit requirement of $5. They offer trading on all base currencies and follow the standard lot size of 100,000 units of the base currency.
- XM Ultra-Low Accounts: Designed for specific trading groups, XM Ultra-Low accounts require a minimum deposit of $50. Base currencies available for trading include USD, EUR, AUD, GBP, SGD, and ZAR. The standard lot size is consistent with Standard accounts.
Note: XM Ultra-Low accounts are subject to eligibility criteria.
- XM Share Accounts: For those interested in share trading, XM offers Share accounts. These accounts require a minimum deposit of $10,000 and allow trading exclusively in USD as the base currency. The standard lot size for Share accounts aligns with that of Micro accounts.
Additionally, XM provides swap-free trading accounts for traders who require Islamic finance-compliant trading options.
Regarding trading leverage, it can vary from 2:1 to 30:1 depending on the trading instrument. The average spread on EUR/USD is as low as 0.1 pips. Notably, XM implements market execution for trades, ensuring efficient order execution.
With XM's diverse range of trading account options, traders can select the account type that best suits their trading preferences and goals.
Deposit and Withdrawal Options:
XM offers a range of convenient transaction methods to facilitate deposits and withdrawals. These methods include Debit/Credit cards, wire transfers, local bank transfers, and various electronic payment methods. Traders can utilize any of these options for both depositing funds into their XM account and withdrawing funds from the broker.
For Micro and Standard accounts, the minimum deposit requirement is $5, while Zero Spread accounts require a minimum deposit of $100.
However, it's important to note that the withdrawal process from XM can sometimes take more than 2 days to complete. Additionally, a withdrawal fee is applicable for bank wire transactions, amounting to $15.
XM aims to provide traders with a diverse range of transaction options to ensure convenience and flexibility when managing their funds.
Deposit Methods
Withdrawl Methods
FAQ Section
Leverage is the multiplication of your balance. This allows you to open bigger trading positions since the margin required will be lowered according to the leverage you have chosen. Even though with leverage you can make a bigger profit, there is also a risk of having a bigger loss because the positions you open will be of higher volume (lot size).
Example:
Account balance: 100 USD
Account leverage: 1:100
For your trading capital this means 100 * 100 USD = 10,000 USD to trade (instead of 100 USD).
The swap formula for all forex instruments, including gold and silver, is the following:
lots * long or short positions * point size
Here is an example for EUR/USD:
Client base currency is USD
1 lot buy EUR/USD
Long = -3.68
Because it is a buy position, the system will take the swap rate for a long position, which currently is -3.68
Point size = contract size of a symbol * minimum price fluctuation
EUR/USD point size = 100 000 * 0.00001 = 1
If we apply for the given numbers in the formula, it will be 1 * (-3.68) * 1 = -3.68 USD.
So for 1 lot buy EUR/USD, if the position is left overnight, the swap calculation for the client will be -3.68 USD.
Here is an example for gold:
Client base currency is USD
1 lot buy gold
Long = -2.17
Because it is a buy position, the system will take the long points, which currently is -2.17.
Point size = contract size of a symbol * minimum price fluctuation
Gold point size = 100 * 0.01 = 1
If we apply the given numbers in the formula, it will be 1 * (-2.17) * 1 = -2.17 USD.
So for 1 lot buy gold, if the position is left overnight, the swap calculation for the client will be -2.17 USD.
Please note that if the base currency of the trading account is in EUR (like in the examples above), the swap calculation will be converted from USD to EUR. The result of the swap calculation is always the secondary currency in a symbol, and the system converts it to the base currency of the trading account.
The examples above only serve as a guide and do not reflect the current charges. Please view the current swap charges for forex instruments here and for gold and silver here.
It is $5 for MICRO and STANDARD accounts, $50 for ULTRA LOW accounts, while for SHARES accounts it is $10,000
In case you fill out all details correctly, it takes less than 5 minutes.
Margin is the required amount in the base currency of the trading account needed to open or maintain a position. When trading forex, the Required/Used Margin for a specific position = Number of Lots * Contract size / Leverage. Here the result is originally calculated in the first currency of the traded pair and then converted into the base currency of your trading account, which will be numerically displayed on your MT4, or any other trading platform.
The margin requirement for gold land silver is calculated like this: Lots * Contract Size * Market Price / Leverage. The result will be in USD, which will be converted into the base currency of your trading account (in case it is other than USD).
For CFDs, the required margin is Lots * Contract Size * Opening Price * Margin Percentage. The result will be in USD, which will be converted into the base currency of your trading account (in case it is other than USD). More details can be seen here.
Margin level is calculated with the formula Equity/Margin * 100%.
Free margin is your equity minus margin. It means the available funds that you use for opening new positions, or for maintaining existing positions.
It is simple and quick. Click Open a Real Account, fill in the form and upon completion, you will receive an email with your login details that you can use to log in to our secure Members Area. Here you will be able to fund your trading account by clicking the Deposits tab in the main menu. If you are already an XM Real Account holder you can open an additional account in the Members Area.
The margin calculation formula for forex instruments is the following:
(Lots * contract size / leverage) where the result is always in the primary currency of the symbol.
For STANDARD accounts all forex instruments have a contract size of 100 000 units. For MICRO accounts all forex instruments have a contract size of 1 000 units.
For instance, if the base currency for your trading account is USD, your leverage is 1:500 and you are trading 1 lot EURUSD, the margin will be calculated like this:
(1 * 100 000/500) = 200 Euros
Euro is the primary currency of the symbol EURUSD, and because your account is USD, the system automatically converts the 200 EUROS to USD at the actual rate.
If you have already opened a trading account, received your login details by email, submitted your identification documents for account validation, and made a deposit; the next step is to download the trading platform of your choice.
You can find detailed guidance on XM trading platforms here.
XM User Experience
Customer Support:
Reliable customer support is undoubtedly a vital feature for any brokerage company striving to maintain a leading position. Recognizing this, XM has established a 24/7 superactive customer support protocol to assist traders effectively.
Traders can access customer support through various channels, including a live chat system, phone communication, and email correspondence. Furthermore, XM's customer support is available in multiple languages, ensuring seamless communication for traders worldwide.
Here are the contact details should you need to reach out to them:
- Phone number: +357 25029933
- Email address: support@xm.com
Research and Education:
Research and education play a crucial role in navigating the dynamic and volatile trading industry. XM is fully committed to providing traders with an effective and diverse learning center to enhance their knowledge and skills.
The learning center offers a wealth of educational materials, including webinars, blog posts, market analysis, trading tips, guidebooks, video tutorials, and much more. All these resources are well-organized and presented from a user-friendly perspective, catering to beginners who are seeking to grasp the intricacies of trading.
In addition to the extensive educational materials, XM grants traders access to Forex calculators and economic calendars for exclusive research purposes. These tools further empower traders to make informed trading decisions.
With XM's comprehensive research and education resources, traders can enhance their understanding of the markets and develop the necessary skills to navigate the ever-changing trading landscape.
Conclusion:
XM Broker stands out as a reliable and customer-centric trading partner in the online brokerage industry. With its comprehensive range of trading services, user-friendly platforms, diverse tradable instruments, and emphasis on trader education, XM provides a solid foundation for both beginner and experienced traders. The broker's strong regulatory status and commitment to security further enhance its credibility. By choosing XM, traders can access a wealth of resources and tools to support their trading journey.
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