XM Review

Point Summary

Introduction

XM was first started back in 2009 in Cyprus, so far operating clients from over 190 countries and is among the most trusted Regulated Brokers.
XM is regulated by the FSC Belize and they have European passports with the MiFID, as well as being regulated by the CySEC in Cyprus, as well as being regulated in Australia as an ASIC entity.

They have an offering of more than 400 different instruments, this includes over 350 CFDs, as well as more than 55 currency pairs.

About 1.5 Million Traders and investors at XM choose its wide range of XM trading products and the services broker provides along with advanced trading solutions, yet suitable for beginning traders as well. The reason for such fast growth and trust to the broker is that XM aims to provide one of the best user experience in the industry to its clients.

They offer more than 20 language options for their users and they cater for any and all levels of trader. One of the recent awards they have received is being named as the best FX broker in Europe in 2018 by the World Finance Magazine.
 

Awards

Overall, XM achieved a great focus on the Client’s needs while offers very competitive conditions and a range of services that attract global traders. Apart from its highly good results and reputation among the trading community, XM received truly global recognition with many reputable awards for industry achievements including Best Forex Broker for Europe, Most Trusted Broker, etc.

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Is XM safe or a scam?

Is XM a reliable broker?

The main idea of the regulation is that the trader can trade secure, knowing that clients funds collaborate according to the strictest rules with minimized risks of fraud or unfair use. XM operates its trading environment according to the regulatory measures making it a reliable broker.

Client funds are kept in investment grade banks and use segregated accounts, also falling under the Investor Compensation Fund that ensures recovery of funds up to €20,000 in case broker goes insolvent (note that the coverage scheme depends on the particular entity - Trading Point of Financial Instruments Ltd). Besides, one of the advantages you will get as a trader is a Negative Balance Protection, so there is no risk to lose more than the available balance.

Accounts

You may be a new or professional trader so XM made an ideal choice between account types to suit your trading potential, also with a potential capability to magnify your income with a correct selection of the account type. You may open an account following simple steps of verification and submit through a fully digital process simple to navigate.

If you are new to trading a demo account is another useful tool to test trading potential which XM is offering for free use.

Pros	Cons
Fast digital account opening Easy switch between Demo and Live Account The proposal between Accounts based on spread only or with commission charges Very Low minimum deposit	Account types vary according to jurisdiction

Account types

XM provides clients with a large range of account types, each with its own unique features and benefits. The different account types offer different leverage amounts based on different regulatory jurisdictions (CySEC, ASIC and FSC), as well as the choice of commission-free or commission-based accounts, as well as a Shares account, Islamic Swap-Free account and a Demo trading account.

Example: XM entities depending on the jurisdiction rule thus apply slightly different offerings, while Accounts availability depends on the client’s country of residence. Alike CY branch offers three account types, excluding Ultra Low Accounts, also some conditions may vary too.

But XM made a choice between four main account types – Micro, Standard, XM Ultra Low Account and Shares Accounts while all offered features are custom-oriented.

Overall, XM made it a simple as you may choose preferred trading style through either account to trade smaller size through Micro Lots, or to trade regular size with Standard account based on spread only basis. Lastly, Zero Accounts will offer you another fee strategy where the spread is an interbank quote starting from 0 pips and the trading charge will be deducted through a commission per lot.

So make sure to verify the applicable proposal before you sign in, also see the breakdown below.


XM Global Trading Accounts (IFSC Regulated)



XM CySEC Regulated Accounts

Can you open XM account in South Africa?

If you are a trader from South Africa – yes you can open XM account, as XM applied for registration to local regulator since 2016 and even since appealing to South African traders. So truly worldwide traders can enjoy great customer-oriented features XM offers and engage in all the trading benefits relatively easily.


Account Base currencies?

As for the account base currencies, XM added extra flexibility in this regard too, as choosing XM Account you may select the base currency of your preference from the great supported selection. This range includes even South African Rand (ZAR) or Singapore Dollar (SGD), besides to other global currencies.

So all in all register with XM allows you transparency of money transaction, while you will avoid conversion fees for both deposits and withdrawals while selecting your preferred base rate.

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Leverage

Depending on the account type and the entity under which the XM follows regulatory obligations, you are entitled to the leverage on a scale from 1:1 to 888:1. So to understand which leverage level you entitled to use, always refer to the conditions of your residency as various XM entities apply different conditions again due to regulatory obligations

 

• XM offers leverage up to 30:1. This Leverage applies to the EU regulated entity of the Group. Also, Leverage depends on the financial instrument traded
• XM Australian entity and its regulation allows up to 30:1
• And XM Global Ltd offers high leverage of 1:888

 

However, always choose your leverage smartly, as well as the entity under which you would like to trade, which you may learn more through the XM education center.

Market Instrument

In total, there are more than 1000 different CFDs offered by XM. There are more than 55 currency pairs with a total over 1000+ trading markets on offer and they don’t offer any ETF products.

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Commission Fees

With XM the amount of fees and commission that you have to pay will be dependent on what sort of account you have with them. You have two accounts which are free from commissions – Standard and Micro accounts, while the XM Zero account is based on commission.

In the sections below, you will find the most relevant fees of XM for each asset class. For example, in the case of forex and stock index trading, spreads, commissions and financing rates are the most important fees.

We also compared XMs fees with those of two similar brokers we selected, XTB and eToro. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of XM alternatives.

To have a clear overview of XM, lets start with the trading fees.

XM trading fees

XM trading fees are low.

The Standard and Micro accounts charge higher spreads but there is no commission. The XM Zero account charges lower spreads, but there is a commission. The following calculations were made using the Standard account.

We know its hard to compare trading fees for CFD brokers. So how did we approach the problem of making their fees clear and comparable? We compared brokers by calculating all the fees of a typical trade for selected products.

We chose popular instruments within each asset class:

• Stock index CFDs: SPX and EUSTX50
• Stock CFDs: Apple and Vodafone
• Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP

A typical trade means buying a leveraged position, holding it for one week and then selling. For volume, we chose a $2,000 position for stock index and stock CFDs, and $20,000 for forex transactions. The leverage we used was:

• 20:1 for stock index CFDs
• 5:1 for stock CFDs
• 30:1 for forex

These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Lets see the verdict for XM fees.

CFD fees

XM has generally low CFD trading fees. Compared to its competitors, they are about the same or lower.

Forex fees

XMs forex fees are average compared to its competitors.

Real stock fees

Non-European clients can also trade real stocks using the Share account. Commission fees depend on which stock market you trade on.

Trading Platforms

XM does not have its own trading platform; instead, it uses third-party platforms: MetaTrader 4 and MetaTrader 5. These platforms are very similar to each other in functionality and design. One major difference is that you cant trade stock CFDs on MetaTrader 4; they are available only on MetaTrader 5.

Web Trading

The XM web trading platform has great customizability. You can easily change the size and the position of the tabs.

Directly accessible just from one account and available in various versions all platforms are integrated with a full site of technical analysis, indicators and comprehensive tools, stop or trailing orders. SO you may access XM trading just by the use of the browser and login to Web Trading.

Pros	Cons
User friendly software A mainstay at MT4 and MT5 platforms 16 Different platforms suitable for Web, Mobile and Desktop trading Mobile App for iOS and Android Simple to use Fee Report Supporting numerous languages	Only MetaTrader offerd

Desktop Trading

In design and functionality, XMs MetaTrader 4 desktop platform is almost the same as the web trading platform. One major difference is that you can set price alerts on the desktop trading platform.

It has the same design, is available in the same languages, offers the same order types, has the same search functions, and offers the same portfolio and fee reports as the web trading platform. The desktop trading platform doesnt have two-step authentication; however, XM provides a two-step account login procedure on the website where you can deposit and withdraw funds.

To set email or mobile notifications, you have to add your email address and mobile MetaQuotes ID (you can find it in the MT4 apps settings). You can add them if you go to Tools and then Options.

XM withdrawal fees and options

XM charges no withdrawal fees. In the only exception, bank (wire) transfers below $200 incur a $15 fee.

How do I withdraw from XM Account?

TO withdraw funds from your XM trading account you should simply follow next steps, also never hesitate to contact customer service in case of any questions or terms.

Withdraw money step by step

1. Login to your account

2. Select on Withdraw Funds’ at the menu tab

3. Enter the withdrawn amount

4. Choose the withdrawal method

5. Complete the electronic request with necessary requirements

6. Confirm withdrawal information and Submit

7. Check the current status of withdrawal through your Dashboard

How long does XM Withdrawal take?

While the XM Accounting team process withdrawal requests quite quickly within 1-3 business days it depends on the country the money is sent to, as variously rules and policies apply. The standard bank within the EU will take around 3 working days for the money to be available on your account, yet some methods or institutions may process almost instantly or take longer, all depending on the payment method you use.