Spreads & Commissions9.5/10
- XM is regulated by four different agencies, namely the ASIC, the FCA, the CySEC, and the IFSC
- XM offers a trading account for as low as $5
- The ECN/STP account is available from a minimum investment of $100
- Lowest spreads and high leverage, combining the best trading conditions for scalpers
- Safe and secure payments, with withdrawals processed within a few hours
- XM does not offer a bonus to EU traders. The bonus is also not as comprehensive as other brokers
- US clients are currently not able to trade with XM
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It is vital for any investor to find a reliable trading partner, regardless of their investment strategies or trading skills. In fact, even the most prolific trader is only as good as his/her broker, as a subpar trading experience can break a trader’s career. Luckily, XM is one of the better Forex brokers in the market that seems to have found a winning combination that is not only attractive to the trader but also ensures the long-term viability of the business model without affecting the integrity of traders’ investments.
Our detailed XM review is developed with the traders’ requirements in mind, and how investing with XM for the long-term can influence a trader’s career. We also give you some of the best strategies for obtaining the maximum out of XM’s services.
XM Regulation & Legal Information
XM is one of the best Forex and CFD brokers in the market for regulated trading accounts. XM has seen a lot of different changes to its brand name over the years, having been more popularly known as the XE Markets and Trading Point. Today, XM operates its global brokerage under the XM.com brand name and is entirely owned and operated by Trading Point Of Financial Instruments. XM was introduced in 2009, with offices located across Europe, the Middle-East, and Asia-Pacific.
XM is regulated by multiple regulatory agencies, with its primary headquarters based in Europe. XM’s European division is regulated by the Cyprus Securities and Exchange Commission (CySEC), as well as the Financial Conduct Authority (FCA) of the UK. XM also holds an Australian Financial Services License (AFSL) under the Australian Securities and Investments Commission (ASIC), along with a global operational arm of the company being located out of Belize under the International Financial Services Commission (IFSC) license.
XM has set up a relatively secure brokerage platform that concentrates more on the safety aspect of an investment, rather than outright profits. However, with an increased investment towards being regulated and licensed, the broker has managed to cater to the most extensive retail trading market, which has indirectly helped the company to achieve better conversions and a significantly larger number of traders than its immediate competitors. XM does present an excellent choice for traders, fortified by the regulatory protection offered by some of the leading regulators in the market.
XM Assets Available
If you are looking for the most comprehensive range of assets to trade the financial markets, XM offers one of the best services that include more than 300 financial instruments from six different asset classes. Aside from the regular Forex and commodities instruments that are popular among FX brokers, XM also offers access to shares, indices, and precious metals. Recently, the broker has also added cryptocurrencies into its asset portfolio, which makes it quite easy for traders to trade the global markets through a single platform.
Forex: AUDCAD, AUDCHF, AUDJPY, AUDNZD, AUDUSD, CADCHF, CADJPY, CHFJPY, CHFSGD, EURAUD, EURCAD, EURCHF, EURDKK, EURGBP, EURHKD, EURHUF, EURJPY, EURNOK, EURNZD, EURPLN, EURRUB, EURSEK, EURSGD, EURTRY, EURUSD, EURZAR, GBPAUD, GBPCAD, GBPCHF, GBPDKK, GBPJPY, GBPNOK, GBPNZD, GBPSEK, GBPSGD, GBPUSD, NZDCAD, NZDCHF, NZDJPY, NZDSGD, NZDUSD, SGDJPY, USDCAD, USDCHF, USDCNH, USDDKK, USDHKD, USDHUF, USDJPY, USDMXN, USDNOK, USDPLN, USDRUB, USDSEK, USDSGD, USDTRY, USDZAR
Commodities: COCOA, COFFE, CORN, COTTO, HGCOP, SBEAN, SUGAR, WHEAT, GOLD, SILVER, PALLADIUM, PLATINUM, BRENT Oil, London Gas OIL, Natural Gas, OIL, OILMn
Stocks: 3iGroup, 3MCo, Abbott, Aberc Fitch, Activision, Adidas, Adobe, Adv MicroDev, Aes, Aetna, Aflac, AIG, Airbus, Air France, Akamai, Alcoa, Alibaba, Allianz AG, Allstate, Altaba, Altria, Amazon, AMC, AMEX, Apple, AT&T, Aviva, AXA, BAE Systems, Barclays, Barratt, BASFAG, Bayer AG, BBVA, Betfair, Blackberry, Blackrock, BMW, BNP Paribas, Boeing, Bank of America, Bank of New York, BP, Bristol Myer, BT Group, Burberry, Carrefour, Caterpillar, Chevron, Chubb, Cisco, Citigroup, Coca-Cola, Comcast, Commerzbank, Conoco Phil, Costco, Marks & Spencer’s, Mastercard, McDonalds, Merck & Co, MGM Resorts, Microsoft, Moodys, Morgan Stanley, Motorola, Nestle, Netflix, Next, Nike, Novartis, Nvidia, Oracle, Pepsico, PetroleoBra, Peugeot, Pfizer, Philip Morris, Procter & Gamble, Prudential, Qualcomm, Ralph Lauren, RBS, Renault, Repsol, Rolls-Royce, Sainsbury, Sanofi, Santander, SAP, SHELL, Siemens, SKY, SocieteGen, Sprint, Starbucks, Standard Charter, Symantec, Tesco, Tesla, Thomas Cook, Tiffany & Co, Time Warner, Total, UBS, Unilever, United Tech, UPS, Verizon, Visa, Vivendi, Vodafone, Volkswagen, WalMart, Wells Fargo, Western Union, Whole Foods, Xerox, YumBrands
Indices: AUS200Cash, CHI50Cash, EU50Cash, FRA40Cash, GER30Cash, HK50Cash, IT40Cash, JP225Cash, NETH25Cash, POL20Cash, SINGCash, SPAIN35Cash, SWI20Cash, UK100Cash, US100Cash, US30Cash, US500Cash, USDX
XM Cyprus is not allowed to offer any bonus to European traders, owing to a recent ruling that prohibits brokers from the EU to offer any free money or trading credits to clients. However, XM offers a bonus for its international clients, where each trading account is eligible for up to 15% bonus as trading credits. On the other hand, the broker has a trading volume-based loyalty program, which qualifies for trading bonuses or free money, according to the loyalty points accumulated through trading. These trading bonuses are available for all clients and are offered irrespective of the EU guidelines.
XM Trading Platforms & Mobile Apps
XM offers its trading services and brokerage accounts that are compatible with the MetaTrader platforms, which are available in both MT4 and MT5 versions. The MetaTrader4 version is the most popular Forex trading platform, but the MT5 sees a whole lot of changes and trading functionalities that make it one of the most advanced trading interfaces in the market. Both versions of the MetaTrader terminals are independent third-party platforms that provide an excellent trading platform for desktop traders, but the MT5 misses out on some trading features that are offered by the MT4 version.
XM does not offer 16 different trading platforms as promised through its website, as the broker only offers 16 different versions of the MetaTrader4 and the MetaTrader5 platforms for desktop and mobile trading. Both versions of the MetaTrader are available for download on the iOS, Android, and Windows devices, rendering excellent compatibility with both smartphones and tablets. Traders can download the MT4 mobile apps for trading on the move, while there is a dedicated XM mobile app that offers a dedicated account management interface for mobile users. XM has indeed paid excellent attention towards its mobile users, hence, meeting the expectations of a significant majority of Forex traders.
XM Spreads, Commissions, & Leverage
XM offers highly competitive trading conditions for its entire range of financial instruments. XM offers two distinct types of trading services, the market maker protocol, and the direct market access (DMA) protocol that uses ECN/STP trading conditions. The market maker protocol uses a hybrid of internal dealing desk and DMA protocols for the best trading conditions, which guarantee the lowest spreads of 1 pip on major currency pairs. The ECN/STP accounts offer even better trading conditions, which offer a zero-pip spread account in exchange for a commission per traded lot.
The XM leverage is also high when compared to the competition, as smaller account holders can use up to 1:888 leverage for Forex currency pairs. The ECN/STP accounts offer a slightly more manageable leverage of 1:500, but an increase in the account equity sees the leverage reduced to a maximum of 1:100. The broker minimizes the leverage to 1:100 when the account equity reaches $100,000, while higher account balances also face stricter margin requirements due to liquidity and volume constraints.
XM Accounts, Deposits, & Withdrawals
There are just three different XM accounts, with the choice of accounts made simple for every trader. The Micro account is the least expensive of all accounts offered by XM, which has an XM minimum deposit of just $5, with contract sizes starting from just 1 lot equivalent of 1000 units. The Micro account is the most suitable account for smaller retail traders, as it provides an outstanding opportunity to invest in the markets with a small capital outflow.
The Standard account uses a hybrid of the dealing desk and direct market access account protocols, but the initial deposit is just $5. The contract sizes start from a standard lot of 100,000 units, which requires traders to start trading with a higher trading capital to account for the minimum margin requirements. The XM Zero account is the best account option if you want access to the liquidity providers through a non-dealing desk protocol, especially since the Zero account is relatively inexpensive with a minimum deposit requirement of just $100.
All accounts allow ample hedging and scalping opportunities, with traders having full control over their trading strategies. Both deposits and withdrawals are made possible through the different payment options that include credit/debit cards, e-wallets, and bank transfer, with all deposits and withdrawals being processed instantly. Withdrawals may take a few hours to be processed, but XM is one of the very few Forex brokers that initiates a payment within minutes of receiving a withdrawal request.
XM Customer Support
XM backs up its amazing accounts and services with a 24X5 customer service channel for instant support. The live chat is more than sufficient for taking care of customer complaints or queries, but the broker also provides phone access, email support, and a web contact form for ensuring that the company has all the major customer service avenues covered.
For traders looking for a stable Forex trading account and minimal capital outflow, XM is indeed an outstanding choice.
What Is The Minimum Deposit For An ECN Account?
Traders can start trading with a minimum investment of just $5 for the Micro and Standard accounts, while the Zero account is available for an investment of $100.
Is XM A Safe Broker?
Yes, XM is a regulated company that follows industry-leading regulatory guidelines for offering a secure trading account.
Does XM Offer A Free Demo Account?
Yes, traders can trade with a demo account before moving to a live trading account.