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XM – Broker Review and Trader Feedback

4.1 / 5

XM is a multiple-regulated forex and CFD broker which was founded in 2009. The company is the official sponsor of star athlete Usain Bolt.

1. General Information About XM

XM Group is a group of regulated online brokers.

In the three jurisdictions that the XM group operates in, regulation is applied as follows:

  • The EU offering of the XM brand is known as XM Cyprus, and operates as a CIF under license number 120/10, issued by the Cyprus Securities and Exchange Commission (reference number: 120/10).
  • The Australian Securities and Investment Commission (ASIC) has licensed the brand to operate as XM Australia, with AFSL number 443670.
  • XM Global is located in Belize, and is the location where services to the international market are domiciled. Regulation is provided the International Financial Services Commission (IFSC) with license number 60/354/TS/19.

The operation of three divisions therefore permits full regulatory coverage of clients, without risking a breach of any security laws.

2. Advantages and Disadvantages

Leverage: Maximum Leverage is 30:1. Please note that leverage depends on the financial instrument traded and on the client’s country of residence.

Multiple Regulatory Oversight: Another advantage of using XM is that you will be trading with a broker that has multiple regulation. Regulation is all about investor protection. XM is regulated and protects clients using the latest data encryption protocols, thus protecting payment and user information on its website.

Investor Compensation Package: Clients registered under Trading Point of Financial Instruments Ltd adhere to the compensation fund which in the event of insolvency of the Broker, protects clients with additional security measures.

Negative Balance Protection for XM clients: XM clients enjoy negative balance protection.

US Clients Not Accepted: If you live in Canada, Israel, the United States or Iran, you are probably out of luck. XM does not provide services to citizens and residents of these countries.

3. Underlying Assets

XM offers traders several FX pairs as well as CFDs on stocks, indices and commodities. In all, there are seven (7) asset classes. The detailed asset listing on XM is presented below:

  • Stocks: There are 1,196 listed stock CFDs, lifted from various markets in Europe, Australia, UK and the US. Due to the extremely large number, it is impossible to list them all here. Examples are Apple, Westpac, Commonwealth Bank, Suncorp, Fortescue, Umicore, Orange Belgium, Microsoft, Google, etc.
  • Commodities: Eight commodities are listed on the XM platforms. These are cocoa, coffee, corn, cotton, soybean, high-grade copper, sugar and wheat.
  • Currencies: XM offers 57 currency pairs, ranging from major to minor and exotic currency pairs. A full list of currency pairs listed on XM is displayed under the trading conditions tables listed above.
  • Spot Metals: There are two listed spot metals: silver and gold.
    Energies: Energy assets on XM include Brent and US crude, heating oil and natural gas.

4. Trading Platform

Three platforms are available for XM’s traders:

  • MT4
  • MT5
  • XM Webtrader

The MT4 is the flagship retail trading platform which comes as a downloadable terminal as well as a generic mobile app. It features 30 indicators, various tools such as the line tool, Fibonacci tools and Gann fans/angles, as well as a terminal window which has a news bar, and multiple tabs that connect to the MT4 Marketplace.

The MT5 combines some modifications to MT4. The interface shortcuts have been changed to include a Help button as well as an increased number of time frames. There is also a Depth of Market tab, as well as an additional tab that features the Economic Calendar.

The XM Webtrader is the web-based platform which can be accessed via a URL. It allows the trader to login to a demo or a live account. The login is achieved with user details obtained on account opening and a password. The Webtrader is more or less a stripped down version of the desktop client, featuring the ability to use various tools and charts, but without the ability to use expert advisors.

There is also a MT4 Multi-terminal, which is used for management of multiple accounts. It features the ability to place bulk orders, which can be split according to the account size of each individual account under management.

5. Mobile Trading

The MT4 and MT5 platforms are available as generic mobile apps on the App Store and the Google Play store. There is a link to the respective stores on the XM page. The mobile apps also contain charts and various tools for technical analysis. However, the apps are generic and do not contain any specialized features that are separate from those used by other brokers. Mobile apps available are:

  • MT4 mobile for Android devices
  • MT4 mobile for iPhones, iPads

6. Demo Account

Traders get a free and unlimited demo account with a virtual balance of $100,000. Click on the “Open Demo Account” button on the home page, then complete the form with your personal details. Also, make necessary choices from the Trading Account Details as shown below.

Choose your account password, then submit the form. You will then be sent the download link for the MT4/MT5 by email.

7. Account Types

XM Group offers its clients 4 types of account:

  • ZERO
  • ULTRA LOW with low spreads.

The MICRO account allows you to operate with micro lots, lower level of risk and it has minimum initial deposit of $5.

The STANDARD account allows you to operate with standard lots and it has minimum initial deposit of $5.

The XM ZERO account allows you to operate with standard lots, lower spreads starting at 0 pips and it has minimum initial deposit of $100. XM ZERO account has a $3.5 commission per $100,000 traded.

Finally, the XM ULTRA LOW account allows you to trade with either micro or standard lots, lower spreads starting from 0.6 pips and it has minimum initial deposit of $50.

*XM Ultra Low account is not applicable to all entities of the Group. Account availability depends on the client’s country of residency.

8. Opening an Account

Opening an account is a simple process. It is done using an online form. The first step is to go to the account opening page, which shows the option of opening a demo account or a live account. This time, you click the 2nd option.

You then proceed to fill the form in a 2-step process. After entering your personal details ad choosing your account platform preference (MT4 or MT5), you then fill a form indicating the source of your funds and your level of experience.
On completion of this process, you will be issued with a username and password, as well as a link to your members’ area and the downloadable MT4/MT5.

9. Funds Withdrawal

You must first login to your members’ area to operate the fund withdrawal system. Minimum withdrawal amount is $5 for the Micro and Standard accounts, and $100 for the XM Zero account.

Methods for withdrawal include:

  • Credit/debit cards (MasterCard and VISA)
  • E-wallet methods e.g. Skrill
  • Bank wires

There are no deposit/withdrawal fees, except for withdrawals by bank wire that are less than $200.

10. Trader Training

Trader training comes by using the learning resources on the XM website. What are these resources?
Market research: Understand the news and fundamentals behind the news using the market research tools.

News: Get earnings reports and other market news from the terminal window of the MT4/MT5 (live and real-time), or on the XM website (slight delay).

Technical analysis: this is provided by the Head of Investment Research and in-house currency analysts. Learn to use the charts to predict price movements. (requires some prior training to fully understand this).

Analysis videos: You get to see in video format, an inside look at the currency markets from the in-house currency analysts and research team.

11. Should I Trade With XM?

Absolutely! With XM, you get to trade with a broker that is regulated in 3 jurisdictions. The various account types ensure that there is an account for everyone. Multiple means of deposits/withdrawals mean that no matter where you are in the world, you have a way to deposit and withdraw funds without stress. What is there not to love with XM?

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