XM – Broker Review and Trader Feedback

XM has its global headquarters in Cyprus. Due to the passage of the new regulations by the European Securities and Markets Authority (ESMA), XM has been forced to segment its market with the EU branch attending to clients in the European Union and the UK, while its branch in Belize handles its international clients. The Australian division of the company takes care of clients in the Oceania region. Such segmentation became necessary as a result of the varying regulatory environments all over the world, which makes it difficult to pool clients under one regulatory umbrella.

In the four jurisdictions that the XM brand 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 Financial Conduct Authority has assigned license number 705428 to the brand’s UK offering known as XM UK.
• 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/18.

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

High Leverage Alternative to EU Trading Conditions: Traders who were caught unawares by ESMA’s new leverage limits do not have to start looking for another broker who can provide them leverage beyond the 1:30 limits imposed for FX majors by ESMA. If you are in this category of traders who will not be able to muster more capital to keep up with the new requirements, there is a way out. If you have an existing account with XM, you will automatically be migrated to the international offering where leverage is still capped at 1:888.

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: You will also have the advantage of trading with a broker that is a member of various investor compensation schemes such as the FSCS in the UK, IFC in Cyprus and an equivalent scheme with the IFSC in Belize. These schemes provided insurance cover for traders who lose money due to broker malfeasance, bankruptcy or other broker-related losses on a trader’s account.

Negative Balance Protection for XM UK and XM Cyprus Users: Those who are eligible to trade on XM EU and XM Cyprus can 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.

XM offers traders several FX pairs as well as CFDs on stocks, indices, commodities and cryptocurrencies. 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.
• Cryptocurrencies: Cryptos were hot in 2017 and 2018, and they are now being traded on several broker platforms. XM is not left out, and the brand has listed on the company’s platforms, 5 of the most traded cryptocurrency pairs.
• 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.

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.

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

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.

XM offers a stratified trading account system where different account types, each with different features. The account types on XM are as follows:

• Micro Account
• Standard Account
• XM Zero Account.

The Micro Account is basically for beginners who have just a little capital. This account type is a good way to transit from a demo account to a live account. It can be operated in the following currencies: USD, EUR, GBP, CHF,‎ AUD, HUF, PLN. The minimum trade volume is 0.1 lots, and the minimum deposit is $5.

The Standard account comes with a minimum trade volume is 0.01 lots, with a $5 minimum deposit. The trader with a Standard account can hold up to 200 positions/pending orders.

The XM Zero account is so-named because it comes with spreads that are actually as low as 0 pips. The minimum trade volume is 0.01 lots, with a $100 minimum deposit. This account actually comes with commissions charged on trades. Accounts can only be maintained in US Dollars and Euros.

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.

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.

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.

Absolutely! With XM, you get to trade with a broker that is regulated in 4 jurisdictions and is a member of various investor compensation funds. 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.

If you cannot afford the new ESMA leverage requirements, XM will automatically migrate your account to the international office where you can trade with higher leverage. What is there not to love with XM?