XM is a popular online broker that offers CFDs on currencies, stocks, indices and commodities. The broker was launched in 2009 and XM is a trading name of Trading Point Holdings Ltd., which has various branches/subsidiaries, all regulated as follows:
• XM GLOBAL LIMITED – regulated by the International Financial Services Commission of Belize under l licence number 000261/106.
• Trading Point of Financial Instruments Pty Ltd – licenced by the Australian Securities and Investments Commission (ASIC) – ABN 32 164 367 113
Editor’s Note: Why XM Doesn’t Suck In 50 Words
Apart from the solid regulation outlined above, XM also offers Negative Balance Protection, which means that your account can never go negative. In other words, you will not end up owing money to your broker. This is one of those features that you don’t know you need until you really do. Usually, people usually think they cannot lose more than they deposited but let me tell you, in special cases, this can happen if your broker doesn’t offer Negative Balance Protection.
Why XM Sucks In 50 Words
Unfortunately, this broker doesn’t offer cryptocurrency CFDs. This may not be such a big deterrent for some people but considering that most brokers offer CFD trading on cryptocurrencies, it’s obvious there’s a big demand for this asset type, which probably means that XM should add it soon.
Is XM A Scam?
With regulation/supervision from CySEC, FCA, ASIC, IFSC, and more than a decade in business, XM doesn’t raise any red flags and looks like a trustworthy broker. We did manage to locate a few complaints and misunderstandings between clients and XM representatives, but no broker is perfect and clients sometimes fail to understand or follow the terms and conditions but that doesn’t make XM a scam. Either way, you should always pay attention when your money is involved.
Should I Open An Account With XM?
This broker has gained a large client base, partly due to their regulation but also due to the wide selection of trading platforms: they offer 15 versions of Meta Trader 4 and Meta Trader 5. These include mobile versions for Android and iOS, browser versions (MT4 and MT5 Webtrader), as well as Meta Trader 4 MultiTerminal. Clients who only want to trade Forex can open a Meta Trader 4 account, while clients who also want to access CFD and FX trading will have to open a Meta Trader 5 account.
XM offers 4 account types: Micro, Standard, XM Ultra Low, and a Shares Account. The biggest advantage is that the minimum deposit is only 5 USD for Micro and Standard and 50 USD for Ultra Low. The name of the latter account comes from the lower spreads (as low as 0.6 pips, while other accounts have 1 pip spreads). The Shares account will require a minimum deposit of 10,000 USD and allows shares trading without leverage (it is not a typical CFD account).
Education on XM’s website consists of webinars, tutorials, seminars, educational videos but also market updates, technical summaries, and trade ideas. All in all, their education section is worth a closer look if you are new to trading but advanced traders will probably get some value out of it as well.
Overall XM is a solid choice, with low deposits, low spreads, and a generally good reputation, backed by 4 regulatory authorities. If you are on the fence about starting to trade online, this broker might be a good choice and one that doesn’t require a big monetary commitment.
Trading Point Of Financial Instruments Ltd lists the address: 12, Richard & Verengaria Str, Araouzos Castle Court – 3rd Floor, CY-3042 Limassol / P.O.Box 50626, CY-3608 Limassol, Cyprus.
XM GLOBAL LIMITED lists the address No. 5 Cork Street, Belize City, Belize, C.A.
Trading Point of Financial Instruments Pty Ltd has a registered office at SYDNEY NSW 2000. XM can be contacted at phone +501 223-6696 and email [email protected]
We managed to find a few complaints coming from XM clients, especially in the ForexPeaceArmy forums, however, the overall stars rating was above average and all complaints were answered promptly by an XM representative. The general vibe surrounding this brokerage is positive but there are a few unhappy clients, which is relatively normal for all brokerages.
Clients can withdraw via the same methods used for deposits: cards, bank transfers, WebMoney, Skrill, Neteller, Sticpay (location dependant), and the minimum withdrawal is only 5 USD, just like deposits. Depending on the region, some e-wallets may not be available or different options may become available. The processing time is usually 24 hours, which is very fast; e-wallet withdrawals will usually reach you during the same day, but wires will take 2 to 5 business days, which is normal.
Negative Balance Protection is by far the biggest extra but other than that we can mention their Custom Trading Tools which include Ribbon Indicator, River Indicator, Analyser Indicator, and more. The first two are trend tools used to identify strengths and weaknesses as well as the prevailing trend, while the latter allows quick analysis of trading opportunities on multiple assets.
XM Overall Ratings
User Friendliness 15/20
The website is translated into 23 languages and is well structured, with easy to find information. The platforms are top-notch (Meta Trader 4 and 5 in multiple versions) but can be a bit difficult to use by first time traders. Demo accounts and mobile platforms are also available. U.S. traders are not accepted.
Range Of Markets, Spreads And Leverage 15/20
The overall asset basked is composed of more than a thousand instruments, including 55 currency pairs, 30 indices, 8 commodities, and a few hundred CFDs on stocks. Unfortunately at the time of writing, we couldn’t locate any cryptocurrencies. Leverage goes as high as 888:1 for non-EU customers and only 30:1 for EU clients (due to ESMA regulations). Spreads are as low as 0.6 pips for EUR/USD for certain account types, which is very low. Other account types offer 1 pip spreads, which is still very good.
Fees And Support 16/20
XM doesn’t charge fees for card and e-wallet deposits and withdrawals. Wire transfers below 200 USD will incur a fee but anything above 200 USD is fee-free. Live chat reps answered very fast and gave straightforward answers to our questions.
Deposits And Withdrawals 17/20
The lowest possible deposit is just 5 USD and the same is true for withdrawals. The methods are the usual: cards, e-wallets (WebMoney, Skrill, Neteller, etc.), and wire transfers. The processing times are fast (24 business hours). E-wallet payments will reach the client the same day (under normal circumstances), while wires will take longer: between 2 to 5 business days.
XM Extras 16/20
Negative Balance Protection (account balance cannot go below zero) and a set of Custom Trading Tools among which we can mention Ribbon Indicator, River Indicator, and Analyser Indicator (much more available on the website).
XM Ratings (79) + Regulated (+3) = 82/100