XM Review: A Comprehensive Look at One of the Best Forex Brokers
XM is a globally recognized forex and CFD broker, known for its reliability, transparency, and commitment to customer satisfaction. Since its inception in 2009, XM has grown significantly, now serving over 5 million clients in more than 190 countries. This detailed review will explore the features, trading platforms, account types, fees, and other key aspects of XM, helping you decide if this broker is the right choice for your trading needs.
Regulation and Security
XM operates under the umbrella of Trading Point Group, which is regulated by multiple leading financial authorities, ensuring the highest level of security for its clients:
- Cyprus Securities and Exchange Commission (CySEC)
XM is licensed by CySEC under registration number 120/10. CySEC is a highly regarded regulator in the EU, and this regulation ensures that XM complies with the MiFID II framework, offering high standards of investor protection.
- Australian Securities and Investments Commission (ASIC)
XM operates under the Australian regulatory body ASIC, with license number 443670. ASIC is known for its stringent rules, ensuring that XM adheres to strict transparency and fair trading practices.
- Financial Services Commission (FSC) of Belize
XM is regulated by the FSC under license number 000261/158. This offshore regulation allows XM to provide more flexible trading conditions for clients from various regions.
- Dubai Financial Services Authority (DFSA)
XM is also regulated by the DFSA in Dubai, adding another layer of security for clients in the Middle East and surrounding regions.
Client Fund Security
XM takes extra measures to safeguard client funds. It offers segregated accounts, meaning clients' funds are held separately from the broker’s operational funds, ensuring that your money is secure even in the unlikely event of insolvency. Additionally, XM offers negative balance protection, meaning you will never lose more than your initial deposit.
Account Types
XM caters to traders of all levels by offering multiple account types, each with unique features designed to meet specific trading needs. Here's a breakdown of the available accounts:
1. Micro Account
- Minimum deposit: $5
- Leverage: Up to 1:1000 (varies by region)
- Lot size: 1 micro lot (1,000 units)
- Spreads: Starting from 1 pip
- Commission: None
The Micro Account is ideal for beginners or traders who want to trade smaller lot sizes with minimal risk. It offers standard market execution and no hidden fees, making it a great choice for learning and practicing trading strategies.
2. Standard Account
- Minimum deposit: $5
- Leverage: Up to 1:1000
- Lot size: 1 standard lot (100,000 units)
- Spreads: Starting from 1 pip
- Commission: None
The Standard Account is best suited for more experienced traders who want to trade with larger volumes. The account still maintains no commissions and offers tight spreads.
3. XM Ultra Low Account
- Minimum deposit: $50
- Leverage: Up to 1:1000
- Spreads: Starting from 0.6 pips
- Commission: None
This account is designed for traders seeking ultra-low spreads without paying additional commissions. It offers competitive pricing, which can be especially advantageous for day traders and scalpers.
4. XM Swap-Free Account (Islamic Account)
- Minimum deposit: $5
- Leverage: Up to 1:1000
- Spreads: From 1 pip
- Commission: None
This account is tailored for clients who follow Islamic finance principles and cannot pay or receive interest due to religious beliefs. XM’s swap-free account provides all the same features as other accounts, but without swap fees on overnight positions.
5. XM Shares Account
- Minimum deposit: $10,000
- Leverage: 1:1
- Assets: Shares (no forex or CFDs)
- Commission: Yes
The XM Shares Account is designed for traders who want to invest in real stocks. It offers access to over 100 shares from major companies listed on the NYSE and NASDAQ, with direct ownership instead of CFDs.
Trading Platforms
XM provides access to two of the most popular and widely used trading platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5), catering to both beginners and advanced traders.
MetaTrader 4 (MT4)
MT4 is renowned for its simplicity and reliability. XM's MT4 platform offers a user-friendly interface along with:
- Over 30 technical indicators
- Multiple charting tools
- Automated trading using Expert Advisors (EAs)
- One-click trading
- Hedging and scalping allowed
MetaTrader 5 (MT5)
MT5 builds upon MT4 with additional features, including:
- More timeframes (21 vs. 9 on MT4)
- Deeper market analysis
- More technical indicators
- Trading in multiple asset classes (forex, stocks, CFDs, commodities, indices)
XM also provides WebTrader, a web-based version of MetaTrader, which allows traders to access their accounts from any browser without downloading any software.
XM Mobile App
XM’s mobile trading platforms are available for both iOS and Android devices. These apps provide a seamless trading experience on the go, with access to real-time charts, market news, and the ability to place trades directly from your mobile device.
Tradable Assets
XM offers an impressive range of markets, ensuring that traders can diversify their portfolios across different asset classes. The available instruments include:
- Forex: Over 55 currency pairs, including majors, minors, and exotics.
- Commodities: Precious metals like gold and silver, and energy products like oil and gas.
- Indices: CFDs on 14 of the world’s most popular indices, including the S&P 500, FTSE 100, and Nikkei 225.
- Stocks: Over 1,000 shares from major international companies, tradable via CFDs or directly through the XM Shares Account.
- Cryptocurrencies: XM provides access to major cryptocurrencies, including Bitcoin, Ethereum, and Ripple, via CFDs.
- Metals and Energies: XM offers CFDs on popular metals like gold and silver, as well as energy CFDs like oil.
The wide range of asset classes allows traders to implement different strategies and take advantage of global market opportunities.
Spreads and Fees
XM offers competitive spreads across its account types. Here's a breakdown:
- Micro and Standard Accounts: Spreads start from 1 pip on major forex pairs like EUR/USD. These accounts are commission-free, making them cost-effective for most traders.
- Ultra Low Account: Spreads start as low as 0.6 pips with no additional commissions, making it highly competitive for day traders and scalpers who require tight spreads.
- Shares Account: The XM Shares Account charges commissions depending on the traded shares and the market, but spreads are typically tighter due to the direct nature of trading.
One of the key advantages of XM is its no hidden fees policy. There are no fees for deposits or withdrawals, and the broker covers all transaction costs. Additionally, XM’s negative balance protection ensures that traders cannot lose more than their deposit, adding another layer of financial safety.
Deposits and Withdrawals
XM makes it easy for clients to fund and withdraw from their accounts using a variety of payment methods, including:
- Credit/Debit Cards (Visa, MasterCard)
- Bank Transfers
- E-Wallets (Skrill, Neteller, WebMoney, etc.)
- Cryptocurrencies
Deposits and withdrawals are fee-free, and most transactions are processed within 24 hours. XM is known for its fast withdrawal processing times, and many payment methods offer instant deposits.
Educational Resources
XM provides a robust set of educational resources, making it an ideal choice for beginners looking to learn the ropes of trading. Educational tools include:
- Webinars: Available in over 20 languages, XM webinars cover a wide range of trading topics, from basic market knowledge to advanced strategies.
- Tutorials and Courses: XM offers free video tutorials and trading courses on topics such as technical analysis, risk management, and platform tutorials.
- Live Seminars: XM organizes live seminars in various regions, giving traders the opportunity to learn directly from experts and ask questions in person.
- Market Research: XM offers daily market updates and analysis through Trading Central, helping traders stay informed about the latest market trends and economic events.
The XM Learning Center is a valuable resource for traders of all skill levels, ensuring that clients can continually improve their trading knowledge.
Customer Support
XM is renowned for its exceptional customer service. Their support team is available 24/5 in over 30 languages, ensuring traders from around the world can access help when needed. You can contact the support team via:
Additionally, XM has a comprehensive FAQ section on its website, where you can find answers to common questions about account setup, trading, and platform usage.
Pros and Cons of XM
Pros:
- Highly Regulated: XM is regulated by CySEC, ASIC, FSC, and DFSA, ensuring a high level of trust and security.
- Low Minimum Deposit: Only $5 required to start trading with the Micro and Standard accounts.
- Multiple Account Types: Suitable for both beginners and advanced traders, with competitive spreads and commission-free accounts.
- Wide Range of Instruments: Over 1,000 financial instruments, including forex, commodities, indices, stocks, and cryptocurrencies.
- Free Deposits/Withdrawals: No fees for funding your account or withdrawing profits.
- Negative Balance Protection: Ensures you cannot lose more than your deposit.
- Strong Educational Resources: Comprehensive learning materials, including webinars, tutorials, and seminars.
- 24/5 Multilingual Support: Excellent customer service available in multiple languages.
Cons:
- Limited Cryptocurrencies: Compared to some brokers, XM offers fewer cryptocurrency CFDs.
- Shares Account Minimum: The $10,000 minimum deposit for the Shares Account may be prohibitive for some traders.
- No 24/7 Support: Customer support is available 24/5, which may be a drawback for traders needing help on weekends.
Final Thoughts
XM is a highly reputable broker that offers excellent trading conditions, top-tier regulation, and a range of account types tailored to traders of all experience levels. Whether you're a beginner looking for educational resources and a user-friendly platform, or a seasoned professional seeking competitive spreads and fast execution, XM has something to offer. Its strong regulatory backing, negative balance protection, and no hidden fees policy further strengthen its appeal.
With its low minimum deposit, comprehensive educational tools, and wide range of tradable assets, XM is an excellent choice for both novice and experienced traders. However, traders interested in a broader selection of cryptocurrencies or stocks should consider the limitations of XM's asset offerings. Overall, XM stands out as a reliable and versatile broker with a global reputation for excellence.
