Introduction To XM Trading

In a world where Forex trading continues to reach new heights, Forex brokers are revolutionising the way traders invest in the markets. XM is one of the more popular companies that have quickly earned a positive reputation in the industry, aided in part by the excellent products, unique concepts, and reliable trading platforms. XM is committed to improving its services portfolio to meet the discerning demands of the modern day investors, which is why XM continues to be at the forefront of the global Forex markets.

Profiting from the Forex markets does not require a tremendous amount of resources or investments. XM understands this aspect of Forex trading and aims to simplify its brokerage products to ensure that traders don’t have to spend a huge amount of capital towards maintaining a Forex account. So, how does XM continue to provide high-quality brokerage products, without succumbing to scam practices? We evaluate the broker’s services through a professional XM Forex review that looks into all the nascent features of Forex trading with XM.

 

XM Regulatory Information

XM’s Forex services were introduced to the markets in 2009, and there were a few changes in the broker’s composition during the early years of its incorporation. Previously, the broker was known as XEMarkets but has now gone ahead to use the more popular and unique XM.com moniker. XM is a result of numerous mergers and acquisitions, which have resulted in the broker being able to expand its reach to all parts of the world. XM is one of the very first financial brokerages that have managed to provide its services to traders in more than 196 countries, with its clients-base crossing well over a million traders within seven years of its launch. Due to its massive global presence, XM routinely organises world tours and has until recently visited more than 120 countries to interact with its clients on a personal level.

The XM Group is a regulated financial company that adheres to strong regulatory values and several investor protection policies to make sure that its clients can enjoy the best services while dealing with the company.

 

XM is currently regulated by the Financial Conduct Authority (FCA of the UK), the Cyprus Securities & Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). XM is supervised by the regulatory framework issued by the European Markets in Financial Instruments Derivatives (MiFID) and is European Economic Area (EEA) authorised to offer its services to traders from all member nations of the European Union.

 

Additionally, XM has also set up an office in Belize and has obtained a license from the International Financial Services Commission (IFSC) to circumvent several laws proposed by EU and other regulatory organisations regarding international traders. New EU laws prohibit European Forex brokers and financial firms from catering to a global audience, which is why XM has proceeded with setting up branch offices in different parts of the world to continue offering its services to existing clients. Unfortunately, XM is not regulated in the US and is prohibited from providing its services to US traders.

Traders from the EU and Australia are protected from financial scams through a hands-on approach from the regulators responsible for maintaining the integrity of the financial markets. The CySEC, the FCA, and the ASIC have numerous investor-friendly laws that create a safe regulatory environment for investors. XM, under its EU guise, is required to hold at least €1 million in operating capital and keep such funds away from clients’ investments. Segregation is the key for both EU and Australian companies, which requires XM to hold traders’ capital in segregated account.

Traders are also protected from broker insolvency through investor compensation programs, which assures of compensation of up to £50,000 from the Financial Services Compensation Scheme (FSCS of the UK) and up to €20,000 from the Investor Compensation Fund (ICF of Cyprus). Therefore, XM is a reliable and genuine Forex broker that follows the best regulatory practices.

 

Choice Of XM Assets & Leverage Options

XM offers more than 300 different financial products from six different asset classes. Traders can invest in stocks, commodities, indices, futures, energies, and the traditional Forex currency pairs, which certainly provide a great incentive for traders to diversify their investment portfolio. We have compiled a list of all the assets available for trading with an XM FX trading account:

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

Stocks: 3iGroup, 3MCo, Abbott, AbercFitch, Activision, Adidas, Adobe, AdvMicroDev, Aes, Aetna, Aflac, AIG, Airbus, AirFrance, Akamai, Alcoa, Alibaba, AllianzAG, Allstate, Altaba, Altria, Amazon, AMC, AMEX, Apple, AT&T, Aviva, AXA, BAESystems, Barclays, Barratt, BASFAG, BayerAG, BBVA, Betfair, Blackberry, Blackrock, BMW, BNPParibas, Boeing, BofAmerica, BofNewYork, BP, BristolMyer, BTGroup, Burberry, Carrefour, Caterpillar, Chevron, Chubb, Cisco, Citigroup, Coca-Cola, Comcast, Commerzbank, ConocoPhil, Costco, Marks&Spen, Mastercard, McDonalds, Merck&Co, MGMResorts, Microsoft, Moodys, MorganStanl, Motorola, Nestle, Netflix, Next, Nike, Novartis, Nvidia, Oracle, Pepsico, PetroleoBra, Peugeot, Pfizer, PhilipMorri, Procter&Gam, Prudential, Qualcomm, RalphLauren, RBS, Renault, Repsol, Rolls-Royce, Sainsbury, Sanofi, Santander, SAP, SHELL, Siemens, SKY, SocieteGen, Sprint, Starbucks, StdCharter, Symantec, Tesco, Tesla, ThomasCook, Tiffany&Co, TimeWarner, Total, UBS, Unilever, UnitedTech, UPS, Verizon, Visa, Vivendi, Vodafone, Volkswagen, WalMart, WellsFargo, WesternUni, WholeFoods, Xerox, YumBrands

Commodities: COCOA, COFFE, CORN, COTTO, HGCOP, SBEAN, SUGAR, WHEAT, GOLD, SILVER, PALADIUM, PLATINUM, BRENT, GSOIL, NGAS, OIL, OILMn

Indices: AUS200Cash, CHI50Cash, EU50Cash, FRA40Cash, GER30Cash, HK50Cash, IT40Cash, JP225Cash, NETH25Cash, POL20Cash, SINGCash, SPAIN35Cash, SWI20Cash, UK100Cash, US100Cash, US30Cash, US500Cash, USDX

The maximum XM leverage for all account holders is limited to 1:888, which is still a substantial amount of margin in the Forex markets. Some brokers may offer higher leverages, and it is not uncommon for brokers to advertise higher leverages of 1:1000 or even 1:2000, but 1:888 is still a significant amount of leverage to invest in the financial markets.

The leverage may be reduced for stocks, commodities, and indices, as it is close to impossible for the broker to offer the liquidity for larger positions. The broker’s Direct Market Access account also reduces the leverage to 1:500, while an increase in account equity sees the broker gradually reducing the leverage offered to traders. Larger accounts only get access to a maximum leverage of 1:100, which may be reduced according to the equity. Regardless, the XM leverage is indeed higher than the average leverage in the market, where brokers may typically limit the leverage to 1:100 under extreme conditions.

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XM Account Packages, Cost, & Trading Features

XM traders have the option of choosing an account package that suits their trading preferences. There are three XM account categories, the Micro, the Standard, and the Zero account. The Micro and Standard accounts require a minimum deposit of $5, which is one of the lowest minimum deposit requirements in the market. The Micro account is a market maker account that allows traders to invest in the markets through micro lots. Micro lot trading enables traders to reduce their capital outflow and reduce risk, which in turn allows them to trade with minimal amounts. The Standard account, on the contrary, offers trading services through Standard lots and is more representative of the actual trading conditions stipulated by regular Forex brokerages.

 

Both Micro and Standard accounts are broadly similar to each other, with the exception of contract sizes. Both accounts have XM spreads starting from 1 pip, and the broker truly offers some of the most competitive spreads in the markets. Major currency pairs only charge around 1 to 3 pips spreads, which is excellent for a market maker account. However, if you are not a fan of market maker accounts, the XM Zero account should be able to offer you ECN/STP conditions for a slightly higher deposit of $100. The spreads are lowered to 0 pip, due to the liquidity of the DMA accounts, but there is a commission per trade that is dependent on the underlying instrument.

 

The Zero account has a few minor changes from the Standard and Micro accounts, as the leverage is lowered to a maximum of 1:500. The Zero account may also induce slippages, as the trader receives quotes directly from the market. Therefore, there is a chance for partial fill of orders, which results from the direct liquidity in the markets. On the positive side, Zero account has no conflict of interest between XM and the trader, and traders also needn’t worry about the instance of any requotes. All accounts offer access to multi-asset trading platforms, including the MT4 and the MT5.

Accounts can be funded through Neteller, Skrill, Bank Wire, Fasapay, Visa, and MasterCard. All deposits are processed in an instant, while withdrawals are processed within 24 hours. XM clients can expect their accounts to be credited much earlier, even though the broker may mention a 48 hours period for funds to reach traders’ accounts. Wire transfers may take longer, especially for international transactions.

 

XM Trading Platforms

It is possible for traders to be impressed with XM’s claim of providing 16 different trading platforms, but in reality, these are just different versions of the MT4 and the MT5 trading platforms. XM offers both the MetaTrader4 and the MetaTrader5 interfaces in its varying guises, and are suitable for both desktop and mobile trading. The MT4 and MT5 are both installable platforms that provide an excellent collection of trading features and tools to invest in the financial markets. The MetaTrader platform is designed and developed by a third-party platform developer, known as MetaQuotes, which has developed the most popular and user-friendly trading platforms for the Forex markets.

The MT4 is the more popular version among the two, while the MT5 was recently developed to offer more advanced trading features. There is a mixed response in the market regarding the loss of features in the MT5 when compared to the MT4, which is why XM has proceeded to offer both platforms to its traders. However, if you are looking to access the full suite of tradable assets, you should access the MT5 terminal. Both the MT4 and the MT5 are also available as web-trading interfaces.

 

XM Mobile Apps

XM offers comprehensive support for smartphone and tablet users, as the MT4 and MT5 trading platforms are available for both iOS and Android devices. XM does not need to invest any resources into developing or maintaining these platforms, as the platform developer assumes all aspects of managing the development process. The XM apps for mobile operating systems may not be as elaborate as its desktop counterparts, but they can get the job done for mobile traders. XM mobile trading platforms do present an opportunity to use advanced charting features, use analysis tools, and trade through the mobile app without any loss of latency or performance.

 

XM Bonus

Despite XM’s regulatory status, the broker does provide attractive bonus schemes for its clients. Generally, Forex brokers don’t provide any promotional incentives, apart from loyalty programs or contests. In the case of XM FX accounts, the broker does indeed provide a number of trader benefits to keep traders loyal to the XM trading platform. X

 

M provides a 15% bonus on all deposits, which can be used as trading credits but cannot be withdrawn. The bonus is credited as soon as you make a deposit, and will be removed as soon as you make your first withdrawal.

 

Other free promotions include an XM loyalty program that allows traders to accumulate reward points and redeem them for trading credits or cash bonuses. There is also the availability of a free VPS service, which is available for traders upon request. The free VPS is only provided to accounts that transact a minimum trading volume every given month. As an added incentive, XM has also waived off all transaction fees for its accounts, which enables traders to enjoy 0% for all deposits, including wire transfers over $200.

 

XM Demo Trading

XM offers an unconditional demo account for its users, and it does enable traders to use a virtual trading account to learn the markets, try out different strategies, and use automated trading robots without any risk. Forex brokers usually provide free and unlimited demo accounts, but some brokers may stipulate a maximum time frame such as 14 days or a month. Regardless, XM does not mandate any such conditions, and you can use your XM demo account for as long as you desire.

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XM Customer Support

XM’s customer service department is one of the best in the industry that takes care of its clients’ requests in a professional manner. With a fast response time, XM representatives will get back to you with a resolution to your problem at the earliest instance. The live chat feature is the fastest way to contact the broker’s customer support team, while phone calls and emails also receive a prompt response. The XM customer service department is available 24 hours a day and five days a week.

 

XM Resources For Traders

XM offers a free trading signals service for all verified traders, which is directly provided to traders by an industry expert by the name of Avramis Despotis. These signals may be able to help traders in enhancing their trading performance, or can also act as confirmation signals for professional traders looking for an edge in trading. XM has also provided an excellent research and learning centre, which has incredibly useful tools, learning materials, news, analysis, and other resources to help traders with their trading ventures.

 

XM Verdict

Pros

  • Multiple regulatory licenses and outstanding safety of funds.
  • Large number of financial instruments, including FX, stocks, commodities, and indices.
  • Minimum deposit only $5.
  • Availability of ECN/STP account.
  • Top-notch customer service.
  • Low spreads and commission of trading.
  • Availability of bonus.
  • Choice of MT4 and MT5 trading platforms.

Cons

  • Does not accept traders from the US.
  • Bonus not as significant as other brokers.

 

FAQ

Does XM Offer An ECN/STP/DMA Account?

Yes, XM offers a direct market access known as the XM Zero account, which offers 0 pips spread at the expense of a commission per trade.

 

What Is The Minimum Investment For An XM Account?

The minimum investment for a Micro and Standard is $5, while the Zero account requires a higher $100 minimum deposit.

 

Is XM A Regulated Broker?

Yes, XM is a regulated broker with licenses from IFSC (Belize), the FCA (UK), the CySEC (Cyprus), and the ASIC (Australia). XM is not a scam company.

 

What Are The XM Mobile Trading Platforms?

XM offers mobile trading through MT4 and MT5 mobile apps. The broker also supports the web-trader versions of both the MT4 and the MT5.

 

Summary

XM is a top FX broker that is clearly one of the best choices that are currently available in the market. XM is suitable for all categories of traders, but it is only an added advantage that XM caters to smaller investors. Larger traders and institutional clients can also find the XM accounts to be an excellent choice for their Forex trading requirements.

 

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