The world of online trading continues to grow in popularity as more people discover the opportunities it presents. One platform garnering attention is XM, an online forex and CFD broker. In this XM forex broker review, we’ll take an in-depth look at this broker to see if it’s right for you.
Overview of XM
First, let’s get an overview of XM.
What is XM?
XM is an online broker founded in 2009 that allows users to trade on the foreign exchange (forex) market and contracts for difference (CFDs). Headquartered in Limassol, Cyprus, XM has grown to serve clients globally.
Users of XM have access to over 1000 trading instruments across forex, indices, commodities, equity CFDs and cryptocurrencies. For forex, you’ll find all the major, minor and exotic currency pairs.
The broker also provides access to many leading global indices like the S&P 500, FTSE 100, Nikkei 225 and more. Commodities offered include energies like crude oil and natural gas, as well as precious metals like gold and silver.
For trading platforms, XM offers two popular choices: MetaTrader 4 and MetaTrader 5. These platforms allow advanced charting and analysis, automated trading options, mobile app access and more.
So in summary, XM provides access to an extensive range of trading markets through powerful and flexible trading platforms.
XM Account Offerings
XM aims to cater to traders of all experience levels and preferences through its account offerings. Let’s look at what’s available.
There are three main XM account types:
- Micro Account – Best for beginner traders given its low minimum deposit of just $5. Spreads start from 1.7 pips.
- Standard Account – A good middle-ground account with a minimum deposit of $5. Spreads from 1.7 pips—more flexibility with higher trade sizes.
- Zero Account – Recommended for advanced and high-volume traders. Minimum deposit of $100. Raw spread model with spreads from 0 pips, plus commission charge per trade.
Swap-free “Islamic” accounts are available across all main account types for traders who, for religious reasons, cannot pay or receive swaps and interest on overnight positions.
Importantly, XM also provides a no-cost demo account. This allows you to trial their platforms and get familiar with markets before putting real money on the line. No deposit is needed to open a demo.
So in summary, XM has account types suitable for all trader experience levels, as well as swap-free Islamic accounts and demo accounts.
Now let’s explore XM’s specific trading conditions across areas like leverage, spreads, commissions and more.
Leverage allows you to put up just a small deposit (margin) to open larger market positions than your capital would normally allow. This increases potential profits, but also risks.
XM offers leverage up to 1:888 on forex and 1:200 on other markets. Clients under European regulations get lower leverage caps in line with ESMA rules.
Spreads and Commissions
Spreads on XM’s Micro and Standard accounts start from 1.7 pips on forex and 3 pips on commodities and indices. There are no commissions on these accounts beyond the spread.
The Zero account offers raw spreads from 0 pips but charges $3.50 per lot traded as commission. So you save on spreads but pay commissions instead.
Guaranteed Stop Loss Orders
XM allows you to place guaranteed stop-loss orders on your trades upon request. This guarantees your position will close at your preset stop level, but there is a wider spread to compensate. Useful for risk management.
Minimum Trade Size
The minimum trade size, or lot size, across most markets is 0.01 lots (1,000 units of base currency). So this allows flexibility in position sizing. On equities, a minimum of 0.1 lots.
So in summary, XM provides competitive trading conditions overall, with flexibility across leverage, spreads, commissions and position sizing.
Research and Analysis Features
To help inform your trading, XM offers an extensive range of research and analysis features. Let’s explore the key offerings.
Through a partnership with Trading Central, XM provides free access to actionable trade ideas, forecasts and risk management tools. These can give you valuable trading signals and directions across markets.
Technical Analysis Tools
Advanced technical analysis on the MT4 and MT5 platforms provides insight into short and long-term trends. Access 100+ indicators and analytical objects like Pitchfork, Gann, Elliott Waves and more to identify patterns and opportunities.
Stay on top of potential market-moving events through the embedded economic calendar. Get times and forecasts for things like employment data, interest rate decisions and GDP releases.
This shows the percentage of client trades currently long/short on particular instruments. Gives perspective on overall trader bias so you can find trading opportunities against the herd.
So in summary, XM provides its clients with an excellent range of tools and features to help inform trading analysis and decisions.
XM’s Automated Trading Options
Beyond standard trading, XM also provides clients with access to automated trading solutions to enhance performance or make the process easier.
Expert advisors (EAs) are trading algorithms that automate technical analysis and execution of orders. You can obtain EAs through the MT4 and MT5 platforms to systemize your trading.
Copy trading allows you to automatically copy positions opened and managed by chosen strategy providers in real-time. Takes the hassle out of analysing markets yourself.
Trading continuously with EAs or copy trading is enabled through XM’s free and paid virtual private server (VPS) hosting options. This keeps your chosen automated solution running 24/7.
So if you wish to put your XM trading on autopilot, you have various automated trading options at your disposal. This allows hands-free trading tailored to your preferences.
XM Deposits and Withdrawals
Moving money in and out with XM is straightforward, with numerous deposit and withdrawal options available globally.
Convenient XM deposit options include:
- Debit/Credit Cards (Visa, Mastercard)
- Bank Transfer
- Online Payment Systems (Skrill, Neteller, UnionPay)
Multiple currencies accepted. Most options are fee-free, while card fees are waived with larger deposits.
Withdrawals can be made through similar methods:
- Debit/Credit Cards
- Bank Transfer
- Online Payment Systems
The minimum withdrawal amount is $5. No fees for electronic withdrawals. Bank wires above $200 get free processing.
Deposit processing is generally instantaneous, while XM withdrawals take up to 5 business days depending on the method chosen. This is an industry-standard time frame.
So XM provides smooth access and transfer of your trading funds through expected methods. Processing meets industry standards.
XM Trust and Regulation
With online trading, knowing your broker is trustworthy and regulated is key for client fund safety and peace of mind. How is XM positioned in this regard?
XM has licenses and regulations from major authorities like ASIC in Australia, CySEC in Cyprus and more. This includes adherence to standards around:
- Segregated client fund accounts
- Frequent auditing and reporting
- Capital adequacy requirements
- Dispute resolution processes
So XM ticks the boxes on formal regulation.
Safety of Funds
XM further states it maintains negative balance protection so client losses will never exceed deposits. It also has over $17 million in insurance coverage for occasions like broker insolvency.
Over 50 international awards recognize XM’s trading excellence and service standards. These industry honours reflect XM’s efforts in maintaining high client satisfaction.
So XM presents the markers of a well-regulated and professionally run broker focused on security, integrity and performance. You can engage their services with peace of mind as a result.
XM Customer Support
Especially for newer traders, having access to good customer support can make a big difference in getting started smoothly. How does XM’s support stack up?
Multiple Contact Methods
You can get in touch with XM’s support team through:
- 24/5 multilingual phone support
- Instant chat and email services
- Dedicated account manager
So options are available to choose your preferred contact method.
According to client sentiment, XM’s support team are typically able to respond within minutes through methods like chat, email and phone. So you get queries dealt with promptly.
XM support staff have strong levels of technical knowledge around the broker’s trading platforms, markets, account setup and more. So you can have confidence queries will be resolved reliably.
In summary, XM provides industry-leading standards of customer support through various responsive contact options and knowledgeable assistance.
Final Thoughts – Is XM a Good Choice?
Let’s wrap up with some final thoughts on XM as an online trading broker.
In many areas, XM presents well as an online trading broker:
- Extensive market and instrument scope
- Advanced yet user-friendly trading platforms
- Account options for all trader levels
- Strong trading conditions and resources
- Range of automated trading solutions
- Smooth banking processes
- Clear regulatory standing providing fund security
- Multilingual customer support
Aspects to be aware of include:
- No options market CFDs offered
- Lower leverage under European regulations
- Virtual currency options are currently limited
In conclusion, XM is an excellent choice for an online broker based on its account flexibility, trading solutions and conditions, safety and regulation, and customer support.
For newer traders, their educational resources also provide great help. More advanced traders have all the analysis tools and order types needed to implement winning strategies.
Open your XM account easily online in minutes to gain secure access to thousands of markets for your trading. You can rest assured your funds are maintained according to strict regulatory standards as well. Reach out to their market experts to resolve any questions.