XM
Pros and Cons
Pros
- Regulated by multiple authorities including CySEC and FSC
- Access to 1,400+ tradable instruments across various markets
- Supports popular trading platforms: MetaTrader 4 and 5
- Comprehensive educational resources including webinars and tutorials
- Competitive trading conditions with leverage up to 1:1000 and low spreads
Cons
- Not regulated by major authorities like FCA
- Limited access to spot trading for cryptocurrencies
- Wider spreads compared to some competitors
- High inactivity fee of $5 after 90 days
- Not available to traders in the US and several other countries
Basic Information
User Reviews
XM Overview
XM is a global online forex and CFD broker established in 2009 and headquartered in Cyprus. It operates under the regulatory oversight of several prestigious financial authorities, including the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC), ensuring a high level of compliance and security for its clients. XM has built a strong reputation in the forex trading community, delivering reliable services to its diverse client base around the world.
Is XM Safe? Regulation Analysis
Regulatory Information
| Regulatory Authority | Country/Region | Fund Protection Measures |
|---|---|---|
| Australian Securities and Investments Commission (ASIC) | Australia | Segregated Funds, Negative Balance Protection |
| Cyprus Securities and Exchange Commission (CySEC) | Cyprus | Segregated Funds, Investor Compensation Fund (up to €20,000) |
| Financial Services Commission (FSC) | Belize | Segregated Funds |
| Financial Services Authority (FSA) | Seychelles | Segregated Funds |
| Financial Services Commission (FSC) | Mauritius | Segregated Funds |
Is XM Regulated and How Are Client Funds Protected?
XM is a well-regulated broker, licensed by multiple recognized financial authorities including ASIC in Australia, CySEC in Cyprus, and others. This robust regulatory framework ensures that XM adheres to strict operational standards, enhancing investor confidence. Client funds are safeguarded through measures such as the segregation of client deposits in separate accounts, which protects these funds from the broker’s operational risks. Additionally, clients in the EEA benefit from the Investor Compensation Fund, providing further protection in the event of insolvency, with coverage of up to €20,000. XM also offers negative balance protection, ensuring that clients cannot lose more than their deposited funds, reinforcing the safety of their trading experience. Overall, XM operates under stringent regulations, making it a safe choice for traders seeking a reliable forex broker.
Trading Products and Services
What trading instruments does XM offer?
| Asset Category | Available Products | Total Count (if available) |
|---|---|---|
| Forex | EUR/USD, GBP/JPY, USD/JPY, AUD/CAD | 55 |
| Commodities | Gold, Silver, Crude Oil, Natural Gas | 8 |
| Indices | S&P 500, NASDAQ, FTSE 100, DAX | 34 |
| Stocks | Apple, Amazon, Tesla, Facebook | 1,313 |
| Cryptocurrencies | BTC/USD, ETH/USD, XRP/USD, LTC/USD | 58 |
XM offers a diverse range of trading instruments across various asset categories, including Forex, Commodities, Indices, Stocks, and Cryptocurrencies. With over 1,400 tradable products, traders of all experience levels—from beginners to professionals—can find suitable options that match their strategies and risk profiles. The availability of multiple asset categories enables traders to create diversified portfolios, allowing them to adapt to changing market conditions and optimize their trading strategies. This flexibility in trading products is particularly valuable for those looking to balance short-term trading with long-term investment goals.
Account Types and Trading Conditions
What Account Types and Fees Does XM Offer?
| Account Type | Target User Group | Essential Characteristics | Applicability Notes |
|---|---|---|---|
| Micro Account | Beginners | Low minimum deposit, small trade sizes | Best for traders with limited capital |
| Standard Account | Intermediate to Experienced Traders | Commission-free trading, larger lot sizes | Ideal for those seeking simplicity |
| XM Ultra Low Account | High-Volume Traders | Tight spreads, commission per lot, high leverage | Best for scalpers and day traders |
| Shares Account | Investors | Direct stock trading, market-dependent spreads | Requires higher minimum deposit |
| Islamic Account | Muslim Traders | Swap-free trading, compliant with Sharia law | Available for all account types |
| Demo Account | New Traders | Practice trading risk-free with virtual funds | Great for testing strategies before real trading |
Account Opening Process
To open an account with XM, you will go through several steps. First, you need to provide your personal information, including your name, email, and phone number. Next, you will submit employment information and details about your financial situation, which helps XM assess your trading profile. An important part of the process is identity verification; you will be required to upload a valid ID and a proof of address, such as a utility bill. After completing these steps, you can start trading immediately. Additionally, XM provides flexibility, allowing you to upgrade to a professional account later if you meet the qualifications.
Trading Fees
| Product | Spread (pips) | Commission | Notes |
|---|---|---|---|
| Forex (EUR/USD) | 0.8 | $0 (ECN: $3.5/lot) | Tight spreads for major pairs |
| CFDs (Stocks) | 1.0 | $0 | Market-dependent spreads |
| CFDs (Indices) | 1.5 | $0 | Competitive fees for indices |
| CFDs (Commodities) | 2.0 | $0 | Standard trading costs apply |
| Cryptos (BTC/USD) | 1.0% | 0.1% | Variable depending on volatility |
Other Fees
When trading with XM, you should be aware of additional costs. There are no deposit fees, but withdrawal fees may apply depending on the method used. XM also has an inactivity fee if your account is dormant for an extended period. While there are no platform usage fees, overnight positions may incur interest, known as swap rates. Lastly, if you are trading in a currency different from your account currency, currency conversion fees may apply.
Trading Platforms and Apps
What Trading Platforms and Apps Does XM Offer for Traders?
| Platform | Device Support | Key Features | Additional Services |
|---|---|---|---|
| MetaTrader 4 (MT4) | Windows, macOS, iOS, Android | 2FA, encryption, multiple order types, technical indicators, economic calendar | Demo accounts, VPS, API |
| MetaTrader 5 (MT5) | Windows, macOS, iOS, Android | 2FA, encryption, advanced charting, symbol lookup, price alerts | Demo accounts, VPS, API |
| Web Version | Web browsers (any device) | Encryption, one-click trading, push notifications, market search | Demo accounts, VPS |
| Mobile App | iOS, Android | Biometrics, push notifications, one-click trading, live quotes | Demo accounts |
The trading platforms offered by XM cater to a variety of trading styles and preferences. MT4 is renowned for its user-friendly interface and is ideal for forex and CFD traders. MT5 enhances this experience with additional features and support for various asset classes. For those who prefer browser-based trading, the web version provides flexibility without downloads. The mobile app ensures traders can manage their accounts and execute trades on the go with secure login options and real-time alerts. Overall, XM emphasizes mobile trading capabilities, secure login measures, and efficient execution to enhance the trading experience.
With a focus on security, XM employs robust measures such as SSL encryption and two-factor authentication across its platforms. Fast order execution and real-time notifications ensure traders can react swiftly to market changes. The diverse range of platforms and devices supported allows traders to choose the setup that fits their needs best.
Deposit and Withdrawal
Deposit and Withdrawal Options
| Payment Method | Processing Time | Fees | Limits | Base Currency Options |
|---|---|---|---|---|
| Bank Transfer | Deposit: 1-3 days, Withdrawal: 2-5 days | Usually free, but banks may charge a fee (USD 15-30 for international wires) | Min Deposit: 5 USD, Max Withdrawal: Unlimited | USD, EUR, GBP, JPY, AUD |
| Credit/Debit Card | Deposit: Instant, Withdrawal: 1-3 days (after verification) | No platform fees, but cash advance fees may apply | Min Deposit: 5 USD, Max Withdrawal: Up to the amount deposited | USD, EUR, GBP |
| E-wallets (Skrill, Neteller) | Deposit: Instant, Withdrawal: Same day | No platform fees, but e-wallet fees may apply (1-2%) | Min Deposit: 5 USD, Max Withdrawal: Up to the amount deposited | USD, EUR, GBP |
| Local Payment Methods (e.g., GrabPay) | Deposit: Instant, Withdrawal: 1-2 days | No platform fees, but local fees may apply | Min Deposit: 10 USD, Max Withdrawal: Varies by method | Supports local currencies |
Compliance & Security Background
Withdrawals must return to the original payment method due to anti-money laundering (AML) and know-your-customer (KYC) requirements, ensuring traceable fund flows. First-time large withdrawals (typically over 2,000 USD) require identity documents (passport) and address proof (utility bill), along with scrutiny for suspicious transactions.
Regional Differences
Southeast Asian users may prefer GrabPay; European clients often use SEPA transfers; Latin American users rely on domestic banks. Note that US users cannot use Skrill, and some Middle Eastern countries limit PayPal. Partner banks in Japan may offer zero-fee transfers.
Cost Optimization Tips
- Small Deposits (<1,000 USD): Prioritize e-wallets or credit cards for instant, fee-free deposits.
- Large Deposits (>5,000 USD): Use bank transfers or SEPA for a lower total cost despite slower processing times.
- Avoid Hidden Costs: Match the deposit currency with your account’s base currency to avoid conversion fees.
- Multi-base Currency Accounts: Select brokers with several base currency options to minimize cross-currency fees.
How to Withdraw
To withdraw funds from your account, follow these steps:
- Log in to your XM member area.
- Click on ‘Funding’ and select ‘Withdrawal.’
- Choose your payment processor.
- Enter the withdrawal amount, ensuring sufficient free margin to cover the withdrawal.
- Submit your request; processing will typically be completed within 24 hours.
Customer Support
XM Customer Support Overview
Support Channels
XM offers a variety of contact methods to ensure customers receive the help they need promptly. Customers can reach out via:
- Email: Users can send inquiries to customer support through the email provided on the XM website.
- Live Chat: Available 24/7, the live chat feature allows for immediate assistance with any questions or concerns.
- Telephone: XM provides a contact number for direct support, ensuring customers can speak with a representative when necessary.
- Social Media: Customers can also connect with XM through their social media channels for updates and support.
Service Availability
XM’s customer support services are available 24/5, ensuring assistance is accessible most of the week. Additionally, multilingual support is offered in various languages, catering to a diverse customer base.
Additional Resources
To enhance customer experience, XM provides several educational resources such as video tutorials, webinars, market analyses, and trading signals. These resources aim to empower customers with knowledge to maximize their trading strategies.
Frequently Asked Questions
XM prioritizes the security of client funds by keeping them in segregated accounts with top-tier banks, ensuring that they are separate from the company’s operational funds. Additionally, XM is regulated by several financial authorities, which imposes strict compliance standards for fund security and transparency.
Yes, XM offers leverage of up to 1:500 on various instruments, including Forex and CFDs. While leverage can amplify potential profits, it also increases the risk of losses. It is essential to understand your risk tolerance and consider using risk management tools such as stop-loss orders.
XM provides competitive trading conditions with spreads starting from 0 pips on the XM Ultra Low Account and a commission of $3.5 per lot per side. For Standard Accounts, there are no commissions, and spreads typically start from 1 pip. These conditions make XM suitable for various trading strategies.
XM offers multiple channels for customer support, including live chat, email, and phone support. You can access these services through the XM website. The support team is available 24/5 to assist you with any inquiries or issues you may have.
Related Forex Brokers
Risk Disclosure
Trading forex/CFDs via brokers carries high risks, including potential total loss. For any data changes, please refer to the latest information on the brokers' official websites. Trade with caution and seek independent advice.