XM offer two ways to trade: Forex, CFDs.
To open a live account, you’ll need a minimum deposit of at least $5. Alternatively, XM offer a demo account that you can use to practice and familiarise yourself with their platform.
Regulated by the Financial Conduct Authority, UK (FRN: 705428), and CySEC (Licence: 120/10). XM puts all client funds in a segregated bank account and uses tier-1 banks for this. XM have been established since 2009, and have a head office in Cyprus.
Before we dive into some of the more detailed aspects of XM’s spreads, fees, platforms and trading features, you may want to open XM‘s website in a new tab by clicking the button below in order to see the latest information directly from XM.
Full disclosure: We may receive a commission if you sign up with a broker using one of our links.
What are XM's spreads & fees?
Like most brokers, XM take a fee from the spread, which is the difference between the buy and sell price of an instrument.
The spreads displayed below are based on the minimum spreads listed on XM’s website. The colour bars show how competitive XM’s spreads are in comparison to other popular brokers featured on BrokerNotes.
EUR/USDNot offered $10 per lot
The average spread for EUR/USD across all brokers on BrokerNotes is 0.82 pips. See popular brokers for trading EUR/USD
USD/JPY0.1 PIPS $10 per lot
The average spread for USD/JPY across all brokers on BrokerNotes is 0.91 pips. See popular brokers for trading USD/JPY
GBP/USD0.1 PIPS $10 per lot
The average spread for GBP/USD across all brokers on BrokerNotes is 1.18 pips. See popular brokers for trading GBP/USD
The average spread for Bitcoin across all brokers on BrokerNotes is 41.15 pips. See popular brokers for trading Bitcoin
The average spread for gold across all brokers on BrokerNotes is 8.62 pips. See popular brokers for trading gold
The average spread for DAX30 across all brokers on BrokerNotes is 14.95 pips. See popular brokers for trading DAX30
As you can see, XM's minimum spread for trading EUR/USD is N/A pips - which is relatively high compared to average EUR/USD spread of 0.82 pips. Below is a breakdown of how much it would cost you to trade one lot of EUR/USD with XM vs. similar brokers.See all Spreads
How much does XM charge to trade 1 lot of EUR/USD?
If you were to buy one standard lot of EUR/USD (100k units) with XM at an exchange rate of 1.1719 and then sell it the next day at the same price you would likely pay $19.85. Here's a rough breakdown of the fees and how this compares against AvaTrade & Plus500.
|Typical overnight fee:||$8.85||$5.00||$9.40|
|Total cost of a 100k trade:||$19.85||$12||$15.4|
|$7.85 less||$4.45 less|
|Visit XM||Visit AvaTrade||Visit Plus500|
All fees/prices are for informational purposes and are subject to change. Last updated: March 21, 2018.
What can you trade with XM?
|FX / Currencies||XM||AvaTrade||Plus500|
|# of forex pairs offered||55||59||61|
|Major forex pairs||Yes||Yes||Yes|
|Minor forex pairs||Yes||Yes||Yes|
|Exotic forex pairs||Yes||Yes||Yes|
|# of commodities offered||15||16||17|
|Indiced & Stock CFDs||XM||AvaTrade||Plus500|
|# of Stocks offered||160||99||1816|
|See XM's Instruments||See AvaTrade's Instruments||See Plus500's Instruments|
What's the XM trading experience like?
1) Platforms and apps
XM is one of the few brokers that offer both of the MetaTrader platforms; MT4 and MT5. To see how the two platforms compare, you can read our comparison of MT4 vs MT5 here. The combination of downloadable platforms for both Mac and Windows allows traders to trade with their device of choice.
XM also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you’re on the move.See XM's platforms
2) Executing Trades
XM allow you to execute a minimum of trade of 0.01 Lot. This may vary depending on the account you open. XM allow you to execute a maxium trade of 50 Lot.
As a market maker, XM may have lower entry requirements compared to an ECN broker who benefits from a higher volume of trades and typically have larger capital and minimum trade requirements. Market makers typically have lower minimum deposit, smaller minimum trades requirements and no commission on trades.
As a nice bonus, XM are one of very few brokers that claim to have no requotes, so you don’t have to worry about slippage (your trades being ordered at a different price to what you executed them at).
As with most brokers, margin requirements do vary depending on the trader, accounts and instruments, but as a guide, XM offer margin up to 0.5% on currencies.
XM also offers a number of useful risk management features, such as stop losses (with trailing stops), limit orders, negative balance protection, price alerts, and much more. You can see all of the account features offered by XM here.
Finally, we’ve listed some of the popular funding methods that XM offers its traders on the right.
3) Client support
XM support a wide range of languages including Arabic, Chinese, English, French, German, Greek, Hindi, Hungarian, Indonesian, Italian, Japanese, Korean, Malay, Polish, Portuguese, Russian, Spanish, Swedish, Thai, and Turkish
XM have a BrokerNotes double AA support rating because XM offer over three languages, email and phone support.
4) What you’ll need to open an account with XM
As XM is regulated by Financial Conduct Authority, CySEC, every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade. When you open an account, you’ll likely be asked for the following, so it’s good to have these handy:
- A scanned colour copy of your passport, driving license or national ID
- A utility bill or bank statement from the past three months showing your address
You’ll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it’s best to put aside at least 10 minutes or so to complete the account opening process.
While you might be able to explore XM’s platform straight away, it’s important to note that you won’t be able to make any trades until you pass compliance, which can take up to several days, depending on your situation.
To start the process of opening an account with XM you can visit their website here.
A Review & Guide to Trading with XM
XM was established in 2009 and is regulated from Cyprus (CySEC) as well as through the ASIC and the FSP. Many Forex traders will first note that as XM is located out of Cyprus, it is fully covered by the stringent regulations required within the Europe. Furthermore, this platform is covered by the Financial Conduct Authority in the United Kingdom and the BaFIN within Germany. Thus, clients can rest assured that their security will never be put into jeopardy. Let us take a quick look at some of the basic features of this platform which are important to note when considering XM as an online broker.
The two main types of trading platforms offered are Web Trader and Meta Trader 4. Web Trader is excellent due to the fact that a client can access real-time market information directly through the website without having the need to download any software. This is ideal for those with limited hard disk space or who wish to access their account through a smartphone.
Meta Trader 4 is one of the most popular systems currently in place. Not only are all prices and movements clear, but its user-friendly nature will vastly increase the performance of any trader. It should be noted that both manual and automatic trading options are available through Meta Trader 4.
Types of Accounts
The first level of trading account is known as their Micro trading account. This is the preferred method for those who are learning the Forex markets or who wish to embrace an extremely low-risk approach. One is able to open up a profile for as low as five dollars.
Their Standard trading account represents the next level up. As the name suggests, this is the type that is primarily used by seasoned traders who are willing to expose themselves to a moderate amount of risk. One of the primary differences with this account is that larger contract sizes are available.
The Executive account requires a minimum deposit of $100,000 dollars to become activated. While there are larger risks (naturally), the capability to enjoy massive gains is likewise increased. Those who trade in high volumes may be interested in this type of account.
Demonstration accounts are also available. These are intended for those who wish to try out the platform before making an ultimate decision. Interestingly enough, no less than $100,000 dollars in virtual funds are provided. It should be mentioned that XM also offers Islamic accounts for those who wish to trade under the principles set forth by Sharia law.
Spreads and Commission
As with most online Forex brokers, the spreads will depend upon the trading system and the type of account. Spreads can start as low as one pip. An added benefit in regards to these pips is that fractional pricing is available; five digits are provided as opposed to the standard four digits offered in other sites. Both fixed and variable spreads can be chosen by the trader.
There are no commissions charged by XM. Instead, the company makes a profit on the spreads of the trades themselves. There are therefore no hidden fees and the gains (or losses) which a trader makes are quite real.
There are several different instruments that can be traded through XM. Some of the most popular are:
- Gold and silver
No EFT trading is supported by this platform.
Reliability and Efficiency
XM.com is considered by many to be one of the most reliable platforms available for those who wish to execute real-time trades (nearly 100 per cent are completed in less than one second). There will be no re-quotes and all figures are as they stand upon the execution of a position. Due to the use of the previously mentioned trading platforms, there is little lag times between the observed prices and their actual market equivalents. However, this will partially rely upon the processing power of one’s computer and its connection speed.
Payment and Withdrawal Methods
There are several transfer options provided by XM. A handful of these include:
- Credit Cards
- Western Union
It needs to be noted that there is currently no possibility to use PayPal to deposit or withdraw funds.
XM boasts appreciable levels of client engagement and support. A live chat widget, email and telephone number are offered as standard to clients of all account levels. One of the most interesting features of this support is that (currently) XM provides customer service in no less than 20 different languages. Facsimiles are also able to be sent to four different numbers depending upon one’s physical location. These support services are only available from Monday through Friday. Any requests put forth during the weekend will be addressed on the next business day.
XM.com is quite a popular online broker for traders of all skill levels. Its primary benefits are the high reliability of trade executions, easily manageable platforms, no order rejection and amenable leverages of up to 1:888.
Still, there are some downsides to be noted. As mentioned previously, the use of PayPal for money transfers is currently not supported. There is little difference (besides the risk and trading volume) of the three account types. A minimum deposit of $100,000 dollars has enabled the upper-level account to cater to only the wealthiest of individuals. Finally, the fact that customer support is only available from Monday until Friday may slightly aggravate some traders who wish to execute positions during the weekend. XM.com is nonetheless a powerful online Forex broker which should not be overlooked.
CFDs are leveraged products and can result in the loss of your capital. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice. All information collected from www.xm.com on March 21, 2018.