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XM Review

  • Regulated by: Financial Conduct Authority, CySEC
  • Used by: 700+ traders
  • Trust Rating: B
Open XM's Website

Losses can exceed deposits. Your capital is at risk.

XM two ways: 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.

Open a demo account Visit XM

Full disclosure: We may receive a commission if you sign up with a broker using one of our links.
Your capital is at risk.

XM screenshot

PROS

  • Used by 700+ traders
  • Established in 2009
  • Regulated by Financial Conduct Authority, CySEC
  • Min. deposit from $5

CONS

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.

Speads are dynamic and are for informational purposes only. Last updated: June 06, 2018.

As you can see, XM's minimum spread for trading EUR/USD is 0.1 pips - which is relatively low 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 Your capital is at risk.

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 $9.85. Here’s a rough breakdown of the fees and how this compares against Plus500 & AvaTrade.

XM Plus500 AvaTrade
Spread from: $1.00 $6.00 $7.00
Typical overnight fee: $8.85 $9.40 $5.00
Commission: $10.00 $0.00 $0.00
Total cost of a 100k trade: $9.85 $15.4 $12
$5.55 more $2.15 more
Visit XM Visit Plus500 Visit AvaTrade

Your capital is at risk. All fees/prices are for informational purposes and are subject to change. Last updated: 09/03/2018.

General Fees

  • XM does charge inactivity fees
  • XM doesn’t charge withdrawal fees*

Overnight fees & swap rates

When you hold a position overnight, it is usually subject to overnight interest which you must pay to your brokerage (sometimes called a rollover fee or swap rate).

  • The rollover fee for long positions on EUR/USD is -$8.85
  • The rollover fee for short positions on EUR/USD is $2.85

Commissions

  • XM doesn’t charge commission on CFD shares

What can you trade with XM?

FX / Currencies XM Plus500 AvaTrade
# of forex pairs offered 55 61 59
Major forex pairs Yes Yes Yes
Minor forex pairs Yes Yes Yes
Exotic forex pairs Yes Yes Yes
Cryptocurrencies Yes Yes Yes
Commodity CFDs XM Plus500 AvaTrade
# of commodities offered 15 17 16
Metals Yes Yes Yes
Energies Yes Yes Yes
Agricultural No Yes Yes
Indiced & Stock CFDs XM Plus500 AvaTrade
# of Stocks offered 160 1816 99
UK Shares No Yes Yes
US Shares No Yes Yes
German Shares Yes Yes Yes
Japanese Shares Yes Yes Yes
See XM's Instruments See Plus500's Instruments See AvaTrade's Instruments
Your capital is at risk.

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 Screenshot See XM's Platforms

XM also offer mobile apps for Android and iOS, making it easier to keep an eye on and execute your trades while you are on the move.

See XM's platforms Your capital is at risk.

Trading Features:

  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection

Accounts offered:

  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Zero spread account
  • Islamic account

Still not sure?

Open a practice account & learn to trade

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 (), limit ordersnegative balance protectionprice alerts and much more. You can see all of the account features offered by XMand much more. You can see all of the account features offered by XMhere.

Finally, we’ve listed some of the popular funding methods that XM offers its traders on the right.

Funding methods:

  • Credit cards
  • Bank Transfer
  • Payoneer
  • Neteller

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.

Trading Systems

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.

Underlying Assets

There are several different instruments that can be traded through XM. Some of the most popular are:

  • Currencies
  • Gold and silver
  • Oil
  • CFDs
  • Commodities
  • Indices
  • Stocks

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
  • IDEAL
  • Moneybookers
  • Skrill
  • Neteller
  • SOFORT
  • Western Union

It needs to be noted that there is currently no possibility to use PayPal to deposit or withdraw funds.

Customer Support

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.

Conclusion

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.