XM is a well established Forex and CFD brokerage licensed by Australian Securities & Investment Commission (ASIC), International Financial Services Commission (IFSC) in Belize, Financial Conduct Austhority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC) in Europe.
XM is owned by Trading Point Holdings Ltd, which also owns Trading Point of Financial Instruments Pty Ltd (XM Australia), XM Global Limited, Trading Point of Financial Instruments UK Ltd (XM UK) and Trading Point of Financial Instruments Ltd (XM Cyprus). XM Global Limited does not provide services for the residents of certain countries, such as the United States of America, Canada, Israel and the Islamic Republic of Iran.
XM is involved in a compensation scheme that ensures traders’ funds are deposited in segregated accounts and the broker won’
XM offers investors 3 kinds of accounts to choose; Micro, Standard and Zero. The XM broker Micro and Standard accounts are commissions free but comes with a wider spread. The Zero account offers tighter spreads but with commission and requires larger minimum deposit. XM broker offers high leverages and variable spreads on wide variety of trading assets. One of the reasons why so many people are attracted to trading forex compared to other financial instruments is that with forex, you can usually get much higher leverage than you would with stocks. While many traders have heard of the word “leverage,” few know its definition, how leverage works and how it can directly impact their bottom line.
XM also offer a swap free Islamic account for Islamic trading. Islamic trading, also known as non-interest trading, is a trading system that is based on the principles of Islamic or Sharia law and guided by Islamic economics. Islamic law prohibits collecting interest or “riba.
XM is Best For
- For Metatrader
- Low cost trading
- Beginner Traders
- Advanced Traders
- Ultra fast execution
- Research and data
Here at the Forex Broker Expert, we have reviews of more than 200 Forex brokers and trading software. The number one item we check when reviewing a broker to see if they are a scam is a valid license.
The reason smart people online invest with a licensed broker, is because there are many investment scams online. By using a licensed and regulated broker, you know your money is safe, and the company is monitored by the governments regulators.
- Trading Point of Financial Instruments Ltd, Cyprus is licensed by the Cyprus Securities and Exchange Commission (CySEC) in Europe.
- Trading Point of Financial Instruments PTY Ltd, Australia is Australian Securities & Investment Commission (ASIC).
- Trading Point of Financial Instruments UK Ltd (XM UK), authorized by the Financial Conduct Austhority in the UK.
- XM Global that powers the XM.com website is registered with the Financial Services Commission (IFSC) in Belize.
XM.com is a very popular finance and investing website. It ranks 6,990 globally according to SimilarWeb.
XM allows a very attractive minimum deposit of $5 when you consider that the average minimum deposit amount is $100 in the Forex brokerage industry. Most of the brokers require a minimum deposit at this level.
Spreads and Commissions
XM offers a variable spread. The typical variable spreads on EURUSD pair amount to 1.7 pips on the commission free accounts and 0.1 on the Zero account. Commissions on the Zero accounts amounts to $3.5. The overall cost of trading is better on the Zero account when compared to the commission free accounts. However, remember that the minimum initial capital for the zero account is $100. XM broker makes money spreads and commissions to cost of trading.
To understand what price model you should use for your trading and if you should use spread or commission, you should first understand that Forex brokers make money one of two ways. The first way is by adding spreads and commissions onto a traders trade to make a profit.
The other way a broker makes profit is to make a market and profit from a trader losing. In other words; the broker takes the other side of a traders position and profits from their loss.
XM offers a very wide leverage margin. Leverages extend from 1:1 to 1:500 to choose.
In forex, investors use leverage to profit from the fluctuations in exchange rates between two different countries. The leverage that is achievable in the forex market is one of the highest that investors can obtain. Leverage is activated through a loan that is provided to an investor by the broker that is handling the investor’s or trader’s forex account.
XM Forex Account
|Account type||Minimum deposit||Minimum trade size||Maximum leverage||Average Spreads|
|Micro||$5||0.01||1:500||1.7 pip on EUR/USD|
|Standard||$5||0.01||1:500||1.7 pip on EUR/USD|
|Zero||$100||0.01||1:500||0.1 pips on EUR/USD + $7 / lot (round trip)|
Trading Platform & Tools
Through the Metaquote’s software only, XM offers its trading platform; MT4 and MT5. MetaTrader 4, also known as MT4, is an electronic trading platform widely used by online retail foreign exchange speculative traders. Mt4 brokers are so popular due to the platform’s user-friendly interface and the availability of a browser usage. Being at the same time a powerful tool which can be adjusted to a trader’s needs, the software thus is in high demand among both novice traders and professionals.
There is also a VPS facility for new and existing Forex traders that deposit a minimum of $5000. The 24/7 uptime offered by VPS is perfect for your trading software. Most customers use MetaTrader (MT4/MT5) or cTrader for Forex on their VPS Server. With remote desktop you can access your VPS and start trading. Forex traders prefer 24/7 uptime for automatic trading.
XM Broker Promotions
Best Forex Bonus features Deposit bonuses, No deposit bonuses, live contests, demo contests, free bonuses and other Forex promotions. XM offers the following promotion and bonus
- Free VPS for clients who maintain a balance (Equity-Credit) USD 5,000 or currency equivalent. No end date for this promotion;
- $30 Non-Deposit Trading Bonus for new clients only. No end date for this promotion;
- The two-tier deposit bonus offers 50% deposit bonus up to $500 and 20% deposit bonus up to $5,000. No end date for this promotion;
- The XM Loyalty Program offers the clients XM Points (XMP) per lot traded.
XM Payment Methods
XM allows Credit/Debit cards, Bank wire transfers as well as instant deposits and withdrawals via eWallets like Neteller and Skrill. eWallet payments are growing in popularity now a days due to their relative ease of use, lower transaction costs and faster processing times.
XM Review Conclusion
XM is an established Forex broker that offers wide range of trading products and account types on two great platforms under competitive conditions. What is more, it provides Negative Balance Protection, as well as lucrative bonuses to its clients.
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