XM is a good name in the broking market. In this review we will discuss the process of opening an XM account, its pros and cons, customer support and more.
What is XM?
XM is an online broker who trades only in CFD and Forex. It has its parent company named Trading point holding, which was founded in 2009.
XM is available globally and is regulated by three financial authorities: The Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC) and the International Financial Services Commission of Belize (IFSC).
Account opening at XM is hassle free and fully digital. It has a fast account verification process. You can start trading from an account on the very same day.
XM accepts customers throughout the world, but has few countries as exceptions. You can’t open an XM account if you live in these countries:
- New Zealand
What is the minimum deposit at XM?
The required XM minimum deposit is $5 for the Standard and Micro accounts, which is very low. The minimum deposit is $100 for XM Zero accounts and $50 for XM Ultra Low accounts.
XM Account Types
|Micro||Standard||XM Zero||XM Ultra Low||Shares Account|
|Client country||EEAAustraliaOther countries||EEAAustraliaOther countries||EAA||AustraliaOther countries||Non-EEA and non-Australian clients|
|Pricing||No commission, but higher spread||No commission, but higher spread||There is a commission, but the spread is very low||No commission and the spread is low||Market spread and commission|
|Base currencies||USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR||USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR||EUR, USD, JPY||EUR, USD, GBP, AUD, ZAR, SGD||USD|
|Contract size||1 Lot = 1,000||1 Lot = 100,000||Lot = 100,000||Standard Ultra: 1 Lot = 100,000|
Micro Ultra: 1 Lot = 1,000
XM provides accounts in 21 different languages. It doesn’t offer a corporate account.
XM Account Opening Process:
- Fill in your name, country of residence, email address and telephone number.
- Select the trading platform (MT4 or MT5) and account type.
- Add your personal information, such as your date of birth and address.
- Select the base currency and the size of the leverage.
- Provide your financial information and answer questions about your financial knowledge.
- Verify your identity and residency. You can upload a copy of your national ID, passport or driver’s license to verify your identity, while utility bills and bank statements are accepted as proof of residency.
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XM fees snapshot
|S&P 500 CFD||The fees are built into the spread, 0.7 points is the average spread cost during peak trading hours.|
|Europe 50 CFD||The fees are built into the spread, 2.6 points is the average spread cost during peak trading hours.|
|EURUSD||With Standard, Micro, and Ultra-Low accounts the fees are built into the spread. 1.7 pips is the Standard account’s average spread cost during peak trading hours. With XM Zero accounts, there is a $3.5 commission per lot per trade and a small spread cost.|
|Inactivity fee||$15 one-off maintenance fee after one year of inactivity, followed by $5 per month fee if the account remains inactive.|
XM CFD fees for a $2,000 long position held for one week
|S&P 500 index CFD fee||$1.6|
|Europe 50 index CFD fee||$2.4|
|Apple CFD fee||$6.4|
|Vodafone CFD fee||$1.2|
XM forex benchmark fees of a $20,000 held for one week
|EURUSD benchmark fee||$9.5|
|GBPUSD benchmark fee||$8.4|
|AUDUSD benchmark fee||$10.3|
|EURCHF benchmark fee||$9.7|
|EURGBP benchmark fee||$10.5|
Stock and ETF commission of a $2,000 trade
XM stock commission
|Stock market||Commission||Minimum commission|
|USA||$0.04 per share||$1|
Deposit and Withdrawal
XM’s deposit and withdrawal process is simple and fast. It offers bank, credit/debit and eWallet deposit and withdrawal. The only thing is that bank transfer below $200 is chargable, which incurs a $15 fee.
XM does not have its own trading platform. It’s trading platform is provided by MetaTrader. It is highly customizable and provides a clear fee report. MetaTrader4 is available in 41 different languages.
It has provided 3 types of trading platform and all of them are provided by MetaTrader4 only. Mobile trading platforms also have great functionality the same as desktop and web platforms.
XM only offers trade in CFDs and Forex. Other real time assets like stocks and ETFs are missing. XM is a CFD and forex broker with a great number of currency pairs available for trading.
XM product selection
|Currency pairs (#)||57|
|Stock index CFDs (#)||28|
|Stock CFDs (#)||1240|
|Commodity CFDs (#)||15|
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XM’s research tools have two sources:
- The ‘Research & Education’ section on the website
- MetaTrader trading platforms
The ‘Research & Education’ section is somewhat limited if you choose a language other than English. If you go with English, you can access extra features like:
- Markets Overview: a summary page of all the latest news on the markets
- XM Research: a page that consists of analyses, reviews and comments on market movements
- Technical Summaries: a short collection of instrument movements by the minute, hour or day
These are all great additions to XM’s research side, not many brokers have such a variety of tools ready.
XM is regulated by three top financial institutions. But it is not listed in any of the stock exchanges. Plus it does not provide any financial information of any financial year.
How are you protected?
XM legal entities
|Country of clients||Protection amount||Regulator||Legal entity|
|EEA countries||€20,000||Cyprus Securities and Exchange Commission (CySEC)||Trading Point of Financial Instruments Ltd.|
|Australia||No protection||Australian Securities and Investments Commission (ASIC)||Trading Point of Financial Instruments Pty Ltd.|
|Rest of the world||No protection||International Financial Services Commission of Belize (IFSC)||XM Global Limited|
XM provides negative balance protection for both EU and non-EU customers.
XM’s customer service is available in many different languages. You can contact them via phone, email, and live chat. Although phone support is not available on weekends.
|Easy and fast account opening||Average forex and stock index CFD fees|
|Low stock CFD fees||No investor protection for non-EU clients|
|No withdrawal fee||Inactivity fee|
|Low minimum deposit||No two-step (safer) login|
|Free wire withdrawal above $200||No 24/7 Support|
XM has a good name for forex trading. It is regulated by top financial institutions. It has a good transaction history. The benefits it has is that it provides quality educational and research tools. Also it doesn’t charges any withdrawal fee
The drawback lies in limited product availability and customer support.
But overall it is a good experience to work on XM, as inactivity fee hit after a year one can definitely go and try this.