Review

XM.com Review: How Does XM Client Protection Measure Up?

Last Updated: October 8, 2020

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Author

Linda de Beer

Risk Warning: Your Capital is at Risk.

Overview

XM is an online broker for trading on forex and CFDs (stocks, commodities, indices) with a strict no re-quotes and no rejections policy.

As an internationally regulated and licensed broker, XM has more than 3.5 million clients in almost 200 countries with access to trading more than 1,000 instruments.

XM caters to both novice and experienced traders through easy and convenient trading and account management from desktop and mobile devices.

Traders with XM can choose between the popular MetaTrader 4 or MetaTrader 5 platforms or access the XM WebTrader through their browser. 

Since its founding in 2009, the broker has picked up over 30+ industry awards. This review will give readers an in-depth overview of XM and discuss its advantages and disadvantages.

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Key XM Features

Pros and Cons of Choosing XM

XM appeals to traders across the world who can rely on support in their language. The broker’s track record of 2,4 billion trades executed with no re-quotes or rejections is further motivation for traders to open an account.

XM’s forex fees are average and you can also expect to pay an inactivity fee if your account is dormant for more than 90 days.

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What Can You Trade With XM?

XM offers clients access to trading forex and CFDs on stocks, energies, soft commodities, precious metals, and indices. More than 1,000 instruments are available to trade.

Note: XM is currently not offering CFDs on cryptocurrencies.

Forex

XM offers trading in more than 55 currency pairs including all majors, minors, and many exotics.

Shares

CFDs on over 100 US, UK, and Germany shares are available to trade on the XM platform.

Note: Access to shares CFDs depends on the client’s country of residence. Always check the broker website for the latest information.

Stocks

XM gives their clients access to over 1,100 stock CFDs. Below are 50 of the most prominent ones, but the full list is available from the broker’s website.

Commodities

XM clients can trade 7 of the most popular soft commodity CFDs, two precious metals CFDs, and 5 energy CFDs.

Equity Indices

The 18 cash indices CFDs offered for trading on the XM platform include most of the largest country stock indices in the world.

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Where Does XM.com Operate?

XM offer their trading services to residents or citizens of more than 200 countries. The broker’s head office is in Limassol, Cyprus, while they also have offices in Athens and Sydney.

IMPORTANT: CFDs are not available in the USA due to local regulation, and regulated brokers do not accept US citizens or US residents as clients.

Countries Where XM Accepts Clients From

XM currently accepts traders from around 215 countries and territories. To confirm whether your country is on the list, you can go to the XM registration page for the most up-to-date information. Based on your country of residence, it will also tell you whether you’re eligible to open an account with XM or XM Global.

Restricted Countries

XM does not provide trading services to residents of certain countries, including:

• United States of Ameria
• Canada
• Israel
• Islamic Republic of Iran

Available Languages

The XM website is available in 22 different languages, with customer support provided in more than 25 languages.

XM Account Types

Traders can choose from three XM account types: a Standard account, a Micro account, or an XM Zero account.You can also open a demo account to practice strategies and trading.

The table below summarizes the three types of accounts:

Note: Account types available depend on the client’s country of residence.

Traders can choose forex or multi-asset options when opening their accounts. A multi-asset account allows trading forex as well as CFDs on the MT5 trading platform.

Once traders have opened an account, they have access to the XM Member section of the broker site and their trading platform of choice.

From here traders can manage their account, including depositing and withdrawing funds, claiming promotions, checking positions and leverage, and accessing the trading tools offered through XM.

XM Demo Account MT4

XM’s free demo account is popular among beginner traders to practice ideas or even experienced traders to test strategies. Demo accounts have no expiry date, but they are closed when not used for 90 days.

Clients may apply for a new demo account at any time. Up to 5 demo accounts per trader are allowed.

Demo accounts have all the features and functions of a real account, including the speed of execution. Traders have access to $100,000 in virtual trading funds and real-time data and analytic tools.

Also, traders with demo accounts can make use of XM’s 24/5 support and all the broker’s educational materials.

Account Requirements

Opening an XM account takes less than five minutes.

First, you fill in some basic information including your name, address, and some information about your financial background and trading experience. XM then sends you an email with your log-in details.

Before you can trade with XM for the first time, you must provide identity and residential address verification. Documents accepted include a color copy of valid passport or other official identification documents (e.g. national ID card, driver’s license or government ID).

The identification document must contain the following:

1. Full name
2. Issue or expiry date
3. Place and date of birth or tax identification number
4. Signature

To pass the residential address verification, you will need to provide a recent utility bill no older than 3 months. Acceptable bills include the following:

1. Electricity bill
2. Water or gas bill
3. Phone bill
4. Television services bill
5. Internet bill

Traders then need to fund their accounts with a deposit, discussed below in the deposits and withdrawals section of this review.

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Deposits and Withdrawals

Deposits

Traders with Micro or Standard accounts can open and fund an account with a minimum of $5, while XM Zero accounts require a minimum deposit of $100.

XM offers a wide range of payment options for deposits and or withdrawals. These include:

• Major credit cards
• Multiple electronic payment methods
• Bank wire transfer
• Local bank transfer

Exact details about each payment method are visible when you log in to the Members Area. Once you selected a payment method of choice, there are clear instructions to follow to complete the process.

Funds are generally available instantly except for Union Pay, which takes 24 hours.

Leverage and Margins

CFD traders on the XM platform have access to varying amounts of leverage, depending on the financial instrument traded and on their country of residence.

Traders should keep track of their available margin. Accounts that exceed the allowable margin face the risk of having positions closed out by XM.

Withdrawals

XM has set withdrawal minimums depending on the method of withdrawal. For withdrawals to credit and debit cards and eWallets, there is a $5 minimum.

All withdrawals above $200 processed by wire transfer are included in XM’s zero fees policy.

When making a withdrawal, XM transfers your funds back to the original funding method you used to fund your account. If this is not possible, they will transfer the funds to your identified bank account. This account must be in the same name as the account maintained with XM.

All withdrawal requests are instantly reflected in clients’ trading accounts as pending withdrawals. XM processes requests within 24 working hours, but it may take up to five business days for funds to arrive depending on the final destination.

Withdrawal requests are processed in the currency in which the deposit was originally made.

Note: XM may require copies of your credit card before approving a withdrawal request. Traders should consult the Funds Withdrawal section of the broker website for more details on this topic.

XM Spreads and Fees

Traders with Micro and Standard accounts pay the XM variable spread on CFD trades instead of a commission. The broker offers variable spreads only, which means spreads can widen above the minimum XM spread as market conditions become more volatile.

Micro and Standard account spreads on all majors start as low as 1 pip, while XM Zero account holders can expect spreads as low as 0 pip. Always consult the broker website for up-to-date spreads.

Other Relevant Fees

Overnight fee – Traders who hold positions open overnight are generally charged (or credited with) rollover interest. In the case of forex, the amount credited or charged is calculated based on the position taken as well as the rate differentials between the two currencies traded. In the case of stocks and stock indices, the amount credited or charged is calculated based on whether a short or a long position has been taken.

Inactivity fee – Accounts that are dormant for 90 or more days incur a monthly inactivity fee of $5.

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XM Trading Platform Overview

XM offers clients several mobile and desktop versions of both the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms. Alternatively, traders can opt to access the XM WebTrader through their browser.

Mobile Trading With XM

Both MT4 and MT5 are available for Android and iOS mobile devices.

Links and download instructions for the XM MT4 and MT5 mobile apps are easy to find under “Platforms” in the main menu of the broker website.

With MT4 and MT5 mobile trading, traders can follow the global markets from anywhere and instantly place and execute orders. There’s no difference between trading options, tools, or trading speeds for smartphones or tablets and those for desktop PCs.

Desktop Trading With XM

You can use the MT4 or MT5 desktop apps with your XM account or access WebTrader via your web browser instead.

The download is very quick. Once traders agree to some standard disclosures they can click the MT4 or MT5 icon on their desktop and be on the platform in seconds.

MT4 and MT5 At a Glance

How Is XM Regulated?

XM is owned and operated by Trading Point Holdings, which is a licensed and multi-regulated financial institution.

Trading Point Holdings is the holding company of Trading Point of Financial Instruments Limited, XM Global Limited, Trading Point of Financial Instruments UK Limited, Trading Point of Financial Instruments Pty Ltd, and Trading Point MENA Limited. They are authorized and regulated as follow:

• Trading Point of Financial Instruments Limited is authorized and regulated by the Cyprus Securities and Exchange Commission (Licence number: 120/10)
• XM Global Limited is authorized and regulated by the International Financial Services Commission (IFSC) (60/354/TS/19)
• Trading Point of Financial Instruments UK Limited is authorized and regulated by the Financial Conduct Authority (FRN: 705428)
• Trading Point of Financial Instruments Pty Ltd is authorized and regulated by the Australian Securities and Investment Commission (AFSL 443670)
• Trading Point MENA Limited is authorized and regulated by the Dubai Financial Services Authority (DFSA) (Reference No. F003484)

All these agencies have strict compliance guidelines. One such requirement by CySEC is that the broker must regularly submit financial statements to ensure the firm has adequate capital to operate.

The regulators also require XM to segregate client money in separate bank accounts at top-tier financial institutions.

Client funds are also protected through multiple investor compensation schemes, such as CySEC’s Investor Compensation Scheme. These programs compensate account holders in the event of a brokerage firm’s financial collapse or its inability to make customers whole on their account balances.

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Key XM Takeaways

With 3,5 million clients with access to over 1,000 instruments to trade forex and CFDs, XM is one of the leading online brokers.

The fact that traders can seamlessly switch between desktop and mobile trading on MT4 and MT5, some of the world’s most popular trading platforms, make XM a choice worth considering.

FAQs

Is XM legit?

As a multi-regulated online broker, XM must adhere to strict compliance guidelines. The company furthermore boasts a track record of 2,4 billion trades executed with no re-quotes or rejections

What is the minimum deposit for XM?

The minimum deposit for Micro or Standard accounts is $5. The minimum for XM Zero accounts is $100.

How long doXM withdrawals take?

XM withdrawal requests are processed within 24 hours. Clients receive their money on the same day for payments made via e-wallet. Payments by bank wire, credit card, or debit card can take between 2 – 5 business days.

Does XM offer bonuses?

ESMA regulations prohibit CFD brokers from offering bonuses to retail traders in Europe to encourage CFD trading (or a greater volume of trading), including signup bonuses or fee rebates.

However, XM does provide a loyalty program and a rewards system for clients in certain countries. For example, clients who maintain an account balance (equity credit) of $5,000 or the currency equivalent get free access to XM’s Virtual Private Server (VPS).

Does XM provide educational resources?

The XM research and education section offers a very detailed library of educational materials for traders. These include market reviews, stock market news, forex news, investment-themed articles, technical analysis, videos, and a learning center where webinars, seminars, and video tutorials are presented.

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Credits: Original XM review written by Lawrence Pines. Major updates and additions in May 2020 by Linda de Beer with contributions from the Commodity.com editorial team.