Launched back in 2009 by a team of ex-interbank dealers, XM (Formerly XEMarkets) now has over 500 000 clients from 196 countries and boasts about 150 000 000 trades executed with zero requotes and no rejection of orders.
Based on the sunny island of Cyprus, in Limassol, the broker offers great conditions for trading in a wide range of instruments, including more than 50 currency pairs, CFDs on commodities, indices, precious metals and energies. What is more, XM provides ultra-fast execution (99.35% of all trades executed in less than 1 second), support for well over 20 languages, as well as awesome bonuses & promotions.
Regulation & Safety
XM is the trading name of Trading Point Holdings Ltd., which wholly owns Trading Point of Financial Instruments Ltd, a Cypriot Investment Firm (CIF), licensed by Cyprus Securities and Exchange Commission (CySEC). The company also operates in Australia via Trading Point of Financial Instruments PTY LTD, which is regulated by the Australian Securities and Investments Commission (ASIC).
Cyprus and Australia are currently one of the most attractive forex broker hubs, which is probably due to the well-balanced regulation in both jurisdictions. Tough regulation with high entry capital requirements and low maximum leverage has proved to be quite unfavorable to the FX market. For instance, the strong regulation in the United States and Japan has reduced competition and most brokers have moved their businesses elsewhere. Light touch regulation, on the other hand, (such as the one in offshore destinations like the Seychelles and Belize) reduces credibility and safety in the financial sector.
Both CySEC and ASIC apply certain rules and requirements to Cyprus Investment Firms, which are not as stringent as those in the US, however they provide a good level of reliability. Cypriot Investment Firms must hold at least €730 000 in order to prove their good financial standing, while Australian FX brokers must possess net tangible assets amounting to at least $1 million. In addition, both Cypriot and Australian FX brokers are required to keep customer funds in segregated accounts, separated from the company’s operating funds.
As a further guarantee to clients’ funds, all CySEC-regulated companies are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, if a licensed company becomes insolvent.
What is more, every CySEC- regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services in all EU Member States. What is more, XM is also registered with a number of EU regulatory bodies, including UK’ FCA and Germany’s BaFin.
Negative Balance Protection (NBP)
Additionally, XM is one of the few brokers whose terms & conditions include Negative Balance Protection. This means that if a client’s account balance goes into negative as a result of the fast-pacing volatile market, it still will be brought to a zero by the broker. We recommend that you choose among brokers who provide NBP, so that you may trade with the certainty that you can’t lose more money than you have invested.
Overall, the conditions offered by XM are really good:
- the minimum initial deposit is just $5, a symbolically low amount to start with;
- high leverage levels up to 1:888, which allows you to make impressive profits by investing small amounts; yet, you cannot lose more than you have deposited because of the Negative Balance Protection provided;
- low-risk trading in micro lots available on all account types.
Spreads & Commissions
XM operates with variable spreads, just like the interbank forex market. The typical ones on commission-free accounts amount to 1.7 pips on EUR/USD, which is comparatively high. We suggest that you opt for the Zero account where spreads are averaged 0.1 pips on EUR/USD and commission of $5 per standard lot traded applies.
|Account type||Minimum deposit||Minimum trade size||Maximum leverage||Average Spreads|
|Micro||$5||0.01||1:888||1.7 pip on EUR/USD|
|Standard||$5||0.01||1:888||1.7 on EUR/USD|
|Zero||$100||0.01||1:500||0.1 pips on EUR/USD + commission $5 per standard lot (per side)|
Clients of XM may select among three account types: Micro, Standard and Zero. Micro and Standard accounts offer commission-free trading with very low initial deposit and huge leverage, while Zero account holders are required to pay more as a start + commission fee per each lot traded, but spreads are real-tight.
What is more, swap-free (Islamic) accounts are available, designated for clients who are not willing to earn interest for religious reasons.
XM supports the ever popular Metatrader 4, commonly nicknamed MT4, developed by the Russian software company MetaQuotes Software Corp. It comes in all forms and shapes: desktop, web, and mobile (iOS and Android devices).
MT4 is an internationally acclaimed trading software, offering a full array of trading tools and features: more than 50 built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options for them. Traders can download ready-made or create their own EAs and let the program do all the work, no human emotions involved. Also, this saves up a considerable amount of time from the routine of market watch as well as trade execution.
What is more, XM provides MT4 MultiTerminal – a practical and convenient way to manage multiple accounts simultaneously from a single interface.
Also, free Virtual Private Server (VPS) hosting is offered to both new and existing clients who deposit a minimum of $5,000 and trade at least 5 round turn lots per month. VPS hosting allows the execution of orders 24 hours, 5 days a week.
Signals trading is also available for XM clients. All live account holders are entitled to free and unlimited access to the trading signals hub, where they can get daily forex signals for the following instruments: EUR/USD, GBP/JPY, USD/JPY, GBP/USD , EUR/JPY, AUD/USD, GOLD, US30, NIKKEI and OIL.
By the time of writing this review, XM runs the following promotions:
- 100 % Deposit bonus up to $5,000 (only available for Micro and Standard Accounts);
- $30 No deposit bonus;
- Forex World Championship with 41 million pool prize;
- Cash rewards and credit bonuses available under loyalty program.
In addition, as a result of XM’s partnership with rebate service provider PayBackFX, clients of this broker can participate in a rebate program and get back $5.25 for each closed trade.
Methods of Payment
XM supports a wide range of payment methods: credit/debit cards (Visa, Visa Electron, MasterCard, Maestro, China UnionPay, Diners Club International), bank wire transfer and e-wallet payment systems Skrill, Neteller, WebMonew, Paysafe, iDeal, Sofort, Qiwi, CashU, giropay, Przelewy24, FasaPay.
What is more, the broker covers all deposit and withdrawal transfer fees for payments made via Neteller, Moneybookers and all major credit cards (including VISA, VISA Electron, MasterCard, Maestro and China UnionPay).
Basides, all deposits and withdrawals above $200 processed by wire transfer are also included in their zero fees policy.
XM is a reliable award-winning FX and CFDs broker that offers pretty good trading conditions. To sum up the above, here are the advantages and drawbacks with regards to this broker:
Well-regulated (ASIC and CySEC licenses) No choice of trading platforms
Negative Balance Protection
Competitive spreads on the Zero account
Attractive Bonuses & Promotions
Fast execution speed