Is XM a Brokerage We Can Trust?

By An Khmurenko on in Brokers
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This review is a result of months spent with the brokerage firm, XM. The review team had performed an exhaustive examination of all the firm’s offers and services which can be found on its offered trading platform and live website. 

 

In the aim of giving a pointed and well-informed assessment, the review team had looked into the following facets of XM’s overall service:

 

  1. XM’s regulatory status
  2. The trading instruments that XM’s clients are given access to 
  3. The trading accounts that are available to XM’s clients
  4. The trading platforms offered through XM’s trading accounts
  5. The commissions and leverages provided through the firm’s different accounts
xm forex broker

xm forex broker

About XM

 

Pertaining to the brokerage, XM operates under the XM Group, a cluster of regulated online brokers. Trading Point, its original legal name was founded back in 2009 and is currently being regulated by the Cyprus Securities and Exchange Commission.

 

Its offshoot, Trading Point of Financial Instruments Pty Ltd., was founded in 2015. Given its base being in Australia, the company follows the stringent regulations imposed by the Australian Securities and Investments Commission (ASIC).

 

Establishing further reach and mileage, XM incorporated its global arm duly called, XM Global back in 2017. The international broker undergoes regulation through the International Financial Services Commission (IFSC).

 

As of writing, XM has under its wing more than 1.5 million clients from a total of 196 countries. 

xm

xm

 Preliminary Findings

 

The data that the review team had preliminarily gathered strongly suggest that the company’s strength lies in its fast-responding and consistently-present customer support team. The company is also commended for its personalized method for each of its client regardless of their investment goals.

 

Offers and Services  

 

Accessible Trading Instruments

 

XM offers over 1000 financial instruments. The asset markets which the firm gives access to are the Foreign Currency markets and the CFDs markets specifically in Stocks, Commodities, Equity Indices, Precious Metals, and Energies.

 

XM allows for the trade of over 55 Foreign Exchange Currency pairs which include the major USD, GBP, EUR and JPY pairs, just to name a few.

 

The only limitation that the review team had found is that XM does not have any provisions for the trading of Binary Options and Futures.

 

Available Trading Accounts

 

XM offers four types of trading accounts. The benefits of each are specified below:

 

Micro Accounts

This type of account makes use of the USD, EUR, GBP, CHF, AUD, JPY, HUF and PLN as base currencies. What the clients find to be completely enticing about this is its minimum deposit of only $5USD. On top of that, in this account, 1 micro lot is equivalent to 1,000 units of the base currency.

 

Ultra Low Accounts

This type of account only uses EUR, USD, GBP, AUD, ZAR, and SGD as its base currencies. This account can be opened for only $50 USD. here, 1 Standard Ultra lot is equivalent to 100,000 units of the trader’s base currency of choice. Meanwhile, 1 Micro Ultra lot equals 1,000 units of the base currency. The Ultra Low Account is restricted to some of the XM entities in the trading group.

 

Standard

Transactions administered through the Standard Account may be executed through USD, EUR, GBP, CHF, AUD, JPY, HUF, and PLN. The account can be opened for only $5USD. Here, 1 standard lot is equal to 100,000 units of the trader’s base currency.

 

Zero Accounts

Zero Account holders are given the ability to use USD, JPY and EUR as base currencies. This account can be opened for only a deposit of $10USD. Its lot is similar to that of the Standard Account. 

 

Offered Trading Platforms

 

The review team had noted that XM had wisely partnered with MetaQuotes to offer the industry leading trading platforms, MetaTrader 4 and MetaTrader 5. Wise is a term that the review team frequently uses when referring to a brokerage firms choice of offering the MetaTrader platforms as these software are efficient and fast in processing transactions.

 

The MT4 has an undeniably intuitive user interface that allows for speedy customization of charts and other processes. It is open to the numerous trading instruments that XM offers. This iteration of the MetaTrader platform is the most notable among the many versions of the software. 

 

The MT5 software is a notch higher than MT4 in that it has more specialized functions such as the capability of adjusting the trading hours and was designed to give access to CFDs, Stocks, and Futures.

 

With either software, XM’s clients are assured quality and speedy transactions. As this is the case, the review team finds the provision of these to be a point for the brokerage. 

 

Spreads

 

The Spreads are reliant on the type of account the trader had opened. Across all accounts, the leverage starts at 0.1 pips; the average that major pairs are given is also at 0.1 pips.

 

What can possibly be seen as a plus is that XM has a stringent “no hidden fees or commission” policy. Only the XM Zero accounts are availed of commissions as XM pays for all the fees.

 

On top of that, clients are assured of same-day withdrawals.

 

Leverage

 

Leverages can range from 2:1 to 30:1 with consideration to the trading instrument that the trader chooses to trade.

 

Meanwhile, margin requirements are consistent within the week, regardless of the time of day or the weekend.

 

This leverage applies to clients registered under the EU regulated entity of the group.

 

Trade With XM Today!

 

With everything that had been discussed in this review, it is easy to see that enlisting the services of the brokerage, XM is highly likely to render positive results. These are affirmed through the following premises:

 

  1. The credible regulatory status of the brokerage
  2. The firm’s provision of the MetaTrader platforms
  3. The good conditions provided by the firm’s trading accounts
  4. The decent commission and leverage offerings