Established in 2009, XM is quite well-known in the retail forex trading industry. Is it recommended and ideal for you? Learn the advantages and disadvantages of XM broker here.
XM broker is established under the XM Global Limited, which is part of the XM Group financial company. XM is founded in 2009 as an online broker and trading platform service that offers a wide ion of accounts with a low minimum deposit, designed to attract every trader across the globe. The XM group itself is an industry leader with 2.5 million clients from 196 different countries. In recent years, XM expanded its service into an online multi-asset forex broker including over a thousand CFDs and 57 currency pairs as tradable assets.
- The Advantages of Forex Trading with XM
- The Disadvantages of Forex Trading with XM
The Advantages of Forex Trading with XM
We have prepared a summary of the advantages of XM Broker. This hopefully helps you to find an insight to decide whether you need to open an account and start forex trading with XM broker right now.
XM Group is a group of regulated brokers and it is owned by Trading Point Holdings Ltd. Entities under XM Group have significant experience as financial services providers worldwide.
Trading Point of Financial Instruments Ltd was established in 2009 with headquarters in Limassol, Cyprus, Trading Point of Financial Instruments Pty Ltd was established in 2015 with headquarters in Sydney, Australia, XM Global Limited was established in 2017 with headquarters in Belize and Trading Point MENA Limited was established in 2019 with headquarters in Dubai.
XM Group is regulated by the CySEC (Cyprus Securities and Exchange Commission) - Trading Point of Financial Instruments Ltd, FSC (Financial Services Commission) – XM Global Limited, the ASIC (Australian Securities and Investments Commission) - Trading Point of Financial Instruments Pty Ltd and DFSA (Dubai Financial Services Authority) - Trading Point MENA Limited.
XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and Webinar feature that is accommodated in 19 different languages with 35 native instructors for each language.
In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Commodities, Equity Indices in CFDs, Precious Metals, Energies, to Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.
Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip.
To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. The deposit starts from $5 in Micro and Standard Account, while Ultra-Low Account requires a minimum deposit of $5. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.
For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.
To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).
All in all, there is no doubt that XM has gone global with its deep commitment to providing trading services in more than 15 languages around the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.
For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.
Reliable and Trustworthy
From the regulatory perspective, XM is supported by licenses from the CySEC and the FCA. Since its inception, XM broker has quickly gained the attention of traders all around the world, thanks to its various advantages such as low spreads, fast service, and other types of attractive offers. So far, XM claimed to have executed a total of 1.4 billion trades with remarkable zero repeats or rejections.
Since 2011, XM has been receiving a warm response from Southeast Asia (Malaysia, Singapore, including Indonesia). More than 1 million traders from all over the world have traded with XM brokerage, so it doesn't come as a surprise if the company provides services in more than 20 languages. This is in line with its mission and dedication to always provide convenience for clients, including setting up a customer support line that is available 24 hours every Monday to Friday.
Wide Range of Leverage
XM Broker offers leverage ranging from 1:1 up to 888:1. However, the leverage available to choose from will largely depend on your asset, trade size, and account type. You could always request XM Broker to change your chosen leverage, either increase or decrease from your current leverage.
Whenever you start to trade in XM trading account, they will always warn or remind you regarding the risks attached when trading with leverage. Even better, the platform provides the option to show a simple dashboard while trading to help you monitor their margin and cope with risk exposure in a real-time manner. You can observe both used and free margins, which will combine as the equity in your portfolio. The free margin is the quantity you still have in your trading account, while the used margin will refer to how much money you need to have for a transaction.
You will receive a margin call warning once your account equity plunges below 50% (the required margin to open positions). Margin call warning is a notification mechanism, to inform you that your trading account lacks the required equity to maintain trading positions.
To protect customers' funds, XM also features a stop-out level mechanism. The stop-out level is set so that when the equity level reaches a certain point, it will automatically close the clients' floating positions. All retail clients with XM Ultra-Low Accounts, Micro Accounts, or Standard Accounts have a stop-out level of 20%.
Minimal Time Delay in Execution
This guarantees that absolutely no requotes will be given thanks to XM's efficient operation and time management. In XM Broker, traders can place a variety of order types, ranging from stops, trailing stops, market orders, and limits. Moreover, traders who prefer conventional trading can place trades via the telephone as well. They can always set and place their trades during their respective trading hours.
XM trading hours opens and closes in sync with each market's active hour. This means, for the forex market, you can trade 24 hours a day, 5 days a week. This happens because when one market closes the other open thanks to various markets available in different time zones such as London, Tokyo, Sydney, and New York. XM trading hours start at 22:05 GMT (Sunday) and ends at 21:50 GMT (Friday). This applies to both website or telephone trading.
Multilingual 24-hour Customer Support, 5 Days a Week
XM Broker provides 24-hour phone, email, or online chat customer service from Monday to Friday in 30 different languages. This wide language support made nearly everyone to engage in easy and secure communication with XM's dedicated support team. XM also encourages its users to contact customer support whenever they have any doubts regarding the trading platform.
XM is adamant to maintain its customer's trust and strive to achieve a perfect score in the clients' satisfaction. They understand that reputation and credibility are closely associated, therefore always pursue and improve ability following the clients' needs based on what they expect.
This is accomplished by always keeping watch and adapt to the latest technologies and industry trends. XM will never compromise any factor that might affect client performance, and this helps them deliver tight spreads and best execution.
The XM management team has spread to 120 cities around the world, aiming to get a better understanding of their clients and partners. XM also places high value to connect clients as humanly as possible. To deliver such interactions, XM Broker frequently hosts seminars around the world. They have already hosted hundreds of workshops which is intended to give clients the necessary skills and knowledge to make improved trading decisions.
Reliable Trading Platforms
XM Broker supports both MetaTrader 4 and MetaTrader 5 platform that offers state of the art technology, simple to use, and user-friendly interface. Both of which are equally popular trading platforms. They offer trading versatility since both applications are available through a wide range of devices, from installed software on a PC, WebTrader in a web browser, to mobile devices.
Instant Deposit and Withdrawal
XM Broker provides rapid processing of payment such as deposits and withdrawals that are supported by many types of transfer methods. In this case, traders can choose to fund their account via bank transfer, credit card, or e-payments like Skrill and Neteller. Another specialty of XM broker is the availability of free (no fee) deposit and withdrawal options.
Wide Range of Trading Assets
XM Broker provides the option to trade in a wide range of assets including precious metals, commodities, stocks, and energy products. When you have registered as an XM trader, you will get a dashboard to view all the instruments available on XM Broker. Currently, the company allows trading with over a thousand financial instruments in seven different asset classes, including equity indices, energies, cryptocurrencies, commodities, precious metals, individual stocks, and foreign exchange.
In the asset library, you can find 1,210 CFDs as well as 57 forex pairs (exotics, majors, and minors). The library can be casually browsed or filtered if you would like to find a specific stock originating from a certain country. Said class asset is spanned into 17 different countries such as Russia, Australia, Austria, Sweden, Finland, Norway, Portugal, Italy, Greece, Spain, Switzerland, Belgium, and the Netherlands. The platform also provides access to 8 commodities through CFD assets. There are 12 futures indices CFDs and 18 cash indices CFDs available. And finally, XM Broker also enables trading with metals such as silver and gold.
XM utilizes a variable spread in its platform, mimicking the way the interbank foreign exchange market offers prices to its clients. The main purpose of this variable spreads is to eliminate the requirement for an insurance premium. As regulators usually demand insurance premiums from the broker who offers fixed spreads, they tend to be bigger than variable spreads. So, by offering variable spreads to its customers, XM broker successfully avoids these issues.
Moreover, the platform also provides a trader with fractional pip pricing. Fractional pip pricing allows the broker to implement the best prices available from liquidity providers. This allows traders to get tighter spreads and more accurate quotes.
Various Types of Accounts
This kind of flexibility will help traders meet their unique trading requirements and needs. There are a few account type available in XM Broker, which is as follows:
Any trader has access to this XM Ultra-Low account. Do note that the required minimum deposit is $50. There are two sub-options available: the Micro Ultra and the Standard Ultra. The differing point is that the XM Micro Ultra Low account has a minimum trade volume of 0.1 lots and a limit of 100 lots per ticket.
In comparison, the XM Standard Ultra-Low account has a lower requirement, starting from 0.01 lots trading volume and a limit of 50 lots per ticket. All traders can have up to 200 positions pending or open positions at a single time. There is also the option of an Islamic account available, although there is no balance protection and zero commissions offered. XM Ultra-Low Account allows hedging, but there are no deposit bonuses nor any trading bonuses.
Micro and Standard Accounts
XM Micro accounts have more base currencies available to choose from, ranging from the USD, SGD, AUD, EUR, GBP, JPY, CHF, ZAR, RUB, HUF, and PLN. This type of account already includes features such as negative balance protection and trading bonuses; however, there are no deposit bonuses yet.
To open a Micro account, traders have to make a minimum deposit of $5. Traders who prefer the Shariah account can also choose to open an Islamic account type as well. There are no commissions and 1 lot is 1000 units of any currency. Hedging is allowed, and the minimum trade volume is 0.01 lots in MetaTrader 4 and 0.1 lots on MetaTrader 5 platform. The amount of open or pending positions that traders can open at a single time is up to 200 positions with up to 100 lots per ticket.
XM Standard Accounts is pretty much similar to XM Micro Accounts, except for the lot size, minimum trade volume, and maximum lot per ticket. In Standard Account, 1 lot is 100,000 units, the minimum trade volume is 0.01 lots, and each ticket can reach up to 50 lots. Other than this, the features of Micro and Standard Accounts are generally the same.
Other Account Types Offered
Other types of account offered in XM Broker is the Shares account. It requires a minimum initial deposit of $10,000 and does not allow hedging. There are no deposit bonuses nor trading bonuses in this account. The minimum trade volume is 1 lot and the contract size is one share. Each ticket has a lot limit which is subject to the share. Traders can have 50 positions pending or open positions at a time.
Trading Course and Market Research
XM also presents comprehensive research and educational feature, ranging from daily news, research on market conditions, forex seminars, and live education with 20 multilingual professionals. As a matter of fact, there is a weekly webinar suitable for novice traders. The webinars are held almost every day and traders can take part in it. The material revolves around fundamental and technical basics, trading indicators, how to determine entry and exit, weekly market analysis, and many others.
The Disadvantages of Forex Trading with XM
The downsides of XM Broker are as follows:
- No PayPal Support. PayPal is unfortunately not an option for deposit or withdrawal. It is a downside because PayPal itself is a credible electronic payment used by many high-profile companies around the world. Its security system is also widely recognized and is arguably more regarded than other e-payment providers.
- Lack of customer support for the weekend. No customer support services are offered during the weekends, as the service is only active from 24/5. This means that clients can only ask or consult with customer support in business days, which is a major drawback for a broker striving to achieve the perfect score in clients' satisfaction.
- No cryptocurrency trading. XM once offered cryptocurrencies as a class asset, but for some reason pulled them out of its list of instruments. As cryptocurrency has become an interesting addition that most forex brokers now provide, XM's pullback indicates incompetency to keep up with the current market trend and their inability to maintain a class asset's offering.
From the previous discourse, it can be concluded that the largest-selling point of XM broker is its trading reliability across a diverse range of forex markets. To maximize client convenience, XM has also provided various versions of the MetaTrader 4 and MetaTrader 5 trading platforms. The disadvantages mainly come from additional issues that do not directly influence the quality of trading conditions, except maybe for the lack of customer support for the weekend.
All in all, XM is a recommended broker especially if you are looking for an ideal broker with low minimum deposit requirements. Other low deposit forex brokers can be found in this list.