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XM Review 2020

This article is our latest XM review for 2020. Here, we take a look at XM as a company, its most recent offers, updates to its products, and improvements to its overall services.


SUMMARY


Company Profile:

XM was founded in 2009 and is headquartered in Limassol, Cyprus. The brand XM is a trading name of the holdings company Trading Point Holdings Ltd., which also owns Trading Point of Financial Instruments Ltd (Cyprus) and Trading Point of Financial Instruments Pty Ltd. (Australia). Trading Point Group is currently headed by Tasos Anastasiou.

xm logo

Key  Features:

  • XM Digital Wallet
  • No Deposit Bonus
  • Various Promotions and Programs

overall 

4.0/5

Established: 2009

Spread: 0.6 on EURUSD (XM Ultra-Low)

Regulation: FCA, DFSA, ASIC, CySEC, IFSC

Headquarters: Cyprus

Minimum Deposit: $5

Leverage: 888:1

Platforms: MT4/MT5 

Products: Forex, Stocks, Indices, Commodities, Oil, Gold, Silver


Pros

  • No Withdrawal/Deposit Charges
  • Low spreads
  • Fast trade execution
  • Low Minimum Deposit
  • Extensive Trading Tools and Educational Support

Cons

  • No ECN account
  • No Cryptocurrencies
  • Not available to U.S. clients

Products


The products that XM offers are the following:

  • Forex - XM offers over 55 currency pairs on its platform.
  • Stock CFDs - Stocks from the U.K., U.S., France, Germany, Netherlands, Spain, Switzerland, Belgium, Italy, Greece, Portugal, Sweden, Finland, Norway, Australia, Russia, Australia, and Brazil are available.
  • Commodities - (U.S. Cocoa, Wheat, U.S. Sugar, U.S. Soybean, high-grade copper, U.S. cotton, and U.S. coffee).
  • Equity Indices - (18 cash indices and 10 futures indices).
  • Future Energies - (Light Sweet Crude, Natural Gas, and Brent Crude Oil)
  • Precious Metals - (Gold Silver, Palladium and Platinum).
  • Energy- (Brent Crude, London Gas, Oil, Natural Gas, WTI Oil, and WTI Oil Mini).
  • Shares -1,000 + shares are available, but a shares trading account is needed.
xm homepage

Regulation


  • XM is regulated in Belize by the International Financial Services Commission IFSC under the license number 000261/106.
  • Trading Point of Financial Instruments Pty Ltd is licensed by the Australian Securities and Investments Commission (number 443670).
  • Cyprus Securities and Exchange Commission (CySec) regulates Trading Point of Financial Instruments Ltd (license number is 120/10).
  • In the U.K., Trading Point of Financial Instruments U.K. Limited is regulated by the Financial Conduct Authority (FCA) (FRN: 705428).
  • And in the middle east and North Africa, Trading Point MENA Limited is authorized and regulated by the Dubai Financial Services Authority (DFSA) (reference no. F003484).

Prohibited Countries

XM is accessible to most countries and is only restricted in the U.S., Canada, Israel, and the Islamic Republic of Iran.

What types of accounts can you open?


XM has four types of accounts. The first is the micro account, which is the optimal account for traders with little capital because it supports trading on small lot sizes with the 1,000-unit trade treated as the full contract size.

The second account is the standard trading account. The standard offers a similar trading structure as with the micro but with the exception of standard contract sizes.

The Ultra-Low is XM's low-cost account and boasts a spread that is as low as 0.6 pips.

The fourth type of account is the shares account, and this is an account that's strictly for trading the over a thousand shares that XM offers.

There is also a swap-free account (also referred to as an Islamic account) and is catered for those who prefer not to incur overnight rate charges on open positions.

How many accounts can you open?

A maximum of 8 active accounts can be maintained with XM plus a shares account.

Initial Deposit

The minimum deposit for both the Micro and Standard is set at $5. On the other hand, the Ultra-Low requires $50, while the shares trading account needs $10,000.

What are the spreads and margin requirements?


The spread that XM offers for both the micro account and the standard are the same at one pip. The Ultra-Low, as mentioned, is 0.6, but of course, all of these vary based on the currency pair as it can go up, especially during volatile periods. As for the shares trading account, the spreads depend on the exchange at which the asset is traded from.

Leverage

With XM, up to 888x leverage is available with the Micro, Standard, or Ultra-Low.

The minimum leverage is 1:1. Leverage is not fixed upon opening an account and can easily be tweaked in the member's area according to a trader's preference. The shares account is the only account type that doesn't offer any leverage.

Margin Call and Stop-out Level

The margin call for XM is 50%. This means that when equity falls below 50% of the margin needed to maintain trades, XM will prompt a warning to either deposit more funds or close the losing trade/s. The stop out level is when equity drops to or below 20% of the required margin.

Fees and Commission

All the accounts with XM have zero commissions per trade except for the shares trading account.

There is an inactivity fee that traders should know about and is charged after an account has no transactions for 90 calendar days. XM will deduct $5 per month on dormant accounts with an existing balance.

Depositing and Withdrawal


XM has various funding methods to put money into your trading account: credit card, debit card, Neteller, Skrill, WebMoney, MuchBetter Wallet, Perfect Money, SticPay, and VLOAD. It is important to note that the same deposit method should be used for withdrawal; otherwise, the transaction would not be processed.

Both minimum deposit and withdrawal amounts are fixed at $5, and what's helpful for traders is that XM doesn't charge anything at the moment for both transactions.

With our account, we didn't encounter any withdrawal and deposit problems with XM. We used Skrill, and the funds were reflected in our account within 30 minutes. The withdrawal didn't take time as well. We received our funds back to our Skrill account in a matter of minutes.

On September 1 this year, XM introduced a digital wallet. This XM wallet gives traders the flexibility to store funds earned from various XM programs and transfer them to their trading account.

Trade Execution


XM used to offer an ECN-like account called the ZERO account but now all three Forex trading accounts are mostly market-maker types. Therefore, it can guarantee zero requotes and fast execution in trade processing.

And apart from what it insures, XM's trading policies include a 100% execution rate with no rejection of orders and that 99.35% of trades are executed in under a second.

So far, we didn't encounter any slippage when we traded during highly volatile sessions with our XM account.

xm multiterminal page

Platforms


MetaTrader 4 and MetaTrader 5 are accessible across different formats: Web-based, Android, iOS, PC, and Mac. The MultiTerminal is readily available for traders who want to trade more than one MT4 account.

Trading Tools


In the member's area of XM, traders can access different tools to assist them in their trading. 

xm available tools
  • Markets Overview - this gives traders a feed of the latest developments in the financial market and XM's research team's analysis.
  • Trade Ideas - is another tool to help out traders and is basically like trading signals with a specific price forecast for almost all tradable assets.
  • Technical Summaries - This shows all instruments' technical direction covering timeframes ranging from 5 minutes to 1 month.
  • Trading Signals - There are also trading signals that are published by XM's Chief Strategist Avramis Despotis.

Educational Resources


XM also has a wide array of learning resources for aspiring traders.

This includes daily webinars, educational videos, live seminars, platform tutorials, and live education.

The live education is especially helpful because you also have the opportunity to interact with the experts who conduct the webinars almost round the clock during a trading day.

Customer Support


There is an FAQ section that answers questions about the withdrawal process all the way to getting a trading account validated. Live Chat is only open during market hours, meaning it's accessible only 24/5. The same thing goes for phone support. Our experience with their support is okay overall.

They were able to respond to our questions, but it may take a while to get a proper email response, which is slightly inconvenient.

When we were validating our account, the email we sent in the morning received a response in almost after 12 hours. In this case, Live Chat would be a better option or a direct phone call if you want to talk to one of their representatives right away.

But once our account was open, an account manager called us to introduce himself and offered his help if we needed assistance.

xm support page

Conclusion


While XM doesn't have that much of a diverse product range, it's still a broker that offers a wealth of tools and learning resources to help traders trade the market profitably.

The inclusion of an XM TV and a podcast is all catered towards providing education for a lot of traders.

Another thing to like about XM is its low-cost approach to trading with 0.6 spreads on its Ultra-Low account, and it doesn't charge anything for depositing and withdrawal, which is a big help in and of itself.

XM is also great for beginner traders because it has micro accounts that offer minor exposure to the FX market.

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