Published on Sep 14, 2023

Review of XM Broker: Examining Regulations, Trading Platforms, and Broker Features in 2023

XM, hailed as the next-generation broker for online forex and commodity trading, caters to both novice and experienced traders. Whether you're looking to dive into real trading with their software or prefer to test the waters with a demo account, XM has you covered. Notable features of this broker include auto trading, transparent fee structures with no hidden charges, and rapid order execution, with an impressive 99.35% of orders processed in under one second. In this 2023 XM review, we'll delve into what this broker offers and how it stacks up against its competitors to help you decide if opening an account with XM is the right choice for you.

Company Overview:

Founded in 2009, XM.com has grown into a market leader with over 10 million clients spanning 190 countries and an impressive collection of 30+ industry awards. Offering 1000+ assets with spreads starting at just 0.6 pips, XM prides itself on delivering a personalized experience for all clients, regardless of their investment goals. The company's headquarters are located in Limassol, Cyprus. XM operates as a group of regulated online trading entities, each adhering to specific regulatory authorities:

Trading Point of Financial Instruments (established in 2009, regulated by CySEC 120/10).
Trading Point of Financial Instruments Pty Ltd (established in 2015, regulated by ASIC 443670).
XM Global (established in 2017, regulated by FSC 000261/397).
Trading Point MENA Limited (established in 2019, regulated by DFSA 003484).

Please note that XM also holds additional operating licenses in various trading jurisdictions.

Trading Platforms:

XM.com offers access to two highly regarded trading platforms: MetaTrader4 (MT4) and MetaTrader5 (MT5), available for both real and demo accounts.

MetaTrader 4: MT4, an award-winning platform, remains a preferred choice among retail forex traders due to its user-friendly tools and efficient customization options. Key features include:

Three chart types
One-click trading
VPS functionality
Micro lot accounts
50+ technical indicators
Three execution modes
Two market orders
Four pending orders
Two stop orders and a trailing stop
Full Expert Advisor (EA) functionality

The XM margin call level on MT4 is set at 20%, and MT4 Multiterminal is available for managing up to 128 accounts simultaneously.

MetaTrader 5: As the successor to MT4, MT5 includes all of MT4's features and offers a broader range of tradable instruments, making it better suited for experienced traders. Key features include:

All order types
Hedging allowed
One-click trading
Full EA functionality
80+ technical indicators
Market depth with the latest price quotes
Ability to display up to 100 charts simultaneously
Integrated MQL5 development environment
Multi-asset platform supporting over 1000 instruments

Both platforms are accessible on Apple and Android devices, ensuring a seamless mobile trading experience. Additionally, MT4 and MT5 can be accessed online through WebTrader. XM's trading area also offers supplementary tools like an economic calendar and trade volume statistics.

Assets & Markets:

XM offers an extensive selection of 1000+ trading instruments, encompassing CFDs on forex, stocks, cryptocurrencies, equity indices, and commodities, including precious metals and energies. Forex traders can choose from over 55 pairs, including USD, GBP, EUR, and JPY pairs. The platform also offers access to stocks from over 600 companies and major global indices like NASDAQ and DAX. However, please note that XM.com does not support binary options.

Spreads & Commission:

XM employs variable spreads, with spreads starting as low as 0.6 pips, depending on the type of account opened. Notably, XM maintains a "no hidden fees or commission" policy, meaning no commission is charged on any account except Share accounts. The broker covers all transfer fees, and same-day withdrawals are guaranteed. Fractional pip pricing is also available, allowing clients to benefit from even the smallest market movements.

Leverage:

Leverage levels can vary from 1:1 to 1:1000, depending on the instrument. XM empowers clients to manage their own leverage risk, and margin requirements remain consistent throughout the week, without widening at weekends or during nighttime trading.

Mobile Apps:

XM offers a user-friendly mobile app for trading on the go. The broker recently upgraded its mobile trading application, which now provides access to over 1000 CFD instruments, advanced charts, 90+ technical indicators, and full account management. The app also delivers the latest financial news and market insights, with easy login options, including fingerprint recognition. The application is compatible with a wide range of Android phones and tablets, as well as Apple devices like iPhones and iPads, available for download from both the Apple App Store and Google Play Store.

Payment Methods:

Deposits:

Deposits are processed instantly and can be made in any currency, automatically converted into the selected base currency.
Accepted funding methods include Credit and Debit Cards, Skrill, Neteller, International Wire Transfer, Online Bank Transfer, Perfect Money, Apple Pay, and Google Pay.
Notably, PayPal is not currently accepted, and deposits or payments made with cryptocurrencies like Bitcoin are not supported.

Withdrawals:

Withdrawals are typically processed within 24 hours, with a minimum withdrawal amount of 5 USD.
XM covers any charges imposed by their bank for transfers equal to or exceeding $200 (or currency equivalent).
Conforming to standard KYC regulations, users must provide a color copy of an official identification document (such as a passport or driver's license) and a recent utility bill dated within the last three months as proof of address.
Maximum withdrawal limits may vary depending on the withdrawal method used.

XM Account Types:

XM offers three live trading account options: Micro, Standard, and Zero, with all accounts allowing up to 300 open/pending positions per client.

Micro Accounts:

Micro accounts are available in various base currencies, including USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, SGD, and ZAR.
Trading can commence with a minimum deposit of $5 USD, with spreads starting as low as 1 pip.
1 micro lot represents 1,000 units of the base currency.

Standard Accounts:

Standard accounts also support multiple base currencies (USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, SGD, and ZAR) and require a minimum deposit of $5 USD.
Spreads on all major pairs start at 1 pip.
1 standard lot equals 100,000 units of the chosen base currency.
There is minimal difference between Basic and Standard account options.

Zero Accounts:

Zero accounts offer base currencies of USD, JPY, and EUR, with a minimum deposit requirement of $5 USD.
Spreads are highly competitive, starting at 0 pips.
It's important to note that Zero accounts may not be available to all entities within the XM Group.

XM clients can maintain up to eight trading accounts simultaneously, with account management conveniently handled through the XM.com members area. Upon request, an Islamic account is also available, and the broker does not offer a PAMM account.

Demo Account:

Clients can create a demo account at no cost, with each demo account receiving a virtual balance of 100,000 USD and no time restrictions. To open an XM demo account, simply visit the website, sign up for a paper trading solution, and complete the registration process. The demo account offers an authentic trading experience without the risk of real losses, allowing clients to continue learning at their own pace even after opening a live account.

Bonus Deals & Promotions:

As a European Union (EU)-regulated brand, XM adheres to ESMA regulations, which means bonuses and contests are no longer available to EU traders. However, XM does offer commission and fee-free withdrawals and deposits. Additionally, new clients can claim a $50 no deposit bonus when opening a real account, with the potential for deposit bonuses up to $5000.

Regulation & Licensing:

XM operates as a global brokerage, and its various brands fall under different regulatory authorities, providing a comprehensive regulatory framework. These regulatory entities include:

Australian Securities and Investments Commission (ASIC)
Cyprus Securities and Exchange Commission (CySEC)
International Financial Services Commission (FSC)
Dubai Financial Services Authority (DFSA)

XM ensures negative balance protection for its clients, and client funds are kept separate from the broker's operational capital, enhancing security.

Additional Features:

One of XM's standout features is its rich array of training and educational resources. The platform boasts a Research hub where traders can access technical summaries, trade ideas, podcasts, blogs, and XM TV. A Learning Centre is also available, offering regular webinars suitable for traders of all levels, as well as educational videos, tutorials, and live market tips. XM fosters a social trading environment, encouraging users to learn from their team of instructors. Basic tools like an economic and margin calculator and regular news updates further enhance the trading experience.

Trading Hours:

XM is accessible 24 hours a day in line with worldwide forex market hours. For day traders seeking high-volume opportunities, the most lucrative times generally coincide with the overlap of the US and London markets, occurring between 13:00 GMT and 16:00 GMT. Three key time zones to consider include:

UK: 8:00 GMT to 17:00 GMT, with the most active currencies being EUR, GBP, and USD.
US: 13:00 GMT to 22:00 GMT, featuring active currencies such as USD, EUR, GBP, AUD, and JPY.
Tokyo: The Tokyo session opens at 22:00 GMT on Sunday afternoon and extends into the European trading session at around 09:00 GMT.

Please note that XM.com trading hours may be subject to changes during major holidays like Christmas.

Contact Details & Customer Support:

Reaching out to the XM.com support team is easy through their live chat feature on the website's contact page. Clients can also contact support via email at support@xm.com or by calling the provided contact numbers at +501 223-669 or +501 227-9421. With support available in 30 languages, including English, Chinese, Russian, Spanish, and Arabic, XM.com ensures effective assistance for a diverse clientele. User reviews generally reflect positive experiences, with staff readily available to assist with various issues, ranging from member area login problems to queries regarding tools like the pip calculator.

Safety & Security:

Security concerns with the XM website are minimal, with encryption technology and multi-factor authentication options enhancing login security. XM's privacy policy outlines organizational procedures in place to safeguard personal data. Clients are required to verify their email address when opening a demo account, but subscribing to email updates is not obligatory. The provision of identification documents is also part of standard KYC procedures.

XM Verdict:

XM stands as a reputable broker offering flexible options to cater to the needs of traders at all levels of expertise. Whether you're a beginner looking to gain experience or a seasoned investor seeking a reliable and efficient platform, XM has much to offer. The broker provides competitive fees, a wealth of educational resources, and a diverse selection of trading platforms. While the range of tradable instruments may not be the widest in the industry, the availability of multiple platforms compensates for this limitation.

Advantages of XM Group:

Beginner-friendly educational tools, including podcasts and expert-led webinars in 16 languages.
Premium research resources, encompassing market sentiment analysis, fundamental insights, and strategy builders.
Accessible trading accounts with a low $5 minimum deposit requirement and easy account setup.
Powerful MT4 and MT5 platforms available via web, desktop, or mobile.
Reliable 24/7 customer support in over 30 languages.
A highly respected brand with over 30 industry awards.
Transparent fee structure, with spreads starting from just 0.6 pips.
Access to a wide array of instruments, including 50+ forex pairs.
XM Broker guarantees 100% execution of orders, with 99.35% of orders processed almost instantly, free from requotes.
No "markup" on narrow market spreads (broker's margins over the spread).

Disadvantages of XM Group:

A $5 inactivity fee may apply.
Limited passive investment services, such as a social trading platform and PAMM accounts.
The broker's choice of trading platforms is somewhat limited, primarily focused on variations of MT4 and MT5 for desktop, browser, and mobile trading.

In summary, XM remains a strong contender in the online brokerage space, offering a range of features and services to meet the diverse needs of traders. Whether you're looking to hone your trading skills or execute complex strategies, XM provides a user-friendly and reliable platform to help you achieve your financial goals. To get started with XM, simply use the sign-up link provided on their website.

Broker Details

Disclaimer: - We at forexoverflow do not endorse neither refer anyone to trading broker websites. The information is for educational purpose and source of information is from the broker website.