An Excellent XM Broker Review To Get You Started In The FX Markets
XM is a genuinely reliable Forex broker that offers a top-class FX brokerage service for both retail and institutional Forex traders. XM was launched in 2009 with its headquarters in Cyprus, but the company had experimented with numerous brand names such as XE.com and XEMarkets.com until the broker finally decided to stick with XM.com. Quite recently, they acquired the services of Olympic legend Usain Bolt, by signing a multi-million dollar sponsorship deal to improve the company’s brand visibility in the international financial markets. Regardless of the new sponsorship title, the company had managed to gather an incredible amount of respect and trust among existing clients due to their commitment to the best in customer service and trading services.
In this XM Forex review, we will take a close look at the different XM financial products and how they affect the trading environment of an average trader. During our research and our personal experiences as an XM client, we have found out that the broker is dedicated to delivering on its promise of offering the best brokerage services in the entire Forex market. Even third-party XM Forex broker reviews and actual customer testimonials are mostly positive, leading us to believe that XM is certainly a significant threat to mainstream Forex companies that enjoy a majority of market share.
XM Regulation & Global Presence
XM.com hasn’t spared any expenses to partner up with some of the most trusted and highly popular companies across the globe to offer its FX products to the largest community of retail traders on the planet. While XM has its headquarters in Cyprus, the company has also set up its branches in other parts of Europe, Asia, and Australia to offer individualized services for clients from different geographic locations. Apart from a CySEC regulatory license, XM is regulated by the FCA (UK) and the ASIC (Australia). Since Cyprus is a part of the European Union, XM uses its CySEC license to operate in the entire EU under the European Economic Area (EEA) agreement and the MiFID derivatives.
However, the biggest drawback that we could discover was that regardless of the company’s spending spree, the broker hasn’t made any commitments to the US financial markets by completely avoiding the CFTC and NFA regulatory licenses. US traders are, therefore, unable to open an XM account or trade with the broker due to the strict CFTC and NFA restrictions. Setting up a brokerage in the US requires a broker to follow strict regulatory requirements, possess higher operating capital, and incorporate several rules of trading that are in direct contradiction to the core strengths of the company. We do anticipate XM to set up a US-based brokerage arm in the near future.
XM Account Terms & Trading Conditions
Retail traders can open an XM account with a minimum deposit of $5, which allows them to open either a Micro account or a Standard account. The Micro account is a simple market maker account that offers the option of micro lot trading with a maximum XM leverage of 1:888. The Standard account, on the contrary, is a hybrid of market maker and direct market access protocols that follow the standard lot trading conditions. All other trading aspects such as leverage, XM spreads, and the mode of execution are almost same for both Micro and Standard accounts. The spreads for the Micro and Standard accounts start from 1 pip, and under real-time market conditions, the broker offers some of the tightest spreads available in the market.
There is a third type of XM account, known as the XM Zero account, which is an ECN account that has spreads starting from 0 pips. The Zero account has a small commission added to every trade, which is accompanied by other direct market access conditions such as no requotes and lower leverage. The Zero account provides a maximum leverage of 1:500 and the minimum deposit starts at $100. All ECN accounts are susceptible to slippages and partial order fills; therefore, you should have a clear about the ECN trading conditions before investing real money in the markets.
XM stipulates one of the least minimum deposit requirements in the market, which is aided in part by the varied range of payment options that include both online and offline payment methods. XM accepts almost all popular e-wallets and even accepts local payment options such as bank wire transfers. The broker also accepts payments made by leading credit/debit cards or through popular gift cards, which is certainly unique and well-accepted by XM clients.
- Website: www.xm.com
- Support: UK +44 2031501500
- Leverage: Up to 500:1
- Min. Deposit: 5 USD
- Spreads: 1.9 pips
- Tight Spreads
- 100+ Financial Instruments
- Offers Islamic Accounts
- Multilingual Customer Support
- High Swaps
- No PayPal
- Does not offer EFTs
- Does not offer Equities
XM Forex Bonus & Promotions
XM used to offer some of the most extravagant bonuses when it launched its services, but the company has cut down on its promotions to offer a streamlined bonus system that is more in line with the company’s future policies. All customers receive a welcome deposit bonus of 15% of the deposit amount for a maximum bonus of $500, which are added as trading credits and cannot be withdrawn. There are no hidden conditions, unlike other FX brokers, but the bonus is removed as soon as you make a withdrawal request. However, all profits that are made from the bonus are available for withdrawal without any restrictions.
The broker also provides an excellent XM loyalty program, which is divided into four different categories. The more you trade with the broker, the better chance you have for receiving an upgraded loyalty status that comes with several benefits such as cash bonuses and trading credits. The broker also provides a free VPS option for traders that have deposited at least $5000 in their trading account and transacts a minimum of 5 round turn lots per trading month. If you fail to do so, the broker will charge $28 per month as VPS rent, which is debited directly from your trading account.
As part of its promotional campaign, XM also waives any fees incurred while making a deposit to your account. Online payment processors, credit cards, and e-wallets are known to charge a transaction fee, which will be covered by XM.com, thereby guaranteeing 0% fees on deposits. However, such fees are not waived for any withdrawals, which will be transacted as per the current fees and commissions that are applicable to the payment method chosen by the client.
XM Mobile App & Desktop Trading Platforms
MT4 assumes the responsibility of being the primary XM trading platform, which is not a bad choice, considering that MetaTrader is the most popular trading interface among retail traders. Zero Account holders are offered the MT4 platform with an ECN bridge that connects traders directly to multiple liquidity providers. MT4, along with a free VPS, can provide the best execution speeds and ultra-low latency for both manual, as well as automated trading. VPS is very popular among investors that use Expert Advisors (EAs), as a VPS allows traders to run a program without worrying about errors or connectivity issues.
XM mobile traders are given the option of downloading the XM mobile apps directly from the Google Play or iTunes stores, or traders can also use the MT4 WebTrader on their mobile or desktop devices for a truly mobile trading experience. MT4 has developed the best trading apps for iOS and Android, which should help most traders to enjoy a fuss-free trading environment without worrying about reliability issues. XM has made a safe choice by offering MT4 as the standard terminal, which has enabled the company to concentrate its efforts on creating an excellent products portfolio that gives access to FX currency pairs, CFDs, and commodities.
XM offers genuine, regulated, and reliable FX products that are protected by top regulators in the world. XM guarantees safety and security of funds by keeping them in segregated accounts, and by offering protection to investors under the respective Investor Compensation Funds. Therefore, XM is an excellent broker that comes with the highest of our recommendations.