XM Review; Touted as the next generation broker for online forex and commodity trading, XM Global Webtrade is suitable for beginner and seasoned traders alike. Traders can get started with the trading software real account, or test the waters with a demo account platform with $100,000USD of virtual currency. Highlights of this particular broker service include auto trading, no hidden fees or commissions and fast order executions, with 99.35% taking place in under 1 second.
XM Group (XM) is a group of regulated online brokers. Trading Point of Financial Instruments was established in 2009 and is regulated by the Cyprus Securities and Exchange Commission (CySec 120/10). Trading Point of Financial Instruments Pty Ltd was established in 2015 and is regulated by the Australian Securities and Investments Commission (ASIC 443670). XM Global was established in 2017 and is regulated by the International Financial Services Commission (IFSC/60/354/TS/19). The platform boasts over 1.5 million clients with traders in 196 countries. The XM ethos is all about being big, fair and human. The company prides itself on things like excellent customer service and a personalised approach for every client, no matter their investment goals.
Regulation and Security
XM has a relatively high and strong level of regulation. It is owned by Trading Point of Financial Instruments UK Ltd, a U.K. company, but XM is formally based in Cyprus and Australia, two popular and well-known jurisdictions which are known to be friendly to the operation of Forex / CFD brokerages. Clients resident outside Australia can open accounts located and regulated in Cyprus while Australian residents will have their accounts located in Australia.
XM is formally regulated in Cyprus and Australia. In Cyprus, Trading Point Trading Point of Financial Instruments Ltd is licensed by the Cypriot Regulator CySEC under license number 120/10. In Australia, Trading Point of Financial Instruments Pty Ltd has been issued an Australian Financial Services License by ASIC (number 443670). In addition to these regulatory licenses, XM has secured registrations for outwards passporting with the regulators of the following countries:
- United Kingdom – Financial Conduct Authority
- Germany – BaFIN
- Spain – CNMV
- Hungary – MNB
- Italy – CONSOB
- France – ACP
- Finland – FIN
- Poland – KNF
- Netherlands – AFM
- Sweden – FI
XM’s regulation in Cyprus provides its clients there with a degree of investor protection, as CySEC maintains an Investor Compensation Fund which is empowered to award depositors who lose their accounts due to failure of a regulated firm an amount up to €20,000.
XM has been in operation as a brokerage since 2009, giving it a relatively long track record. Typically, it can be said that the longer a broker has been in business, the more reputable the broker should be held to be. This means that XM can be said to have a substantial track record and an established reputation of safety as a brand which it will wish to protect.
Like all Forex / CFD brokerages regulated in member states of the European Union like Cyprus, clients of XM enjoy negative balance protection, regardless of whether they have deposited in Australia or Cyprus. This means that it is impossible for any client to lose more than the amount they have deposited with XM. The “tail risk” of an extremely large and sudden market movement, amplified by any leverage used, is borne fully by XM under this European Union regulation.
The question of fees charged by a brokerage should always be paramount in the mind of anyone searching for the right Forex / CFD broker. In considering the question, all costs of doing business must be considered carefully. We can break the entirety of fees and costs into two separate sub-categories: fees which are incurred through opening and closing trades, such as spreads, commissions, and overnight financing; and incidental fees, such as charges imposed by the brokerage due to account inactivity, or transaction fees applied to deposits or withdrawals. The trading fee element is going to be most important by far so this should be examined first.
Looking at trading fees first, we begin with spreads and commissions, which should be lumped together as an all-in “round trip” cost covering the opening and closing of a trade. As XM offer a few different account types which charge slightly different fees, we will judge the trading fees of its most common account type, the Standard Account. The average round trip cost of trading the benchmark EUR/USD Forex currency pair is 1.7 pips. However, this falls to only 0.8 pips in the XM Zero account, which is an ECN account. The average round trip costs of trading individual stocks, soft commodities, and equity indices are average for the industry. Finally, data on the average round trip cost of trading the precious metals Gold and Silver shows that it is never below 30 cents for Gold and 3 cents for Silver. It can be said that these levels of spreads and commissions are competitive for depositors of relatively low amounts. The minimum deposit required to open a Standard Account is only $5, so for traders depositing only a few hundred dollars or less, these fees will certainly be competitive. However, traders with considerably larger sums to deposit such as a few thousand dollars would be able to find more competitive alternative brokerage options within the industry, unless they wish to open an XM Zero account which has extremely competitive fees.
The next thing to consider as part of the fee structure is overnight financing, which is usually a net charge applied to every trade daily which is open at 5pm New York time, although it can sometimes be a payment. These fees are, at least theoretically, based upon tom/next fees applied in the intrabank market, but retail brokerages tend to offer relatively unfavorable rates which can make swing or position trading expensive, especially when buying into currencies with very low or negative interest rates. XM are open and transparent about their overnight financing rates, which is a good sign. XM state that their rates are based upon the bank market’s tom/next rates plus the XM mark-up. Comparing the rates offered at the time of review to the industry average, their overnight financing rates are relatively competitive, meaning that XM may be a good choice for traders who wish to hold positions open for periods longer than a day or two.
We end this section on fees by looking at incidental transaction fees, occurring through non-trading processes. XM charges an account inactivity fee of $5 per month after 90 days. XM charges no additional fees on deposits or withdrawals except where an amount of less than $200 is moved by wire transfer. Overall, this is not a bad deal, unless you are making a very low deposit and will want to make no trades at all for a period which may be longer than one month. Our conclusion on fees: XM’s fees are competitive for traders making deposits under $1,000 across all account types, while the ECN-style XM Zero account is competitive at any deposit level.
In line with conventional KYC regulations, users need to provide a colour copy of an official identification document such as a passport or a driver’s license. They also need to provide a recent utility bill dated within the last three months as proof of address. Once registered, the minimum deposit amount is $5 for Micro and Standard accounts, while Zero accounts require a minimum deposit of $100.
Deposits can be made using most major credit cards, electronic payment methods, wire transfer, local bank transfer and more. Deposits can be made in any currency and it will be automatically converted into the currency you select as your base currency when opening the account. All withdrawals are processed in 24 hours and there are no fees to take your money out of your eWallet
Investor Protection & Regulations
XM is authorised and regulated by the Cyprus Securities and Exchange Commission under the company name of Trading Point of Financial Instruments Ltd, as confirmed on the CySEC register below:
XM is also regulated by the Australian Securities and Investments Commission under the company name Trading Point of Financial Instruments Ltd, as confirmed on the ASIC register below:
XM Global is also regulated by the International Financial Services Commission of Belize, as the IFSC register confirms below:
Web & Desktop Trading Platforms
XM offers traders the ability to trade on a variety of trading platforms that can be easily accessed from the broker’s homepage, as well as the member’s area online.
XM MetaTrader 4 Platform
The XM MetaTrader 4 trading platform offers a variety of features for traders, including:
- 1,000+ instruments across Forex, CFDs and Futures
- Full EA (Expert Advisor) functionality
- Social Signals trading
- 1 click trading with inbuilt news functionality
- 3 chart types
- 50 technical trading indicators
XM MetaTrader 5 Platform
The XM MetaTrader 5 trading platform offers all the features of MetaTrader 4 with a variety of additional features for traders, including:
- 300 more additional Stock CFDs
- Additional order types
- 80 technical trading indicators
- Economic calendar
- Market depth
Here is an example screenshot of the XM MetaTrader 5 trading platform for PC:
All the trading platforms on offer provide unique advantages to both beginner and professional traders, as the MetaTrader suite of trading platforms are the world’s most popular method of trading the financial markets.
XM also offers a large library of MT4 video tutorials to help beginner traders get started:
XM Group Bonus System and Types
Learning information about a broker is an entire process you need to consider every time before signing in a particular website. And part of this process is to see if the available bonuses are ok for you. Thankfully, XM Group offers numerous promotions and special extras you should definitely check out now.
- No Deposit Bonus – The bets Forex bonus ever – the no deposit bonus – is still part of the bonus system that XM Group website provides to all of its clients. To be more specific only newly registered clients can actually benefit of it. The no deposit bonus here is 30 $ and you can use it only if you are new on the website and have just made your registration with a validated account to trade from.
- Welcome bonus – Another welcome bonus for all the newly registered clients on the XM Group website gives you up to 100% with a maximum reward of 5000 $ of your initial deposit. Unlike the previous bonus, you must make a deposit in advance and then to receive the bonus. So if you deposit 200 $ you can have in your wallet 400 $.
- Loyal Bonuses and Programs – Become a regular customer on XM Group at some point and you will be able to apply for a loyalty program. This program gives you several extras and special promotions and to reach it you will need to collect a particular amount of points, which are given during your experience on XM Group platform.
- Special Seasonal Bonuses – Do not forget to check out for special seasonal bonuses on XM Group. This Forex platform has a tradition to update its bonus system all the time, so you can receive an additional offer throughout your experience here.
- Trading bonus and Loyalty program are not eligible for clients registered under Trading Point of Financial Instruments Ltd and Trading Point of Financial Instruments UK Ltd.
XM Mobile Apps
XM is available on a number of Android and Apple devices, including Apple iPhone, Apple iPad and Android tablets and Android phones. Login is super-easy and can be done via fingerprint. You can download their apps from the Apple App Store or the Google Play Store. They are both fully functional and allow for monitoring and trading on-the-go. The desktop platforms for PC and Mac both support one-click trading.