XM Review

Is XM a Trusted Forex Broker?

In this review, we will be focusing on the XM broker and evaluating its trustworthiness through examination of a number of factors, including fund safety, fees, trading platforms, customer support and more. Despite being a relative newcomer in the online trading sphere, XM has experienced rapid growth in a short period of time. Before opening an XM trading account, it is recommended that you take a close look at the below review, which focuses on everything you need to know about the broker before you get started.

Introduction to XM: A Brief Overview

XM is a multi-regulated forex and CFD broker that has experienced impressive growth over a short period of time, employing around 900 staff across its global offices. Despite only being founded in 2019, the broker serves more than 10 million clients in over 190 countries worldwide.

XM traders can begin trading with a low minimum deposit of $5 on a wide range of trading instruments, with fee-free deposits and withdrawals and a good range of educational content catering to all experience levels. However, account availability varies depending on the region, there is no round-the-clock customer support and no proprietary platform for traders to access the markets from.

Is XM Safe?

Licencing and Regulation

XM is fully licensed and regulated by multiple top-tier authorities across multiple jurisdictions, which include ASIC (Australia), CySEC (Cyprus) and the FSA (Seychelles). Details about the exact licencing arrangements can be found on the XM website. While such regulatory oversight is important, traders should remember that opening an account with a regulated broker does not eliminate the risks associated with trading. It is also worth noting that due to regulation the trading experience can vary significantly between regions, so this should be established prior to opening an XM account.

Security of Funds & Protection

XM has a number of measures in place to ensure the security and protection of clients’ funds. It states that all client and operational funds are kept in accounts with reputable EU banks, while trader funds are held in segregated accounts, separate from the company’s own accounts. Under its CySEC licence, the broker is a member of the Investor Compensation Fund (ICF) and it also adheres to the Markets in Financial Instruments Directive (MiFID).

The XM Trading Platforms

XM provides traders with access to the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms across desktop and mobile devices, with both platforms available on a range of Android and iOS devices. The broker also offers the MT4 and MT5 WebTrader option. However, while users can download a dedicated XM mobile app, it is somewhat surprising that the broker does not offer its own proprietary trading platform.

XM’s Trading Assets

XM offers access to more than 1,000 tradable instruments, including more than 50 forex pairs and CFDs on CFDs on stock indices, commodities, metals, energies and more than 600 stocks. There is also 24/7 cryptocurrency CFD trading on Bitcoin, Ethereum, Ripple, Cardano and many more digital assets. However, the option to trade crypto is only available in certain selected regions, meaning that some traders will not be able to benefit from trading on this asset class.

Trading Conditions at XM

Spreads & Commissions

XM is transparent about the fees and charges incurred when trading on its platforms. Spreads are variable, depending on the account type, starting from 0.0 pips (Zero), 0.6 pips (Ultra Low), 1.0 pips (Micro and Standard). The broker states that it doesn’t charge any commissions or extra fees, adding that clients only pay the spread.

Leverage

The leverage rate given by XM depends on the total equity in a trader’s account. For total equity of between $5 and $40,000, the broker XM offers flexible leverage from 1:1 up to 1:1000, whereas leverage of up to 1:500 is offered on accounts with $40,001 to $80,000 total equity. Meanwhile, there is leverage up to 1:200 for accounts with total equity between the amounts of $80,001 and $200,000. Lastly, for accounts with equity totalling above $200,001, traders get leverage up to 1:100.

XM’s Customer Support

Unlike many of its competitors, XM does not offer 24/7 customer support, which may come as a disappointment to many prospective traders. If clients wish to get in touch with an agent they can contact the broker by phone or email Monday to Friday. There is also a live chat option featuring a virtual assistant, but this can only guide users through a limited range of preset topics.

The FXTS Verdict: Is XM a Trusted Broker?

In conclusion, XM is a prominent player in the online trading world, with strong brand recognition around the globe. It is a multi-regulated broker with a good range of trading instruments, vast educational resources and a solid range of measures protecting clients’ funds.

That said, XM’s wider product offering could be classed as disappointing by some traders who require 24/7 customer support and prefer a wider choice of trading platforms. The lack of a proprietary XM platform is notable by its absence. While the broker may be a decent option for beginners starting out on their trading journeys, there are arguably better alternative options out there for more experienced operators.