Introduction to XM Forex Broker Review
The foreign exchange (forex) market is the world’s largest financial market, with over $6 trillion traded daily. With so much money exchanging hands, forex trading has become an attractive option for retail traders looking to capitalize on price movements between currencies. However, navigating the complexities of the forex market is not for the faint of heart. This is where a reliable forex broker becomes invaluable.
XM is one of the most popular forex brokers on the planet, offering trading services to clients since 2009. With over 3 million registered accounts, XM has established itself as a major player in the industry. But how does XM compare to other leading forex brokers? And most importantly, is XM a recommended broker for your forex trading needs?
This detailed review aims to provide a comprehensive look at XM and its various offerings. We will examine key factors such as regulations and safety, trading platforms, commissions and spreads, account types, customer support, and more. By the end, you should have sufficient information to determine if XM is a suitable broker to partner with for online forex trading.
An Overview of XM Group
XM Group (previously Trading Point) is a forex and CFD broker operating through two main subsidiaries:
- XM Global Limited, regulated by CySEC in Cyprus and also regulated in Belize.
- XM Global Limited, regulated by ASIC in Australia.
The company behind the XM brand has head offices in Cyprus and Australia. However, they have local offices and entities around the world and are regulated by top-tier authorities.
Some quick facts about XM:
- Founded: 2009
- Broker Type: Market Maker
- Trading Platforms: MT4, MT5, XM WebTrader
- Account Currencies: USD, EUR, JPY, CHF, GBP, AUD, CAD, ZAR, SGD
- Trading Instruments: Forex, Cryptocurrencies, Equity Indices, Precious Metals, Energies, Stocks
Next, let’s take a deeper look at the key factors to keep in mind when choosing a forex broker.
1. Regulation and Safety of Funds
The regulatory compliance and license of a forex broker should be one of the most important considerations. A reputable license ensures a broker adheres to standards of business practices and ethical operations.
XM possesses multiple regulatory registrations through its subsidiaries:
- CySEC License (License No. 120/10)
- ASIC License (License No. 443670)
- IOSCO Membership
- FCA UK License (No. 777582)
These licences guarantee XM adheres to strict rules around segregating client funds, maintaining net capital adequacy, submitting regular audit reports, and more. Under these regulations, client funds are kept in segregated accounts separate from company funds. This prevents client funds being misused in the unlikely event the broker becomes insolvent.
In summary, XM is regulated by top-tier financial authorities, giving clients assurance around the safety of funds.
2. Trading Platforms Offered
XM offers three main trading platforms:
- MT4 Platform – The industry-standard Metatrader 4 platform in both desktop and web versions.
- MT5 Platform – The newer generation Metatrader 5 platform.
- XM WebTrader – XM’s proprietary web-based platform.
For beginners, XM’s WebTrader may be the easiest platform to start with due to its simple interface. However, advanced traders generally prefer the more customizable MT4 platform.
All platforms come with useful features for analyzing the markets. This includes technical indicators, price overlays, sophisticated charting, and Expert Advisors for automated trading.
While XM cannot boast the largest platform selection, its offering of MT4/MT5 covers the most widely-used retail trading platforms in the industry. This ensures most traders already have some familiarity with the tools.
3. Mobile Trading Options
In today’s interconnected world, brokers must provide reliable mobile trading apps along with their desktop platforms.
XM makes its platforms available on mobile through:
- MT4 Mobile Apps – Android and iOS versions offered.
- MT5 Mobile Apps – Android and iOS versions.
- XM WebTrader – Browser-based, so accessible on any device.
The mobile experience retains the key features of the desktop platforms. Traders can complete their daily analysis, place trades, modify orders, use Expert Advisors, and more.
Overall, XM delivers standard mobile trading capabilities expected of any established broker.
4. Commissions and Fees
When assessing brokers, fees and commissions should factor high in your decision. Lower fees can equate to higher long-term profitability on your trades.
XM is a market maker broker offering fixed spreads. There are no commissions on normal trades, just the spread cost. Let’s break down XM’s costs:
Spreads
XM offers fixed spreads on all account types. Typical EUR/USD spreads are around 0.8 pips on the Standard Accounts. VIP accounts can qualify for spreads from 0.6 pips. Overall, these are competitive spreads in line with other top brokers.
| Account Type | Typical EUR/USD Spread |
|---|---|
| Standard | 0.8 pips |
| Micro | 1 pip |
| Ultra Low | 0.6 pips |
Commission
There are no commissions on regular forex, metals, energies, stocks, or indices trades. This is an advantage compared to ECN/STP brokers that charge commissions.
The only exceptions are trading cryptocurrencies (e.g. Bitcoin), where there is a flat $18 commission per lot, and Shares CFD trading, where commissions start from 0.1% per side.
Non-trading Fees
XM has no deposit, withdrawal, account inactivity or monthly service fees. Simple and reasonable bank wire fees are charged for deposits/withdrawals.
Compared to other retail brokers, XM does not have any hidden fees in their pricing structure.
5. XM Account Types
XM offers three main account types: Micro, Standard, and Ultra Low. The primary differences are the minimum deposit and average spread on each.<div class=”table-wrap” markdown=”block”>
| Account | Min. Deposit | Typical Spread |
|---|---|---|
| Micro | $5 | 1 pip |
| Standard | $50 | 0.8 pip |
| Ultra Low | $50 | 0.6 pip |
- Micro Accounts allow anyone to open an account with just $5 and trade mini lot sizes. This makes XM accessible to traders with limited capital.
- Standard Accounts are the regular accounts, with average spreads and full lot trading.
- Ultra Low Accounts have the tightest spreads but require a higher minimum deposit and volume.
For most traders, the Standard account offers the best combination of reasonable spreads and full trading flexibility. Overall, XM accounts cater well to traders of all skill levels and capital sizes.
XM Shares Accounts
XM also offers Shares accounts for trading global stocks and ETFs. These provide leveraged exposure up to 10:1, but also charge commissions starting from 0.1%. The commissions are quite typical for a stock CFD account.
6. XM Customer Support
Decent customer service is vital when issues inevitably arise with your brokerage account.
XM provides customer support through these contact channels:
- 24/5 Live Chat
- Email support
- Local phone numbers in over 25 countries
- Multilingual support in over 30 languages
Chat and email queries are handled promptly, usually with an agent responding within minutes. Phone support during working hours has also proven reliable.
Overall, XM’s customer service leaves a positive impression – agents are generally knowledgeable, professional, and aim to resolve issues efficiently.
7. Educational Resources
XM provides a comprehensive education portal called XM University. Resources include:
- Intro course – Explains forex basics through a structured curriculum.
- Video tutorials – Hundreds of videos explaining everything from account management to technical analysis.
- Webinars – Frequent webinars by market experts on relevant trading topics.
- Forex articles – Hundreds of trading strategy guides and topical articles.
- Glossary – Key terms clearly defined.
For beginner traders, these resources provide an excellent means to learn trading knowledge in a structured manner. Overall, XM has one of the best propriety education portals among online brokers.
8. Bonuses and Promotions
Brokers frequently offer bonuses, cash rebates, and trading contests to attract new clients. XM is no exception with a variety of ongoing promotions, including:
- 30% first deposit bonus up to $500.
- Loyalty cashback up to $10 per lot, across all trading accounts.
- Refer-a-Friend – Earn up to $60 per friend referred.
- Zero deposit accounts to practice with virtual funds.
- Trade on various global markets like Forex, Commodities, Equities, and Cryptocurrencies with zero commission on most of the financial products.
- Multiple trading platforms available, including MT4, MT5, XM WebTrader with mobile app versions.
Do note bonus terms usually include a high trading volume requirement before withdrawals are permitted. Treat bonuses as a temporary perk rather than a long-term benefit when choosing a broker.
The Trading Experience With XM
Beyond just fees and products, the actual trading experience is crucial in choosing a broker. Factors like order execution, slippage, platform performance all impact your everyday trades.
1. Order Execution Speeds
Fast execution of trades is vital to capitalize on short-term market movements. XM leverages an Equinix LD5 data center in New York for optimal connectivity speeds.
Overall, XM delivers professional-grade execution:
- Order speeds comparable to other major brokers.
- No recurring issues with freezing, slippage or requotes reported.
- Capable of accommodating scalpers and EA traders.
Execution speed is an area XM performs on par with industry standards.
2. Spreads and Liquidity
XM sources liquidity from top global banks and hedge funds to maintain competitive spreads and deep order books. The EUR/USD spread is often under 1-pip, even during off-peak trading hours.
There are occasional minor variances between the quoted and actual spread. But this slippage is typically under 0.2 pips on average. Overall, XM’s pricing transparency and liquidity profile ranks it ahead of shadier dealing-desk brokers.
3. Overall Trading Experience
Aside from spreads and execution, XM’s trading environment provides a seamless experience:
- MT4/MT5 platforms work reliably with no recurring lags or crashes.
- Bank-grade security and data encryption.
- A range of order types supported across all platforms.
- No issues consistently reported with order rejections or freezes.
User feedback indicates XM provides a stable trading environment suitable even for high-frequency EA trading. While no brokerage is perfect, XM checks the right boxes for a transparent and smooth trading experience.
Is XM Recommended For You?
Based on this detailed review across multiple criteria, here is an overall verdict on XM as a forex broker:
Pros of XM:
- Regulated across top tier jurisdictions like Australia, UK, and Cyprus.
- Trustworthy market maker model with competitive spreads.
- Multiple account types to match trading capital and needs.
- Accessible minimum deposit and micro lots for small traders.
- Strong focus on trader education through XM University.
- Advanced MT4/MT5 platforms supported.
- Smooth order execution with tight spreads.
Cons of XM:
- Smaller instrument selection compared to larger rivals.
- Deposits only accepted through wire transfers.
- Bonuses require very high trading volume before withdrawal.
Final Verdict:
XM is a veteran broker and among the most recognized retail forex brokers globally. It offers transparent market maker pricing, feature-rich platforms, and a well-regulated trading environment suitable for serious traders.
While XM may not be among the cheapest brokers, it has cultivated a trusted brand through reliable trading operations since 2009. For any trader looking for a long-term partner, XM remains an excellent choice.
So in summary – Yes, XM is a recommended forex broker based on key criteria for 2023 and beyond.
