XM : FOREX BROKER REVIEW

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Writer : Jordyn Gulgowski

XM : FOREX BROKER REVIEW


πŸ’‘ Forex Brokers πŸ’‘

FOREX BROKERS




- Forex Brokers - XM Forex Brokers is one of the largest online forex and CFD brokers in the world. The broker was founded in 2009 and is regulated by multiple tier-1 regulators including the UK's Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC).


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πŸ“– XM has over 3 million registered accounts from 196 countries and processes over 1,000 trades every minute. The broker offers access to over 1000 instruments including forex, stocks, commodities, indices, and metals. XM prides itself on providing efficient trade execution, tight spreads, and a wide range of trading platforms and account types to suit all traders.

πŸ“– XM has won numerous industry awards over the years including β€œBest Forex Customer Service Broker” and β€œMost Transparent Broker”. The broker is known for its top-tier customer service, reliability and cutting-edge trading infrastructure. XM aims to provide clients with VIP trading conditions through fast execution, competitive spreads and zero commission on trades.

Trading Platforms (βž•)



πŸ“– XM provides traders with access to the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms.

πŸ“– The MT4 platform is one of the most widely used platforms in the forex trading industry. It provides advanced charting tools, a range of technical indicators, extensive backtesting capabilities, and automated trading through Expert Advisors (EAs). XM offers MT4 on desktop, web, and mobile devices. The web-based platform provides full functionality without needing to install any software. The MT4 mobile apps allow traders to analyze charts, place trades, and manage positions while on the go.

πŸ“– The newer MT5 platform offers everything available in MT4 plus some additional features like more timeframes, more pending order types, netting and hedging, market depth information, 21 timeframes, and an economic calendar. For traders looking for more advanced tools, MT5 is a great upgrade from MT4. However, MT4 remains extremely popular for its ease of use and extensive community support.

πŸ“– Overall, XM provides access to two of the best trading platforms available. Both MT4 and MT5 offer robust tools for analyzing the markets, executing trades, and managing risk. The choice between MT4 and MT5 will come down to a trader's specific needs and preferences. For most traders, especially beginners, MT4 is likely the best option to start with. But for more advanced needs, MT5 provides additional functionality.

Account Types (βž•)



πŸ“– XM offers traders three main account types to choose from - Micro, Standard, and Zero accounts. This allows traders to select an account that best fits their trading style and capital amount.

Micro Accounts (βž•)



πŸ“– The Micro account has a minimum deposit of just $5. This makes it very accessible to beginner traders or those with a smaller amount of capital to invest. Micro accounts allow trading in micro lots, where 1 lot equals 1,000 units of the base currency. The maximum leverage offered is 1:888 and spreads start from 1.7 pips on Forex pairs. This account is a good choice for newer traders.

Standard Accounts (βž•)



πŸ“– For the Standard account, the minimum deposit is $5. This type of account provides access to standard lot trading, where 1 lot is 100,000 units of the base currency. Leverage can be as high as 1:888 and spreads start at 1.2 pips for Forex trading. The Standard account is suitable for experienced traders who require higher leverage.

Zero Accounts (βž•)



πŸ“– Zero accounts have a $100 minimum deposit requirement. Spreads on Forex pairs start from 0 pips, hence the name Zero account. This account charges a small commission per trade instead of a spread. Commission starts from $2 per 100,000 traded. The Zero account is ideal for high volume traders who prefer paying commissions over spread costs.

πŸ“– So in summary, XM caters to traders of all experience levels by offering Micro, Standard and Zero account options. Traders can choose the account type that best matches their capital amount and preferences for spreads or commissions.

Spreads and Commissions (βž•)



πŸ“– One of the most important costs to consider when choosing a forex broker are the spreads and commissions charged. Spreads refer to the difference between the bid and ask price, representing the broker's fee for executing a trade. Commissions are additional flat fees charged per trade or lot traded.

πŸ“– XM typically offers competitive variable and fixed spreads starting from as low as 0 pips on certain account types and pairs. For example, the average EUR/USD spread is around 0.6 pips for Standard accounts and 0.1 pips for XM Ultra Low accounts. Spreads tend to be marginally higher during volatile market conditions.

Commission rates vary based on the XM account type: (βž•)



πŸ“– - Micro and Standard Accounts: No commission fees, spreads only. This makes XM suitable for smaller retail traders.

πŸ“– - Ultra Low and Zero Accounts: A fixed commission of $3.50 per 100k traded per side. So a round trip trade of 100k will incur a commission of $7 total. The ultra tight spreads on these accounts offset the small commission fees.

πŸ“– - Shares Accounts: Commission fees vary based on market but are quite competitive, for example 0.09% on US shares with a minimum fee of $7. Traders can compare XM stock CFD commissions [here](https://www.xm.com/assets/docs/commission-shares/XM-Commissions-On-Shares.pdf).

πŸ“– Overall, XM offers very competitive spreads and commissions across their diverse account offerings. Traders can choose between spread-only accounts or accounts with tighter spreads and nominal commissions.

Deposit and Withdrawal Methods (βž•)



πŸ“– XM offers several convenient payment methods to fund trading accounts or withdraw profits. When depositing, traders can use credit/debit cards, bank wire transfers, or e-wallets like Neteller and Skrill. The minimum deposit amount is $5 across all methods.

πŸ“– Some key things to know about XM's deposit and withdrawal options:

πŸ“– - Credit/debit cards - Visa, MasterCard, and Maestro are accepted. Deposits are immediately available but withdrawals take 1-7 days.

πŸ“– - Bank wires - Wires are processed within 24 hours but can have high fees from banks.

πŸ“– - E-wallets - Fast and easy to deposit and withdraw. Money is available instantly.

πŸ“– - Local methods - Some country-specific payment methods may be available.

πŸ“– Withdrawals at XM also have no fees. The broker processes requests quickly during business hours. Traders must withdraw to the same payment method used to deposit.

πŸ“– Overall, XM provides flexible deposit and withdrawal policies suitable for most traders globally. The variety of payment methods allows funding trading accounts conveniently.

Trading Tools (βž•)



πŸ“– XM provides traders with a robust set of trading tools and features to help them execute trades and manage their accounts. Some of the key trading tools offered by XM include:

EA Builder (βž•)



πŸ“– The EA (Expert Advisor) Builder allows traders to create, backtest, and optimize automated trading strategies without any programming skills required. Traders can choose indicators and rules to automate their trading strategy. The EA Builder makes it easy to turn manual trading systems into automated Expert Advisors.

Trading Signals (βž•)



πŸ“– XM offers trading signals directly on its platforms. These are algorithmic signals generated by Trading Central and provide traders with potential trade ideas across forex, indices, commodities, and metals. Traders can easily implement the suggested trades with one click execution. The trading signals cover major and minor currency pairs.

VPS Hosting (βž•)



πŸ“– XM offers free VPS (Virtual Private Server) hosting for traders that meet certain deposit requirements. The XM VPS service allows traders to run Expert Advisors seamlessly 24/7 without any downtime. The VPS service ensures fast trade execution and prevents re-quoting and slippage even during big news events. XM's VPS service is powered by VMWare with servers located strategically near brokers' infrastructure.

πŸ“– The robust trading tools provided by XM enable traders to automate their trading, receive actionable ideas, and maintain seamless connectivity to brokers. These tools cater to traders with varying needs, from discretionary traders to fully automated algorithmic traders. XM's trading tools stack up well compared to competitors and add significant value.

Education and Research (βž•)



πŸ“– XM provides traders with a wealth of educational resources and market analysis to help them become better traders. These include:

Webinars (βž•)



πŸ“– XM offers free webinars several times per week. These webinars cover a wide range of topics, such as technical and fundamental analysis, trading psychology, using the MT4 and MT5 platforms, and more. Many webinars feature special guest speakers who are experts in their field.

πŸ“– The webinars provide traders the opportunity to learn directly from professional forex traders and analysts. They last about an hour and traders can ask questions during the session. Recordings of past webinars are also available in XM's webinar archive.

Ebooks (βž•)



πŸ“– XM has published numerous ebooks covering forex basics, technical analysis, trading strategies, and more. These are available for free download on XM's website. The ebooks provide in-depth education on various aspects of forex trading.

πŸ“– Some popular ebook titles include "Trading the Markets", "Japanese Candlesticks Explained", and "Trading Psychology and Discipline". The ebooks are well-written and easy to understand, even for beginner traders.

Market Analysis (βž•)



πŸ“– XM offers daily technical and fundamental analyses of major forex pairs. These include trading ideas, support/resistance levels, trend analysis, economic event impact analysis, and more.

πŸ“– Analysts also provide weekly outlook videos discussing potential trading opportunities for the week ahead. Traders can use this market analysis to inform and improve their trading decisions.

πŸ“– The market analyses combine technical and fundamental factors to provide an insightful, well-rounded view of the markets. XM posts this analysis daily on its website and trading platforms.

Customer Support (βž•)



πŸ“– XM provides customer support through several channels including phone, email, and live chat.

Phone Support (βž•)



πŸ“– XM offers toll-free phone support in over 20 countries. Phone support is available 24/5. Some locations have dedicated local language support while other locations have multilingual support. Phone numbers are available on XM's website and support pages.

πŸ“– Wait times for phone support are generally short. Phone support can assist with general inquiries, technical issues, account management, and trading questions.

Email Support (βž•)



πŸ“– XM provides email support through a contact form on their website as well as directly at [email protected]. Email inquiries are generally responded to within 24 hours. The email support team can help with the same issues as the phone team.

πŸ“– Email tends to have slower response times compared to phone or live chat. But it can be useful for issues that require documentation or screenshots.

Live Chat (βž•)



πŸ“– XM offers live chat support directly through their website. The live chat is accessible during the same hours as phone support.

πŸ“– Live chat tends to have faster response times compared to email or phone. The agents can answer general questions as well as provide technical support.

πŸ“– Live chat also allows the agent to share links, resources, or documents to help address inquiries.

πŸ“– Overall, XM provides good customer support through multiple contact methods. Phone support offers quick assistance while email and live chat provide additional options. The around-the-clock availability ensures help is accessible when trading globally.

Security and Regulation (βž•)



πŸ“– XM is regulated by several top-tier authorities, providing traders peace of mind regarding the safety and security of their funds.

Licenses (βž•)



πŸ“– XM holds licenses and authorizations from regulators in several jurisdictions:

πŸ“– - Australian Securities and Investments Commission (ASIC) - License number 443670

πŸ“– - Cyprus Securities and Exchange Commission (CySEC) - License number 120/10

πŸ“– - UK Financial Conduct Authority (FCA) - Reference number 579202

πŸ“– - International Financial Services Commission (IFSC) in Belize - License number IFSC/60/354/TS/17

πŸ“– This global regulation ensures XM adheres to strict standards when it comes to protecting client funds, data security, and trading practices.

Investor Protection (βž•)



πŸ“– XM must follow regulations like maintaining segregated accounts to keep client funds separate from company funds. This prevents comingling and ensures traders will get back their money even in the unlikely event XM goes bankrupt.

πŸ“– XM also participates in investor compensation funds in various jurisdictions like the Financial Services Compensation Scheme (FSCS) in the UK which protects up to Β£85,000 per person.

πŸ“– Traders also benefit from negative balance protection which prevents losses greater than their account balance.

πŸ“– Overall, licensing from top-tier regulators provides assurance that XM has sufficient capital, treats customers fairly, upholds data protection laws, and offers recourse for complaints and disputes.

Pros and Cons (βž•)



πŸ“– XM is one of the largest forex brokers in the world, currently serving millions of clients in over 100 countries. They offer many potential advantages, but also have some downsides to consider.

Pros (βž•)



- Global presence and reputation as a trusted broker (βž•)



- Low trading costs overall (βž•)



- Multiple account options to suit different trader needs (βž•)



- User-friendly trading platforms and apps (βž•)



- Extensive educational resources for beginner traders (βž•)



- Multilingual 24/5 customer support (βž•)



Cons (βž•)



- High minimum deposit requirements for some accounts (βž•)



πŸ“– - Limited research and analysis tools compared to competitors

- Tighter spreads offered by other brokers (βž•)



- Mixed reviews of customer support responsiveness (βž•)



- Numerous trader complaints filed over the years (βž•)



πŸ“– Overall, XM can be a good fit for active forex traders seeking low costs, especially those needing multi-language support. However, traders wanting advanced trading tools or market research may be better served elsewhere. As with any broker, be sure to carefully compare pros and cons before opening an account.