Trading point holding group offers online brokerage services through its subsidiaries. One of its key online trading platforms is XM brokers. It was founded in 2009 and has been a global CFD and Forex trading platform since then.
XM broker is regulated by top financial regulatory authorities. The parent company Trading Point Holding is also a registered and regulated entity. XM has third-party trading platforms MT4 and MT5. It has a limited but curated list of products and markets.
We have compiled a comprehensive review of XM products and trading platforms to help you get things going, especially if you’re just starting.
Quick Wrap up
XM is a regulated and well-established online broker. It offers several account types with a good choice of base currencies. Its spreads and commission fees are competitive. However, it needs to expand the trading instrument choice. It also does not serve the US and Canadian clients currently.
XM online trading is registered with the Trading Point of Financial Instruments Ltd. It is regulated by three financial authorities; ASIC, DFSA, and CySEC. While its parent company Trading Point Holding is regulated by the IFSC.
XM offers third-party trading platforms MT4 and MT5 with different asset classes. T does not have a built-in trading platform. The product selection is limited but well-curated which fulfills the needs of most users.
XM has embedded average costs of trading on its CFD and Forex instruments. The investor money protection is available only for EU clients. It comes with lower deposit and withdrawal fees and offers 11 base currencies to open an account.
Account opening and availability
Account opening with XM is an online and fully digital process. It takes you a few minutes to open an account, and you may get approval the same business day. It offers services to most countries and regions including the EU, Australia, and Asian countries. Some notable exceptions include the US, Canada, China, and New Zealand.
You can open a Demo account to get a hands-on experience with XM. There are several account types to choose from with XM.
|Feature||Micro Account||Standard||XM Ultra Low||Share Account|
|Contract Size||1 Lot = 1,000||1 Lot = 100,000||1 Lot = 100,000||1 Share|
|Negative Balance Protection||YES||YES||YES||YES|
|Leverage||1:1 to 1:888, 1:1 to 1:2000, 1:1 to 1:100||1:1 to 1:888, 1:1 to 1:2000, 1:1 to 1:100||1:1 to 1:888, 1:1 to 1:2000, 1:1 to 1:100||NO Leverage|
|Spread||From 1 Pip||From 1 Pip||From 0.6 Pips||Exchange Based|
Only the Share account comes with a Commission structure, while all other account types come with embedded spread costs. The share account also needs a minimum deposit of $ 10,000, while other account types require only $5 0r $ 50 only.
Products and markets
XM online trading is mainly a CFD and Forex trading platform. It offers a limited but curated list of Stock CFDs and Forex instruments. In total, it offers combined over 1,000 instruments, largely in the CFDs and Forex categories.
Here are the main trading products on offer by XM:
- Forex – 57 currency pairs
- Stock CFDs – 1240
- Stock Index CFDs – 28
- Direct Shares – 3 Stock Exchanges with around 100 selective stocks.
- Cryptocurrency – 0
- ETF, Mutual funds, Options, Futures – 0
The option to purchase stocks directly is limited to the EU clients under the IFC’s regulatory body. Other clients cannot buy the shares. The absence of Futures, Options, and Mutual Funds is also is a drawback.
XM also does not offer Cryptocurrencies, which also comes with a little drawback by the standards of an established online broker.
XM does not charge for account deposit or withdrawal fees directly. The charges come from the funds transfer method and currency conversion if your base account currency is different from the deposit instrument.
Some key points to note with the XM platform’s deposit and withdrawal Fees:
- There is no deposit fee on transactions above $ 200.
- Transactions below $200 incur a fixed fee of $ 15.
- Clients can deposit through bank transfers, e-wallets, debit cards, and credit cards without any transaction fee charged by XM.
- An account inactivity fee of $5 applies to dormant accounts for more than 12 months.
The real costs with trading online come through the spreads and overnight funding costs. The spreads and margins can vary by account type. For simplicity, we have examined the spreads and leverages on offer through a Standard Account.
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Security and regulations
XM comes with a large member following with an estimated 3.5 million users worldwide according to the company. It is an established and well-known trading platform. XM group holding is a regulated and registered entity in different countries.
XM Holding Group and its main subsidiaries are regulated as:
- XM global is regulated by the IFSC in Belize.
- Trading Point of Financial Instruments (XM trading) is regulated by ASIC in Australia.
- Trading Point of Financial Instruments (XM trading) is regulated by DFSA in the UAE.
- Trading Point of Financial Instruments (XM trading) is regulated by CySEC in Cyprus.
Key points to note with XM investor money protection and other features:
- EU clients within the jurisdiction of CySEC are protected for € 20,000 against the investor money protection regulation.
- Non-EU and other international clients under other regulators do not have any investor money protection.
- All EU and Non-EU clients have negative balance protection option covered by the XM company.
- XM is not a listed company and its financial information is not available publicly.
- XM does not hold any banking license.
XM is an established online trading platform since 2009. Its negative balance protection offers a great security feature to online traders. However, a banking license and regulation by top-tier regulators like the FCA would have added to the stature of the company.
XM trading does not have an in-house trading platform. It offers the trading experience through the famous MT4 and MT5 trading platforms. Although these are similar trading platforms and come with similar technical features, XM has divided both platforms with different trading instruments.
With an MT4 Trading platform, you can trade:
- Forex, CFDs on commodities, metals, energy, and stock indices.
- Does not support Stock CFDs.
- MT4 supports all versions of desktop, pc, smartphones, tablets, and multiterminal.
With an MT5 Trading platform, you can trade:
- Forex, CFDs on Stocks, commodities, metals, energy, and stock indices.
- MT5 supports all versions of desktop, pc, smartphones, tablets, etc.
Both trading platforms support a wide range of international languages including:
- Arabic, Bulgarian, Dutch, English, French, German, Hindi, Polish, Slovak, and Swedish.
Platform Features and Tools
MT4 and MT5 are leading trading platforms in the online trading industry. XM has introduced a wide range of trading tools, charts, analysis, and features to help you better execute the trading strategies.
Some key features of both MT4 and MT5 on offer by XM can be listed as:
- XM allows for automated trading and the use of Expert Advisors (EAs) on all of its MT4, MT5 versions.
- You can fully utilize the automation strategies within the interfaces of MT4 and MT5.
- Search feature to help you find the instrument and trade symbol of your choice.
- MQL5 offers trading signal features that do not require a separate download. You can select a large number of trade signals automatically within the MT4/MT5 interface.
- Offers dynamic profit loss, swap, stop loss, and pip value calculators.
- Offers comprehensive education and market news analysis to help formulate a better trading strategy.
- Alerts and notifications for the desktop versions of both trading platforms.
- Portfolio and fee reports for better performance analysis. You can see the full history of your commissions and fees paid.
Some key Technical Indicators
- Ribbon Indicator – best known for following the prevailing trends
- River Indicator – an all-in-one market trend indicator tool
- Ichimoku Indicator – identify resistance levels with price indicators and predictors
- Bollinger Bands – featured tool for assessing market volatility and extreme price positions
- ADX and PSAR indicators
- Analyses Indicator – real-time market trend mapping
XM offers the following Trade order types:
- Market order
- Stop-loss order
- Limit loss
- Trailing stop loss – available only on MT4
- Good till cancelled
- Good till time
Deposit and withdrawal
The deposit and withdrawal options along with the choice for base currencies affect the non-trading costs for online traders. Currency conversion and charges from a source of funding can impact the daily profits for many investors.
XM offers a great selection of 11 base currencies for its account holders. These currencies include; EUR, USD, GBP, CHF, JPY, AUD, RUB, PLN, HUF, ZAR and SGD. If you add the number of separate account opening choice, it comes with a lot of cost-saving option. You can open as many as 8 trading accounts with XM, but only 1 Shares account.
Funds Deposit Methods
You can deposit funds in any of your account types using:
- Bank Transfers
- Debit and Credit cards
- Wire transfers
Funds Withdrawal Methods
XM offers the funds withdrawal method as the source of deposits. It means you can withdraw funds through the same method you used to deposit funds into your trading account.
The minimum deposit/withdrawal amount is $5 only. Deposits are free of charge. Withdrawals above $200 are also free, below $200 withdrawals incur a $ 15 fee.
Fast and a reliable customer support is an essential part of any online trading platform. Opening account, user interface, currency selection, orders, charting, tools, and other features require prompt support to learn for many users.
XM has a reliable and fast support team. They offer customer support in around 25 international languages, which comes as a handy feature for international users.
XM provides customer support through:
- Phone Calls
- Live Chat
Customer support is available 24/5 during the weekdays for all customers.
International users want to see a 24/7 customer support tag due to geographical and time zone differences. One way of compensation for the lack of 24/7 support is to offer comprehensive educational material.
XM provides several valuable education, training, and research tools.
- Demo account for learning.
- Learning Center – XM live, Live Education, recorded education videos, webinars, forex tutorials, and seminars.
- Market Research tools – Market overview, news, XM research, trade ideas, technical summaries, XM TV, and Podcasts.
- Trading tools including indicators and signal tools.
Overall, XM offers comprehensive education and research features through its platform. It offers webinars and tutorials in different international languages as well.
Things we like
XM is an established online trading platform. Its limited selection of trading instruments is selective and curated.
Here are some key features that we liked in the XM trading platform.
- It is a regulated and established online trading platform.
- Account opening is easy, digital, and convenient.
- XM offers several account types.
- XM offers good market research, trade execution, and technical tools.
- It offers 11 base currencies and a choice of multiple trading accounts.
- Its spreads and commission structure are competitive overall.
- It comes with the familiar third-party trading platforms MT4 and MT5.
- Customer support and online sites come in several international languages supported.
Things we wish to see
XM offers simple account opening and a choice of multiple account types with a good choice of base currencies. However, there is always room for improvement.
Here are a few key features that we wish to see from XM:
- XM does not hold a banking license and is not publicly listed.
- It does not serve the US, Canada, China, and New Zealand customers.
- It offers limited trading instruments with mostly CFD and Forex trading options.
- Direct shares trading option is also for limited EU clients.
- It does not have a built-in trading platform.
- It does not allow manual configuration of leverage levels.
- Customer support can be extended to 24/7 mode.
- Account security can be enhanced with two-factor or touch ID log-in features.