XM
XM Review 2024
Secure, regulated, and tested by TradingCraft
Ideal for Beginners and Experienced Traders
Top Customer Support
Quick summary of XM
XM is an excellent choice for both beginners and experienced traders, thanks to its user-friendly platform and competitive spreads. It offers a wide range of trading instruments, including forex, stocks, commodities, and indices, catering to diverse investment interests. One of its standout features is the zero-fee policy on deposits and withdrawals, which adds great value compared to other brokers.
Just a heads-up: XM provides different account types and trading conditions depending on your country of residence. Always check the availability of services and applicable terms in your region!
Pros
Low Minimum Deposit
Diverse Trading Instruments
No Fees on Deposits and Withdrawals
Cons
Inactivity Fees Apply
Limited Proprietary Trading Platform
Not Available to U.S. Clients
Account opening
Score: 4.7/5
Opening an account with XM is straightforward and quick, making it easy even for those new to trading. The minimum deposit requirement is as low as $5, which is perfect for beginners or anyone wanting to start small. XM's account registration process is user-friendly, ensuring that you can start trading with minimal hassle.
Pros
Fast
User-Friendly Process
Low minimum deposit
Cons
Limited Account Types
What is the minimum deposit required to start trading with XM?
The minimum deposit at XM is $5.
Account types
Micro Account: For those new to trading, a micro account can be a fantastic entry point. Micro accounts allow traders to work with micro lots—where one micro lot is 1,000 units of the base currency—making it possible to trade with a smaller financial commitment.
Ultra Low Standard Account: This is the go-to choice for most traders. With regular lot sizes and no commission fees, it's well-suited for anyone looking to take their trading to the next level without complicating things.
XM Zero Account: The Ultra Low Account offers tighter spreads starting from as low as 0 pips. The commission for the XM Zero Account is $3.5 per $100,000 traded.
XM also offers a demo account that is perfect for beginners or anyone looking to test out trading strategies without any financial risk. The demo allows you to explore the platform, understand its features, and practice trading in a risk-free environment. It's a great way to get comfortable with XM before committing real money.
XM Trading account types
How to open your account
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Visit the XM Website: Go to XM via the button below, and click on the “Open an Account” button, usually found at the top of the page.
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Fill in Your Personal Details: You'll be asked to enter some basic personal information like your name, country of residence, email address, and phone number. Make sure to use accurate information to avoid any issues during verification.
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Choose Your Account Type: XM offers different account types. Select the account type that best suits your needs and your trading experience level.
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Set Trading Preferences: Choose your preferred platform (MT4 or MT5) and account currency (e.g., USD, EUR).
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Create a Password: You'll need to create a password to access your account. Make sure it’s strong to protect your trading activities.
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Verify Your Identity: Upload documents to verify your identity and address. Typically, this means uploading a government-issued ID (e.g., passport or driver’s license) and a utility bill or bank statement for address verification. This is an essential step to comply with regulatory requirements.
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Deposit Funds: Once your account is verified, you can deposit funds to start trading. Choose from several payment options like bank transfers, credit cards, or e-wallets. Remember, the minimum deposit is $5 for Micro and Standard accounts.
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Start Trading: After funding your account, you’re ready to begin trading! You can access the trading platform (MT4 or MT5) and explore the market opportunities available.
XM trading - How to open an account
Fees
Score: 4,3/5
XM offers a transparent fee structure that is competitive across its various account types. With no deposit or withdrawal fees for most methods, XM aims to keep trading costs minimal for users.
However, traders should be mindful of possible commissions on specific account types, as well as inactivity fees and currency conversion charges, to ensure a clear understanding of all potential costs involved.
Pros
Zero Deposit/Withdrawal Fees
No Hidden Commissions
Cons
Inactivity fee
Spread Costs May Vary
Additional information about fees
XM’s fee structure is designed to be as transparent as possible, which makes it easier for traders to anticipate costs. Below are some additional details regarding XM's fee policies:
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Spreads and Types: XM offers competitive variable spreads, updated three times per second to reflect real-time market conditions. With no trading restrictions during news events and fractional pip pricing, XM ensures precise pricing and tighter spreads across all account types
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Currency Conversion Fees: When depositing or withdrawing funds in a currency that is different from your account’s base currency, a conversion fee will apply. This can add extra cost depending on the exchange rate margins set by XM's liquidity providers.
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Inactivity Fees: XM charges an inactivity fee of $15 if your trading account remains inactive for 90 days. After that, a further $10 per month will be charged until activity resumes or the account balance reaches zero. It’s advisable to keep your account active to avoid these charges. If your available balance is zero, no fees will be charged.
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Overnight Swap Fees: Swaps at XM are calculated based on institutional rates and apply to positions held overnight, with rates varying by instrument. For forex and metals, swaps use the tomorrow-next day rate plus a small markup, while for stocks and indices, they rely on local interbank rates. XM also offers a swap-free Ultra Low account for specific instruments.
Overall, XM offers competitive fees and has a transparent approach. However, it’s important for traders to understand the variable nature of spreads and any extra charges that might apply, such as currency conversion or inactivity fees. For more detailed information, it's always recommended to visit XM’s official fee page here.
XM Spreads / Conditions
XM provides a detailed Spreads and Conditions page where you can view all trading costs for various instruments.
Check the details directly on XM's Spreads and Conditions page.
Safety
Score: 4/5
XM prioritizes client safety by adhering to strict regulatory requirements across multiple regions. They are regulated by well-known authorities.
XM also ensures client funds are held in segregated accounts, providing an additional layer of protection. This strong regulatory framework helps safeguard clients' investments and enhances overall trust.
Pros
Strong regulation
Segregated client accounts
Cons
Investor protection not universal.
Not publicly listed
XM’s Regulatory Status
XM is a well-regulated broker, offering multiple levels of security and investor protection across various regions. The company operates under the oversight of trusted financial authorities, ensuring compliance and reliability. XM is primarily regulated by the Cyprus Securities and Exchange Commission (CySEC) for European clients, providing investor protection in line with EU financial standards. The Australian Securities and Investments Commission (ASIC) oversees XM’s operations in Australia, ensuring transparency and client safety for traders in the region.
Additionally, XM is regulated by the International Financial Services Commission (IFSC) of Belize, providing oversight for international clients.
Is XM a safe place to trade?
To ensure a brokerage is secure, we recommend verifying some key factors:
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Investor Protection: XM offers client fund segregation, ensuring that your money is kept separate from the company's operational funds. XM clients are eligible for compensation schemes like the Investor Compensation Fund (ICF), which provides a safety net in case of broker insolvency.
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Regulation: XM is well-regulated by major financial authorities.
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Established Reputation: Founded in 2009, XM has built a solid reputation and is trusted by over 5 million traders worldwide across 190 countries. Their long track record, regulatory compliance, and dedication to transparency make XM a secure option for traders of all experience levels.
More on Investor Protection
Investor protection at XM depends on the regulatory body under which the client is registered, which varies based on their country of residence. XM operates under multiple entities regulated by different authorities, each providing different levels of protection:
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EU Clients (CySEC): Clients under XM's CySEC-regulated entity are covered by the Investor Compensation Fund (ICF), which provides protection up to €20,000 if the broker becomes insolvent.
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Australia (ASIC): For clients registered under XM's Australian entity (regulated by ASIC), there is no mandatory compensation scheme similar to the ICF or FSCS. However, the company does provide negative balance protection for retail clients.
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Other Regions: For clients from other countries, protection may depend on local regulations or may not be as extensive as in the EU or Australia. XM offers private insurance for some of its clients, providing additional layers of protection, but this varies.
You can read more about XM's investor protection measures here.
Two-Factor Authentication (2FA)
XM offers two-factor authentication (2FA) for enhanced account security. This means users need to enter a verification code, usually sent to their mobile device, along with their regular login details. This extra layer helps prevent unauthorized access to trading accounts, making them more secure.
Encryption and Data Protection
XM utilizes industry-standard encryption techniques, such as SSL (Secure Socket Layer) technology, to safeguard all transactions and communications between clients and the platform. This ensures that personal data, payment details, and trading activities are protected from third-party threats.
Additionally, XM complies with data privacy regulations, including GDPR for EU clients, which mandates rigorous protection of client information and imposes strict handling protocols. Their infrastructure includes robust firewalls and regular security audits to further protect sensitive data against cyber threats and unauthorized breaches.
Safety Considerations for XM Users
XM has strong encryption and data protection, it’s important for users to enable features like two-factor authentication to further secure their accounts. Always ensure you understand the specific regulatory protections available based on your jurisdiction before trading.
Deposit and withdrawal
Score: 4.8/5
Depositing funds with XM is simple, with support for various methods, including credit/debit cards, e-wallets, and bank transfers, providing flexibility for traders. XM does not charge any fees on deposits or withdrawals. The minimum deposit or withdrawal amount for any account type is $5. For international bank wires, XM covers all fees imposed by their bank for transactions of $200 or more (or the equivalent in your currency). XM also allows transactions in multiple base currencies, helping to reduce conversion costs for some users.
Pros
Flexible base currency options
Multiple deposit options
Low minimum deposit amount
Cons
Currency conversion costs may apply
Account Currencies and Flexibility
XM supports a variety of base currencies for trading accounts, allowing users to choose a currency that suits them best. Available currencies include major options like USD, EUR, GBP, AUD, and several others, providing flexibility for clients and potentially minimizing conversion costs. Selecting the right base currency helps reduce unnecessary conversion fees when depositing or withdrawing funds, especially if your local currency matches one of XM's supported options.
XM Deposits
Available Payment Methods and fees
XM offers a range of deposit and withdrawal options, allowing traders flexibility and ease of transactions. Here’s a quick overview of the available methods and requirements:
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Payment Methods: Major credit/debit cards (Visa, MasterCard), bank transfers, e-wallets (Skrill og Neteller), and local payment solutions depending on the country.
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Accessibility: Minimum deposit starts at just $5, making XM accessible to new traders.
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Processing Times: E-wallets and cards are typically processed instantly, while bank transfers may take longer.
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Fees: Most deposits are free, and using base currencies reduces conversion fees.
XM withdrawals
To withdraw funds from XM, clients must meet specific requirements, starting with the completion of the account verification process. XM adheres to regulatory requirements to ensure the safety of funds and compliance with anti-money laundering laws.
Additionally, XM requires that withdrawals be made to the same method used for deposits, which is part of their anti-fraud measures.
Minimum Withdrawal Requirements
When withdrawing funds from XM, it's important to be aware of the minimum requirements that apply to different payment methods. Here's a quick breakdown to help you understand what's needed based on the withdrawal method you choose:
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Credit/Debit Cards: Minimum withdrawal amount is $5.
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E-Wallets (Skrill, Neteller, etc.): Minimum withdrawal is $5.
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Bank Transfers: For international bank transfers of $200 or more, XM covers all fees from its bank.
XM Mobile app
Score: 4.1/5
The XM mobile app provides users with the ability to trade on the go, available for both iOS and Android platforms. The app offers access to over 1,000 trading instruments, including forex, commodities, indices, and stocks, along with features like advanced charting tools and live market data. Users can manage their accounts, execute trades from charts, and receive real-time updates.
Despite its comprehensive feature set, the app may lack certain security measures by default, such as mandatory two-factor authentication, which is a consideration for users concerned with account protection.
Pros
Safe
User-Friendly
Cons
No face ID or bio log-in
Our test was conducted on an iPhone 15 running iOS.
Supported languages also include English, Malay, Simplified Chinese, Traditional Chinese, Greek, Hungarian, Russian, Indonesian, French, Italian, Swedish, German, Polish, Arabic, Spanish, Korean, Portuguese, Vietnamese, Thai, Filipino, Dutch, Czech, Bengali, Urdu, Turkish, Hindi, and Uzbek.
Design and experience
The XM mobile app offers a practical and streamlined design aimed at providing a straightforward trading experience. It is available on both Android and iOS platforms. The app incorporates key functionalities for both account management and trading.
The app features a straightforward layout, with an emphasis on ease of use. Key trading actions are accessible from the main interface, and the app offers multi-language support in over 25 languages, catering to an international audience. Basic account functions like deposits, withdrawals, and real-time balance updates are integrated.
Visually, the XM mobile app presents a professional and minimalist design, focusing on essential information without overwhelming the user. The layout allows for easy navigation, reducing unnecessary visual clutter and prioritizing usability.
Features and Functionality
The mobile app includes features like charting tools, live price updates, and support for multiple order types, which are important for effective trading. Traders have access to technical indicators and can execute trades directly from the chart interface. However, compared to more comprehensive desktop trading platforms, the mobile app has limited advanced analytical features.
Customization options within the app are somewhat limited compared to other trading platforms. Users can adjust language preferences and some chart settings, but broader customization options for the user interface are not available.
User Experience and Responsiveness
The app provides a generally responsive experience, with efficient navigation between different features and minimal lag.
Security
The XM mobile app incorporate essential security features such as Secure Socket Layer (SSL) encryption, which protects data exchanged between users and XM's servers. This standard encryption method helps ensure that sensitive data, like login credentials and financial information, is safeguarded against unauthorized access.
XM offers two-factor authentication (2FA) for enhanced account security. Users can easily enable 2FA through the Members Area on the website or app, adding an additional layer of protection to their trading accounts.
However, the XM mobile app does lack other enhanced features such as biometric logins or customizable security alerts, which are increasingly common in modern mobile trading platforms. These features could further strengthen security and user confidence, especially for traders who prioritize more advanced safeguards.
Account Management
The XM mobile app offers convenient account management features, allowing traders to easily handle essential tasks such as depositing funds, withdrawing earnings, and adjusting personal details directly from their devices. Users can access their account statements, manage leverage settings, and perform internal transfers between accounts within the app.
XM - Mobile trading platform
Trading With or Without MetaTrader Integration
Using the XM App Without MT4/MT5
If you choose to use the XM mobile app without integrating MetaTrader, you still have access to essential trading functionalities. The XM app provides traders with access to over 1,000 trading instruments, including forex, commodities, indices, and stocks. Through the app, you can manage your account, make deposits and withdrawals, and monitor real-time market updates. This is well-suited for beginners or traders looking for a straightforward trading experience without needing advanced charting tools or complex analysis features.
Using the XM App With MT4/MT5
For traders seeking more advanced features, XM offers compatibility with MT4 and MT5 platforms. MetaTrader integration provides enhanced trading capabilities, including detailed charting, customizable indicators, Expert Advisors (EAs) for automated trading, and more. By downloading the MT4 or MT5 mobile application and linking it with your XM account, you gain access to more powerful analytical tools and flexibility in your trading strategy. MT4 is often preferred for forex trading and simplicity, while MT5 includes additional tools for more in-depth analysis and broader market access.
74.12% of retail investor accounts lose money when trading CFDs with this provider.
Web trading platform
Score: 3.9/5
The XM WebTrader platform is a flexible, browser-based trading solution compatible with both PC and Mac, allowing traders to access markets without downloading software. It supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5) and includes a range of trading tools like advanced charting, technical indicators, and order management options.
Pros
User-Friendly Interface
Multi-Language Support
Cons
No Integrated 2FA
The web platform is accessible in the following languages: English, Chinese (Simplified and Traditional), German, Japanese, Portuguese, Russian, and Spanish. More languages are expected to be added in the future, offering increased accessibility for non-English-speaking traders
Design and experience
The XM web platform is intuitive in its use, with a layout that facilitates easy navigation. The platform features a customizable dashboard where traders can organize charts and information based on their preferences, ensuring that relevant data is always easily accessible.
XM - Web trading platform
XM’s WebTrader, accessible directly from the browser, mirrors the features of its MetaTrader 4 and MetaTrader 5 desktop versions, offering advanced charting, real-time trading, and order customization without downloads. The desktop platforms, MetaTrader 4 and MetaTrader 5, provide powerful tools for experienced traders, including automated trading, multiple timeframes, and customizable indicators, ideal for those needing extensive control.
Security
The XM web trading platform includes robust security features to protect user information and transactions. All data transmitted through the platform is encrypted to ensure safety, and the platform also requires secure logins to access trading accounts.
Advantages and Drawbacks
While the XM web platform offers a smooth, browser-based trading experience, there are some limitations. It is ideal for traders who want flexibility and ease of access without being tied to a particular device. However, the reliance on a stable internet connection and the lack of comprehensive security features, like 2FA across the entire platform, may be viewed as drawbacks by some users. Overall, the web trading platform is a solid choice for traders looking for a convenient and functional way to engage with financial markets directly from their browsers.
Product Selection on XM
Score: 3/5
XM offers a wide variety of CFD instruments, providing options for both beginner and experienced traders seeking diversification. The range includes popular assets across various markets:
Thematic Indices
XM has recently introduced Thematic Indices, allowing traders to invest in specific themes or sectors, such as technology, green energy, or AI. These indices track the performance of companies within chosen themes, providing a focused approach to market trends.
Forex
XM provides access to over 55 currency pairs, including majors, minors, and exotics. This wide selection offers traders ample opportunities to trade both highly liquid pairs and those with more volatility.
Commodities
Traders can access a range of commodities, such as metals (like gold and silver), agricultural products, and energy commodities. This provides the chance to diversify into different asset classes beyond currencies.
Indices
XM offers CFDs on a variety of global indices, allowing users to trade price movements on major stock markets around the world, such as the FTSE 100 or the S&P 500.
Cryptocurrencies
XM includes popular cryptocurrencies in its product offerings. Traders can buy and sell crypto CFDs on assets like Bitcoin, Ethereum, and Ripple, which makes it easy to trade price movements without owning the underlying coins.
Disclaimer: Investing in cryptocurrencies comes with a very high risk, and there is no guarantee of protection if things go wrong. Be fully prepared to lose all the money you invest, as cryptocurrency investments typically do not have the same safeguards as other financial products.
Stocks
The platform also enables users to trade CFDs on individual stocks from major markets. XM provides access to shares from the US, Europe, and Asia, giving a wide geographic spread and exposure to different sectors.
The diversity in product offerings at XM allows traders to implement various strategies, from focusing on forex to experimenting with stocks, indices, and cryptocurrencies. However, it's important to note that these are primarily traded as CFDs, meaning users are not owning the underlying assets but instead speculating on their price movements. This comes with its own set of benefits and risks, including the use of leverage, which can amplify both gains and losses.
Flexible Leverage at XM:
Balancing Potential and Risk
XM offers leverage from 2:1 up to 30:1, depending on the instrument. Margin requirements stay consistent without changes overnight or during weekends. The platform allows real-time monitoring of risk exposure, and XM’s margin call and stop-out features help traders manage risk effectively by notifying them when equity levels are low. XM emphasizes responsible leverage use to balance potential returns and risks.
Some of this content has been translated and may not be suitable for all recipients. Additionally, certain products may be restricted in your region. Please note that some information might have changed or could be inaccurate. Updates may have occurred since the review was written. Always verify the latest details before making decisions.
FAQ
Is XM a Safe Broker for Trading?
Yes, XM is considered a safe broker for trading due to its regulatory status and the security measures it has in place. XM is regulated by multiple reputable authorities, including the International Financial Services Commission (IFSC) and the Cyprus Securities and Exchange Commission (CySEC). These regulators enforce strict compliance standards on brokers, ensuring transparency and fairness in trading practices.
XM also offers negative balance protection, ensuring that traders don’t lose more than their deposited funds, which adds another layer of security. Additionally, XM provides encrypted communication channels, secure fund storage, and two-factor authentication for select features, contributing to a safer trading experience.
What Trading Platforms Does XM Offer?
XM provides traders with access to MetaTrader 4 (MT4) and MetaTrader 5 (MT5), two of the most popular trading platforms globally. Both platforms are available for desktop, web, and mobile use, offering flexibility based on traders' needs.
MT4 is ideal for those primarily focused on forex trading, while MT5 supports additional asset classes, including stocks and futures, and comes with more advanced charting tools and analysis features. XM has integrated its own features into these platforms, such as access to XM trading signals and one-click trading, making the experience convenient and streamlined.
How Does Leverage Work at XM?
Leverage at XM allows traders to magnify their potential returns by controlling larger positions with a smaller amount of capital. XM offers leverage ranging from 1:1 to 30:1, depending on the asset class and the regulatory body governing the trader's account. Leverage can amplify both profits and losses, making it a double-edged sword.
XM also offers negative balance protection, ensuring that clients do not lose more money than they have deposited. Margin requirements at XM remain stable, even overnight or during weekends, which helps prevent traders from experiencing unexpected changes in leverage levels. It is crucial for traders to understand the risks associated with high leverage and to use it appropriately
Does XM provide educational resources for traders?
Yes, XM offers a comprehensive range of educational materials to support traders of all experience levels. This includes live webinars, tutorials, video courses, and articles on trading strategies, market analysis, and risk management.
The webinars are available in multiple languages and cover a wide range of topics, from the basics of forex trading to advanced technical analysis techniques. XM also provides access to an economic calendar and daily market updates to help traders stay informed about key market events and news that could impact their trading decisions.