XM has a relatively high and strong level of regulation. It belongs to the Trading Point of Financial Instruments UK Ltd, a UK company. company, but XM is formally based in Cyprus and Australia, two popular and well-known jurisdictions that are known to be friendly to the operation of Forex / CFD brokers. Customers resident outside Australia can open accounts located and regulated in Cyprus, while Australian residents will have their accounts located in Australia.
XM is formally regulated in Cyprus and Australia. In Cyprus, the Financial Instruments Ltd Trading Point is licensed by the Cypriot Regulator CySEC under license number 120/10. In Australia, Financial Instruments Pty Ltd’s Trading Point received an Australian financial services license from ASIC (number 443670). In addition to these regulatory licenses, XM has secured foreign passport registrations with regulators in the following countries:
• United Kingdom – Financial Conduct Authority
• Germany – BaFIN
• Spain – CNMV
• Hungary – MNB
• Italy – CONSOB
• France – ACP
• Finland – FIN
• Poland – KNF
• Netherlands – AFM
• Sweden – FI
XM’s regulations in Cyprus offer its customers a degree of investor protection there, as CySEC maintains an Investor Compensation Fund, with powers to grant depositors who lose their accounts due to the failure of a regulated company in value € 20,000.
XM has been in operation as a broker since 2009, offering a relatively long history. Typically, it can be said that the longer a broker is in the market, the more reputable he must be. This means that it can be said that XM has a substantial history and an established reputation for safety as a brand it wants to protect. Like all regulated Forex / CFD brokers in European Union member states, such as Cyprus, XM customers enjoy negative balance protection, regardless of whether they have deposited in Australia or Cyprus. This means that it is impossible for any customer to lose more than the amount they have deposited with XM. The “final risk” of an extremely large and sudden market movement, amplified by any leverage used, is fully borne by XM under this European Union regulation.
The issue of fees charged by a broker should always be paramount in the mind of anyone looking for the right Forex / CFD broker. When considering the issue, all costs of doing business must be considered carefully. We can divide all fees and costs into two separate subcategories: fees incurred when opening and closing deals, such as spreads, commissions and overnight financing; and incidental fees, such as charges imposed by the broker due to account inactivity or transaction fees applied to deposits or withdrawals. The trading fee element will be by far the most important, so this should be examined first.
Looking at trading rates first, we start with spreads and commissions, which should be grouped together as a round trip cost that covers the opening and closing of a trade. Since XM offers a few different types of accounts that charge slightly different fees, we will judge the trading fees for your most common type of account, the Standard Account. The average round-trip cost of trading the EUR / USD Forex reference currency pair is 1.7 pips. However, this drops to just 0.8 pips on the XM Zero account, which is an ECN account. Average round-trip costs for trading individual stocks, light commodities and stock indices are average for the sector. Finally, data on the average round-trip cost of trading the precious metals Gold and Silver show that it never falls below 30 cents per gold and 3 cents per silver.
It can be said that these levels of spreads and commissions are competitive for depositors of relatively low amounts. The minimum deposit required to open a standard account is just $ 5, so for merchants who deposit only a few hundred dollars or less, these fees are sure to be competitive. However, traders with significantly larger amounts to deposit, like a few thousand dollars, could find more competitive alternative brokerage options in the industry, unless they wanted to open an XM Zero account at extremely competitive rates.
The next thing to consider as part of the fee structure is overnight financing, which is usually a net fee applied to every trading day, open at 5 pm New York time, although it can sometimes be a payment. These rates are, at least theoretically, based on the tom / next rates applied in the intrabank market, but retail brokers tend to offer relatively unfavorable rates that can make trading positions or balance sheets expensive, especially when buying currencies with very high interest rates. low or negative. The XMs are open and transparent about overnight financing rates, which is a good sign. XM states that its rates are based on the banking market’s tom / next rates plus the XM margin. Comparing the rates offered at the time of the review to the industry average, overnight financing rates are relatively competitive, meaning that XM can be a good option for traders who want to hold positions open for periods longer than a day or two .
We closed this section on fees by looking at incidental transaction fees, which occur through non-commercial processes. XM charges an account downtime fee of $ 5 per month after 90 days. XM does not charge additional fees for deposits or withdrawals, except when less than US $ 200 is moved by bank transfer. In general, this is not a bad deal, unless you are making a very low deposit and do not want to trade for a period that may be longer than a month. Our conclusion about fees: XM fees are competitive for merchants making deposits under $ 1,000 in all types of accounts, while the ECM-style XM Zero account is competitive at any deposit level.
XM offers all its trading clients the option of using the two most popular retail Forex / CFD trading platforms in the world. Customers with any type of account can choose to use MetaTrader 4 or MetaTrader 5. Both platforms are known, intuitive and easy to understand, and have been around for many years. Both platforms are also very popular in the retail community. Some traders may want a deeper choice of the platform provided here, but the vast majority of traders who consider themselves to be XM customers will find the appropriate choice appropriate.
XM offers a variety of MT4 and MT5 platforms for Windows and Mac operating systems, which offer merchants unrestricted access to all platforms. In addition, a variety of MT4 and MT5 Mobile applications for Apple and Android operating systems allows access to an account with full account functionality from a smartphone or tablet.
XM was a pioneer in offering an MT4 platform with the quality of trading execution in mind. It offers the following benefits: More than 100 instruments, including Forex, CFDs and futures, 1 login access to 8 platforms, spreads as low as 1 pip, full EA (Expert Advisor) functionality, 1-click trading, technical analysis tools with 50 indicators and charts tools and 3 different types of charts. Deals can be traded with the MT4 platform on the Mac and also on mobile devices, like Androids and iPhones, iPads and tablets.
XM WebTrader 4
XM WebTrader 4 is accessible for PC and Mac without downloading. Traders can choose from more than 100 instruments, including Forex, CFDs and futures, 1 single login access to 8 platforms, spreads as low as 1 pip, 1 click trading and built-in news features.
Multiterminal XM MT4
The Multiterminal XM MT4 platform is the ideal tool for traders who want to handle multiple MT4 accounts from a single terminal with ease with 1 login and master password. It supports up to 128 trading accounts, has several types of orders, three allocation methods and provides real-time management and execution.
When using MetaTrader 5, traders can trade directly with liquidity providers using ECN and STP technology. It offers a variety of extra features that analyze the market and help traders to trade the way they want. In addition to all the features of the MT4 platform, the MT5 platform also offers different types of orders, such as ‘Fill or Kill’ and ‘Immediate or Cancel’, in addition to technical and fundamental analysis using more than 79 analytical tools.
Deposit and withdrawal options
“XM exclusively covers all transfer fees for deposits and withdrawals for payments made via Neteller, Moneybookers and all major credit cards, including Visa, Electron, MasterCard, Maestro and China UnionPay, with instant account financing. ”
XM offers a wide variety of deposit and withdrawal options. XM customers enjoy zero fees on deposits and withdrawals made via Neteller, Moneybookers and all major credit cards, including Visa, Electron, MasterCard, Maestro and China UnionPay. According to the broker’s website, funds are reflected in clients’ accounts instantly.
Deposits and withdrawals can be made directly in the XM member’s area section, accessible on the broker’s website, as shown below:
XM’s fund transaction is also managed in a customer-oriented manner, with traders having multiple payment options supported in all countries. Several payment options, including those used frequently, XM also took care of the customers’ comfort and introduced a local bank transfer option, which allows the account to be financed through local banks and currencies without conversion costs.
• Credit cards
• Bank transfer and local bank transfer (available in some regions)
• Electronic wallets, including Neteller, Moneybookers Skrill, Western Union, MoneyGram, WebMoney, China UnionPay, SOFORT, iDEAL, etc.
The minimum deposit amount for XM is just $ 5, allowing you to open a micro account or a standard account, if you want to trade with a zero account, the minimum deposit is also competitive, requiring $ 100 as a start. However, the amount varies according to the payment method chosen and the validation status of the trading account. However, you can read and find all the necessary information in the members area.
With regard to trading accounts, XM has made a choice between four main types of accounts – Micro, Standard, XM Ultra Low Account and Accounts Accounts, while all have customized conditions. However, XM entities, depending on jurisdiction rules, apply slightly different offers, as the availability of accounts depends on the customer’s country of residence. Likewise, the CY branch offers three types of account, excluding ultra low accounts, some conditions may also vary.
In general, XM has simplified, since you can choose to prefer the trading style through an account to trade a smaller size using micro lots or to trade the normal size with the Standard account based only on the spread. Finally, Zero Accounts will offer another rate strategy in which the spread is an interbank quote starting at 0 pips and the trading fee will be deducted by a commission per lot.
Therefore, check the applicable proposal before logging in. See also the details below.
If you are a South African trader – yes, you can open an XM account, as XM has applied for registration with the local regulator since 2016 and even after attracting South African traders. Thus, truly global traders can enjoy the excellent customer-oriented resources that XM offers and participate in all commercial benefits with relative ease.
As for the base currencies of the account, XM also added extra flexibility in this regard. When choosing the XM account, you can select the base currency of your choice from the large supported selection. This range even includes the South African Rand (ZAR) or the Singapore Dollar (SGD), in addition to other global currencies. Therefore, XM registration allows for transparency in the cash transaction, while you avoid conversion rates for deposits and withdrawals by selecting your preferred base rate.
XM Mobile Apps
XM is available on several Android and Apple devices, including Apple iPhone, Apple iPad and Android tablets and Android phones. Login is super easy and can be done via fingerprint. You can download your apps from the Apple App Store or the Google Play Store. Both are fully functional and allow monitoring and trading on the go. Desktop platforms for PC and Mac support one-click trading.
If you enjoyed this article you can also check Betika review.