XM Review

XM Review | Expert Review by a Forex Trader

Forex pairs, Energy, Indices, Soft Commodities, Metals, Cryptocurrencies & Stocks

  • FCA, CySEC & ASIC ✔
  • EUR/USD spreads from 1
  • No dealing desk execution
  • Trader Friendly grade: A
  • STP/ECN trading
  • $5 minimum deposit
  • MT4
  • Zero FX spreads account
  • 700+ Stocks CFDs
  • MT5
MT4 & MT5 • XM

XM Review

XM is a regulated broker providing a range of account types and features and offers both the MT4 and MT5 platforms. XM provides a Micro account and a Standard account, with a low minimum deposit of $5. It also offers a trading account which has spreads from zero, plus commission. This XM Zero account requires a larger minimum deposit than the Micro and Standard account. XM is regulated by the FCA in the United Kingdom, the ASIC in Australia and the CySEC in Cyprus.

  • XM is a no dealing desk broker, which means no requotes or order rejections and real time market execution. It says that 99.35% of all trades are executed in less than 1 second. XM allows scalping, hedging and EAs.
  • Awards won by XM include 'Best Forex Execution Broker' at the 2017 UK Forex Awards, 'Best FX Service Provider' at the 2017 City of London Wealth Management Awards, 'Best FX Technology Provider 2014' at the 10th China International Investment & Finance Expo, Guangzhou and the 6th Saudi Money Expo, Saudi Arabia as well as 'Fastest Broker Growing MENA' at the 6th Saudi Money Expo.

Some key features of XM

  • XM offers 3 account types (Micro, Standard and XM Zero).
  • Each account type is available for MT4 or MT5.
  • MT4 and MT5 have different markets available.
  • MT5 has more markets than MT4, as it has a wider range and includes Stocks CFDs.
  • Two of XM's account types (Micro and Standard) do not charge Forex and Metals commissions and have a low minimum deposit.
  • XM's Micro account allows for very small trade sizes.
  • One of XM's account types (XM Zero) offers low Forex spreads plus a commission charge and has a higher minimum deposit.
  • The XM Zero account is available on MT4 and MT5, but it has a reduced range of markets, compared with Micro and Standard.
  • XM permits styles such as scalping and trading with robots (and in MT4 and MT5 provides platforms for automated trading).
  • XM offers trading in Cryptocurrencies CFDs (Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash).

Which platform or account ?

  • MT5 on Micro and Standard has the most markets.
  • Micro has the smallest trade size.
  • XM Zero has the lowest Forex and Metals spreads, but there is a commission charge added.

Order execution: XM UK

XM UK matches clients orders (known as matched principal trading) with XM Cyprus, which then fills the order with a liquidity provider.

Account opening

For the Micro and Standard accounts, account currencies are: USD, EUR, GBP, CHF,‎ AUD, HUF and PLN. For the XM Zero account, account currencies are: USD and EUR.

XM demo account

XM provides a demo trading account for free which can be opened here: XM demo account.

Account types and minimum deposit

Accounts at XM are based on the size of orders and the spreads desired by the trader, rather than steps up in minimum deposits providing extra account features. The Micro and Standard accounts have a very low minimum deposit of $/£5 and the XM Zero account has a higher minimum deposit of $/£100, but still not that high compared with some other brokers.

  • The difference between the account types in terms of trades size is that 1 lot = 100,000 for the Standard and XM Zero accounts, but 1 lot = 1,000 for the Micro account. The minimum trade size for Standard and XM Zero is a micro lot (0.01). But the minimum trade size for the Micro account is 0.1. Thus the Micro account allows very small trade sizes of a 10th of a micro lot (0.001), that is it allows trading where 1 pip = 1 cent. Thus, any account allows micro lot trading, but the Micro account allows smaller sizes than this.
  • The Micro account has a maximum order size per ticket of 1 standard lot, while the Standard and XM Zero accounts have a maximum trade size per ticket of 50 standard lots.
  • The Micro and Standard accounts have higher spreads and do not charge commissions. The XM Zero account has lower spreads, but does charge competitive commissions of $3.5 per lot per side. Find out more about the XM Zero account.
  • XM offers an Islamic account. XM provides an Institutional account for those who deposit $100,000 or more.
  • XM provides trading signals twice a day to account holder. XM offers a free VPS for clients who have a minimum balance of $5000 in their account, terms and conditions apply. For clients who do not meet the conditions for a free VPS, it is available for a monthly fee of $28. XM also offers a personal account manager, video tutorials, daily technical analysis, Forex market research, a daily Forex market outlook and daily Forex webinars.

Platforms

XM offers the MT4 trading platform, on desktop, tablet or mobile. There are over 50 technical indicators available on MT4 (and more can be added), time frames from one minute to monthly and a choice of bar, candlestick and line charts.

XM also offers MT5, which has over 80 technical indicators and provides market depth and is available on desktop, tablet and mobile.

XM provides browser based web traders, based on MT4 or MT5.

Account protection

XM says that it offers negative balance protection.

Markets

  • XM provides 100+ markets on MT4 covering Forex pairs, Energy, Indices and Metals (precious metals along with copper futures). Indices and Commodities are provided as CFDs and Futures CFDs on the trading platform.
  • The XM Zero account offers Forex pairs, Gold and Silver.
  • The MT5 platform additionally offers over 700 Stock CFDs (US, EU and Australia) and Cryptocurrency CFDs.

Spreads and leverage

  • Spreads at XM are variable. For the Standard and Micro accounts spreads are from 1 for EUR/USD, 1.5 for UK 100, 0.4 for Gold and 0.05 for US Crude Oil. These spreads do not come with a commission charge. XM also offers Futures, with UK100 spreads from 4.5.
  • For the XM Zero accounts, spreads have a low of 0 for EUR/USD, with a commission charged. On the XM Zero account Gold has an average spread of 0.21.

Maximum leverage at XM (ASIC regulated) is 500:1. However all account types can also have leverage set at a maximum of 1:200 or 1:100. Leverage varies depending on the trade size. 500:1 is available up to $20,000, 200:1 is available up to $100,000 and 100:1 is available from $100,001.

Maximum leverage for XM (FCA or CySEC regulated) is .

Funding

Deposit methods include credit/debit cards, China Union Pay, Neteller, Skrill, Sofort, Przelewy24 and Bank Wire Transfer. There are no deposit fees charged by XM. The minimum withdrawal is the same as the minimum deposit (i.e. $5 for the Micro and Standard accounts and $100 for the XM Zero account). XM does not charge withdrawal fees.

Regulation

  • XM is a business name of Trading Point of Financial Instruments UK Limited. Trading Point of Financial Instruments UK Limited is incorporated in England and Wales (no. 09436004) with this registered address: Citypoint Building, 1 Ropemaker Street, London, EC2Y 9HT. Trading Point of Financial Instruments UK Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority, reference number 705428.
  • Trading Point of Financial Instruments Pty Australia, ACN 164 367 113 is regulated by the Australian Securities and Investments Commission (ASIC) with AFSL 443670.
  • Trading Point of Financial Instruments Limited is regulated by the CySEC in Cyprus, with company registration number: 251334 and CySEC licence number: 120/10.

Summary and grade

This is an accessible no dealing desk broker, with small lot sizes available and a very low minimum deposit. XM is an MT4 broker and does not provide its own custom platform apart from its web trader, but it also offers MT5. It provides competitive spreads, which can be higher than other UK based dealing desk brokers, but it also offers Forex spreads from zero, plus commission.

The focus on providing accessible trading, in terms of minimum deposit and trade sizes, as well as providing no dealing desk conditions and ECN caliber spreads, and offering both MT4 and MT5, helps give this broker a Trader Friendly grade of A.

Pluses and minuses

  • XM is a no dealing desk broker
  • It has a low deposit requirement, which is higher for its XM Zero account
  • XM offers MT4 and MT5
  • XM does not offer a particularly large number of markets, but it does have a competitive number for a no dealing desk broker
  • XM also provides Stocks CFDs on MT5
  • It provides both commission free trading, and Forex and precious metals trading with a commission charge
  • XM has 700+ Stocks CFDs and 60+ Forex pairs
  • XM allows small and larger orders, depending on the account
  • It allows scalping, hedging and EAs
  • XM is regulated by the FCA, the CySEC and the ASIC