XM Broker Review
Table of contents
XM has grown into a global broker empire with clients in over 190 countries. Although not regulated by the FSCA, they tick the box for safety and security with 3 major regulators. Due to their popularity, they own a big share of the South African market, despite being an international Forex broker. Established in 2009, this ensures credibility and assures traders’ that they are not a fly by night broker.
XM is a market maker which indicates a conflict of interest between trader and broker. They are, however, known for proving fair trading conditions. Traders have an option of a wide variety of account currencies which include ZAR. They offer a $30 no deposit bonus, allowing traders to trial their brokerage risk-free. This is an excellent alternative to a demo account.
Read our complete XM review before making your decision.
Pros / Cons
- Low minimum deposit
- Bitcoin deposit option
- No FSCA regulation
- No local offices
- No demo account
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A forex broker such as XM can’t become as large as they are, without gaining licenses from multiple regulatory bodies.
Trading under the XM brand name, the forex broker’s regulatory licenses are as follows:
- ASIC (Australian Securities and Investment Commission): 443670
- IFSC (Belize International Financial Services Commission): IFSC/60/354/TS/18
- CySEC (Cyprus Securities and Exchange Commission): 120/10.
It’s also worth noting when discussing XM’s regulation, they’re the parent company who owns the Trading.com brand and domain.
Trading.com was launched in 2019 as an FCA regulated option for European residents only.
XM is run using a business model known as a market maker. There are numerous positives for clients that choose to trade with a market maker, such as lower barriers to entry for new traders.
Things like minimum deposit, minimum trade size and a strict negative balance protection on all XM accounts couldn’t be as they are using an ECN business model.
We highlight some of the benefits of trading with a market maker such as XM in the sub-sections below.
The execution speeds that XM are able to deliver for clients are excellent.
In terms of quantity and speed of executions, the XM website lists the following stats:
- 99.35% of all trades executed in under 1 second.
- 99.35% of all orders executed under 1 second.
- 100% execution rate with no rejection of orders.
As you can see, these numbers are truly world class.
XM also explicitly states that they don’t use the MT4 virtual dealer plugin which forex brokers are able to use to delay quotes and take advantage of clients in this way.
Forex Trading Education
XM has recently updated the research and education section of their website and it has become one of the most comprehensive we’ve seen across all of our forex broker reviews.
Most of the content within XM’s forex trading education section is locked for account holders only, but if you’re looking to test it out then you’re able to with a demo account.
Here is a list of education and analysis content, available to clients:
- Market News and research: Find out what’s happening from a fundamental analysis point of view.
- Technical analysis: Both in-depth and summarised technical analysis articles to help you make trading decisions.
- Videos: A full back catalogue of trading and educational videos for you to browse in your own time.
- Trade ideas: A constant stream of trade ideas from AutoChartist as they appear.
- XM live: Live education rooms designed to give you real-time access to teachers and trading peers.
- Forex webinars: Live video presentations by analysts and educators on specific trading topics.
- Platform tutorials: Learn how to take full advantage of the MT4 and MT5 trading platforms.
- Forex seminars: As a global leader, XM runs in-person seminars in various locations throughout the world. Find one in South Africa near you.
As you’d expect from a forex broker with such a global presence, XM’s customer support is comprehensive and multilingual.
XM’s customer service executives are available 24/5 via various contact mediums to offer support whenever clients require help.
If your question can’t be answered within XM’s FAQ page, then you’re able to contact a local office through any of the following ways.
- LiveChat: Available Monday – Friday, 24/5
- Email: Available Monday – Friday, 24/5
- Phone: Available Monday – Friday, 24/5
- Social Media: Available Monday – Sunday, 24/7
Deposits and Withdrawals
XM has numerous account funding methods which we’ve outlined below.
- Credit/Debit Card: Visa and Mastercard deposits, as well as other major brands, are available instantly.
- Bank Wire Transfer: Bank wire transfers are slower than card deposits, but safer.
- Skrill: The popular e-wallet Skrill (including Skrill 1 Tap), is supported.
- Neteller: Skrill and Neteller seem to go hand in hand and at XM, it’s no different.
- Trustly: The Swedish payment provider, popular with European clients, but probably less relevant for South African forex traders.
As with all reputable brokers, the same method used to fund your XM account, must also be used to withdraw. This is to meet regulatory requirements around anti-money laundering laws and are non-negotiable.
XM have a range of account currencies to choose from including EUR, USD or ZAR, thus giving clients a much wider choice than most other brokers that South African forex traders have access to.
At XM the minimum deposit depends on account type and details can be found later in this XM review.
As a market maker, XM has both pros and cons when it comes to the trading conditions that they offer to their client base.
We go over the main sub-sections of XM’s trading conditions below.
As a primarily MT4 based forex broker, XM offers demo accounts to all current and potential clients.
They have one of the most simple, no fuss account setup pages that we’ve seen and the lack of hoops you have to jump through in order to start trading immediately, is a definite plus.
New traders can access an XM MT4 demo account with just a few basic details and immediately start trading on real market conditions with up to $100,000 USD in virtual funds.
It’s also worth noting that unlike some other MT4 forex brokers, XM doesn’t have a 30 day expiry set on their demos so you can trade for as long as you need on the one demo account.
As a CySEC regulated forex broker, XM’s European clients are restricted to leverage of 30:1.
Clients from the rest of the world, including South African forex traders, are able to access leverage of up to 500:1.
One of the positives of XM is the ability to have total control over the leverage on your account.
This means that if you want to trade with 1:1, then you’re able to do it with a click of a button in your client back-end.
If you want to take full advantage of the 500:1 leverage on offer by XM, then you can flick it back up.
Spreads and Lot Sizes
While XM advertise on their website that they have tight spreads as low as 0.6 pips on EUR/USD, we couldn’t verify this fact.
All live forex spread tracking tools we used to review XM’s spreads delivered results much higher.
While this number may have been during particular times of peak liquidity, just don’t expect to be trading on spreads this thin every day.
XM does operate on variable spreads, running on an A/B book market maker model for managing their client’s risk.
Average Spreads on Majors
- EUR/USD: 1.7
- GBP/USD: 2.2
- USD/JPY: 1.7
- AUD/USD: 1.9
XM has multiple account types that new traders can choose between.
We’ve listed XM’s account types and key stats in the table below:
|Micro Account||Standard Account||XM Ultra Low Account|
|Account Currency Options||USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB||USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB||USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB|
|Contract Size||1 Lot = 1,000||1 Lot = 100,000||Standard Ultra: 1 Lot = 100,000 / Micro Ultra: 1 Lot = 1,000|
|Leverage||Up to 1:500||Up to 1:500||Up to 1:500|
|Negative Balance Protection||Yes||Yes||Yes|
|Spreads From||1 pip||1 pip||0.6 pips|
|Minimum Trade Volume||0.01 Lots MT4 / 0.1 Lots MT5||0.01 Lots||Standard Ultra: 0.01 Lots / Micro Ultra: 0.1 Lots|
|Islamic Account Option||Yes||Yes||Yes|
|Minimum Deposit||USD 5||USD 5||USD 50|
XM is known as a specialist MetaTrader forex broker.
This means they haven’t focused on developing their own proprietary trading platform and instead chosen to offer their clients the industry leading suite from MetaQuotes.
XM offers clients the choice of 2 trading platforms, across all account types we’ve featured above:
- MetaTrader 4 (MT4): The classic and the best trading platform for beginners.
- MetaTrader 5 (MT5): The next-generation trading platform.
Both platforms are accessible from a single login across desktop, web and mobile devices.
You’re also able to switch between real and demo logins, whenever you need to switch between a live and testing environment.
IB Affiliate Program
XM’s affiliate program is called XM Partners and is held in high regard by IBs and affiliates alike.
With partners spread across 100 different countries, South African forex affiliates won’t be disappointed by what they’re offered if they choose XM as their partner broker.
Here are some of the advantages of being an XM partner:
- Trusted forex broker: XM is a globally recognised brand, instantly building trust with your marketing list.
- Timely payments: Commissions earned are trackable and paid fast.
- State-of-the-art internal partner system: Understand which of your marketing campaigns work and optimise to suit with real-time tracking.
- Personal account managers: Each partner is assigned an account manager in the languages they need, available 24/5.
XM Review Summary
To summarise our complete XM review, we recommend South African traders first open a demo account before choosing a forex broker.
The XM mission statement talks about the company being dedicated to delivering superior services in CFD and forex trading and we can see that they’re continuously making progress toward achieving this goal.
With their seamless demo account opening process, XM allows traders to easily try out the broker’s trading platform under real market conditions.
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