Today, we are going to review a CFD provider called XM. We focus on fees that the company charges, trading platforms, regulations & background and much more!
XM.com is a highly regarded popular international company that is regulated in Australia by the ASIC and in Cyprus by the CySEC. The broker allows real trading from as little as $5, a free demo account is available to anyone, free of charge. The company supports 20 languages, has 16 trading platforms and offers CFDs on over 1 000 instruments that include Forex, Stocks, Commodities and Equity Indices.
|General Risk Warning: 74–89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.|
Basic information about XM
- Website address: www.XM.com
- Leverage: up to 1:30
- Instruments: CFDs – Forex, commodities, stocks, indices, ETFs
- Minimum deposit: $5
- Minimum size position: 0.01 lots
- Demo account: Yes, unlimited for free
- Methods of deposit and withdrawal: Wire Transfer, Credit and debit cards, Skrill (Moneybookers)
XM.com offers highly flexible trading platforms well-liked by almost all traders – MT4 and MT5. Both of these two popular technical analytical platforms have PC, MAC, iPhone, iPad, Android and Android Tablet versions. It is also possible to run them directly from your browser via a web-based version called WebTrader. According to XM.com, 99.35% of all trading orders are executed in less than one second, with no re-quotes and no rejections.
XM account types
XM offers 4 account types, 3 real and 1 demo. The demo account is unlimited, does not require any initial deposit and allows you to trade with play money for however long you want. 3 real account types differ in the minimum trade size & min. deposit and spreads.
a) Standard account
Can be held in USD, EUR, GBP, CHF, AUD, HUF or PLN. The average spread for EUR/USD is 1.6 pips*, for GBP/USD 2.1 pips*. There are no commissions for opening or closing trades. This account type has a minimum deposit of $5 and allows trading over 1 000 instruments on the trading platform.
b) Micro account
Is almost identical to the standard account. The only difference is in the restriction per ticket and contract size.
c) XM Zero Account
The XM Zero account has extremely low spreads. The average spread for e.g. EUR/USD or USD/JPY is only 0.1 pips*! Traders are, however, charged with a commission. This fee is $3.5 per 1 traded lot ($100,000), but because it is charged once when you open a trade and once when you close it, it is in practice $7 per 1 lot. If you do some calculations you realise that this fee is actually pretty good, given the fact that on the standard account the average spread for EUR/USD is 1.6 pips*. That means you would pay for 1 traded lot on the standard account 16 USD but on the Zero spread account only 8 USD ($1 on the spread + $7 on the commissions). Unfortunately, this account type supports trading only around 55 currency pairs, gold and silver. The minimum deposit for the zero account is $100.
*The average spreads tend to change. In normal market conditions, the spreads are usually narrower and in market uncertainty (e.g. during important news announcements), they are wider.
74–89% of retail investor accounts lose money.
Webinars – 18 languages, 7 days a week, 36 pro instructors
XM.com has a comprehensive educational centre, which also includes interactive webinars that are held by 36 professional instructors, 7 days a week. The webinars are available in 18 languages, free of charge. The webinars are for all levels of traders and cover for example:
- The basics of MT4
- How to identify trend reversal patterns
- How to work with momentum indicators/oscillators
- How to identify support and resistance points
Free Forex Signals
Live traders can access a trading signal hub that provides analysis to EUR/USD, GBP/JPY, USD/JPY, GBP/USD, EUR/JPY, AUD/USD, GOLD, US30, NIKKEI and OIL. The signals contain information about entry, take profit and stop levels and are delivered twice a day.
Background of XM.com
XM.com was founded in 2009 and is headquartered in the City of London. The company is the official sponsor of Usain Bolt, a well-known Jamaican runner and Olympic legend who has been called “the fastest man alive”. XM.com group is trusted by over 1,500,000 clients from 196 countries and is regulated:
- In Cyprus by the CySEC – license no: 120/10.
- In Australia by ASIC – license no: 443670
It is also in the register of the FCA (In the UK – reference no: 705428), Bafin (Germany), CNMV (Spain), MNB (Hungary), CONSOB (Italy), ACP (France), FIN (Finland), KNF (Poland), AFM (Netherlands), FI (Sweden).
The conclusion of our XM.com review
XM.com is a popular broker of choice for traders of all levels and we can understand why. The fees are very low, the educational centre is top-notch and real trading is possible from only $5. The only disadvantage we see is that the company no longer support cryptocurrency trading. That said, XM.com is definitely one to keep an eye on.
74–89% of retail investor accounts lose money.