XM is a brand name of Trading Point Holdings Ltd, which wholly owns Trading Point of Financial Instruments Pty Ltd (XM Australia) and Trading Point of Financial Instruments Ltd (XM Cyprus).
The XM group also includes Belize-registered XM Global and Trading Point of Financial Instruments UK Ltd (XM UK), a company authorized by the Financial Conduct Authority in the UK. It currently operates the Trading.com brand.
While XM Group provides the entire suite of MetaTrader platforms and over 1300 tradeable instruments, the broker delivers an average experience across the board and struggles to stack up against industry leaders.
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Many traders shop for a broker to work with and find endless reviews on the web, and not all are genuine. There are lots of websites that specialize in broker reviews and lots of talk about brokers in various forums, social media channels, and groups. While some information comes from a real trading experience of people that have used brokers’ services, some have a hidden agenda of promoting the broker(s). Promoting a forex broker is a legitimate and normal practice, as long as it’s done in a transparent way.
As of today, there are very few websites with trusted brokers’ reviews. One of the most trusted is forexpiecearmy.com, due to its security level which filters fake reviews. Anyway, use your intuition when you read XM reviews.
XM’s overall rating on the largest portal for broker reviews is good. What do XM broker’s disgruntled traders complain about?
Alleged spread manipulation is always an issue with online trading operations, as is the apparently unfounded denial of profits from traders. Some of the clients are complaining about withdrawals, which can be denied for longer periods of time, and about execution with slippage. Others are complaining their accounts were closed and profits canceled: according to section 90 of XM’s Terms and Conditions of Business, clients accounts can be “temporarily suspended for the next seven calendar days and then permanently disabled” in case of ‘suspicious’ trading activity, that can be hedging, scalping or automated trading. We hope suspicious does not mean profitable 🙂
Here are just 2 examples:
A lot of clients are complaining about closed accounts according to XM terms and conditions for suspicious trading activity, withdrawal issues, and a high slippage.
Is XM Trusted?
XM Group is not publicly traded and does not operate a bank. XM Group is authorized by two tier-1 regulators (high trust), one tier-2 regulator (average trust), and zero tier-3 regulators (low trust). XM Group is authorized by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC), and, via its parent company’s other brand Trading.com, with the Financial Conduct Authority (FCA).
FCA, CySEC and ASIC apply certain rules and requirements to regulated firms, which are not as stringent as those in the US, for instance, however they provide a good level of credibility. Besides, licensed brokers are required to keep customer funds in segregated accounts, separated from the company’s operating funds.
As a further guarantee to clients’ funds, all companies regulated in Cyprus are covered by compensation schemes as an additional guarantee to clients’ funds. All deposits with a Cyprus regulated forex broker up to EUR 20,000 per client are guaranteed by the Investor Compensation Fund.
Currently, however, Australian forex brokers are not covered by any compensation scheme. Asian traders onboarded under Belize regulator DO NOT benefit from any type of protection.
How popular XM is?
XM is not popular in EU, UK or Australia. Their main market is Asia, and surprisingly the leading market is Japan, followed by Thailand, Malaysia and India. XM is also very popular in Africa, with South Africa as leading market.
Japan’s Watchdog warned against XM.COM and other overseas brokers in the last years, as they do not have a JFSA license and can not offer their services to Japanese residents. It looks like XM has either made solicitations or offered services online in Japan and/or in Japanese. The firms on the finance bureau of Japan’s Ministry of Finance (MoF) list may have regulation in other jurisdictions, but this is not sufficient as no such passports are recognized and firms need to also obtain JFSA authorization in order to do business in Japan.
XM offers its clients three types to choose from Micro, Standard, and Zero. You may choose from commission-free trading (in Micro and Standard accounts) or tighter forex spreads, involving commission fees and higher initial deposit (Zero account). The broker offers high forex leverage levels and floating spreads. Beginners can sign up for Micro accounts with as little as $5, and micro-lots are available for trade on all accounts.
What is more, swap-free (Islamic) accounts are available, designated for clients who are not willing to earn interest for religious reasons.
Range of Markets
Through its various brands, XM offers traders a total of 1,230 CFDs across multiple asset classes, including forex, along with 100 exchange-traded securities (non-CFDs). XM does not provide traditional share dealing like Admiral Markets, XTB, and other industry leaders.
Minimum Initial Deposit
In order to open an account with XM, traders have to invest just $5. Such a low minimum amount to start forex trading is rather attractive, as typically brokers require $100 – $300 as a start.
Spreads & Commissions
This broker offers variable spreads. The typical ones on commission-free accounts amount to 1.7 pips on EUR/USD, which is above the average standard and a lot higher comparing to industry leaders like Admiral Markets. According to us, the conditions on the Zero account are better: spreads averaged 0.1 pips on EUR/USD and commission $3.5 per standard lot traded (per side). So, basically trading costs on the Zero account amount to around 0.8 pips, the commission included, which is a good offer. What is more, you can open a Zero account for just $100.
XM accepts the most commonly used Local Payment methods today including Credit/Debit Card, Neteller, Skrill, Bank Wire Transfer, etc. Their coverage is quite extensive and adds more flexibility on adding funds into the account.
XM Trading Platforms
When trading with this broker, you will be offered both MetaQuuotes’s platforms – the MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
MT4 is internationally acclaimed trading software, offering a full array of trading tools and features: more than 50 built-in technical indicators, an advanced charting package, a wide range of Forex Trading Robots (EAs), and extensive back-testing options for them. Traders can download ready-made or create their own EAs and let the program do all the work, no human emotions involved. The XM MT4 is available in all forms and shapes: desktop, web, and mobile.
What is more, XM provides MT4 MultiTerminal, which offers a practical and convenient way to manage multiple accounts simultaneously from a single interface (PAMM).
Recently MetaQuotes has been putting a stronger emphasis on the MT5: the hedging function was finally added to it and all versions of the platform have been enhanced. As a result, the number of brokers that support the platform has been on the increase. XM also followed suit and added it to its offerings.
XM does not provide notable upgrades to enhance the experience, in addition to custom indicators, like the Supreme Edition.
Besides, free Virtual Private Server (VPS) hosting is offered to both new and existing customers of XM who deposit a minimum of $5,000 and trade at least 5 round turn lots per month. VPS hosting allows the execution of orders 24 hours, 5 days a week.
XM Research and Tools
XM Group’s research offering consists mostly of the content generated by an in-house team of analysts, including daily market recaps and technical and fundamental analysis articles and videos. There is also an economic calendar powered by Investing.com, the second most popular after industry-standard forexfactory.
Trading signals: In terms of manual trading signals, XM Group offers its trading signals hub to live account holders where users can access forex signals across ten instruments generated twice daily. Meanwhile, trading signals that can be automated are currently limited to the Signals Market available within the MetaTrader platform. For social copy trading, see our ranking.
Technical analysis: XM offers Tradepedia, which provides educational Forex and CFD content including technical analysis through the use of common indicators, such as Ichimoku, MACD, RSI, Moving Averages, and Bollinger Bands.
XM Bonus Deals And Promotions
XM also offers a free VPS (virtual private server) service to help increase the speed of trades. This VPS is accessible from anywhere and available 24/7. They claim to eliminate downtime and are available across the globe.
XM are also offering commission and fee free withdrawals and deposits.
As an EU regulated brand, XM comply with the ESMA ban on bonuses, and a forex bonus is no longer available to EU traders.
XM offers through its offshore company the popular $30 no deposit bonus forex. This bonus program encourages traders to trade more with that broker. The XM 30$ bonus is a welcome bonus. Whenever there is a new client on the platform, XM will reward this new register with $30 for trading. This bonus is for first-time sign-up only.
Although XM Group offers over 1300 instruments, including 57 currency pairs, the broker still trails behind brokers who offer thousands of tradeable symbols. In addition, when compared to the other best MetaTrader brokers, XM Group fails to challenge industry leaders who offer more tools, more competitive spreads and fees, and more trading assets. Accounts temporarily suspended for the next seven calendar days and then permanently disabled due to suspicious trading activity are a concern.
GET A FOREX PRO ON YOUR SIDETo trade forex and CFDs, you need a well-regulated broker, where your money is safe, one that features a user-friendly trading platform with ultra-light execution, tight spreads, and fees. Trading with a trusted forex broker is crucial for success in international currency markets.
Here’s the Overall rankings for the best online brokers who participated in our 2021 Broker Review, sorted by Overall ranking.
XM Group is considered average-risk. XM Group is not publicly traded and does not operate a bank. XM Group is authorized by two tier-1 regulators (high trust), one tier-2 regulator (average trust), and zero tier-3 regulators (low trust).
The minimum deposit at XM is $5 with a micro-account.
1. Open a Real Account.
2. Log in to the Members Area using the credentials sent to you by email.
3. Provide the relevant identification documents to validate your account (if you have not already done so).
4. Click the button to Claim your Bonus.
No, the welcome bonus is just for trading. Profits from trading on No Deposit Trading Bonus Accounts may be withdrawn anytime, provided that the trading volume in the relevant real trading Account reaches at least 10 micro-lots ( 0,1 standard lots ), and provided that at least 5 round turn trades have been completed.