Who is XM?
XM, also known as XM Group, is a well-established online brokerage firm specializing in Forex and CFD (Contract for Difference) trading.
Established in 2009, XM has grown into a global financial powerhouse with a reputation for reliability and a client base exceeding 10 million across 190+ countries.
Here is a Summary of XM Review:
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Regulation and Safety |
ASIC, CySEC, IFSC, FSCA, FCA, BaFin (Germany), CNMV (Spain), MNB (Hungary), CONSOB (Italy), ACPR (France), FIN-FSA (Finland), KNF (Poland), AFM (Netherlands) and FI (Sweden) |
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Account Types |
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Trading Platforms |
MT4, MT5, Web, XM Mobile App |
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Trading Instruments |
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Additional Features |
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Customer Support |
Email, Phone, Live Chat, WhatsApp, Line, Viber, Telegram and Help Center |
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XM Education & Research |
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Are You Ready? |
What does XM offer?
XM caters to a wide range of trader needs by offering a comprehensive suite of services and products. Here’s a breakdown of their key offerings:
- Forex Trading: As a Forex broker, XM allows you to speculate on the price movements of currency pairs. They offer a vast selection of major, minor, and exotic currency pairs to trade 24/5, providing flexibility for your trading strategies.
- Contracts for Difference (CFDs): Beyond Forex, XM offers CFD trading on various financial instruments. This allows you to speculate on the price movements of assets like stocks, indices, commodities, and even cryptocurrencies (availability may vary depending on regulations). CFDs provide a way to participate in these markets without directly owning the underlying asset.
- Multiple Account Types: XM understands that traders have different risk tolerances and experience levels. To cater to this diversity, they offer a variety of account types with distinct features:
- Standard Account: This is the most common account type, offering standard lot sizes (100,000 base currency units) suitable for both beginners and experienced traders.
- Micro Account: Ideal for beginners or those starting with smaller capital, this account type offers micro lot sizes (1,000 base currency units), allowing you to trade with a lower margin requirement.
- Ultra Low Account: This account type is focused on minimizing trading costs. It features exceptionally low spreads (the difference between the buy and sell price) but comes with no swap charges (overnight interest fees).
- Shares Account: For those interested in directly owning stocks, XM offers a Shares Account. This account type allows you to buy and sell shares of various companies listed on major stock exchanges (availability and minimum deposit requirements may apply).
- Trading Platforms: XM provides access to two popular and powerful trading platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Both platforms offer a user-friendly interface, advanced charting tools, technical indicators, and the ability to automate your trading strategies with Expert Advisors (EAs).
- Educational Resources: XM acknowledges the importance of trader education. They offer a wealth of educational resources, including webinars, seminars, video tutorials, and market analysis tools, to help traders of all levels hone their skills and knowledge.
- Customer Support: XM prioritizes client satisfaction by offering 24/5 customer support in over 30 languages. This ensures that you can get assistance whenever you need it, regardless of your location or time zone.
By providing a diverse range of services, account options, educational resources, and robust platforms, XM equips traders with the tools they need to navigate the dynamic world of Forex and CFD trading.
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XM Pros and Cons
Choosing the right Forex and CFD broker is crucial for your trading success. Here’s a breakdown of XM’s advantages and disadvantages to help you decide if it aligns with your trading needs.
Pros
1. Regulation and Safety:
A top priority! XM prioritizes client security by adhering to regulations from reputable financial authorities like ASIC, CySEC, and IFSC.
This ensures fair practices, transparency, and client fund protection.
2. Account Types for Every Trader:
XM offers a variety of account types to suit different risk tolerances and capital levels.
From beginner-friendly Micro Accounts with lower minimum deposits to Standard Accounts and Ultra Low Accounts focused on minimizing trading costs, you can find the perfect fit for your needs.
They even offer a Shares Account for those interested in directly owning stocks.
3. Powerful Trading Platforms:
XM provides access to two industry-standard platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
These platforms offer user-friendly interfaces, advanced charting tools, a vast selection of technical indicators, and the ability to automate your trading with Expert Advisors (EAs).
Additionally, XM offers web and mobile trading platforms for convenient trading on the go.
4. Low Fees & Tight Spreads:
Competitive fees are essential for maximizing your profits.
XM boasts low spreads on major currency pairs, sometimes starting from 0 pips (although keep in mind overnight financing fees may apply on some accounts).
They also have a transparent fee structure so you know exactly what costs to expect.
5. Educational Resources & Customer Support:
Investing in your knowledge is key.
XM offers a wealth of educational resources like webinars, seminars, video tutorials, and market analysis tools to help you refine your trading strategies.
On top of that, their 24/5 multilingual customer support ensures you can get assistance whenever needed.
Cons
1. Limited Platform Choice:
While MT4 and MT5 are popular platforms, some competitors might offer a wider selection of trading platforms to cater to different preferences.
2. Regional Restrictions:
It’s important to note that XM has regional restrictions.
They do not accept clients from certain countries like the USA, Israel, and Canada.
Make sure to check their eligibility requirements before opening an account.
3. No PayPal Deposits:
While XM offers various deposit methods, some users might miss the convenience of using PayPal to fund their accounts.
4. Mixed Reviews:
As with any financial service, XM has received mixed reviews online.
Some users praise their low fees and educational resources, while others might express concerns about limited platform options or customer service experiences.
Addressing Mixed Reviews:
When considering online reviews, it’s important to be discerning.
Look for recurring themes and focus on reviews from users with similar trading goals and experience levels as yours.
XM’s educational resources and customer support can be helpful tools to address any concerns you might have before opening an account.
XM Account Types
XM recognizes that traders have diverse needs and risk tolerances.
To cater to this, they offer a variety of account types, each with distinct features and benefits.
Here’s a comprehensive breakdown of each XM account type to help you choose the one that best aligns with your trading goals:
| Micro Account | Standard Account | Ultra Low Standard Account | Shares Account | |
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Base Currency Options |
USD, EUR, GBP, JPY, CHF, |
USD, EUR, GBP, JPY, CHF, |
EUR, USD, GBP, AUD, ZAR, SGD |
USD |
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Contract Size |
1 Lot = 1,000 |
1 Lot = 100,000 |
Ultra Low Standard: 1 Lot = 100,000 |
1 share |
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Leverage |
Up to 1000:1** |
Up to 1000:1** |
Up to 1000:1** |
No Leverage |
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Negative balance protection |
Present |
Present |
Present |
Present |
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Spread on all majors |
As Low as 1 Pip |
As Low as 1 Pip |
As Low as 0.6 Pips |
As per the underlying exchange |
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Commission |
Absent |
Absent |
Absent |
Present |
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Maximum open/pending orders per client |
300 Positions |
300 Positions |
300 Positions |
50 Positions |
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Minimum trade volume |
0.1 Lots (MT4) |
0.01 Lots |
Ultra Low Standard: 0.01 Lots |
1 Lot |
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Lot restriction per ticket |
100 Lots |
50 Lots |
Ultra Low Standard: 50 Lots |
Depending on each share |
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Hedging allowed |
Allowed |
Allowed |
Allowed |
Not Allowed |
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Swaps* |
Present |
Present |
Absent |
Absent |
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Islamic Account |
Optional |
Optional |
Optional |
Present |
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Minimum Deposit |
$5 |
$5 |
$5 |
$10,000 |
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Ready to try? |
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1. Micro Account
Pros:
- Ideal for Beginners: The Micro Account is a perfect entry point for new forex traders. It features a lower minimum trade size of 1,000 units (compared to 100,000 units in the Standard Account). This allows you to start with a smaller capital commitment and minimize potential losses while learning the ropes of forex trading.
- Manages Risk: With smaller trade sizes, you can experiment with different trading strategies without risking a significant portion of your capital.
- Bonus Eligible: Micro Accounts qualify for XM’s welcome bonuses (like the $30 sign-up bonus), providing additional starting capital to hone your skills.
Cons:
- Limited Trading Power: The smaller trade size might restrict your potential profits compared to accounts with higher minimum trade sizes.
- Standard Spreads: Micro Accounts have regular spreads, which are the fees you pay for entering and exiting trades. While XM offers competitive spreads, keep in mind these fees can accumulate, especially with frequent trading.
- Swap Fees Apply: If you hold positions overnight (past the daily swap time), you will incur swap fees (interest charges).
2. Standard Account
Pros:
- Most Popular Choice: The Standard Account is the most commonly chosen account type at XM. It offers a good balance between features and flexibility.
- Standard Lot Sizes: This account utilizes standard lot sizes (100,000 units), allowing you to participate in the market with more substantial trade sizes compared to the Micro Account.
- Bonus Eligible: Standard Accounts qualify for XM’s welcome bonuses, providing a boost to your starting capital.
- Wide Range of Instruments: The Standard Account grants access to a vast selection of tradable instruments, including major, minor, and exotic currency pairs, CFDs on indices, stocks, commodities, and potentially cryptocurrencies (depending on regulations).
Cons:
- Higher Minimum Deposit: The Standard Account typically requires a higher minimum deposit compared to the Micro Account.
- Standard Spreads: Similar to the Micro Account, Standard Accounts have regular spreads, which can affect your profitability, especially with frequent trading.
- Swap Fees Apply: Overnight positions in a Standard Account will incur swap fees.
Pros:
- Reduced Trading Costs: The XM Zero Account is designed for traders who prioritize minimizing trading fees. It boasts exceptionally tight spreads (potentially starting from 0 pips) on major currency pairs. This significantly reduces the cost of entering and exiting trades.
- No Commission Fees: Unlike some account types, the XM Zero Account doesn’t charge commission fees on trades.
Cons:
- Higher Minimum Deposit: The XM Zero Account often requires a higher minimum deposit compared to the Standard or Micro Accounts.
- No Bonuses: This account type is typically not eligible for XM’s welcome bonuses.
- Inactive Accounts Charged: If your XM Zero Account remains inactive for a specific period (as defined by XM), you might incur dormancy fees.
4. Shares Account
Pros:
- Direct Stock Ownership: The Shares Account allows you to directly purchase and sell shares of various companies listed on major stock exchanges. This is ideal for traders interested in building a long-term investment portfolio.
- Diversification: By incorporating stocks into your trading strategy, you can diversify your portfolio and potentially mitigate risk.
Cons:
- Higher Minimum Deposit: The Shares Account often requires a higher minimum deposit compared to forex-focused accounts.
- Commissions Apply: This account type typically charges commission fees on trades, which can add to your overall trading costs.
- Limited Leverage: Leverage, which allows you to control a larger position with a smaller deposit, might be limited on stock CFDs compared to forex trading.
5. XM Islamic accounts
XM offers swap-free Islamic accounts that comply with Sharia law principles.
These accounts eliminate swap fees (interest charges) but may have wider spreads or other restrictions.
Choosing the Right XM Account Type
The ideal XM account type depends on your individual trading goals, experience level, and risk tolerance. Here’s a quick guide to help you decide:
- Beginners: Start with the Micro Account to get comfortable with the platform and manage risk with smaller trade sizes.
- General Forex Trading: The Standard Account offers a good balance between features and flexibility for most forex traders.
- Cost-Conscious Traders: If minimizing trading fees is your top priority, consider the XM Zero Account, but be prepared for a higher minimum deposit and the absence of bonuses.
- Stock Investors: The Shares Account caters to traders interested in directly owning stocks and building a long-term investment portfolio.
By understanding the features, benefits, and drawbacks of each XM account type, you can make an informed decision that aligns with your trading goals and risk tolerance.
Remember, you can always open a new account type later if your needs evolve.
How to Sign Up for XM Forex Trading
Ready to embark on your Forex trading journey with XM?
Here’s a step-by-step guide to get you started:
1. Visit the Official XM Website:
Be cautious! Fake websites exist. Ensure you’re on the XM’s official website to avoid scams.
You can find the official XM website here: https://www.xm.com/
2. Choose Your Account Type:
XM offers a variety of account types tailored to different needs.
Consider factors like minimum deposit, leverage, and swap-free options (for Islamic accounts).
The video mentioned Standard and Micro accounts, but be sure to explore all options on XM’s website for a perfect fit.
3. Complete the Online Application:
Head to the “Open Account” section on the XM website.
Fill out the application form with your personal details, trading experience (if any), and your preferred trading platform (e.g., MetaTrader 4 or 5).
4. Verify Your Account:
XM takes security seriously.
You’ll need to upload documents like your ID or driver’s license to verify your account.
The provided video highlights using your mobile device for a simpler ID capture process.
5. Download the Trading Platform:
Once your account is set up, download the MetaTrader platform (MT4 or MT5) based on your chosen platform during registration.
The platform is available for computers and mobile devices.
6. Login to Your Trading Platform:
Launch the downloaded MetaTrader platform and log in using your account ID, server information (provided by XM during account setup), and the password you created during registration.
Congratulations! You’ve successfully signed up for an XM Forex trading account.
If you want further assisstance check out How to Open XM Demo & Real Account FAST .
XM vs. Exness
Choosing the right Forex broker is crucial for your trading success.
Here’s a summary comparison of XM and Exness to help you decide:
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Regulation and Safety |
ASIC, CySEC, IFSC, FSCA, FCA, BaFin (Germany), CNMV (Spain), MNB (Hungary), CONSOB (Italy), ACPR (France), FIN-FSA (Finland), KNF (Poland), AFM (Netherlands) and FI (Sweden) |
CySEC, FSCA, FCA, CBCS, CMA (Kenya) |
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Account Types |
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Trading Platforms |
MT4, MT5, Web, XM Mobile App |
MT4, MT5, Web, Exness Mobile App |
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Trading Instruments |
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Additional Features |
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Customer Support |
Email, Phone, Live Chat, WhatsApp, Line, Viber, Telegram and Help Center |
Email, Live Chat, Phone |
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Education & Research |
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Ready to try? |
Here’s a detailed comparison of XM and Exness to help you decide:
Regulation:
- XM: Holds multiple licenses from reputable authorities like ASIC (Australian Securities and Investments Commission) and CySEC (Cyprus Securities and Exchange Commission). The specific regulator may vary depending on your location, ensuring a level of compliance suited to your region.
- Exness: Also boasts multiple regulations, including FCA (Financial Conduct Authority) in the UK and CySEC. However, they lack the wider geographic spread of XM’s regulatory coverage.
Account Types:
- XM: Caters to diverse preferences with a wider variety of account types. From the beginner-friendly Micro Account with a $5 minimum deposit to the Shares Account for stock trading, you have flexibility in choosing what suits your capital and goals.
- Exness: Offers a more limited selection of account types like Standard, Pro, and Zero. While the $1 minimum deposit in the Standard Account might seem attractive, explore if these options align with your trading style.
Tradable Instruments:
- XM: Provides a broader selection of CFDs (Contracts for Difference) beyond Forex. You can trade stocks, indices, and commodities alongside currency pairs, allowing for portfolio diversification.
- Exness: Primarily focuses on Forex, offering a wider selection of currency pairs (107 compared to XM’s 57). However, their CFD selection is limited, excluding Cryptocurrencies entirely.
Spreads and Commissions:
- XM: Generally offers wider spreads, especially on standard accounts. However, they don’t charge commissions, making them potentially more attractive for beginners focused on keeping costs low.
- Exness: May have tighter spreads, particularly with ECN (Electronic Communication Network) Accounts. ECN accounts offer more direct market access but typically involve commission fees. Carefully evaluate the cost structure before choosing an Exness account.
Trading Platform:
- Both XM and Exness: Primarily utilize the industry-standard MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. These platforms offer powerful charting tools, automated trading (Expert Advisors), and mobile compatibility.
Customer Support:
- Both XM and Exness: Offer email and phone support. However, neither currently advertise live chat support, which some users might prefer for quicker assistance.
Additional Considerations:
- Educational Resources: XM boasts a wider range of educational resources like webinars and articles, potentially aiding beginner traders.
- Bonuses: Both brokers may offer welcome bonuses or promotions. Always check the terms and conditions before claiming any bonus.
Choosing the Right Broker:
The best broker depends on your individual needs.
Here’s a quick breakdown to help you decide:
- Choose XM if:
- You prioritize beginner-friendliness and a wider range of account types and tradable instruments.
- You prefer a broker with multiple regulatory licenses depending on your location.
- Keeping costs low and avoiding commissions is a priority.
- Choose Exness if:
- You prioritize access to a wider selection of Forex pairs (especially if you’re a dedicated Forex trader).
- Tighter spreads with ECN accounts are essential for your trading strategy (be aware of commission fees).
Remember:
This is just a comparison to get you started.
Always conduct thorough research, considering factors like your trading experience, risk tolerance, and investment goals before making a final decision.
It’s also wise to consult the official websites of XM and Exness for the latest information on regulations, fees, and account types.
XM Frequently Asked Questions (FAQs)
Thinking about trading Forex with XM?
Here are some frequently asked questions (FAQs) to address your concerns and help you get started:
General Questions:
- Is XM a safe and reliable broker? XM is a well-established broker with a strong reputation and regulation by various financial authorities.
- What are the benefits of trading with XM? XM offers competitive spreads, leverage options, a variety of account types, educational resources, and multilingual support.
- Do I need experience to trade Forex with XM? While experience is beneficial, XM offers demo accounts to practice trading with virtual funds before committing real money. They also have educational resources to help beginners.
Opening an Account:
- How do I open an XM account? You can sign up for an XM account by visiting their website (https://www.xm.com/) and clicking “Open Account.” The process involves filling out an application form, verifying your identity, and choosing your trading platform.
- What documents do I need to verify my XM account? You’ll need to upload documents like your ID (passport, driver’s license) and proof of residence (utility bill, bank statement) for verification.
- What account types does XM offer? XM offers various account types with different minimum deposits, leverage options, and features. Popular options include Standard and Micro accounts. Explore their website for a complete list and details.
Trading Platforms & Tools:
- What trading platforms does XM offer? XM primarily uses MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms for trading. Additionally, you can use their Mobile app to trade as well.
- Do I need to download any software to trade with XM? Yes, you’ll need to download and install the MetaTrader platform (MT4 or MT5) on your computer or mobile device depending on your preference.
- Does XM offer educational resources? Yes, XM provides a variety of educational resources, including webinars, articles, and video tutorials, to help you learn about Forex trading.
Deposits & Withdrawals:
- What are the deposit and withdrawal methods available with XM? XM offers various deposit and withdrawal options like credit/debit cards, bank transfers, and e-wallets. The specific options and processing times may vary depending on your location.
- Are there any fees associated with deposits or withdrawals? XM generally doesn’t charge deposit fees. However, withdrawal fees might apply depending on the chosen method. Always check the latest information on XM’s website.
Customer Support:
- How can I contact XM customer support? XM offers email, phone, WhatsApp and live chat support during business hours (GMT +2). You can find contact information on their website (https://www.xm.com/support).
Remember:
This FAQ covers general inquiries.
For specific details and the latest information, always refer to the official XM website (https://www.xm.com/).
LAST WORDS
XM stands out as a well-regulated Forex broker with a strong reputation.
Here’s a summary of its key strengths and weaknesses to help you decide if it’s the right platform for you:
Strengths:
- Multiple Regulations: XM holds licenses from reputable authorities, ensuring a layer of security for your funds.
- Variety of Account Types: XM caters to diverse needs with options for beginners (Micro Account) and more experienced traders (Shares Account).
- Educational Resources: XM offers a wealth of educational resources like webinars and articles, valuable for beginners.
- User-Friendly Platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms are industry-standard and offer powerful trading tools.
- No Commissions (Standard Account): Keeping costs low can be attractive, especially for new traders.
Weaknesses:
- Wider Spreads: XM’s spreads might be less competitive compared to some brokers, especially for advanced traders.
- Limited Live Support: The lack of live chat support might be a drawback for some users who prefer immediate assistance.
- No Crypto CFDs: If you’re interested in trading Cryptocurrencies, XM doesn’t offer them as CFDs.
Ideal XM Trader Profile:
- New or beginner Forex traders looking for a regulated platform with educational resources.
- Traders who prioritize a wider variety of account types for potential growth.
- Users comfortable with the MetaTrader 4 (MT4) or MetaTrader 5 (MT5) platforms.
- Traders focused on keeping costs low and avoiding commissions (Standard Account).
Final Note:
XM offers a solid platform for Forex trading, particularly for beginners and those seeking a variety of account options.
However, consider the wider spreads and lack of live chat support when making your decision. Always conduct further research to ensure XM aligns with your trading goals and risk tolerance.
Disclaimer
Foreign exchange (Forex) and Contract for Difference (CFD) trading carry a high level of risk and may not be suitable for all investors. Leverage can magnify both profits and losses. Before deciding to trade Forex or CFDs, you should carefully consider your investment objectives, experience level, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and may be required to deposit additional funds to maintain your positions. You should not trade Forex or CFDs with money you cannot afford to lose.
Seek independent financial advice if you have any doubts about whether Forex or CFD trading is suitable for you.
The content provided in this document is for informational purposes only and should not be considered investment advice. Past performance is not necessarily indicative of future results. XM (or any specific broker mentioned) was not endorsed or recommended.
