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XM Broker Review 2023

Joshua Otwori
Author

XM Broker

The XM Group comprises four regulated online brokers, each with its distinct establishment date and regulatory authority. Trading Point of Financial Instruments Ltd, founded in 2009, falls under the regulation of the Cyprus Securities and Exchange Commission (CySEC 120/10). Trading Point of Financial Instruments Pty Ltd, established in 2015, is regulated by the Australian Securities and Investments Commission (ASIC 443670). XM Global Limited, founded in 2017, operates under the regulation of the Financial Services Commission in Belize (000261/397). Trading Point MENA Limited, established in 2019, is regulated by the Dubai Financial Services Authority (DFSA reference no. F003484). The XM Group provides a diverse array of over 1000 financial instruments available for trading on the MT4/MT5 platforms and the XM app. These include Forex Trading, CFDs on Crypto*, Stocks, Commodities, Equity Indices, Precious Metals and Energies, all backed by reliable and swift order execution catering to retail traders. Notably, the Group boasts an impressive statistic: over 99% of its trades are executed in less than 1 second, serving a global clientele exceeding 10 million individuals in more than 25 languages across 190 countries.

With stringent regulation, XM maintains its stellar reputation by offering top-notch security measures, comprehensive support, streamlined account funding and withdrawals, and competitive low fees. Such a combination positions XM as an intelligent choice for trading initiation or advancement.

*It is important to note that CFDs on cryptocurrencies are not available to all entities within the XM Group.

Regulated By

  • Cyprus Securities and Exchange Commission (CySEC)
  • Australian Securities and Investments Commission (ASIC)
  • Financial Services Commission (FSC)
  • Dubai Financial Services Authority (DFSA)

Pros

  • Wide variety of assets
  • High leverage up to 1000:1 (this leverage is not available to all the entities of the Group)
  • Live chat and other accessible support in over 25 languages
  • No commissions
  • Non-expiring demo account
  • Lightning-fast execution
  • MetaTrader and XM Mobile App platforms available
  • Round-the clock 24/7 Customer service (24/5 for the EU-regulated entity)
  • Customer service during weekend hours
  • Education for beginners and live analysis
  • Negative Balance Protection
Cons
  • Limited product portfolio
  • Average forex and stock index CFD fees
  • ETF trading not supported
  • Funding with PayPal unavailable

XM summary

Snapshot of key data
 
🗺 Country of regulationCyprus, Australia, Belize, United Arab Emirates
🛡️ Negative balance protectionYes
💰 Apple CFD fee$6.6
💰 S&P 500 CFD spread0.5
💰 Inactivity fee chargedYes
💰 Withdrawal fee$0
💰 Minimum deposit$5
💵 Available base currenciesUSD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD
💵 Conversion fee of deposits in non-base currencyExchange rate received from liquidity providers plus a mark-up. We used the EURUSD trading fees for the calculation.
💳 Deposit with bank cardAvailable
👛 With electronic walletAvailable
🕖 Time to open an account1 day
🎮 Demo account providedYes
🛍️ Products offeredForex, CFD, Real stocks for clients under Belize (FSC)
 

FEES

XM offers free withdrawal costs in addition to reduced trading expenses for CFDs. However, there is a price for inactivity, and the fees for stock indexes and FX are merely ordinary.

XM fees snapshot
AssetsFee levelFee terms
S&P 500 CFDLowThe spread includes fees; during busy trading hours, the average spread cost is 0.45 points.
Europe 50 CFDLowThe spread includes fees; during peak trading hours, the average spread cost is 1.5 points.
EURUSDLowThe fees for Standard, Micro, and Ultra-Low accounts are incorporated into the spread. The Standard account typically incurs an average spread cost of 0.1 pips during peak trading hours. Conversely, XM Zero accounts involve a $3.5 commission per lot per trade alongside a modest spread cost.
Inactivity feeLowAfter one year of inactivity, there is a one-time $15 maintenance fee, and if the account continues to remain inactive, a subsequent monthly fee of $5 will be applied.

XM trading fees

XM trading fees are low.

XM offers a variety of account types with varying pricing structures. The Standard, Micro, and Ultra Low accounts have higher spreads without any commission, while the XM Zero account features lower spreads but includes a commission. The fee comparisons presented below are based on calculations made using the Standard account.

Our analysts have conducted a comprehensive evaluation by comparing XM‘s fees with those of FxPro and Admirals (Admiral Markets), both selected as similar brokers. This selection is grounded in objective criteria such as product offerings, client profiles, fee structures, and more. Additionally, we have compiled a detailed overview of alternatives to XM.

Real stock and ETF fees

XM has generally low real stock and ETF trading fees (commissions).

XM stock and ETF commission of a $2,000 trade
 
FxPro
Admirals (Admiral Markets)
US stock

$1.0

 

 

$0.0

 
UK stock

$9.0

 

 

$0.0

 
German stock

$5.0

 

 

$0.0

 

CFD fees

XM has generally low CFD trading fees.

XM CFD spreads and commissions
 
FxPro
Admirals (Admiral Markets)
S&P 500 CFD spread
0.51.00.4
Euro Stoxx 50 CFD spread
1.52.11.3
Apple CFD fees per $2,000 trade

$2.1

 

$2.8

 

$1.1

 
Vodafone CFD fees per $2,000 trade

$4.8

 

$1.9

 

$1.6

 

Forex fees

XM forex fees are low.

XM forex spreads and commissions
 
FxPro
Admirals (Admiral Markets)
FX commission per lot
$3.50 commission per lot per trade on XM Zero accountsNo commission is charged$3.00 commission per lot per trade
EURUSD spread
0.11.40.1
GBPUSD spread
0.21.60.5
AUDUSD spread
0.42.00.6
USDJPY spread
0.11.50.4
USDCAD spread
0.52.01.2

Non-trading fees

XM has low non-trading fees.

XM does not charge an account fee, and in the majority of cases, there is no withdrawal fee. Nevertheless, bank withdrawals under $200 are liable to a $15 fee. Following one year of account inactivity, a one-time maintenance fee of $15 is levied, and if the account remains inactive, a monthly fee of $5 is applied.

 
XM non-trading fees
 
FxPro
Admirals (Admiral Markets)
Account fee

No

 

No

 

No

 
Inactivity fee

Yes

 

Yes

 

Yes

 
Deposit fee

$0

 

$0

 

$0

 
Withdrawal fee

$0

 

$0

 

$0

 

How we ranked fees

We classified XM’s costs as low, moderate, or high based on how they compared to every broker we looked at.

There are two basic types of broker fees:

  • When engaging in trading activities, you might incur trading fees, encompassing spreads, commissions, financing rates, and conversion costs.
  • Non-trading expenses are considered as withdrawal costs or inactivity costs that are not directly associated with trading.

Account opening

XM’s account creation process is straightforward and free of hassle. You may find yourself using your account on the very same day. It’s a swift, fully digital experience with a low minimum deposit requirement.
 
 

XM welcomes customers from various parts of the globe. However, there are a few exceptions, including restrictions on opening accounts from the USA, Canada, China, Japan, New Zealand, or Israel.

What is the minimum deposit at XM?

The required XM minimum deposit is $5.

This is for the Micro and Standard account types. For the XM Zero account the minimum deposit is $100

Account types

XM offers many account types, which differ in pricing, base currencies, minimum deposit and contract size.

XM account types
 MicroStandardXM ZeroShares Account
Client countryEEA
Australia
Other countries
EEA
Australia
Other countries
EAA

Non-EEA and

non-Australian clients

PricingNo commission, but higher spread

No commission, but higher

spread

There is a commission,

but the spread is very low

Market spread and

commission

Base currenciesUSD, EUR, GBP, JPY, CHF,‎
AUD, HUF, PLN, SGD, ZAR
USD, EUR, GBP, JPY, CHF,‎
AUD, HUF, PLN, SGD, ZAR
USD, EUR, JPYUSD
Minimum deposit$5$5$5$10,000
Contract size1 Lot = 1,0001 Lot = 100,0001 Lot = 100,0001 share

Islamic or swap-free accounts are offered as well. These accounts incur a flat commission when holding leveraged positions overnight, in contrast to percentage-based financing rates. Please note that XM does not provide corporate accounts. If you register under a non-European entity, you won’t qualify for European client protection measures.

How to open your account

XM account opening is fully digital, fast and straightforward. Completing the online application form takes just 20 minutes. Our account underwent verification on the very same day.
You can select many languages other than English:

XM account open languages
ArabicBengaliChineseCzechDutch
FilipinoFrenchGermanGreekHungarian
IndonesianItalianKoreanMalayPolish
PortugueseRussianSpanishSwedishThai
Vietnamese    

To open an account at XM, you have to go through these steps:

  1. Fill in your name, country of residence, email address and telephone number.
  2. Select the trading platform (MT4 or MT5) and account type.
  3. Add your personal information, such as your date of birth and address.
  4. Select the base currency and the size of the leverage.
  5. Provide your financial information and answer questions about your financial knowledge.
  6. Verify your identity and residency. You can upload a copy of your national ID, passport or driver’s license to verify your identity, while utility bills and bank statements are accepted as proof of residency.
xm register

Deposit and withdrawal

XM‘s provides swift and cost-effective deposit and withdrawal procedures, offering you a variety of options.

Account base currencies

At XM, you can choose from the following 10 base currencies:

XM base currencies
USDEURGBPJPY
CHFAUDHUFPLN
RUBSGD

This selection is average compared to competing brokers.

Base currencies at XM vs similar brokers
 
FxPro
Admirals (Admiral Markets)
Number of base currencies
10810

Why is this significant? There are two key reasons. First, if you fund your trading account in the same currency as your bank account or trade assets in the same currency as your trading account base currency, you can avoid incurring a conversion fee.

A practical approach to reducing currency conversion fees involves opening a multi-currency bank account with a digital bank. Typically, these banks provide accounts in various currencies, featuring favorable currency exchange rates, along with free or economical international bank transfers. The account setup process is quick and can be completed within minutes using your smartphone.

Deposit fees and options

XM charges no deposit fees.

Deposit funds using bank transfers and credit/debit cards. Additionally, clients onboarded under IFSC can utilize the SticPay electronic wallet for deposits.

XM deposit options
 
FxPro
Admirals (Admiral Markets)
Bank transfer
YesYesYes
Credit/debit card
YesYesYes
Electronic wallets
YesYesYes

A bank transfer may require several business days, whereas credit/debit card payments are instant. It is essential to deposit money only from accounts in your name.

XM offers a variety of deposit options, including electronic wallets like Skrill and Neteller for withdrawals, and Sticpay for deposits (under FSC).

xm-review-deposit-2

XM review – Deposit and withdrawal – Deposit

XM withdrawal fees and options

XM charges no withdrawal fees. The only exception is bank (wire) transfers below $200, which incur a $15 fee.

XM withdrawal fees and options
 
FxPro
Admirals (Admiral Markets)
Bank transfer
YesYesYes
Credit/debit card
YesYesYes
Electronic wallets
YesYesYes
Withdrawal fee

$0

 

$0

 

$0

 

You can only withdraw money to accounts in your name.

What is the duration for withdrawing money from XM? We conducted a test on debit card withdrawal, and it was processed within 2 business days.

For credit/debit cards and electronic wallets (Skrill, Neteller), the withdrawal amount is limited to the deposited amount using the same instrument. Consequently, trading profits can only be withdrawn via bank transfer.

How do you withdraw money from XM?

  • Log in to your account
  • Go to ‘Withdraw Funds’
  • Select the withdrawal method
  • Enter the withdrawal amount

Trading platforms

Web trading platform

XM‘s web trading platform is powered by MetaTrader, offering high levels of customization and a transparent fee report. However, the platform falls short in terms of lacking price alerts, and its design is outdated.

Pros
  • Clear fee report
  • Good customizability (for charts, workspace)
  • Order confirmation
Cons
  • No two-step (safer) login
  • No price alerts
  • Poor design
XM platforms to choose from
Trading platformScoreAvailable
Web2.8starsYes
Mobile3.8starsYes
Desktop3.4starsYes

XM does not possess its proprietary trading platform; rather, it utilizes third-party platforms, namely MetaTrader 4 and MetaTrader 5. These platforms exhibit similarities in functionality and design. A notable distinction is that stock CFDs can only be traded on MetaTrader 5, not on MetaTrader 4. Our testing focused on the more widely used MetaTrader 4 platform.

xm-review-web-trading-platform-2

XM review – Web trading platform

Login and security

XM provides only a one-step login.Implementing two-step authentication would enhance security, and prioritizing the addition of this feature should be a top consideration for any company looking to enhance its security measures.

Search functions

The search functions are OK.

The assets are categorized into different groups. Nevertheless, we failed to include the standard search feature that allows you to manually enter an asset’s name.

xm-review-web-trading-platform-search-2

XM review – Web trading platform – Search

 
 

 

Placing orders

You can use the following order types:

  • Market
  • Limit
  • Stop

Trailing Stop is available only in the MT4 desktop platform.

There are also order time limits you can use:

  • Good ’til canceled (GTC)
  • Good ’til time (GTT)
XM review - Web trading platform - Order panel

XM review – Web trading platform – Order panel

Alerts and notifications

You cannot set price alerts and notifications on the XM web trading platform.

This feature is available only on the desktop trading platform.

Portfolio and fee reports

XM has clear fee reports.

Your profit-loss balance and paid commissions are easily visible, accessible under the ‘History’ tab. However, we encountered difficulty in finding a method to download these reports.

Mobile trading platform

XM’s mobile trading platform, provided by MetaTrader 4, is exceptional. It is a well-designed and user-friendly platform featuring a robust search function. Nonetheless, Touch/Face ID login is not supported.
Pros
  • User-friendly
  • Good search function
  • Price alerts
Cons
  • No two-step (safer) login
  • No Touch/Face ID login

XM provides mobile trading platforms in the form of MetaTrader 4 and MetaTrader 5. In line with our testing on the web trading platform, we examined the functionality of the MetaTrader 4 platform on mobile. 

Android.

Upon downloading the MT4 mobile trading platform, it’s essential to connect to the appropriate XM server. Adjusting the language on Android devices can be somewhat challenging, as it requires switching the default language of your mobile.

The mobile trading platform is accessible in various languages.

XM available languages on mobile platform
ArabicChinese (Simplified)Chinese (Traditional)CzechEnglish
FrenchGermanGreekHindiIndonesian
ItalianJapaneseKoreanPolishPortuguese
Portuguese (Brazil)RussianSpanishThaiTurkish
UkrainianVietnamese

Examine and sense

XM boasts an excellent mobile trading platform; we particularly appreciated its design and user-friendly interface. It is straightforward to locate all the features it offers.

XM review - Mobile trading platform

XM review – Mobile trading platform

Login and security

XM‘s mobile platform currently offers a one-step login. Implementing a two-step authentication process would enhance security, and incorporating this feature should be a priority on any company’s agenda for security improvements.

However, a two-step account login is required to access deposit and withdrawal functions.

Biometric authentication, such as logging in using biometrics, is not supported. Offering this feature would enhance convenience.

Search functions

The search functions are good.

You can search by typing the name of the product or by navigating the category folders.

XM review - Mobile trading platform - Search

XM review – Mobile trading platform – Search

Placing orders

You can use all the basic order types. However, you won’t find more sophisticated order types such as ‘one-cancels-the-other’.

You can use the following order types on the mobile trading platform:

  • Market
  • Limit
  • Stop

To get a better understanding of these terms, read this overview of order types.

There are also order time limits you can use:

  • Good ’til canceled (GTC)
  • Good ’til time (GTT)
XM review - Mobile trading platform - Order panel

XM review – Mobile trading platform – Order panel

Alerts and notifications

Setting alerts and notifications on the XM mobile platform is not currently available.

However, you can configure notifications on your mobile device through the desktop trading platform. Streamlining this process to enable setting notifications directly on the mobile trading platform would enhance convenience.

Desktop trading platform

XM‘s MetaTrader 4 desktop platform closely resembles the web trading platform in both design and functionality. A significant distinction, however, is the capability to set price alerts exclusively on the desktop trading platform.
Pros
  • Clear fee report
  • Good customizability (for charts, workspace)
  • Price alerts
Cons
  • No two-step (safer) login
  • Outdated design
  • Search function could be better

For desktop trading, MetaTrader 4 and 5 platforms are available; our testing focused on MetaTrader 4.
It shares identical design, language options, order types, search functions, and features for portfolio and fee reports with the web trading platform. The desktop trading platform lacks two-step authentication; nevertheless, XM facilitates a two-step account login procedure on the website for depositing and withdrawing funds.
The primary distinction lies in the desktop trading platform’s capability to configure alerts and notifications, including mobile push and email notifications. To activate these features, you need to input your email address and mobile MetaQuotes ID, which is accessible in the MT4 app’s settings. You can add this information by navigating to ‘Tools’ and selecting ‘Options’.

XM review - Desktop trading platform

XM review – Desktop trading platform

Markets and products

CFDs and forex are accessible to all clients, while real stocks are exclusively offered to clients under the FSC-regulated entity. However, popular asset classes such as ETFs, bonds, or options are not available.
XM product selection
 
FxPro
Admirals (Admiral Markets)
Currency pairs (#)
557050
Stock index CFDs (#)
312940
Stock CFDs (#)
1,3001,7003,445
Commodity CFDs (#)
182528

Disclaimer:CFDs are intricate instruments and carry a substantial risk of losing money rapidly due to leverage. 75.33% of retail investor accounts incur losses when trading CFDs with this provider. It’s crucial to assess whether you comprehend the workings of CFDs and if you can financially withstand the high risk of losing your money.

You are unable to adjust the leverage levels of the products, posing a limitation. The ability to manually change leverage is a valuable feature, especially when seeking to mitigate trade risks. Exercise caution in forex and CFD trading, as the preset leverage levels may be elevated.

Real stocks and ETFs

XM offers real stocks exclusively to clients onboarded under XM‘s IFSC-regulated entity. Stock trading is available through the Shares Account, marking a significant addition compared to its competitors.

XM stock and ETF selection
 
FxPro
Admirals (Admiral Markets)
Stock markets (#)
311

Research

XM provides an extensive array of technical tools and an excellent economic calendar. However, it lacks the provision of fundamental data on assets.
Pros
  • Trading ideas
  • Quality news flow
  • User-friendly
Cons
  • No fundamental data available

Trading ideas

XM provides trading ideas.

These can be found under the ‘Trade Ideas’ page along with a list of different assets and how well they’ve performed recently.

XM review - Research - Recommendations

XM review – Research – Recommendations

Fundamental data

XM offers fundamental data.

Charting

XM‘s charting tools are satisfactory, offering the use of 31 technical indicators.

These tools are accessible on the MetaTrader trading platforms. However, the platform’s design is outdated, and certain features are challenging to navigate. For instance, it proved difficult to figure out how to remove an indicator from the chart.

XM review - Research - Charting

XM review – Research – Charting

News feed

A news feed is accessible on the ‘Markets’ and ‘News’ pages under the ‘Research & Education’ tab. The categorization of news items based on product types is appreciated, and video news is also available.

XM provides an excellent economic calendar. The calendar’s filter function allows you to refine results based on countries, data type, and importance, adding to its overall appeal.

Customer service

A news feed is available on the ‘Markets’ and ‘News’ pages within the ‘Research & Education’ tab. The categorization of news items based on product types is valued, and the inclusion of video news enhances the overall experience.

XM offers an outstanding economic calendar. The calendar’s filter function enables you to tailor results by countries, data type, and importance, contributing to its overall appeal.

Pros
  • Phone support
  • Live chat
  • Fast response time
Cons
None

You can contact XM via:

  • live chat
  • phone
  • email

Answers are quick, and their relevancy is mostly OK.

Live chat promptly responds to the initial message but experiences a decrease in speed with subsequent questions. There were instances where repeating the same question was necessary to obtain a direct answer.

XM’s phone support is swift, but the relevance of the answers varied. For instance, clarity was lacking in response to our inquiry on swap calculations. Some days, the responses were accurate, while on others, it was inconsistent.

Email support functions effectively, delivering relevant responses within a day.

XM review - Customer Service

XM review – Customer Service

VISIT BROKER
75.33% of retail CFD accounts lose money

 

Education

XM excels in providing education. You can experiment with a demo account, view trading platform tutorials, and gain knowledge from educational videos and high-quality webinars.
 
Pros
  • Demo account
  • Trading platform tutorial
  • Educational videos
Cons
None

At XM you can learn through the following ways:

  • Demo account
  • Platform tutorial videos
  • General educational videos
  • Webinars

Most of the education section on XM is based on video content. You can explore various topics, starting from an introduction to financial markets, progressing through money management and trading strategies, and culminating in technical analysis. Each chapter comprises numerous lessons, exclusively available for XM users.

In addition to these prerecorded materials, XM provides live training sessions, both online and offline, catering to different experience levels.

XM review - Education

XM review – Education

OPEN DEMO ACCOUNT
75.33% of retail CFD accounts lose money

Safety

 
XM is under the regulation of three financial authorities worldwide through its parent company, including the top-tier ASIC. It is a well-established brand but is not publicly listed on any exchange and does not disclose financial information.
Pros
  • Negative balance protection
  • Regulated by the top-tier ASIC
Cons
  • Does not hold a banking license
  • Not listed on stock exchange
  • Financial information is not publicly available

Bottom line

XM is regulated by various authorities globally, including the top-tier ASIC.

On a positive note, we appreciate the low stock CFD and withdrawal fees. The account opening process is seamless and hassle-free, and the broker provides a diverse range of high-quality educational tools.

However, XM has some drawbacks. Its product range is confined to forex and CFDs, and its forex and stock index CFD fees are average. Additionally, non-EU customers lack coverage by any investor protection.

We recommend XM for those interested in CFD and forex trading, especially for those who prefer MetaTrader trading platforms. Feel free to explore its features through the demo account.

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