The Big Picture
The Group provides its services via four entities: Trading Point of Financial Instruments Ltd (Cyprus), Trading Point of Financial Instruments Pty Limited (Australia), XM Global Limited (Belize), and Trading Point MENA Limited (Dubai).
XM provides access to popular trading platforms MetaTrader 4, and MetaTrader 5 and offers multiple types of trading accounts* such as Micro, Standard, Ultra Low and XM Zero. The broker offers an Islamic Account option for each of these accounts.
The broker has multiple options for deposits and withdrawals, including credit cards, wire transfers, and e-wallets.
8 of XM Key Takeaways For 2022
- We evaluated XM across 9 categories (Trust and Stability, Fees, Tradable Instruments, Account Types, Deposit and Withdrawal, Research, Customer Support, Education, and Platforms and Tools).
- XM received a decent score in the Trust and Stability category as it has two entities that are regulated by Tier 1 regulators.
- The broker has a good score in the Fees category thanks to moderate spreads in the Standard Account and reasonable swap rates.
- XM received an almost perfect score in the Account Types category as it offers more than three types of accounts and has an Islamic Account option for each.
- The broker also received a high score in the Deposit and Withdrawal category due to a wide range of deposit & withdrawal options, as well as the absence of deposit & withdrawal fees.
- XM got a high score in the Research & Education categories as it offers solid educational & research support, including live webinars and trading courses.
- The broker also got a good score in the Customer Support category thanks to the timely and professional answers of the support team.
- XM scored well in the Platforms and Tools category as it offers the widely popular MetaTrader 4 and MetaTrader 5.
Who is XM For?
XM will suit both beginner and advanced traders. Beginner traders will benefit from the strong educational support provided by the broker. In addition, the minimum deposit is just $5, which provides novices with an opportunity to make their first trades without committing too much money.
Advanced traders will likely focus on the tight-spreads, commission-based XM Zero Account and/or the Ultra-Low account, while enjoying strong research support.
XM Pros and Cons
XM Full Review
Is XM Safe to Trade With?
XM has entities regulated by Tier 1 regulators (CySEC, ASIC), a Tier 2 regulator (DFSA), and a Tier 3 regulator (FSC). All entities separate their funds from the funds of the investors and provide negative balance protection. Traders who open an account with Trading Point of Financial Instruments Ltd. will enjoy additional protection in the form of a compensation scheme that covers losses of up to €20,000 or 90% of the claim, whichever is lower, in case the broker is unable to fulfil its obligations.
Stability and Transparency
In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focused on how long the broker has been in business, the size of the company, and how transparent they are in terms of information being readily available.
The information about XM regulations can be found on the dedicated page of the company’s website. There’s also a separate page for legal documents.
The company’s Trading Account Types page provides important information about available accounts, including base currency options, contract sizes, typical spreads, and commissions. The broker also offers forex calculators, including a swap calculator, which is important for those traders who hold their positions overnight.
In summary, our findings indicate that XM can be regarded as having a high level of trust and stability due to the following factors:
- Regulated by Tier 1, Tier 2, and Tier 3 regulators.
- More than 13 years in business.
- Transparency on regulations and fees on the company’s website.
XM offers competitive spreads in its Standard Account and does not charge commissions. Swap fees are also moderate. In our rating, XM received a high score in the Fees category.
XM Trading Fees
For this review, we tested XM Standard Account. In this account, XM charges spreads and swap/rollover fees. Traders should note that spreads are variable and depend on the instrument and liquidity situation at a certain point in time. Swap fees can be determined using the swap calculator.
Traders should also keep in mind that Cypriot entity offers XM Zero Accounts. These are commission-based accounts with tighter spreads. The commission is based on volume – $3.5 per $100,000 traded.
We tested the spread on the XM Standard Account during the London open at 8 am UK time and just after the US open at 2.45pm UK time. These are the most actively traded times.
|Live spread AM
|Live spread PM
|Dow Jones 30
XM offers mostly average spreads for the instruments we tested. Spreads for Gold and Apple are low, so traders interested in these instruments should take a closer look at XM. Meanwhile, the spread for Tesla is very high.
XM offers reasonable swap rates compared to the industry average. The swap fees for EUR/USD are medium, while the swap rates for GBP/JPY are low.
XM Ultra Low account offers 0 swaps on selected instruments. The XM Ultra Low account is not available to all the entities of the XM Group.
Are XM Trading Fees Good?
We rated XM’s fees as relatively competitive on the market with average spreads for most instruments. Traders should note that spreads for Gold and Apple were low, while the spread for Tesla was high. There are no commissions in the Standard Account.
XM has an inactivity fee. This fee is charged in case there was no activity in the trading accounts for 90 days. The fee is $5 per month. XM does not have deposit, withdrawal, or account closing fees.
Platforms and Tools
XM offers the highly popular MetaTrader 4 and MetaTrader 5 platforms, which are available in mobile and desktop versions. Traders also have access to MT4 and MT5 WebTrader. The broker has an XM App for iOS and Android as well. XM received a high score for Platforms and Tools in our rating as it offers MT4 and MT5.