XM is the trading brand name of Trading Point Holdings Ltd. which is a Cypriot Investment Firm (CIF) authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC). It was established in 2009 to meet the investment needs of both individual traders and big investors by offering the fair terms and a desirable trading environment. Today, XM provides a client base from over 196 countries worldwide with innovative financial trading solutions. It trades in 55 currency pairs, contracts for difference (CFDs) on commodities, indices, energy, precious metals and stocks using MetaTrader 4 and MetaTrader 5 trading platforms. It is known for its fast execution, boasting 99.35% of all trades being executed in less than a second.

The company operates Trading Point of Financial Instruments UK Limited licensed by the UK’s Financial Conduct Authority (FCA) and Trading Point of Financial Instrument PTY Ltd. regulated by the Australian Securities and Investments Commission (ASIC). The balanced regulation in the UK, Cyprus and Australia are currently making them the preferred countries for forex brokerage. While regulation in these countries requires high standards in financial standing and holdings being met, it does not cause the falling levels of competition that the tougher regulation has created in the United States and Japan.
Adding to its host of awards, XM has won Best Forex Service Provider for 2017 at the City of London Wealth and Management Awards. The multi award-winning broker serves over 1,000,000 clients world-wide and is the official trading partner of the Fastest Man in the World, Usain Bolt.

Trading Accounts

 

Three types of account are available – Micro, Standard and Zero. Micro and Standard are both commission-free and Zero provides tighter spreads with commission fees and a larger initial deposit. Traders may choose from commission-free trading (in Micro and Standard accounts) or tighter spreads, involving commission fees and $100 initial deposit (Zero account). ZM offers its clients high leverage levels and variable spreads. Typical spreads on commission-free accounts are 1.7 pips on EUR/USD and 0.1 pips on EUR/USD for Zero accounts where there is a commission of $5 per standard lot each side but still very competitive.

Opening an XM account requires a minimal first deposit of $5 USD – a lot lower than the average in the industry and attractive for first time traders. Micro lots are available with all accounts. The maximum leverage is 888:1 which is above average and allows traders to open very large positions with small amounts of capital. However, CySEC has proposed a maximum 1:50 default leverage be provided by Cypriot brokers.

The margin-call level is 50% and a margin level below 100% allows traders to carry on opening new positions when their equity is below the open margin. Margin operations therefore tend to be risky for inexperienced traders, and levels and opening positions need careful monitoring.

Virtual Private Server (VPS) hosting is offered free to both new and existing customers with minimum deposits $5,000 who trade at least 5 round turn lots per month. This allows orders to be executed 24 hours a day, 5 days a week.

Trading Platforms

 

  • XM give you access the global markets instantly with the MetaTrader 4 (MT$) and MetaTrader 5 (MT5) trading platforms for both PC and Mac.
  •  XM MetaTrader 4 – The world’s most popular trading platform provides power, flexibility and speed. It has a wide range of easy to use tools, can handle a large number of orders and guarantees full back up and security.
  • XM MetaTrader Multiterminal – Manages over 100 accounts at the same time from a single interface.
  •  XM MetaTrader Web Terminal – Online trading access to the global financial markets for PC or Mac without any download being required.
  •  XM MetaTrader 5 – A multi-asset platform for over 300 instruments, that displays 100 charts at the same time, is state-of-the-art. It supports all order types and has multi-currency tester and alert capability.
  •  XM MetaTrade 5 Web Trader – The most powerful trading platform available from your browser, it includes hedging options and exclusive features access without requiring downloads.
  • Mobile Trading – Trade on your smartphone or tablet with MT4 or MT5 on iOS or Android platforms. Available for the App Store or Google Play respectively.

 

Risk Factors, Options and Limitations

 

Risk at XM is at about the industry average. A minimum position size of 0.01 lots limits trader control while the margin call allows positions to be opened even when the margin is significantly beyond the equity. The 888.1 max leverage could cause runaway trades if not monitored carefully – higher leverage brings with it a higher risk of losses. The stop-out level, at 20%, is safe, however.

All UK and Cyprus regulated companies must have compensation systems to guarantee clients funds. The UK’s statutory compensation scheme – Financial Services Compensation Scheme (FSCS) – for the clients of authorised financial services companies guarantees regulated forex brokers up to £50,000 per client. Cypriot Investment Firms have the Investor Compensation Fund, which pays compensation up to 20,000 EUR if the company defaults. Australian forex brokers are not currently covered by a compensation scheme.

Payment and Currencies

Payment at XM can be with debit cards, credit cards – Visa, MasterCard, Maestro, China UnionPay, bank wire transfer, Western Union and with most e-wallet payment systems. Deposit and withdrawal transfer fees for payments made with major credit cards Neteller, Moneybookers and those above 200 USD made by wire transfer.

Client funds are kept in Tier1 segregated Barclays accounts. Processed 24/7, account funding is 100% automatic, and same day withdrawals are guaranteed.

Promotions/Bonuses

 

XM offers clients from a $30 (non-refundable)Trading Bonus on opening an account to test products and services to a two-tier bonus on your deposit to several levels of loyalty programs earning XM Points redeemable for credit bonus rewards.

Pros

  • Global broker operating in safe regulatory environment.
  • Apps for iOS and Android devices.
  • MetaTrader 5 platform available on all devices.
  • Wide variety of trading tools instruments.
  •  99.35% of all trades executed in less than a second.
    l 24-hour trading available.

Cons

  • Margin call level is risky for inexperienced traders.
  • Both margin levels and opening positions require careful monitoring.

 

Conclusion

 

XM is a multi award-winning broker offering a wide range of trading products with both commission and commission-free account types. Its mandate is to serve its clients with integrity and transparency and, to this ends, it has gained very high reviews during its initial lifespan. Typical spreads are highly competitive and the organisation offers negative balance protection and very attractive bonuses and promotions.