XM is the trading brand name of Trading Point Holdings Ltd. which is a Cypriot Investment Firm (CIF) authorized 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 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. is 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 require high standards in financial standing and holdings being met, it does not cause the falling levels of the 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 worldwide and is the official trading partner of the Fastest Man in the World, Usain Bolt.
Trading Accounts
Three types of accounts 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 a $100 initial deposit (Zero accounts). 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 on each side but still very competitive.
Opening an XM account requires a minimal first deposit of $5 – 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 of $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
- lMetaTrader 4 – The popular trading platform for traders at all levels of experience is highly valued for its power and flexibility. It provides a range of easy to use tools from a single screen
- AvaTradeGO –A highly innovative trading app from Ava Trade’s production house. Features, tools and charts and an intuitive interface is suitable for traders at all experience levels. Downloadable from the AppStore or Google Play.
- AvaTradeAct – A powerful but user-friendly proprietary platform for single-click trading for Forex and more from the same screen that includes advanced charting, live news feeds and analysis.
- MT4 Floating Spread – Encompasses all the charting, customizing and analytical tools of MT4 for Forex trading and more, with low spreads right from the interbank market.
- AvaOptions – The newest platform from Ava Trade, combines the flexibility of FX call and put options alongside single payment options trading (SPOT). Risk management tools help to maximise returns.
- Automated Trading – AvaTrade has a full range of automated trading solutions and platforms, such as Mirror Trader and ZuluTrade, to enable copying of trades made by experienced Forex Traders.
- Mac Trading – A web-based Mac platform, providing access to FX as well as all other markets, that works behind most firewalls and is constantly monitored. You can log in from the AvaTrade website to begin trading instantly at the fast execution times.
- Web Trading – Ava Trade’s web trading platform allows you to check open and make new trades from any browser.
- Mobile Trading – Your AvaTrade account is accessible for monitoring and placing orders wherever you are with Ava Mobile and MetaTrader 4 Mobile, both available for iPhone, iPad and Android devices
Risk Factors, Options, and Limitations
The risk at XM is 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 authorized 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 that 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 a $30 (non-refundable)Trading Bonus on opening an account to test products and services for a two-tier bonus on your deposit to several levels of loyalty programs earning XM Points redeemable for credit bonus rewards.
Pros
- Global broker regulated in Europe, Japan and Australia.
- Offers a choice of several trading platforms.
- Apps for iOS and Android devices.
- MetaTrader 4 platform available.
- Large variety of trading tools instruments.
- 24-hour multilingual support desks.
Cons
- Margin call level risky for inexperienced traders.
- Comparatively high floating spreads.
- Fixed spreads above industry average.
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 end, it has gained very high reviews during its initial lifespan. Typical spreads are highly competitive and the organization offers negative balance protection and very attractive bonuses and promotions.