XM Review

XM Review

Introduction to XM Review

(2.5)

Since entering the trading industry in 2009, XM Group has transformed itself into a major and widely-recognized broker, servicing more than two million clients worldwide.

XM values clients’ loyalty, that is why it takes pride in its ability to provide services designed to adapt to the needs of clients. The firm’s Negative Balance Protection guarantees that traders would not experience losses bigger than their account balance.

In addition to flexible services and client fund protection, XM is a multi-asset broker who offers currency pairs and 1,000 CFDs, five of which include cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple.

XM’s no requotes and no rejections policy also ensure that all investors received suitable and consistent trading experience. All traders are given the same fair trading conditions, regardless of net worth, investment size, or account type.

XM Account Types

XM Group mainly offers four account types – the Micro account, the Standard account, the Ultra Low account, and the Shares Account, all of which can work with either the MetaTrader 4 (MT4) or MetaTrader 5 (MT5).

Micro and Standard Account

The Micro and Standard account share several similarities:

  • Both accounts are commission-free.
  • Requires a minimum deposit of $5 and can be denominated in 11 currencies (USD, EUR, GBP, JPY, CHF,‎ AUD, HUF, PLN, RUB, SGD, and ZAR).

What sets the two apart is their default lot size:

  • For the Micro account, 1 lot is equivalent to 1,000 units or 1 mirco contract.
  • The Standard account offers a lot size of 100,000 units or 1 standard lot.

Ultra Low Account

The Ultra Low account has two types of Ultra Low Spread account, i.e., the Micro Ultra and the Standard Ultra. The two Ultra accounts nearly have the same trading condition as the Micro and Standard account, although they have some distinguishing features:

  • While the Micro and Standard spread starts from 1 pip, spread of the Ultra Low starts from 0.6 pips.
  • Clients may trade with the raw spread without additional cost.
  • The Ultra Low account can be opened for as little as $50, although Trading Bonuses  are not available for this account type.
  • Traders may choose from 6 different base currencies (EUR, USD, GBP, AUD, ZAR, and SGD).

Note that XM’s Ultra Low account is still relatively new, as it has only been introduced in March 2019. Whether traders are qualified to open an Ultra Low account will depend on the country they reside in.

Shares Account

  • XM’s Shares account requires a minimum deposit of $10,000, and can only be denominated in USD.
  • Trading Bonuses and No Deposit Bonuses are not available.
  • Compared to the first three account types, hedging is not allowed for Shares account.
  • Shares account offers a contract size of 1 with a minimum trade volume of 1 lot.
  • Clients may open up to 50 positions, while the lot restriction per ticket will depend on each share.

XM Trading Products

Through XM, clients can trade the following  instruments:

Forex Trading

  • XM’s Forex Trading is a global and liquid market that provides access to more than 55 currency pairs including all majors, crosses, and exotics, as well as trading options via online or a broker.
  • Traders  may also leverage up to 888:1, and benefit from tight spreads on pairs as well as the no-requotes policy.

Stock CFDs

  • Stock CFDs can be traded with either short and long-term trading strategies.
  • Traders will receive no additional cost when they trade with stock CFDs.

Shares

  • XM allows clients to trade CFDs of shares in over 300 companies on global stock exchanges.

Commodities

  • The platform supports the trading of 8 popular commodities, including cocoa, coffee, corn, cotton, copper, soybeans, sugar, and wheat.
  • XM clients will also experience low deposit and no extra fees when they trade in commodities.

Equity Indices

  • The 18 cash indices CFDs available for trading on XM cover mainly major global stock indices. 
  • There are also 12 futures indices CFDs offered for trading on the platform.

Precious Metals

  • Clients may trade spot metals including gold and silver on the XM platform.
  • Other precious metals such as palladium and platinum are traded in futures CFDs.

Energies

  • The platform supports the trading of 5 oil CFDs, i.e. Brent Crude, London Gas Oil, Natural Gas, WTI Oil, and  WTI Oil Mini.
  • Traders can trade on a margin for as low as $5 without the extra fee.
  • Clients of XM are free from overnight financing on oil CFDs.

Cryptocurrencies

  • XM allows crypto trading with tight spreads across 5 major cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple.

Clients may trade the instruments mentioned above using XM’s MT4 and MT5. The two platforms have been designed to function properly on PC, MAC, as well as Apple and Android mobile devices.

Alternatively, the XM WebTrader is ideal for traders looking to access their trades directly on the web.

XM Trading Conditions

Trading conditions on the XM platform vary depending on the account type.

Leverage

For Micro, Standard, and Ultra Low account holders, the leverage is identical.

  • Trades between $5 and $20,000 have a leverage of 1:1 to 1:888.
  • Leverage for trades ranging from $20,001 and $100,001+ is 1:1 to 1:200.

XM’s Shares account, on the other hand, does not have leverage.

Essentially, clients can choose a leverage between 1:1 and 888:1. This will depend on their account type, asset, and trade size. Traders with XM are also allowed to raise or reduce their selected leverage.

Spreads and Commissions

Micro & Standard Account

  • Spreads can be as low as 1 pip.
  • No commission.

Ultra Low Account

  • Spreads can be as low as 0.6 pips.
  • No commission.

Shares Account

  • As per the underlying exchange.
  • Commission is included.

XM offers variable spreads, which help eliminate the need for an insurance premium. That would be important for fixed spreads since they are usually higher than variable spreads.

This is further hindered by the fact that a number of brokers restrict trading close to news releases. As such, the required insurance premium becomes insignificant.

With variable spreads, XM is able to avoid these kind of problems for clients. There are also no trading limits involved at the time news announcements. 

XM Review: Conclusion

There are a number of reasons to trade with XM.  Being a regulated broker across several regions, XM is able to establish broker trust and transparency with business, while still delivering enough flexibility for clients to access high leverage and excellent trading conditions.

From a novice trader’s point of view, XM provides most of the infrastructure necessary to sharpen one’s trading abilities. The platform’s account structure, which is accessible in terms of rate, is also designed to help with the client’s development through the stages.

 Get More than a Forex and CFD Trading Account at XM

For experienced traders, XM offers access to higher leverage and potential bonuses among other  benefits. Furthermore, XM’s low minimum deposits and highly competitive spreads make it quite simple for any kind of trader to get started and seize profitable trading opportunities.

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