XM Review 2020

XM Rated 4/5
XM Screenshot

XM Guide

XM are an online broker founded in 2009 offering Forex trading, and CFDs trading.

XM are a global broker and have a head office in Cyprus.

When trading in the financial markets it can be very time consuming to find a broker that meets your needs.

Often you have to visit and read many broker websites all of which have different uses of language. The wording can be very confusing. In our review of XM we break down the pros and cons. What XM are able to offer, what countries XM are available in. Who XM are regulated by and more.

Having a reliable and capable broker is crucial to your success in online trading. Make sure that your broker is not fake or unreliable to avoid losing your investment. Ensure that your needs fit the profile of your broker as well, in order for you to have a good working profitable relationship.

Benefits of trading with XM

Open XM's Website

Your capital is at risk

At the bottom of this review you can also learn about some pretty good alternatives to XM

With this review we hope to help you see if XM is a good fit for you.

It is a common myth that online trading is confusing. It is only difficult for people who have not done the research. In this article, you will learn important information regarding XM that will help you get off to a good start in the world of online trading.

XM Review Table of Contents

XM what you should know

XM offer two ways to trade: Forex, CFDs.

With XM you will need a minimum deposit of $5. You can sign up for a demo account to acquaint yourself with XM platform.

XM are able to accommodate various levels of traders whether you are experienced or a beginner.


Are XM safe?

When choosing a broker like XM the administrative body and regulatory status of the broker is very important. Brokers who conduct trades without supervision of a regulatory body do so at their own discretion. Any capital you invest is at risk.

Established in 2009, and in operation for 11 years XM have a head office in Cyprus.

XM is regulated. This means XM are supervised by and is checked for conduct by the International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) regulatory bodies.

Regulated brokers will not manipulate market prices. When you send in a withdrawal request to XM, this will be honored. If XM violate any regulatory rules their regulated status could be stripped.

Any payments funded to XM accounts by traders are held in a segregated bank account.

For added security XM use tier-1 banks for this. Tier 1 is the official measure of a banks financial health and strength.

Try creating two accounts when you are working with XM. One is the real account, with your real money and the other is your demo account. The demo account is your experimental account.

Open a demo account Visit XM

Your capital is at risk

Full disclosure: We may receive a commission if you sign up with a broker using one of our links.

Broker XM eToro FP Markets Trading212
Year Established 2009 2006 2005 2006
Head Office Cyprus Cyprus, UK Australia UK
Regulation International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Financial Supervision Commission (FSC)
Used By 70,000+ 12,000,000+ 10,000+ 14,000,000+
Negative balance protection Yes No Yes Yes
Guaranteed Stop Loss No No No Yes
Learn More Visit XM Visit eToro Visit FP Markets Visit Trading 212
Risk Warning Your capital is at risk 75% of retail investor accounts lose money when trading CFDs with this provider. Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

XM Pros and Cons

What we like about XM

  • Used by over 70,000 traders
  • Established in 2009
  • Regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC)
  • Min. deposit from $5

What we don't like about XM

XM Financial Regulation and Supervision in more detail

We have checked and XM is regulated and supervised by reputable organisations. You are able to check every XM supervisory and regulatory body given below. Regulation gives you some recourse for those who have issues with XM. Regulatory authorities protect the traders with things like reimbursement schemes that regain the client's investment in the event the broker becomes insolvent.

The brokerage firms have to comply with a variety of rules and criteria determined by the recognized international authority with the intention to provide secure trading and stay licensed. The whole notion of regulation is to protect XM traders and provide a safe trading environment.

XM is governed and supervised by reputable financial regulatory bodies. Regulatory bodies monitor the behavior of the brokers and if things go wrong they will take necessary action. Before trading online with a broker such as XM you should be sure they're legitimate online agent.

XM Awards

XM have won numerious industry awards over the 11 years they have been operating as a financial broker. We list the most notible awards and mentions for XM below.

  • Global Forex Awards Global Forex Broker of the Year 2019
  • Global Forex Awards Most Trusted Asian Forex Broker 2019
  • FinTech Age Awards Best Broker 2019
  • World Finance Magazine Best FX Broker for Australasia 2019
  • World Finance Magazine Best FX Broker for Europe 2019
  • Capital Finance International Magazine Best Customer Service Global 2019
  • Capital Finance International Magazine Best Market Research and Education Global 2019
  • Awarded by City of London Wealth Management Awards Best FX Service Provider 2019
  • Shares Magazine Best Forex Customer Service 2018
  • Egypt Economic Forum Best International Broker in the MENA Region 2018
  • Brokers Billboard Best Local Customer Service 2016

XM General Fees

  • XM doesn't charge withdrawal fees
  • XM does charge inactivity fees
  • XM doesn't charge deposit fees
Broker XM eToro FP Markets Trading212
Min Deposit 5 200 100 1
Withdrawal Fees No Yes No No
Inactivity Fees Yes Yes No No
Deposit Fees No No Yes No
CFD Commission Fees No No Yes No

XM Commissions

  • XM doesn't charge commission on CFD instruments.

What can you trade with XM?

Be aware that Different entities under XM Brand offer different trading instruments due to regulatory restrictions. Trading instruments offered may differ based on the country of residence of the Client.

You can trade a wide variety of instruments with XM over 100 instruments infact.

If you are looking at trading currency pairs XM offer over 80 currency pairs.

Compare XM with eToro and FP Markets below.

Your capital is at risk

Broker XM eToro FP Markets Trading212
Instruments Available 100 100 100 3000
Platforms MT4, MT5, Mac, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps Web Trader, Tablet & Mobile apps
FX / Currencies Visit XM Visit eToro Visit FP Markets Visit Trading 212
Forex pairs offered 80 50 60 177
Major forex pairs Yes Yes Yes Yes
Minor forex pairs Yes Yes Yes Yes
Exotic forex pairs Yes Yes Yes Yes
Cryptocurrencies No Yes Yes Yes
Commodity CFDs Visit XM Visit eToro Visit FP Markets Visit Trading 212
Commodities Offered 15 0 18 14
Metals Yes Yes Yes Yes
Energies Yes Yes Yes Yes
Agricultural No Yes Yes Yes
Indiced & Stock CFDs Visit XM Visit eToro Visit FP Markets Visit Trading 212
Stocks Offered 160 957 10000 1731
UK Shares No Yes Yes Yes
US Shares No Yes Yes Yes
German Shares Yes Yes Yes Yes
Japanese Shares Yes Yes Yes Yes

Trading on XM web platforms and other applications

XM is one of the few brokers that offer both of the MetaTrader platforms; MT4 and MT5. To see how the two platforms compare, you can read our comparison of MT4 vs MT5 here.

An XM IOS or Android native App on your phone or tablet will Work quicker Than the Avatrade Website on the same device

XM also offer mobile apps, for Android and iOS making it easier to keep an eye on and execute your trades while you’re on the move.

See XM's platforms

XM Trading benefits :

  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection

XM Trading Accounts Offered :

  • Demo account
  • Micro account
  • Standard account
  • XM Zero *XM Ultra Low and XM Zero Accounts are not applicableto all the entities of the Group.
  • Islamic account

Can I try XM before I buy?

XM offer a demo account so you can try before putting down funding payments. Open a practice account & learn to trade

XM withdrawal and funding methods.

Please note that the list of payment methods below depend on the XM Entity and the Clients Country of Residence.

XM offer multiple local payment methods. learn more about XM

Broker XM eToro FP Markets Trading212
Bank transfer Yes Yes Yes Yes
Credit Cards Yes Yes Yes Yes
Paypal No Yes Yes Yes
Skrill No Yes Yes Yes
Payoneer No Yes No No
Neteller Yes Yes Yes No

How can I start trading with XM?

When opening a trading account with XM, you will need to sign up here. Once you have received your login details by email, submitted your identification documents for account validation, and made a deposit; the next step is to download the trading platform of your choice. You can find detailed guidance on XM trading platforms here.

Performing trades with XM

XM allow you to execute a minimum of trade of 0.01 Lot. This may vary depending on the account you open. XM allow you to execute a maxium trade of 50 Lot.

As a market maker, XM may have lower entry requirements compared to an ECN broker who benefits from a higher volume of trades and typically have larger capital and minimum trade requirements. Market makers typically have lower minimum deposit, smaller minimum trades requirements and no commission on trades.

XM are one of very few brokers that claim to have no requotes, so you don't have to worry about slippage (your trades being ordered at a different price to what you executed them at).

As with most brokers, margin requirements do vary depending on the instruments.

XM also offers a number of useful risk management features, such as stop losses (with trailing stops), limit orders, negative balance protection, price alerts, and much more. You can see all of the account features offered by XM here.

XM Leverage and XM CFDs Explained

let's take a look at some of the basics of using XM leverage.

XM offer CFD are a leveraged product for this example we describe ten times leverage.

So you have a ten thousand dollar position but you only tie up a thousand dollars a tenth of the value on your account. You have a situation where a small sum of money is controlling a much bigger financial position. This is your leverage.

So what effect does leverage have on your profits and losses well put simply it magnifies them in both directions.

XM leverage magnifies both profits and losses when trading.

Let's say for example you buy ten thousand dollars worth of General Electric (GE) using contracts for difference ( CFDs ) using the XM trading platform.

let's say General Electric (GE) rises 10% because its results are positive your position which was worth ten thousand dollars is now worth $11,000.

It's grown by $1000 10% in value this represents a hundred percent increase on the funds initially committed on your leverage CFD trade.

Our initital investment of ten thousand dollars for the trade and has made a thousand dollars in profit because the price is up ten percent.

The XM leverage goes both ways. If General Electric (GE) Falls 10% on week results your position which was worth ten thousand dollars is now worth only nine thousand dollars. It has fallen by a thousand dollars.

XM CFDs are typically used for short to medium term trades. For example XM intraday trading.

Limiting Your Risk When Trading with XM Negative Balance Protection

We should say something about negative balance protection with XM. When trading using leverage an adverse move could result in losing more than your trading account balance at XM. Your XM account could potentially become negative. We recommend you making use of negative balance protection. Using negative balance protection ensures your losses will always be limited to the current balance of the money in your account.

Limit Risk When Trading with XM Stop Loss, XM Stop Limit Orders

A stop-loss order is an order placed with a broker like XM to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit a traders loss on a security position.

Most traders need to use stop losses to protect themselves from huge risk unless the trade is hedged against another trade or the trader is not using leverage. Circumstances differ depending on the trade and the markets.

Education resources at XM

To trade effectively with XM, it's important to get a have a good understanding of the XM trading tools and the markets.

XM offer a good selection of educational resources. Spend some time reading up on how the markets and trading works, making active trades, active trading times, and managing risk.

Having an analytical approach may be a good way to approach trading with XM.

Take time to look around the XM platforms and train yourself to think more systematically and logically about the markets. It's a new skill-set for many, but it is what the market requires of you.

Customer Support at XM

XM support a wide range of languages including Arabic, Chinese, English, French, German, Greek, Hindi, Hungarian, Indonesian, Italian, Japanese, Korean, Malay, Polish, Portuguese, Russian, Spanish, Swedish, Thai, and Turkish

XM have a double AA grade support rating because XM offer live chat and email support in multiple languages.

Livechat Support at XM

We tested the XM live chat and it works well. We sent messages to XM livechat through their app and website and recieved a response within 30 seconds.

We tested communicating with XM support in multiple languages in multiple countries. XM where able to quickly resolve our customer issues.

Email Support at XM

We sent several emails to XM and answer times overall were excellent. The fastest response from XM was less than 15 minutes and the slowest response was 7 hours. Support response times may vary for you with XM, but this was our experience sending 10 emails at varying times.

The team resolved and answered our queries. Overall very good email support from XM.

Phone Support at XM

We called XM and the call was answered very quickly. The call was answered in less than 5 minutes.

The XM phone support team were able to successfuly answer our questions and issues over the phone. We tested the multilingual XM team by calling in varying languages. XM made an effort to make sure our queries were answered.

Overall great phone support from XM.

See how XM Support Compares Against Other Brokers

Broker XM eToro FP Markets Trading212
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Languages Arabic, Chinese, English, French, German, Greek, Hindi, Hungarian, Indonesian, Italian, Japanese, Korean, Malay, Polish, Portuguese, Russian, Spanish, Swedish, Thai, and Turkish English, German, Spanish, French, and Italian English, Spanish, Portuguese, Romanian, Bulgarian, Arabic, Russian, French, Italian, Greek, Philippines, Latvian, Polish,Indonesian, Thai, Malay, German, Vietnamese English, Deutsch, Nederlands, Espanol, Francais, Italiano, Polski, Srpski, Norsk, Svenska, Cesky, РУССКИЙ, Romana, Turkce, العربية, 中文
Learn More Visit XM Visit eToro Visit FP Markets Visit Trading 212
Risk Warning Your capital is at risk 75% of retail investor accounts lose money when trading CFDs with this provider. Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What you will need to open an account with XM

As XM is regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC), every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade. When you open an account, you'll likely be asked for the following, so it's good to have these handy:

Be aware Please kindly note that the expiration date of Proof of address document for different entities under XM Brand may be different.

  • A scanned colour copy of your passport, driving license or national ID
  • A utility bill or bank statement from the past three months showing your address

You'll also need to answer a few basic compliance questions to confirm how much trading experience you have, so it's best to put aside at least 3 minutes or so to complete the account opening process.

While you might be able to explore XM's platform straight away, it's important to note that you won't be able to make any trades until you pass compliance, which can take up to several days, depending on your situation.

To start the process of opening an account with XM you can visit their website here.

CFDs are leveraged products and can result in the loss of your capital. All trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results.
This post is for educational purposes and should not be considered as investment advice. All information collected from https://www.xm.com on 12th August 2018.

Watch this XM Informational Video

Is XM A Good Broker?

We spent over 3 months examining XM in depth. Although XM are not perfect we found many really useful aspects with the overall offering from XM. Our personal experience of trading with XM was very good. Weighing up many points XM is a good broker.

  • XM have a good track record of offering Forex, CFDs.
  • XM has a history of over 11 years.
  • XM has a reasonable sized customer support of at least 10.
  • XM are regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC). This means XM fall under regulation from a jurisdiction that can hold a broker responsible for its misgivings; or at best play an arbitration role in case of bigger disputes.
  • XM have regulation from a Tier 1 reputable country.
  • XM has the ability to get deposits and withdrawals processed within 2 to 3 days. This is important when withdrawing funds.
  • XM have an international presence in multiple countries. This includes local XM seminars and training.
  • XM are able to hire people from various locations in the world who can better communicate in your local language.

XM Risk Disclaimer

Your capital is at risk

XM Frequently Asked Questions

Can I try XM before I buy?

XM offer a demo account so you can try before you put down and payment. Learn more here

What funding methods do XM accept?

Please note that the list of payment methods below depend on the XM Entity and the Clients Country of Residence.

XM offer the following funding payment methods accept Credit cards, Bank Transfers, Neteller, Wire Transfer, among other payment methods.
Learn more here

Your capital is at risk

Is XM safe?

XM are considered safe as they are regulated by and checked for conduct by the International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC). Any payments funded to XM accounts by traders are held in a segregated bank account. For added security XM use tier-1 banks for this. Tier 1 is the official measure of a banks financial health and strength.

Is XM trading good?

XM is considered good and reputable to trade with. XMXM is used by over XM active traders. XM offers Forex trading, and CFDs trading. Minimum deposit with XM is 5.

Is XM trading Legit?

XM was founded in Cyprus in 2009. XM has been facilitating trade on the financial markets for over 11 years. XM offers clients Forex trading, and CFDs trading. All funds deposited to XM are held in segregated tier 1 bank accounts for security. XM is regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) so can be considered legit.

Is XM a good broker?

XM is overseen by the top tier financial regulators International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC) so can be considered a good broker. XM allows Forex trading, and CFDs trading.

Is XM trustworthy broker?

XM can be considered trustworthy. All money funded to XM is placed into a segregated tier 1 bank account. this means your money in not held by XM directly but a tier 1 bank. The broker has no direct access to your funds so cannot misappropriate your money. Also XM is regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC).

What is the minimum deposit for XM?

The minimum deposit to trade with XM is 5.

How long do XM withdrawals take?

Withdrawing money from XM processing time varies but averages 2-5 days.

Is XM regulated?

XM is regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC).

Is XM a market maker?

XM is a market maker. Stocks, currency and other commodities and instruments will be purchased by XM even if no buyer is lined up.

How can I start trading with XM?

When opening a trading account with XM, you will need to sign up here. Once you have received your login details by email, submitted your identification documents for account validation, and made a deposit; the next step is to download the trading platform of your choice. You can find detailed guidance on XM trading platforms here.

Is my money safe with XM?

XM is regulated by International Financial Services Commission(IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investment Commission (ASIC). One of the most important criteria for traders when choosing a broker like XM is the regulatory body and regulatory status of the broker. Brokers who conduct business without regulation do so at their own discretion and pose a direct risk to the security of their clients money.

Regulated brokers will not manipulate market prices. When you send in a withdrawal request to XM, this will be honored. If they violate any regulatory rules their regulated status can be stripped.

Is XM a con?

XM is regulated and well established having been in business for over 11 years. XM is definitely not a con.

Can you make money with XM?

Although traders have had great success with XM. Trading on the financial markets with XM is not a get rich scheme. If you educate yourself, practise with a demo account and carefully plan your trading your chance of success will greatly increase. Never trade with money you cannot afford to lose. Your capital is at risk.

Does XM have fees?

XM doesn't charge withdrawal fees. XM does charge inactivity fees. XM doesn't charge deposit fees.

When was XM founded?

XM was founded in 2009.

How many people use XM?

XM is used by over 70000 registered traders.

What is XM Headquarters country?

XM has its head quarters office in Cyprus.

Does XM offer negative balance protection?

XM offers negative balance protection. With Negative balance protection means traders cannot lose more money than they have deposited.

Does XM offer guaranteed stop loss?

XM does not offer guaranteed stop loss.

Does XM allow scalping?

XM offers scalping.

Does XM allow hedging?

XM offers hedging.

Does XM offer CFD trading?

XM offers CFD trading.

Does XM offer STP?

XM does not offer STP trading.

How many people use XM?

XM is used by over 70000 traders.

Is XM an ECN broker?

XM does not offer ECN trading.

Does XM offer a demo account?

XM offers a demo account.

Does XM offer an Islamic account?

XM offers a Islamic accounts.

What are the funding methods for XM?

XM Group is accepting the most commonly used Local Payment methods today including Credit/Debit Card, Neteller, Skrill, WebMoney, Bank Wire Transfer, etc

XM review written by Andrew Blumer and Mark Hansen

We hope you found our review of the XM brokerage firm useful.

This article was written by our financial editor Mark Hansen and Andrew Blumer.

Mark was previously of the Kiel Insitute and has worked with financial organisations across Europe, Australia, South East Asia, South Africa and the Middle East. Mark has over 15 years experience in financial analysis, forecasting, financial modeling idenifying new market opportunities in Stocks, CFD's, Forex and Commodities.

Andrew has a well-established career in fintech and came up with comparebrokers.co to make trading on financial markets more transparent and accessible.

Whether you want to trade Forex, Stocks, Commodities or Indices we will help you find the best online broker for you from 400+ brokers for clients based in the UK, Europe, Asia, South Africa and Australia.

XM review written by Mark Hansen of Comparebrokers.co