Launched in 2009, XM is a part of Trading Point Holdings Ltd, with its main regulatory body being CYSEC – the official license provider, working in conjunction with the European Union to ensure transparent operations and anti-money laundering compliance. Currently, XM serves over 2.5 million clients from 196 different countries, supports 30 languages, alongside 16 comprehensive trading softwares and 25 safe payment methods, backed by the support of 450 experts with years of experience in the finance industry.
XM offers a wide range of products for clients to choose from, including Forex, CFD contracts, stock indices, commodities, stocks, precious metals, and energy. All transactions are transparent, from spreads to commission fees, without any hidden charges, and orders are executed incredibly fast, in less than one second. Therefore, XM is highly favored and chosen by Japanese traders, who are known for being demanding and stringent, with high service requirements.
Basic Information about XM:
Established in: 2009
- XM is regulated by: CySEC, ASIC (Australia) and IFSC (Belize)
- Minimum deposit: $5
- XM trading products: Forex currencies, stocks, indices, commodities, precious metals, energy
- Maximum leverage: 1:888
- Trading platforms: MetaTrader 4 & MetaTrader 5, Web Trader, compatible with iOS and Android operating systems
There are two types of Forex platforms: one operates illegally, and the other is regulated (at least) by a global financial organization. Each of these financial institutions has its specific regulations, so the larger the organization, the more stringent the requirements. XM meets these criteria! Let's consider other factors as well.
XM is a reputable Forex trading platform licensed by several of the world's largest financial institutions, including:
+ CySEC (Cyprus Securities and Exchange Commission) in Cyprus with license number 120/10.
+ ASIC (Australian Securities and Investments Commission) in Australia with license number 443670.
I+ FSC (International Financial Services Commission) with license number IFSC/60/354/TS/18.
XM is one of the world's leading Forex trading platforms, licensed by the largest financial institutions today such as FCA, CYSEC, ASIC, IFSC, suitable for beginners with the lowest capital participation.
Advantages of XM Broker
Possesses numerous licenses from reputable organizations.
Integrates Forex and CFD trading within a single trading account.
Offers dedicated accounts for traders who prefer trading in stocks.
No commission fees (except for stock accounts).
Low minimum deposit requirement.
Suitable for traders who prefer hedging.
Fast and convenient withdrawal process.
XM covers all transfer fees.
Continuous promotions.
Provides professional TRADING SIGNALS twice a day.
Disadvantages of XM Broker
Does not offer cryptocurrency trading.
Stock trading products do not have leverage, and the deposit fees are high.
Key Features of XM's MT4 Software
Integration of over 1000 products including Forex, CFDs, and Futures
Synchronization with 8 different trading software
Spreads starting from as low as 0.6 pips
Technical analysis tools with over 50 indicators and charting tools
Provides 3 types of charts (line chart, bar chart, and candlestick chart)
Allows hedging (placing counteracting orders in opposite directions)
Supports EA, available indicators, and customization
Comprehensive technical analysis tools with over 50 indicators and charting tools
Customizable indicators and various timeframes
Ensures complete and secure data storage
XM's MT5 Software
The MT5 software, an upgrade from MT4, is developed by the parent company Metaquotes. MT5 offers investors the capability to trade a multi-layered product range from forex (currency trading), CFDs (Contract for Difference) to stocks, stock indices, precious metals, energy, and commodities.
Moreover, being an enhancement of MT4, MT5 includes optimized features like advanced charting tools, flexibility in algorithmic trading (automated trading), as well as the ability to trade in specialized markets such as stocks.
Notably, in addition to the traditional four types of orders like buy limit, buy stop, sell limit, sell stop, MT5 also includes two additional pending order types: buy stop limit and sell stop limit, which help increase the probability of success in trading.
Furthermore, with the use of MQL5, MT5 allows traders to program trading robots and set up personalized indicators that match their trading styles.
Another significant advantage of MT5 over MT4 is that it supports CFD stock trading. Therefore, traders planning to trade this product must open an account using the MT5 software.
XM's MT5 Features
Allows trading of over 1000 products, including stock CFDs, stock index CFDs, forex, precious metal CFDs, and energy CFDs
Synchronization trading across 7 software
Spreads starting from as low as 0.6 pips
Provides over 80 technical analysis objects
Market depth of the latest quotes
Ability to display over 100 charts simultaneously
Supports various order types: market orders, pending orders (buy limit, buy stop, sell limit, sell stop, buy stop limit, sell stop limit), stop and trailing stop
Over 80 technical indicators and more than 40 analytical objects
Ideal for those who prefer Hedging at XM
Hedging, which involves placing counteracting orders including both Buy and Sell at the same time, is widely used by many traders. However, we advise that if you do not have extensive trading experience, it is best to trade in line with the trend to avoid high risks.
XM is perhaps the best platform currently supporting hedging. Thanks to the “Close by” order type, which allows traders to simultaneously close two opposite orders of a product at the same time, helping to save on the spread cost. Note that the two orders must be closed simultaneously, such as a buy order must be closed with a sell order, or vice versa, to use “close by.”
Besides “close by”, XM also offers another order type, compatible with both MT4 and MT5 software, known as “Multiple close by,” allowing traders to close multiple opposite orders at the same time.
For example, if you have two opposing orders, you can use one of the orders to close the others, thus potentially saving or losing a significant amount of spread fee.
XM's Multiterminal MT4
Multiterminal is an application for traders who want to manage multiple MT4 accounts from one software with a single login and password. XM's Multiterminal software supports the following key features:
Supports up to 128 trading accounts
Supports multiple order types
3 allocation methods
Real-time management and execution
Types of Trading Accounts at XM
XM offers 4 main types of accounts: Micro account, Standard account, Ultra Low account, and Share account (stock account).
Account Mechanism Separation, Ensuring Liquidity for Client Payments
Subject to management by ASIC, one of the leading financial regulatory centers and the current overseer of the Australian stock market, KVB PRIME adheres to stringent requirements regarding safety policies in the form of segregated accounts. This implies that KVB PRIME must maintain two accounts, one solely dedicated to holding margin deposits, completely independent from the funds used for trading operations.
This mechanism ensures capital safety, mitigating the risks of forex brokers using margin deposits for personal endeavors, or sometimes even counter-trading against their own clients.
As a result, clients' investment funds are safeguarded through fiduciary trust, protected from disappearing even in the event of XM's bankruptcy. This is also a crucial criterion for choosing a reliable forex broker for trading.
Insurance Mechanism in Case of Broker Bankruptcy
With licensing from CySEC, XM falls under the regulation of the EU's financial authority, thus obligating it to adhere to the EU's Financial Instruments Directive 2014/65 / EU or MiFID II and the EU's Anti-Money Laundering Directive to protect traders under the Investor Compensation Fund (CIF) with a maximum insurance of €20,000.
A minimum capital of €750,000 (as stipulated by CySEC) or 1 million USD (as per ASIC regulations) is required.
Currently, XM is operated by XM Global Limited, also the entity ensuring capital safety and client protection as per current regulations.
Furthermore, as a licensed Securities Service Provider, XM must meet stringent financial requirements, including maintaining sufficient working capital to pay clients, handle potential fluctuations in forex trading orders, and cover all other expenses.
Independent auditors annually audit the company's financial reports.
Due to such stringent requirements, the more licenses a broker possesses, the stronger its financial capability, credibility, and ability to comply with legal standards, ensuring client rights are protected.
However, it is noteworthy that XM's operations in Vietnam are regulated by IFSC, which is the weakest of the three licenses XM holds.
Therefore, fundamentally, the protection of Vietnamese traders' rights might not be as robust as under the other two regulatory bodies.
Nevertheless, for a broker to be licensed by ASIC or CySEC, they must exert significant effort. For instance, FBS, despite its popularity in Vietnam, took 8 years to obtain CySEC licensing.
Thus, traders can place their trust in the broker's credibility. They cannot afford to harm their reputation, built not over days or months, but years.
Therefore, you can be confident in trading with XM given its ongoing development.
XM Trading Platform
One of XM's advantages is its provision of both MT4 and MT5 trading platforms, offering numerous options compatible with Windows and Mac OS operating systems, as well as Webtrader.
Significantly, XM has also developed MT4 and MT5 software compatible with iPad, iPhone, Android, and Android Tablets.
MT4 Software Provided by XM
MT4 is the most popular software used by almost every forex trading broker. It is favored for its user-friendliness, ease of use, and support for automated trading through allowing traders to write orders or use automated trading robots.
For most traders, MT4 is the first choice when it comes to forex or CFD trading (contract for difference on financial products).
XM Promotional Programs
As mentioned earlier, XM is highly generous in promoting its marketing campaigns as well as various bonus programs. Some of the most noteworthy programs currently offered by XM include:
$30 Trading Bonus on XM Account Registration
This program is applicable to customers who are registering an XM account for the first time. Simply by having an authenticated account, the account will automatically be credited with $30 USD without the need to deposit any money or any other requirements.
Therefore, to receive the $30 USD for trading practice or platform testing, you just need to:
Register an XM account
Then proceed to verify the account in the member area by submitting documents proving address and identity.
Click on the "Claim Bonus" button.
Complete the SMS confirmation procedure as instructed on the screen.
Once these procedures are completed and if the XM account is successfully verified, the money will be automatically credited for you to try trading. To withdraw funds, XM also lays out very simple requirements such as:
- A minimum trading volume of 0.1 standard lots.
- A minimum of 5 trading orders.
XM's 15% Welcome Bonus
As the name suggests, once you deposit funds within 24 hours, your account will receive an additional 15% based on the amount you deposit. Also, the maximum bonus amount is 500 USD.
Please note, the 15% bonus is not withdrawable; it is only used to increase the free margin of your account, thus helping you to manage risk better. Furthermore, XM Ultra Low accounts and XM Shares Accounts are not eligible for the deposit bonus.
XM's 10th Anniversary Promotion
This is a prize draw promotion by XM in celebration of their 10th anniversary. You simply need to have a verified real MT4/MT5 trading account at XM with a minimum balance of 500$ (or an equivalent amount) to receive a lucky draw ticket. The program will last until August 2020.
Free VPS on XM Platform
If you maintain a minimum balance of $500 or more and trade at least 2 standard lots (or 200 micro lots) each month, you are eligible for a free VPS.
Additionally, if you do not meet the above requirements, you will be charged $28 per month for using the VPS.
Deposits and Withdrawals at XM
Currently, deposit and withdrawal transactions on the XM platform are processed 24/7 through various electronic payment gateways such as Neteller, Skrill, Visa, Master Card, and Ngan Luong.
About the Trading Platform
The biggest advantage of XM is that it covers all the deposit/withdrawal fees for all payment gateways such as Neteller, Skrill, Visa, and Mastercard.
For example, if you deposit 100 USD via Skrill and withdraw 100 USD later, you will receive the full 100 USD in your Skrill account, as XM pays all transaction fees for both ways.
This is something no other Forex platform has managed to do except for XM! However, if you withdraw less than 200 USD, you will have to bear the withdrawal fee charged by your bank.
All withdrawal requests are processed by XM within 24 hours. Through the XM Card or e-wallet, you will receive money on the same day; if using bank transfer or credit/debit card, it will take 2-5 business days.
XM Customer Support Services
XM supports multilingual customer service 24/5 via email, phone, and live chat.
Each XM customer has their own Personal Account Manager, who not only provides full technical support through live chat, email, or phone, but you can also schedule one-on-one training sessions with them to learn the basics of MetaTrader4.
Therefore, XM’s support services can be considered extremely professional and dedicated.
Should You Trade with XM?
XM has been very successful with its marketing campaigns. However, even though it offers quite a few impressive numbers, we still find some points about XM rather inadequate like:
Firstly, the order execution speed. XM's website states that “XM pioneered the no re-quotes and no rejection of orders policy since 2010. We match 100% of orders, of which 99.35% are executed in less than one second.”
However, XM does not specify what technology it uses, such as P2P peer-to-peer technology, or the leasing of servers at leading data centers like Equinix, which ICMarkets has done.
Therefore, the numbers XM presents are mainly from XM without any third-party verification. For this reason, XM should explain more specifically about this issue in the execution part to be more convincing.
Another point is that XM does not clearly state whether it operates as a Market Maker, STP, or ECN, as XM does not mention its liquidity providers.
Even for the Ultra Low account, a type of account XM offers to compete with other ECN brokers like ICMarkets.
And although offering very competitive spreads, this account type does not charge commission fees. In principle, with True ECN brokers, trader's orders are pushed directly to the market, so the broker will only charge commission fees and not intervene in the spread.
However, XM waives the commission fees for this account type, so it is unclear whether this is the broker's policy to attract more customers or some other reason???
Fairly speaking, XM is indeed a reputable Forex broker, always trying to improve service quality to provide customers with the best experience.
A typical action for this is that XM has recently added the Ngan Luong payment gateway to help customers deposit and withdraw more easily.
As well as providing many different educational resources, all thoroughly researched by XM, from trading signals to indicators, live teaching sessions to support customers.
Conclusion
Every platform has its strengths and weaknesses, and the choice of broker depends on the plan of each trader, investor. With over 2.5 million customers joining, XM is still a trading platform you can consider and choose. Wish you success!
Micro Account
Minimum deposit of $5
Spread fees starting from 1 Pip
No commission fees
Maximum of 200 open/pending orders
Minimum order size: 0.01 lots (MT4), 0.1 lots (MT5)
Trading bonus available
This account is targeted by XM towards novice traders. It is similar to the Cent account offered by Exness or FBS.
However, this account differs as it is calculated in Micro Lots (equivalent to 1,000 units instead of the standard 100,000 units per lot).
As such, even though the account balance is displayed in USD, the smaller lot size means that 1 lot on a Micro account is equivalent to 0.01 lots on a standard account, aiding investors in managing risks more effectively.
Overall, this account is highly suitable for new traders who are still learning about Forex.
Standard Account
Minimum deposit: $5
Spread fees starting from 1 Pip
No commission fees
Maximum of 200 open/pending orders
Minimum order size: 0.01 lot
Trading bonus available
This account is similar to the Micro account, but trades in standard lot units. With a minimum deposit starting from just $5, spreads from 1 pip, and a maximum leverage of 1:888 offered by XM.
Both these account types are aimed at novice traders or those practicing Forex trading, hence offering many conducive conditions to meet their best trading needs.
Ultra Low Account
Spreads for major currency pairs starting from just 0.6 Pip
No commission
Maximum of 200 open/pending orders
Minimum deposit: $50
This account offers the lowest spreads, starting from only 0.6 pip, with no commission charges, and a minimum deposit requirement of only $50 as per XM's regulations. This account is suitable for a wide range of traders, especially those who prefer scalping.
The reason being, XM intends to use this account to attract traders to compete with ECN brokers and reputable Forex platforms like ICMarkets or Exness.
Notably, despite the many advantages mentioned, the Ultra Low account does not incur commission fees, making it an extremely attractive option for those looking to trade with XM.
Note, XM divides the Ultra Low account into two sub-categories: XM Ultra Low Standard and XM Ultra Low Micro, mainly differing in trading volume, with all other conditions remaining the same.
Share Account
Base currency: USD
Leverage: No leverage
Spread as per the base rate
Commission fees: Yes
Maximum of 50 open/pending orders
Minimum order size: 1 lot
Minimum deposit: $10,000
This account is for traders who are interested in trading shares. However, it requires a very high minimum deposit of at least $10,000. This is because the Share account provided by XM does not allow the use of leverage.
Additionally, as per XM's regulations, you must place a minimum of 1 share with the smallest volume being 1 lot. As we know, 1 standard lot is 100,000 units, so according to XM's regulations, the minimum deposit for this type of account should not be $10,000 but rather $100,000 to be sufficient to trade 1 lot.
Although offering thousands of stock products from various countries, the lack of leverage makes the minimum deposit of $10,000 quite high!
Meanwhile, many other Forex brokers like XTB or ICMarkets offer stock products (XTB provides 1,700 stock codes) and still allow a maximum leverage of 1:20.
Therefore, fairly speaking, with such requirements, XM's stock account struggles to compete with XTB or ICMarkets.
Some Points to Note About Accounts Offered by XM
As XM offers a variety of different account types, the platform allows customers to open up to 8 types of accounts simultaneously. However, due to the fact that multiple accounts can be opened at the same time, XM has some policies related to inactive accounts.
According to XM, an account is considered inactive if there is no trading/withdrawal/deposit/internal transfer/additional trading account registration activity for a period of 90 (ninety) days. All bonuses, credits, and XMP points will automatically be removed from an inactive account.
An inactive account will incur a fee of 5 USD/month, or the entire account balance if the available balance is less than 5 USD. Accounts with a zero balance will be archived after approximately 90 days.
Therefore, if you have too many accounts and forget to use them, the best way to avoid the 5 USD/month fee is to withdraw all the money, or transfer funds internally to the most frequently used accounts.
Trading Products Offered by XM
XM offers a wide range of products, totaling over 1000. Unfortunately, XM no longer supports cryptocurrency trading. Therefore, if you want to trade digital currencies, you may consider other platforms like Exness...
Forex Trading: Includes 57 currency pairs – majors, crosses, and exotics.
CFD Stocks: 1184 stock symbols.
Shares: 100 different types of shares, traded on the Share account.
Commodities: 8 commodities including Coffee, Wheat, Sugar, Corn, Cocoa.
Stock Indices: 30 indices.
Precious Metals: 4 products including gold, silver, platinum, and Palladium.
Energies: 4 products including Brent Oil, WTI Oil, NGAS, London Gas Oil (GSOIL).
Fundamentally, XM offers a wide range of products for you to choose from. Especially, stocks and shares traded at XM still enjoy normal dividends, according to the dividend schedule that XM provides in the product information section.
Of course, since these are still CFD trades, you will not have the right to veto or give opinions as when trading basic shares.
However, the fact that dividends are enjoyed is also a competitive advantage offered by XM. This makes the product more competitive compared to other forex platforms, which only offer stock indices as a type of CFD, similar to trading forex currencies or gold or silver.
Spread Fees, Commission Fees, and Leverage at XM
Spread Fees Offered by XM
In reality, the spread fees of XM are quite high, especially for Micro and Standard accounts, ranging from 1.6 pip -2.6pip. Currently, XM has introduced the Ultra Low account with super low spread starting from just 0.6 pip, no commission fees or any hidden fees, very suitable for those who specialize in scalping trading.
About the Trading Platform
XM offers a maximum leverage of 1:888, with the exception being for Share accounts, which do not have leverage. For the other three account types, this leverage ratio decreases gradually based on the amount of money a trader deposits with XM. The specifics are as follows:
For deposits from $5 to $20,000, the maximum leverage is 1:888.
For deposits from $20,001 to $100,000, the maximum leverage is 1:200.
For deposits over $100,001, the maximum leverage is 1:100.
Additionally, it's important to note that for less common currency pairs such as EURDKK, EURHKD, GBPDKK, USDDKK, USDHKD, USDCNH, EURRUB, and USDRUB, the leverage will not exceed 1:50.
For the two currency pairs, USDTRY and EURTRY, leverage also does not exceed 1:100. For pairs containing CHF, the maximum leverage does not exceed 1:400.
Uniquely, XM also offers an automatic leverage change mode. If you think the 1:888 ratio is too high, you can log into your account, go to the “Account” section, and select “Change Leverage” to switch to more suitable levels.
Commission Fees at XM
At XM, apart from the Share account, the other three account types are exempt from commission fees, a significant benefit that XM offers to traders on its platform.
Resources Provided by XM
XM is perhaps one of the most diligent forex platforms in providing resources to traders. Beyond educational resources, there are also resources for trading signals, market research, and many trading indicators developed by XM for its customers.
Trading Signals Provided by XM
XM offers a wide variety of signal types for traders to choose from. Besides the signals analyzed by XM itself, you will also receive signals from Avramis Despotis, a renowned expert who has trained employees at many major banks and news agencies worldwide, such as Reuters, HSBC, Deutsche Bank, Saxo Bank, Barclays Bank, and more.
All analysis from Avramis Despotis mainly revolves around 10 products such as EUR/USD, GBP/JPY, USD/JPY, GBP/USD, EUR/JPY, AUD/USD, GOLD, US30, NIKKEI, and OIL. These are sent twice daily in Vietnamese.
These include entry points, profit-taking, and stop-loss points. Just register and verify your account successfully, and you will receive these signals in the member area.
Additionally, you can also access signals directly provided by XM in the resources section after logging into your account.
Indicators Developed by XM
XM takes pride in having the support of 450 top experts, so it's understandable that they have developed their own indicators for the MT4 software. Apart from familiar indicators like Ichimoku, Bollinger Bands, and ADX, XM has also developed an indicator known as the Ribbon Indicator, which can help traders identify trends, accumulation zones, or predict impending trend reversals.