XM broker review and test – Is it a scam or not?

Review:
Regulation:
Spreads:
Min. Deposit:
Assets:
5 out of 5 stars (5 / 5)
IFSC, CySEC, ASIC
Starting 0.0 Pips
5$
1,000+

Should you avoid the online broker XM or is it actually a recommendable company? – On this page, we share our own experiences in the form of a test report on this Forex and CFD broker. Learn about the terms and offers for traders in the following texts. Also, we will show you a step-by-step tutorial that shows you how to trade successfully. Is it worth it to invest his money or not? – Inform now transparently.

The official website of the Forex Broker XM

The official website of the Forex Broker XM

Regulation
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Customer Support and Service
0%
Good Conditions for Traders
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What is XM.COM? – The forex broker presented

XM Group (XM) is a group of regulated online brokers. Trading Point of Financial Instruments Ltd was established in 2009 and it is regulated by the Cyprus Securities and Exchange Commission (CySEC 120/10), Trading Point of Financial Instruments Pty Ltd was established in 2015 and it is regulated by the Australian Securities and Investments Commission (ASIC 443670), and XM Global Limited was established in 2017 with headquarters in Belize and it is regulated by the International Financial Services Commission (IFSC/60/354/TS/19). The company was founded in 2009 and has since enriched more than 1.500.000 customers in over 196 countries. Even the broker is one of the biggest in his industry.

The goal is to give the customer a very fair and reliable offer for investing in international financial markets. Customer support is also a top priority for this company and is available in more than 30 languages. We will check this in the following experience report exactly. In addition, the broker is very active in distributing advertising and sponsorship. Especially for customers, the broker is even to be found at seminars or financial fairs worldwide.

XM offers trading in currencies (Forex) and CFDs on commodities, precious metals, energies, stocks, and indices. Currently, over 1000 different markets are offered to traders. The broker works as an intermediary for tradable contracts for difference. In summary, the offer is very large at first glance and also the company data prove to be trustworthy.

Facts about the FX Broker XM.com: 

  • Founded in 2009
  • More than 1.500.000 international customers
  • Worldwide offices (Cyprus, Australia, Belize)
  • Huge variety of assets
  • Support and service in international languages
  • More than 15+ award-winning Forex Boker

(Risk warning: 78.04% of retail investor accounts lose money when trading CFDs)

Regulation of XM and safety of customer funds

An official regulation or license radiates trustworthiness and security. Every trader should find out about opening an account with a broker. The regulation is intended to push frivolous and fraudsters out of the market. Licenses require certain criteria and regulations that guarantee a clean and secure trade.

Another good impression for us is that XM has several licenses. In more than 4 countries, the broker is regulated by an official financial regulator. In addition, the company is registered in many European countries with appropriate supervision and has EEA freedom to provide services.

In addition, customer funds are managed in different investment-grade banks. XM is only doing business with regulated payment providers. Also, the broker is a member of the Investor Compensation Fund. XM does not trade versus its clients, which is forbidden through the regulation, and for more safety, there is negative balance protection.

XM is a highly regulated broker

XM is a highly regulated broker

Why XM is a very safe online broker: 

  • Regulation of official finance regulator in the Cyprus (CySEC), Australia (ASIC), and Belize (IFSC)
  • Member of the Investor Compensation Fund (only for Trading Point of Financial Instruments Ltd.)
  • XM does not trade versus clients
  • The client’s funds are kept in segregated client bank accounts
  • Negative Balance Protection

ESMA Regulation

In 2018, the leverage for traded derivatives (Forex and CFDs) was massively restricted to 1:30 by the European Financial Services Authority (ESMA). Brokers, which have a license in Europe, are only allowed to offer this small lever to customers. This is a significant problem for some traders because certain strategies (such as hedging) can no longer be performed.

However, the leverage of 1:30 applies to clients registered under the EU-regulated entity of the Group. Leverage depends on the financial instrument traded.

Review of the XM trading conditions for traders

XM is very broad with over 1000+ tradable instruments. There should be no lack of choice here for a trader. As mentioned above, a variety of stocks, commodities, currencies (Forex), precious metals, and energies are offered for trading. Especially stock trading is a huge advantage with XM, assets from more than 14 different countries are available.

Available markets:

  • Currencies
  • Stock CFDs
  • Commodities CFDs
  • Indices CFDs
  • Precious Metals CFDs
  • Energies CFDs

In terms of trading platforms, XM relies on the world-famous platform MetaTrader 4 and 5. This is, in our opinion, one of the best software for private traders. We will give you a more detailed explanation in the section Trading Platforms.

Assets and markets of XM.com

Assets and markets of XM.com

The terms of trading in leveraged financial products are, in my experience and tests, very good and competitive. XM relies on several different account types, which give a trader excellent conditions, depending on the capital strength. Spreads can start at 0.0 pips on the most traded markets. In addition, the execution is very reliable and there are 100% no requotes.

As a trader, you can start trading for as little as $ 5 minimum deposit or use a free demo account. In addition, there are different account types for every type of capital (more on that later). All in all, the conditions make a very positive impression on us and XM can be one of the cheap and reliable brokers.

Conditions for traders:

  • Spreads starting at 0.0 Pips
  • Different account types
  • Maximum leverage is 1:30 for clients who registered under EU regulated entity
  • Maximum leverage is 1:500 for clients who registered under Belize or ASIC regulated entity
  • Minimum Deposit of 5$
  • Free and unlimited Demo Account
  • More than 1,000 different markets
Regulation:
Support:
Assets:
Special:
CySEC, ASIC, IFSC
24/5 in different languages, webinars and training tutorials
1000+ (Forex trading, Stocks CFDs, Commodities CFDs, Equity Indices CFDs, Precious Metals CFDs, and Energies CFDs)
Different account types

(Risk warning: 78.04% of retail investor accounts lose money when trading CFDs)

Review and test of the XM Trading Platform

As mentioned before in this review, the well-known trading platform Metatrader in version 4 and 5 are offered. In our opinion, there is no better trading platform for private traders worldwide, because it offers many universal options. The trading platform is characterized by its flexibility and user-friendliness.

With the MetaTrader, you can adapt your trading to any trading style. The platform can be customized and even programmed. Whether long-term or short-term hands, the Metatrader always delivers the right settings. Robots or automatic programs are also allowed with this program.

The following trading platforms are available: 

  • MetaTrader 4 (web, mobile app, desktop)
  • MetaTrader 5 (web, mobile app, desktop)

Trading Platform available for any device

The advantages of the XM MetaTrader:

  • 1 login and access to the web trader, app, and desktop version
  • Automatic programs may be used
  • No requotes
  • Rental of a VPS server possible
  • Complete video tutorial is available from XM

Charting and analysis for forex trading

Of course, charting and analytics are very important to successful traders. It is not uncommon that traders even need to access external software. This will not be necessary with XM, because the Metatrader offers all-important charting and analysis options. Choose between more than 4 different chart types in the software.

Any timeframe (time unit) of the chart can be set for the analysis. The software also offers the right tools. Free indicators can be added at any time. There are also a number of drawing tools available. If that is not enough, you can program the indicators yourself or insert them externally.

  • Individually customizable tools
  • Free indicators
  • Big range of technical drawing tools

Mobile trading for any device possible

Another benefit of the software is that it is available for every device. Use the Metatrader also on Apple (iOS) and Android devices. Mobile trading today is a standard requirement for the trading software, as it is important to be able to respond to news from within. Positions can be opened, managed, or closed by your smartphone. Furthermore, you only need access to each device. With your account data, you can log in everywhere.

(Risk warning: 78.04% of retail investor accounts lose money when trading CFDs)

Trading tutorial: Learn how to trade with XM step by step

In the following section, we would like to give you a guide to trading with Forex Broker XM. In the picture below you can see the order mask of the Metatrader. There are many different settings options for trade execution. The following points will tell you how the typical trading process works.

Ordermask

  1. First, analyze one out of 1000 different markets/assets at XM and decide to invest or open a trading position. For this purpose, fundamental analysis or technical analysis can be used. Metatrader offers enough tools and settings.
  2. As you can see in the order mask, you can always bet on rising or falling prices. This is easily possible with forex trading and happens during CFD trading via short sale.
  3. Now you have to choose the position size (volume) and the stop loss or take profit. All sizes are dependent on your planned risk. Choose specific price tags when to open and close a trade. The position sizes are given in lot (1 lot = 100,000 units of the base currency). Beginners should definitely use the XM Forex Calculator, which is available on the website.
  4. The stop-loss stops you in a loss at a certain price (risk) and the take profit automatically closes your position at a certain price in profit. Learn to divide the profit-risk ratio.
  5. Pending orders are another way to open positions. Place orders at specific prices in the market. If the market touches this price, your position will be opened (whether sell or buy).

Open your free account with XM

Next, we would like to look at the account opening in this review. On the website, it is clear that you can open a demo or live account directly. In a few minutes, the depot opening works according to the support. Simply use a valid email and other personal information. The email address must be confirmed after opening the account.

Free and unlimited demo account

A demo account is a virtual balance account. You can use it to try out all the features of Broker XM and trade without risk. It simulates the real money trade with “play money”. It is also a great way for beginners and advanced traders to develop their own strategies or test of new markets.

XM offers a free demo account of over $ 100,000 in virtual credit. If desired, a currency other than the USD may be taken. This account can be used indefinitely and it is the perfect way to get practice with the broker.

Open your account in less than 60 seconds

How to open your real account

Once you have chosen XM, you can open the real money account. This requires more data. The broker also asks a few questions about your knowledge in trading before opening an account. You also need to confirm your phone number to ensure additional security for the account. Before the capitalization, the account should and should be verified. This is very easy with the upload of a passport and proof of residence.

XM guides you through the account opening process. There is a detailed and accurate step-by-step guide so nothing can go wrong. If you have questions, you can contact support. In summary, opening an account is very easy and works in a short time.

Choose the best account type for you

XM offers the advantage of 3 different account types. It can be decided between the “Micro”, “Standard” and “XM zero account”. The account types are adjusted to the capital strength of the customer. For example, in a micro account, you can trade with very small position sizes (risk of a few cents). There is a separate cent contract size.

In the “Standard” and “XM zero account”, there are normal lot sizes. The difference between these two accounts lies in the fees and the possible currency of the account. For example, you can choose 7 different currencies for the standard account and only 2 for the “XM zero account”. Spreads are much lower in the “XM zero account” and start at 0.0 pip. But you have to pay a commission of $ 3.5 per $ 100,000 traded. Overall, the “XM zero account” is still much cheaper than the standard account.

MicroStandardXM Zero Spread
Min. Deposit:5$5$100$
Currency:USD, EUR, GBP, CHF,‎
AUD, HUF, PLN
USD, EUR, GBP, CHF,‎
AUD, HUF, PLN
USD, EUR
Spreads:1.0 Pips1.0 Pips0.0 Pips
Commission:NoNo3,5$ commission per 1 Lot traded
Islamic AccountYesYesYes

(XM also offers the XM ULTRA LOW account which allows you to trade with either micro or standard lots, lower spreads from 0.6 pips and it has a minimum initial deposit of $50. The XM ULTRA LOW account is not applicable to all entities of the group)

(Risk warning: 78.04% of retail investor accounts lose money when trading CFDs)

Should you choose fixed or variable spreads?

Some brokers offer fixed spreads. This means that the spread (the difference between buying and selling price) is always the same. He is also not dependent on the market situation. The problem here is that usually high fees or insurance premiums have to be paid. In addition, it is difficult to guarantee fixed spreads, because the stock market does not work on the principle. Fixed spreads are generally unnatural.

XM offers direct interbank spreads for your clients. This also has the advantage that there is no conflict of interest. The spreads are reduced to the lowest and you always get directly the current market prices. It is not better. XM is very transparent here and reaps a clear plus point for us.

Note:

XM always offers the best and tightest spreads

Do your first deposit (minimum deposit)

Now it is your turn to capitalize on the trading account. From our experience, this also works pretty fast. We will give you an overview of this section about the payment methods. You can use electronic methods or a classic transfer for the deposit. Using electronic methods (credit card, e-wallets, Neteller, Skrill) the money is credited directly to the account. Bank transfer can take 1 to 3 days. There are no fees for the deposit. The minimum deposit is only $ 5 with this online broker.

Review of the withdrawal at XM

Another important point of a good broker is a quick and easy payment of client funds. It is not uncommon for a broker to experience difficulty in paying large sums and delays.

This is not the case with XM. The company is always liquid and makes payments in less than a day. The fees are to look for in vain. The only fee that can be incurred if you pay less than $ 200 by bank transfer. From our experience with XM, you are with a very secure broker who treats client funds with the highest confidence.

The conditions for payments:

  • Credit Card (VISA, VISA Electron, MasterCard, Maestro)
  • Electronic Wallets (Neteller, Skrill, and more)
  • Bankwire
  • Minimum deposit 5$
  • Withdrawal within 24 hours
  • No withdrawal fees (except bank wire under $ 200)

Is there a Negative Balance Protection?

Cruel stories about account balances thanks to the extra payroll haunting the internet. Many traders are afraid of additional funding and would like to act without them. These concerns are completely correct.

With XM.COM there is no additional payment obligation. The balance can not end up in a negative balance. The broker will automatically stop all postings before. Should the account balance become negative anyway, XM will compensate him (very unlikely).

XM support and service for traders tested

With XM you get more than one trading account because the customer service is provided by many employees of the company. Over 30 different languages are available in customer support. International employees also work for the company and help you around the clock. Use telephone, email, or chat support.

For example, you can also access professional training and webinars. The webinars are held almost daily and are accessible to every customer. There are also daily market analyzes and even signals to trade. Another plus is the personal account manager from XM. Each customer is assigned an employee who is available for questions and suggestions. It tries to find the best deal for you personally as a trader.

In summary, we can say from my experience that the analyzes offered, etc. are very well applicable for their own trade. Beginners and advanced traders can expand and improve their knowledge for free. In addition, the service makes a good impression on me.

Facts about the service: 

  • Personal account manager
  • 24/5 support in different languages
  • Daily webinars and analysis
  • Service for beginners and advanced traders

Conclusion of the XM broker review – Scam or reliable company?

XM can hold its own in comparison to other brokers and gets a very good rating from me on this page. With several licenses and regulations, the company exudes a high level of security and trustworthiness. In addition, client funds at XM are managed separately from corporate funds, which eliminates a conflict of interest.

Overall, the broker with its over 1000+ markets offers a very large offer for private traders. Take, for example, markets from distant countries. The portfolio will also be supplemented by the new markets. The Metatrader trading platform is also perfect for analyzing markets and opening trades. Diversity for customers is 100% guaranteed by this broker.

Another advantage is the terms of trade and in the deposit and withdrawal. The fees are so low that XM can count to one of the cheapest brokers. The positive features of the company are rounded off by customer support. At XM, you not only get technical help but also a great way to educate yourself in the trade.

XM is a trusted Forex Broker (Stamp)

The advantages of XM: 

  • More than 1,000 different assets
  • A regulated and safe company
  • Cheap trading fees
  • No hidden fees
  • 3 different account types
  • Metatrader Software
  • Professional support and service
  • Accept international customers (Europe, Africa, Indonesia, Asia, India, China, and more)

In summary, XM is a recommended and trusted Forex Broker. We highly recommend this company after our test. Happy Trading 5 out of 5 stars (5 / 5)

(Risk warning: 78.04% of retail investor accounts lose money when trading CFDs)

The most asked questions: 

Is XM.com regulated?

Yes – XM.com is regulated several times. The company holds the following licenses: CySEC (Cyprus), ASIC (Australia), IFSC (Belize). There is a license according to the EEA freedom of services in Europe and therefore also registration in several regulation registers.

Can I test XM.com for free?

Yes – XM.com offers every client a free demo account to test the platform and markets. The account is filled with virtual funds and you trade without risk. The demo account is ideal to gain new experience or to develop strategies for trading.

Which markets does XM.com offer?

There are over 1,000 different markets offered by XM.com. The markets are traded via CFD (contract for difference). Among them are currencies (Forex), stocks, indices, commodities, or metals. The offer at XM is very large compared to other providers.