- XM is a Leader in Trade Execution with a No Requotes / Rejection Policy, 99.35% of Trades Executed in Less Than 1 Second
- One of Few Brokers to Provide Negative Balance Protection and Guaranteed Stop Loss / Limit Orders
- Offers Low Fixed Spreads and Up To 888:1 Leverage
- $5 Minimum Deposit, 11 Base Currencies, 25 Funding Options
- Plentiful Educational Resources with Daily Analysis, Live Webinars 5 Days a Week and Over 100 In Person Seminars
- $30 to sign up for an account
- 50% Deposit Bonus up to $500, 20% Deposit Bonus up to $5,000 on initial deposits.
- Note that bonuses cannot with withdrawn, only used for trading purposes.
Established 2009, XM.com has grown very quickly into one of the leading global forex brokers with over 300,000 accounts opened with traders from over 196 countries. It is headquartered in Cyprus with offices in Hungary and Greece.
XM.com is a solid broker with good educational resources, reasonable transaction costs and flexible account options. However, what really stands out about XM.com is its dedication to superior trade execution. 99.35% of trades executed in less than one second and XM.com has had over 150 million trades executed without requote or rejection
XM.com is also one of the few brokers to offer negative balance protection. This ensures you will never lose more than your account balance. Negative balance protection is an invaluable feature in periods of extreme market turmoil such as January 2015.
XM.com invests heavily in investor education and offers webinars 5 days a week in 13 languages. It has also hosted over 100 free seminars across the world. Their trading costs are quite competitive with tight fixed spreads and no withdrawal or inactivity fees. You can also set your own leverage level up to 888:1 based on your individual risk tolerance.
Overall, XM.com is a very good fit for active forex focused traders who want to trade with high leverage and low spreads.
XM.com’s negative balance protection policy is a very valuable feature in periods of extreme market volatility. In January 2015, the Swiss Franc appreciated close to 20% overnight versus the Euro and a lot of traders weren’t able to close out their positions fast enough on their own. Many brokers automatically liquidated these positions at a substantial loss and went on to pursue clients for additional funds. After public outrage and delay, some but not all brokers forgave the negative balances; however, these were one-off allowances. XM.com’s negative balance protection policy ensures that you will never lose more than your account balance and that you will not be at the whim of your broker’s mercy.
Some brokers will “requote” during turbulent market conditions. This means they may execute your trade at a slightly different level than the quote you see on your screen after you place the order. XM.com commits never to do this to its clients. It has a strict no requote policy whether you trade online or on the phone. XM.com also guarantees execution of stop and limit orders up to 50 lots (5 million units).
Another benefit to trading forex with XM.com is that you can customize your leverage based on your risk tolerance. You can go as high as 888:1 with the exception of 8 exotic pairs. Few brokers offer such high leverage with most in the 200:1 range.
XM.com offers CFDs on more forex pairs than most brokers with 57, however its range of markets outside of forex is somewhat limited. Many other brokers now offer CFDs on individual equities, bonds and ETFs but XM.com does not at this time. Another emerging trend in forex is social trading. Other brokers have either developed their own social trading network or integrate third-party platforms. XM.com is a bit behind in this respect as well.
Market Analysis & Education
XM.com invests heavily in research and investor education. They provide exclusive daily market analysis in the form of articles, news updates and technical analysis video updates from its experienced research team. Chief Technical Analyst, Avramis Despotis also provides customers with trading signals twice a day.
XM.com also has an extensive library of video tutorials on how to use Metatrader software.
You can also join free interactive webinars 5 days a week on a variety of subjects. Webinars are conducted in 13 languages and XM employs 18 instructors to host them.
XM.com has hosted over 100 live seminars across the globe, run by Chief Technical Analyst, Avramis Despoti. Despoti starts with the foundations of technical analysis. He teaches you how to use volatility to identify the best trading opportunities. Then, how to perform technical analysis over multiple time frames to identify the ideal entry point for a trade.
XM.com’s trading costs are fairly competitive. They do not charge commission and its floating spreads are on the low end compared with most brokers (EURUSD 1.8 pips). They also do not nickel and dime you with withdrawal, deposit or inactivity fees.
Account customization is another area where XM.com stands out. Customers can open accounts in 11 different base currencies where most brokers offer a choice of USD or EUR. For non-US / eurozone clients, having an account in the base currency of your home country helps eliminate currency exchange costs when you transfer funds in and out of your account.
XM.com also provides over 20 secure payment options to fund your account including credit card, wire, Western Union, Moneygram and online payment services including WebMoney, Skrill, Neteller, Sofort, iDeal, paysafecard, Qiwi, Cash U, Giro Pay, Przelewy 24 and Fasapay.
The minimum deposit for both micro and standard accounts is only $5. The only difference between the accounts is the lot size. The lot size for a micro account is 1000 units, in line with most other brokers.
XM.com does not have a proprietary software platform but it offers Metatrader 4 on PC, Mac, Browser, iPhone, iPad and Android. Your log-ins will sync with all of XM.com’s platforms.
Clients who maintain a minimum balance of $5,000 can also use Metatrader via XM’s virtual private server (VPS). The server is located near XM’s data center in London. Trading via the VPS will decrease the execution time of your trades regardless of your physical location. This is especially important if you are using high speed automated trading strategies.
Metatrader 4 (PC, Mac, Browser, Multi-Terminal) is the industry standard software for forex trading. With XM.com, you can trade over 100 instruments including CFDs on forex and commodities via Metatrader. Metatrader has many powerful features including advanced charting, back testing and other advanced analytical tools. It also integrates with Expert Advisors and MQL5 to allow you to execute automated trading strategies.
Metatrader Multi-Terminal is a PC version of the Metatrader 4 program which allows you to trade multiple accounts with the same log-in. XM is one of the few brokers to offer a native Mac version of the Metatrader software. If you borrow someone’s computer, the browser version of Metatrader allows you to trade without download.
Metatrader 4 Mobile (iPad, iPhone, Android) gives you the same functionality as the desktop version with the convenience of being able to manage your account on the go. The iOS apps also come with push notifications for new alerts.
XM.com offers 24 /5 phone support in over 20 languages as well as live chat and email support. While some brokers impose 5 business day delays for withdrawals and impose gratuitous charges, XM.com doesn’t subject its clients to this. All withdrawal requests are processed within 24 hours and fees are covered by XM.com.
Safety and Security8.5
XM.com is regulated by Cysec in Cyprus, the FCA in the United Kingdom, BaFin in Germany and ASIC in Australia. XM.com has had a number regulatory issues in recent years. They were fined by CySEC in 2013 for failing to take sufficient measures to protect client funds and had problems with their anti-money laundering procedures. They were also fined by the CFTC in 2012 for soliciting US retail customers without proper registrations.
XM.com now segregates client's funds from company funds and uses tier 1 banks like Barclays. They also use SSL encryption to secure fund transfers and customer data.