Perhaps because it provides high-quality services and maintains effective communication, XM has gained the trust of many traders.
If 2018 was the “year of FBS” with its booming $50 bonus campaign, then 2019 could be considered the “year of XM” when it introduced a similar campaign, offering a slightly lower amount of $30. However, XM went even bigger, continuing this program from 2019 until now without any signs of stopping!
Of course, it’s thanks to such aggressive spending that both FBS and XM have become more widely known among traders. In particular, XM not only offers the $30 bonus campaign (which we will discuss in detail later) but also has other marketing campaigns to promote the platform to traders. According to XM’s own announcement, the XM leadership has traveled to “120 cities worldwide to connect with customers and partners.” Perhaps it’s due to the combination of quality service and effective marketing that XM has become a preferred choice for many traders. So, if you’re interested in learning more about XM, don’t miss our review of the XM platform below.
Overview of XM
Launched in 2009, XM is under the umbrella of Trading Point Holdings Ltd, with CYTEC being the official regulatory authority, in partnership with the European Union, to ensure transparent operations and anti-money laundering measures. Currently, XM serves over 10,000,000 customers across 120 countries, supports 30 languages, offers 16 comprehensive trading platforms, and provides 25 secure payment methods, backed by 600 financial experts with years of experience.
XM offers a wide range of products for customers to choose from, including Forex, CFD contracts, stock indices, commodities, stocks, metals, and energy. Everything is transparent, from spreads to various commission fees, with no hidden charges. Orders are executed rapidly, often within a second. This is why XM is favored by many demanding and discerning Japanese traders who have high expectations for service quality.
XM Forex License
In many forex platform reviews, we always emphasize the importance of trading with a licensed platform.
Currently, there are two types of forex platforms in the market: one operates “under the radar,” and the other is regulated (at least to some extent) by a financial organization worldwide. Each financial authority has its own regulations, so the larger the organization, the stricter the requirements.
Therefore, if the broker you are considering to open a trading account with is licensed by reputable organizations, it indicates that it is a trustworthy trading platform. Due to this point, many unregulated platforms attempt to fake licenses. So, when trading, it’s essential to check or visit the official websites of financial authorities like FCA, NFA, ASIC, BaFIN, etc., to verify whether the platform you intend to trade with is genuinely licensed.
Returning to XM, it can be considered a reputable forex trading platform that is licensed by several major financial organizations, 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.
- IFSC (International Financial Services Commission) with license number IFSC/60/354/TS/18.
With the licenses mentioned above, what benefits do they ensure for traders?
Segregated Account Mechanism Ensuring Liquidity for Clients
Being regulated by ASIC, one of the leading financial regulatory bodies and the current authority responsible for overseeing the Australian securities market, ASIC imposes strict requirements on the policy of ensuring safety through Segregated Accounts. According to this mechanism, the broker must maintain two separate accounts: one for holding client funds, completely independent of the broker’s operational funds.
This ensures the protection of the capital and prevents risks associated with brokers using client funds for their own purposes, including trading against their clients’ positions. As a result, clients’ invested funds are safeguarded through this trust account arrangement, even in the event of XM’s bankruptcy. This is a crucial criterion when choosing a reputable forex broker to trade with.
XM Account Opening
Insurance Mechanism in Case of Broker Insolvency
With the license from CySEC, XM falls under the supervision of a financial authority directly associated with the EU. Consequently, XM must comply with the EU’s Markets in Financial Instruments Directive 2014/65/EU or MiFID II and the EU’s Anti-Money Laundering Directive, all to protect traders through the Investor Compensation Fund (CIF) with a maximum insurance coverage of €20,000.
Moreover, XM is required to maintain a minimum capital of €750,000 (as per CySEC regulations) or $1 million USD (as per ASIC regulations).
Currently, XM is operated by XM Global Limited, which is responsible for capital safety and client protection in accordance with current regulations. As a licensed financial service provider, XM is obligated to meet stringent financial requirements, including maintaining adequate working capital to cover client withdrawals and any fluctuations in the company’s forex trade orders, as well as other expenses. Additionally, an independent auditing firm conducts annual audits of the company’s financial reports.
Due to such strict requirements, having multiple licenses implies financial strength, credibility, and the ability to adhere to regulations, all of which are crucial for protecting the interests of clients.
However, it’s worth noting that XM’s operations in Vietnam are regulated by IFSC, which is the weakest of the three licenses held by XM. Therefore, in essence, protecting the rights of Vietnamese traders may not be as strong as with the other two regulatory bodies. Nonetheless, obtaining licenses from ASIC or CySEC requires significant effort, even FBS, although popular in Vietnam, took 8 years to obtain the CySEC license.
Advantages and Disadvantages of XM Broker
Advantages:
- Holds multiple licenses from reputable organizations
- Offers Forex and CFD trading on the same account
- Provides a separate account for stock trading
- No commission fees (except for stock accounts)
- Low minimum deposit
- Suitable for hedging strategies
- Fast and convenient withdrawals
- XM covers all transfer fees
- Ongoing promotions
- Provides professional trading signals twice daily
Disadvantages:
- No leverage for stock trading; high deposit fees
Therefore, you can trust in the reliability of XM. They cannot compromise their reputation, which is built over years, for any short-term gains or anything that could harm their credibility. So, with what XM is currently developing, you can confidently trade with them.
XM Trading Platform
One of XM’s advantages is that it offers both MT4 and MT5 trading platforms, providing various options such as compatibility with Windows and Mac OS, Webtrader, as well as mobile versions for iPad, iPhone, Android, and Android Tablet.
XM’s MT4 Software
MT4 is the most popular trading software used by virtually every forex broker. Thanks to its user-friendly interface, ease of use, and support for automated trading through script and Expert Advisors (EAs), MT4 is the first choice for most traders when dealing with forex or CFDs (Contract for Difference) on financial products.
Key Features of XM’s MT4 Software
- Integrates over 1000 products including Forex, CFDs, and Futures.
- Synchronizes with 8 different trading platforms.
- Offers spreads starting from just 0.6 pips.
- Provides a comprehensive set of technical analysis tools with over 50 indicators and charting tools.
- Offers three types of charts (line charts, bar charts, and candlestick charts).
- Allows for hedging (placing opposite, counter-directional orders).
- Permits the use of Expert Advisors (EAs), pre-existing indicators, and custom ones.
- Provides a full suite of technical analysis tools with over 50 indicators and various charting tools.
- Supports custom indicator setups and different timeframes.
- Ensures full and secure data storage.
XM’s MT5 Software
MT5 is an upgraded version of MT4 developed by Metaquotes, the parent company. Consequently, MT5 allows traders to trade a broader range of products, including forex, CFDs (Contract for Difference), stocks, stock indices, precious metals, energy, and commodities.
Furthermore, MT5 offers several enhanced features compared to MT4. Notable among them are advanced charting tools, increased flexibility for algorithmic trading (algorithmic trading capabilities), and the ability to trade across multiple specialized markets, such as stocks.
In addition to the traditional order types like buy limit, buy stop, sell limit, and sell stop, MT5 also includes two pending order types, buy stop limit and sell stop limit, which can improve a trader’s chances of success. Moreover, using MQL5, MT5 allows traders to program trading robots and customize indicators to suit individual trading styles.
One standout advantage of MT5 over MT4 is its capability to trade CFDs on stocks. So, if traders intend to trade this product, using the MT5 software is essential.
Key Features of XM’s MT5 Software
- Allows trading of over 1000 products, including CFDs on stocks, CFDs on stock indices, forex, CFDs on precious metals, and CFDs on energy.
- Synchronizes trading across 7 different platforms.
- Offers spreads starting from just 0.6 pips.
- Provides more than 80 technical analysis tools.
- Displays real-time market depth of the latest quotes.
- Can display more than 100 charts simultaneously.
- Supports various order types, including market orders, pending orders (buy limit, buy stop, sell limit, sell stop, buy stop limit, sell stop limit), stop orders, and trailing stops.
- Offers over 80 technical indicators and more than 40 analytical objects.
Hedging at XM for Those Who Like It
Hedging involves opening opposite positions, both Buy and Sell, at the same time. Many traders use this strategy; however, we recommend that if you are not experienced, it’s best to stick to trading with the trend to avoid high risks.
XM is perhaps the best broker to support hedging. They provide a unique order type called “Close by,” which allows traders to close both opposite positions of the same product simultaneously. This helps traders save a significant amount on the spread difference. It’s important to note that the two positions must be closed together, such as closing a Buy position along with a Sell position or vice versa, to use “Close by.”
In addition to “Close by,” XM also offers another order type, compatible with both MT4 and MT5, called “Multiple close by.” This allows traders to close multiple opposite positions at once. For example, if you have two opposite positions, you can use one of the orders to close the remaining positions. This can result in a significant spread fee gain or loss.
XM’s MT4 Multiterminal
Multiterminal is an application designed for traders who want to manage multiple MT4 accounts from a single software using only one login and password. XM’s Multiterminal software supports the following key features:
- Supports up to 128 trading accounts.
- Supports various order types.
- Three allocation methods.
- Real-time management and execution.
- Different types of XM trading accounts.
Các loại tài khoản giao dịch của sàn XM
XM offers four main types of accounts: Micro account, Standard account, Ultra Low account, and Share account.
Đây là tài khoản được XM hướng tới những khách hàng là trader mới vào nghề. Nên chúng cũng tương tự như tài khoản Cent ở sàn Exness hay FBS.
Micro Account:
- Minimum deposit: $5.
- Spread: Starts from 1 Pip.
- Commission fee: None.
- Maximum open/pending orders: 300 orders.
- Minimum order volume: 0.1 Lot.
- Trading bonus: Available.
The Micro Account is suitable for new traders and is similar to Cent accounts on other platforms. It uses Micro Lots, with 1 lot equaling 1,000 units instead of the standard 100,000 units. This allows for better risk management for new traders.
Standard Account:
- Minimum deposit: $5.
- Spread: Starts from 1 Pip.
- Commission fee: None.
- Maximum open/pending orders: 300 orders.
- Minimum order volume: 0.01 lot.
- Trading bonus: Available.
The Standard Account is also designed for new traders but uses standard lot sizes. It has a minimum deposit of $5 and offers leverage of up to 1:1000.
XM Ultra Low Account:
- Spread for major currency pairs: Starts from only 0.6 Pip.
- Commission fee: None.
- Maximum open/pending orders: 300 orders.
- Minimum deposit: $5.
The XM Ultra Low Account is known for its extremely low spreads, starting at 0.6 pips, with no commission fees. It’s suitable for traders, especially scalpers, and aims to compete with ECN brokers.
Share Account:
- Base currency: USD.
- Leverage: No leverage available.
- Spread: Based on the underlying asset.
- Commission fee: Yes.
- Maximum open/pending orders: 50 orders.
- Minimum order volume: 1 lot.
- Lot size limits vary by stock.
- Minimum deposit: $10,000.
The Share Account is designed for stock trading. It does not offer leverage and requires a minimum deposit of $10,000. Minimum order volume is 1 lot, and lot size limits vary depending on the stock.
Please note that XM no longer supports cryptocurrency trading. XM offers a wide range of trading products, including forex, CFDs on stocks, equities, commodities, stock indices, precious metals, and energies. Trading costs, spreads, and leverage vary depending on the account type and the trading product. XM allows traders to adjust their leverage levels based on their deposited amount. Additionally, XM has policies regarding inactive accounts, which may be subject to fees if there is no trading activity or additional deposits for 90 days.
Products offered by XM
XM provides a wide range of trading products, totaling over 1000 different options. Unfortunately, there’s one downside: XM no longer supports cryptocurrency trading. Therefore, if you wish to trade cryptocurrencies, you may consider platforms like Exness or XTB.
- Forex Trading: Includes 57 currency pairs, both major and exotic.Stock CFDs: Offers 1184 stock CFDs.Equities: Allows trading of 100 different equity options on the Share account.
Commodities: Features 8 commodity products, including Coffee, Wheat, Sugar, Corn, and Cocoa.
Stock Indices: Provides access to 30 stock indices.
Precious Metals: Offers 4 precious metals, including Gold, Silver, Platinum, and Palladium.
Energies: Includes 4 energy products: Brent Crude Oil, WTI Oil, Natural Gas (NGAS), and London Gas Oil (GSOIL).
In essence, XM offers a diverse selection of trading products for you to choose from. Notably, when trading stocks and equities with XM, you can still receive regular dividends based on the dividend calendar provided by XM in the product information section.
However, it’s important to note that since these are Contracts for Difference (CFDs), you won’t have voting rights or the ability to provide input as you would when trading the underlying stocks. Nonetheless, the advantage of receiving dividends makes this product more competitive compared to other forex platforms that only offer stock indices as a CFD, similar to trading forex, gold, or silver.
Spreads, Commission Fees, and Leverage at XM
Spreads offered by XM
In practice, XM’s spread fees for Micro and Standard accounts start from 1 pip. Currently, XM also offers an Ultra Low account with ultra-low spreads starting from only 0.6 pips, without commission fees or hidden charges, making it suitable for scalpers and those who prefer short-term trading.
Leverage at XM
XM provides a maximum leverage of up to 1:1000, except for the Share account, which does not offer leverage. For the other three accounts, leverage levels decrease as the trader’s deposited amount increases at XM. Here’s a breakdown:
- For deposits from $5 to $40,000: Maximum leverage of 1:1000.
- For deposits from $40,001 to $80,000: Maximum leverage of 1:500.
- For deposits from $80,001 to $200,000: Maximum leverage of 1:200.
- For deposits of $200,001 and above: Maximum leverage of 1:100.
Keep in mind that for certain rare currency pairs and currency pairs containing CHF, leverage may not exceed 1:50 or 1:400, respectively. Additionally, for USDTRY and EURTRY, leverage is capped at 1:100. XM also offers an automatic leverage adjustment feature, allowing you to choose leverage levels that suit your preferences. If you find 1:1000 leverage too high, you can log in to your account, navigate to the “Accounts” section, and select “Change Leverage” to switch to more appropriate levels.
Commission Fees
At XM, except for the Share account, all three other accounts offer commission-free trading. This is a significant advantage that XM provides to traders on its platform.
Resources Provided by XM
XM is known for offering a wide range of resources to traders. Besides educational materials, they also provide trading signals, market research, and numerous trading indicators that XM has developed in-house specifically for its clients.
Trading Signals by XM
XM offers various forms of trading signals for traders to choose from. In addition to analytical signals generated by XM, you’ll also receive signals from the renowned expert, Avramis Despotis. Avramis Despotis has trained professionals for many prominent financial institutions and global news agencies such as Reuters, HSBC, Deutsche Bank, Saxo Bank, and Barclays Bank.
The analysis and signals provided by Avramis Despotis primarily focus on 10 key products: EUR/USD, GBP/JPY, USD/JPY, GBP/USD, EUR/JPY, AUD/USD, GOLD, US30, NIKKEI, and OIL. These signals are sent twice a day in Vietnamese and include entry points, take profit levels, and stop-loss levels. To receive these signals, you simply need to register and successfully verify your account, and you will find these signals in the members’ area.
Additionally, you can also access signals provided directly by XM in the Resources section after logging into your account:
After that, if you select “Technical Analysis,” you will see technical analysis articles like the one below. Unfortunately, this part of XM has not been translated into Vietnamese yet, so if you don’t know English, you can use Google Translate to understand it further:
Indicators Developed by XM
XM takes pride in having 450 top experts for support. Therefore, it is understandable that XM develops indicators for the MT4 software. In addition to familiar indicators like Ichimoku, Bollinger Bands, or ADX, XM has also developed an indicator called the Ribbon Indicator. This indicator can help traders identify trends, accumulation zones, or anticipate signs of a reversal about to occur.
VAR Calendar Information
XM not only develops indicators but also invites experts to provide trading signals for traders at XM. XM is highly committed to education and development in this area. In addition to detailed videos on how to use MT4 and MT5, XM provides many other video lessons. Furthermore, XM regularly organizes seminars in the North, Central, and South regions to provide support and knowledge to help traders improve their trading skills. All you need to do is register an account with XM to participate in these free programs.
XM’s Promotional Programs
As mentioned from the beginning, XM is extremely committed to boosting its marketing campaigns and offering various bonus programs. Some of the most noteworthy promotions currently available at XM include:
$30 Trading Bonus when registering an XM account:
This program is applicable to first-time customers who register an XM account. All you need to do to receive $30 is to have your account verified, and the bonus will be automatically credited to your account without the need to deposit any funds or take any other actions.
To claim the $30 trading bonus, simply follow these steps:
- Register an XM account.
- Proceed to verify your account in the member’s area by submitting proof of address and identity documents.
- Click the “Claim your bonus” button.
- Complete the SMS verification process as instructed on the screen.
Once you have completed these steps and your XM account is successfully verified, the bonus will be automatically credited to your account for you to use in trading. To withdraw the bonus, XM has simple requirements, including a minimum trading volume of 0.1 standard lot and a minimum of 5 trading orders.
Please note that XM’s promotions and bonuses may change over time, so it’s essential to check their official website for the most up-to-date information on their promotions and terms and conditions.
Welcome Bonus of 15%:
As the name suggests, within 24 hours of depositing funds into your account, XM will add an extra 15% to the amount you deposited. The maximum bonus amount you can receive through this promotion is $500. Please note that the 15% bonus cannot be withdrawn and is intended to increase your free margin, allowing you to manage your risks more effectively. XM Ultra Low and XM Shares Account types are not eligible to receive the deposit bonus.
XM’s 10th Anniversary Promotion:
To celebrate their 10th anniversary, XM has launched a lucky draw promotion. To participate, you need to have a verified real MT4/MT5 trading account with a minimum balance of $500 (or equivalent). You will receive one lucky draw ticket, and this promotion runs until August 2020. It’s a chance to win various prizes by participating in this draw.
Free VPS (Virtual Private Server):
If you maintain a minimum balance of $500 or more and trade at least 2 standard lots (or 200 micro lots) per month, you will be eligible for a free VPS. However, if you do not meet these requirements, you will be charged $28 per month for using the VPS service.
Deposits and Withdrawals at XM:
Currently, deposits and withdrawals at XM are processed 24/7 through various electronic payment methods such as Neteller, Skrill, Visa, MasterCard, and Ngan Luong.
XM’s greatest advantage is its support for covering all deposit and withdrawal fees for various payment methods, including Neteller, Skrill, Visa, and Mastercard. For example, if you deposit $100 via Skrill and then withdraw $100, you will receive the full $100 in your Skrill account because XM covers all transaction fees in both directions. This is a feature that no other forex broker offers except for XM! However, if you withdraw less than $200, you may incur withdrawal fees from your bank.
XM processes all withdrawal requests within 24 hours. If you use an XM card or e-wallet, you will receive your funds on the same day. If you use a bank transfer or credit/debit card, it may take 2 to 5 working days.
Customer Support at XM:
XM provides multilingual customer support 24/5 via email, phone, and live chat.
Each XM customer has a dedicated Personal Account Manager who provides technical support through live chat, email, or phone. You can also schedule one-on-one training sessions with them to learn the basics of MetaTrader 4.
The customer support provided by XM is considered highly professional and dedicated.
Is XM a Scam? Should You Trade with XM?
XM has been quite successful in its marketing campaigns. However, when evaluating XM, there are still some concerns:
- Order Execution Speed: While XM claims to execute 100% of orders with 99.35% of them executed in under 1 second, it doesn’t specify the technology used for this. It’s essential for XM to provide more transparency in this regard to build trust.
- Business Model: XM doesn’t clearly state whether it operates as a Market Maker, STP, or ECN broker, and it doesn’t mention liquidity providers. Even the Ultra Low account, which is designed to compete with other ECN brokers, lacks transparency in this regard.
- Zero Commission on Ultra Low Account: Offering a zero commission account while providing competitive spreads raises questions about XM’s business model. True ECN brokers typically charge a commission and do not interfere with spreads.
In fairness, XM is a reputable forex broker that continuously strives to improve its service quality to provide the best customer experience. For example, it recently added the Ngan Luong payment gateway to facilitate deposits and withdrawals for its clients. XM also offers a wide range of educational resources, including trading signals and various indicators developed by XM.
In conclusion, XM is not a scam, and it’s a broker you can consider for your trading needs. Keep in mind that every broker has its advantages and disadvantages, and your choice of broker should align with your trading plan and preferences. Good luck with your trading!
