XM is an online broker and trading website that allows clients to trade various assets. Founded in 2009, XM Group provides traders with the complete MetaTrader platform suite by MetaQuotes Software Corporation.
It has become an online multi-asset broker offering 57 currency pairs and 1000 CFDs. Five CFDs are also offered on cryptocurrencies covering Bitcoin, Dash, Ethereum, Litecoin, and Ripple. Keep reading this XM Broker review to learn more about it.
A Detailed Table on XM Broker
Category | Details |
Company Name | XM |
Regulation | FCA (UK), CySEC (Cyprus), ASIC (Australia), IFSC (Belize) |
Minimum Deposit | $5 |
Leverage | 2:1 to 888:1 depending on instrument & jurisdiction |
Trading Platforms | MetaTrader 4 & MetaTrader 5, Web Trader, Mobile |
Demo Account | Yes |
What Types of Accounts Does XM Offer
XM offers two main types of trading accounts: Standard and Micro. The Standard account requires a minimum deposit of just $5 to get started. It offers access to over 1,000 trading instruments, tight spreads, and leverage up to 1:888. This account is best if you want to trade higher volumes.
The Micro account is geared toward beginners. It allows you to trade with up to 1:500 leverage and has no minimum deposit. You’ll have access to the same 1,000+ tradable instruments but with slightly higher spreads. This is a great choice if you’re just getting started with forex trading and want to start small.
No matter which account you choose, XM offers free demo accounts so you can practice your skills risk-free. They also provide market news, analysis, and education to help sharpen your trading edge.
What Trading Platforms Can You Use With XM
When you open an account with XM, you gain access to their full suite of trading platforms. You can find lots of XM Trading platforms.
WebTrader is XM’s web-based platform, so you can access it from anywhere with an internet connection. It’s simple but provides all the essential tools for trading forex, stocks, commodities, and indices.
For more advanced charting analysis, Metatrader 4 (MT4) is ideal. MT4 is available as a desktop platform for Windows and Mac, as well as mobile apps for Android and iOS. You can customize it with expert advisors (EAs) and technical indicators to build your perfect trading environment.
Last but not least, XM offers MetaTrader 5 (MT5). Not just forex and CFDs, MT5 supports trading stocks, futures, and options. It has enhanced charting capabilities, more indicators and EAs than MT4, and an economic calendar to see market-moving events.
With multiple highly rated platforms, tight spreads, and free access to tools for technical and fundamental analysis, XM gives you everything you need to trade confidently.
What Are the Fees of XM
As with most brokers, XM makes money through spreads, commissions, and financing charges. The good news is, that XM doesn’t have any hidden fees and is upfront about all their costs and the XM Broker minimum deposit is $5.
Spreads
XM adds a small markup to the prices of assets called a “spread”. Spreads are how XM makes money when you trade. Spreads vary based on market conditions and the specific instrument. XM’s spreads tend to be lower than average, especially for popular currency pairs.
Commissions
XM charges a commission for stock CFDs, ETF CFDs, stock index CFDs, bond CFDs, and cryptocurrency CFDs. Rates start at 0.08% and go up to 0.20% depending on the asset and account type. XM does not charge commissions on forex, commodity CFDs, or index CFDs.
Financing Charges
If you hold a CFD position overnight, XM will charge a small financing fee. The fee is based on the interest rate differential between the currencies or the underlying assets in the CFD. Fees are tripled for positions held over the weekend. Financing charges provide an incentive for short-term trading.
Inactivity Fees
XM will charge you a monthly inactivity fee of $10 if you don’t place any trades for 12 months. The fee is waived if you have a minimum balance of $200 in your account.
How Do You Place an Order With XM
To place an order with XM, you’ll first need to log in to your XM trading account and fund it. Once your account is funded, here are the basic steps:
Select an Instrument
Browse XM’s range of over 1000 forex pairs, and CFDs on stocks, commodities, indices, precious metals, and cryptocurrencies to choose what you want to trade. For forex, select a currency pair like EUR/USD or GBP/JPY. For CFDs, choose an instrument like Apple or gold.
Choose Order Type
The two most common order types are market orders and pending orders. A market order executes immediately at the current market price. Use pending orders like limit, stop loss, or stop entry to open trade only once the price reaches your specified level. Stop loss orders help manage your risk.
Set the Volume
Enter the number of units you want to trade which will depend on the instrument. For forex, the standard volume is 1 lot which is 100,000 units of the base currency. For CFDs on stocks, 1 unit is 1 share. Adjust the volume up or down depending on your account balance and risk tolerance.
Confirm and Place
Double-check all the details of your order before placing it. Once you’ve confirmed the instrument, order type, volume, and any price limits, click “Place Order”. Your trade will now execute and appear in your open positions where you can monitor its progress.
How Can You Learn to Use the XM Platforms
XM provides several ways for you to learn how to effectively use their platforms. It offers demo accounts that simulate real market conditions. You can practice trading with a demo account to build confidence before switching to a real money account.
It provides video tutorials and webinars covering how to use the platforms. You can access over 100 video tutorials on their YouTube channel and website.
XM has market analysis and education resources on its website. You can read analyses of current market trends and strategies to improve your trading skills. XM also offers online courses and seminars on forex and CFD trading.
This platform also provides 24/5 customer support via phone, email, and live chat. Their support team can walk you through how to use the platforms and answer any questions you may have.
Is XM Legit or a Scam
XM is a legitimate online trading platform offering forex and CFD services. It is regulated by reputable authorities such as CySEC and ASIC. With a transparent track record and numerous industry awards, XM is known for its user-friendly interface and competitive trading conditions. Traders globally trust XM for its secure transactions and reliable customer support.
Final Thought
XM is a reputable and regulated broker that offers competitive fees, a choice of platforms for all skill levels, and the opportunity to trade over 1,000 instruments. While the sheer range of account types and add-ons can seem overwhelming at first, XM has plenty of resources to help you find what’s right for your needs and experience.
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