ASIC, CySEC, DFSA, IFSC
12 Richard & Verengaria Street Araouzos Castle Court, 3rd Floor 3042 Limassol, Cyprus
Welcome to our detailed XM review. XM Forex (XM Global), whose parent company is Trading Point Holding, has been brokering Forex and CFDs (contracts for difference) globally since 2009. Regulated by 3 major financial authorities (CySEC, ASIC, IFSC), XM is at the forefront in terms of reliability. It is an ideal company for those who prefer to trade on MetaTrader platforms and low transaction fees.
It is a large global forex company with more than 3,500,000 clients today offering transactions in 196 countries. With 5/24 customer support, it provides more than 30 language support to its investors. It is one of the leading forex companies in the market with 8 awards it won in many branches such as ‘Best Fx Broker’, ‘Most Transparent Broker’ and ‘Most Reliable Broker’ in 2020.
XM Forex offers 4 different account types for users. We will move on to explanations about these account types in a moment. Since the company provides services in more than 190 countries, it has developed account types according to the customer structure and diversity in these countries.
Micro Account: An account type developed for entry-level users with very small investments. Although it has all the features offered by the company, it has the feature of opening a much smaller account than the standard micro-lot account type.
While 1 Microlot = 1/100 Lot in a normal account, 1 Microlot = 1/10000 in this account type. In other words, it provides the opportunity to open transactions at the Cent level. In this account type, the Max leverage is 1:888 while the Min Deposit is $5. All campaigns and bonuses offered by the company are also valid in this account type.
Standard Account: The only difference from the Micro account is that the minimum trade opening limit is set as 1 Microlot = 1/100 Lot when entering transactions. In short, transaction opening limits that are currently valid in all companies are defined under the standard account at XM forex company.
Ultra-Low Account: It has a different structure from the other two account types. The minimum deposit amount is set to $50 in this account type. So what makes this account type different? In Standard and Micro Ultra Low account types, spread rates are around 0 for major parities and metals such as EURUSD, GBPUSD, USDCHF, USDJPY, GOLD etc.
XM Forex takes commission per transaction instead of Spread. Some users prefer to open a zero account and some prefer to open a standard or micro account. It is up to you to choose your account type according to the parity you trade frequently. Account bonuses and loyalty points are not provided for ultra-low account types. XM Zero and XM Ultra-Low accounts are not valid for every product within the XM group. But it is valid for all products that are used very frequently.
Guarantee and Coverage Insurance
It should be noted that it is subject to a very strict financial control thanks to its strong licensing infrastructure and the European Union financial services institutions to which it is affiliated. Like many large companies, XM company can transfer the money in its customer accounts to the company main account after accounting for profit or loss so that it can use it in their normal business.
This system, called separate accounts, is audited daily by regulatory authorities. XM forex company is one of the rare companies among reliable foreign forex companies that have many licenses and are audited by side auditors.
Spread, Commission and Swap Details
Let’s take a look at the spread and swap rates, which are one of the most important factors for users who want to open an account with the company.
The company, which allows fixed spread and 0 commission transactions in Standard and Micro account types, gives spread values around 1 to 2.4 pips on products such as EURUSD, GBPUSD, USDJPY, USDCHF. It has quite adequate and competitive rates when compared to the classic accounts of other large companies, namely fixed spread accounts.
The firm has recently released the Ultra Low account type, which is an equivalent account type to the ECN and RAW accounts found in other forex companies. Spread values vary between 0-1 in accounts with $3 commission per lot. For example, a spread of 0.4-0.6 pips is taken for the most used EURUSD parity.
Forex products in the precious metals and energy section can be traded with spread values between 0.2-0.5. XM company’s spread values offer lower rates in Ultra Low account types than many other companies’ ECN types.
When it comes to swap, the swap, that is, the overnight carrying values applied in major parities and main energy products, are among the top 5 forex companies that give the lowest swap rate proportionally.
Leverage and Margin Details
Company XM has kept its maximum leverage ratio at 1:888. Max leverage is valid for standard FX parities and Gold and Silver. For users who will trade in CFDs such as Brent Oil, WTI, SP500, DOW, the maximum leverage ratio differs on a product basis. These ratios range from 1:1 to the maximum leverage level. Leverage ratio of 1:888 is not valid for users who accept EU ie European group license. Although this rate varies according to the products, it is 1:30.
If we look at the margin and stopout levels, the transaction margin call is set at 50% and the stopout level at 20%. While stop out is generally 30% in large companies, XM forex keeps this rate at 20% in favor of the customer. For users trading under EU license, the call to completion is given as 100% and the stop level is 50%. In addition, negative balance events that occur as a result of sudden prices in the accounts do not reflect any damage to the customer and delete it. In the table below, you can see how much leverage ratios are given in which product groups. Products such as cotton, wheat and copper are evaluated under the CFD product group.
Order Transmission and Price Gaps
XM Forex, a market maker company, is an incredibly fast company in execution time known as order transmission. It should be noted that 99.5% of orders are transmitted at the level of 11 milliseconds and there is no order rejection. Many users who are looking for foreign forex brokers do not know these details very well, but the best reflection of the technical infrastructure is in these results.
While evaluating the best forex companies, we prioritize order transmission and slippage as the most important variable in reliability and quality ranking. When you place a trade order, the realization of the price given and the speed of its realization should be one of the most important issues that you should pay attention to. In the test results section, you will see the general average of forex companies in the market and the test results of XM forex company.
So, what kind of policy does it have in price gaps that occur during sudden price movements, namely GAPs and stop transitions? In this regard, we can say that it applies to stop transactions in favour of users. Many users are making huge losses during these gaps. Now companies have started to give up on reflecting Gap problems to users.
The following test results (2016-2020) cover a period of 4 years. During this period, 483 different tests were performed with 2 different robot software. 19% of the tests were performed under high volatility during TDI, ECB, FED, CBRT data.
XM Forex Licenses
XM Forex Licenses
We have included regulatory body section to our XM review. Although the firm was founded in 2009, it has become one of the world’s largest players in forex. It is a Forex Broker with 2.5 Million active users and operating in more than 190 Countries as of 2020. If you are asking the question ”is XM Forex reliable?” let’s look at the licenses of XM Forex company and the details of these licenses;
ASIC (Australian Securities and Investments Commission) – Australia: Another license of XM Forex company is ASIC license number 443670. The company is subject to inspection by Official inspectors in many of the countries in which it operates. While many companies are audited by only one regulator, XM has more than 3 separate audit licenses.
CySec (Cyprus Securities and Exchange Commission) – Southern Cyprus: With the CySec license under the supervision of the European Union, it has the authority to make transactions easily and safely in all European countries. It is another official institution that it is under control with the license numbered 120/10.
IFSC (International Financial Services Commission) – Belize: With XM Forex, which has a new license as a result of recent leverage limitations and margin rate limits, users get both XM brand assurance and high leverage and low margin call rates.
Trading Features of XM
- Website: https://www.xm.com
- Demo Account: Open Demo Account
- Regulated by: ASIC, CySEC, DFSA, IFSCYear established: 2009
Headquarters: 12 Richard & Verengaria Street, Araouzos Castle Court, 3rd Floor, 3042 Limassol, Cyprus
- Minimum Deposit: $5
- Max Leverage: 1:888
- Publicly Traded: No
- Deposit Options: Credit Card, China UnionPay, iDeal, MoneyGram, Moneybookers, Neteller, Webmoney, Sofort, Western Union, Skrill, Wire Transfer
- Withdrawal Options: Credit Card, China UnionPay, iDeal, MoneyGram, Moneybookers, Neteller, Webmoney, Sofort, Western Union, Skrill, Wire Transfer
- Tradable Assets: Currencies, Stocks,Bonds, Indices, Commodities
- Trading Platforms: MT4 , MT5
- Trade Commissions: No
- Fixed Margins: No
- Trading Desk Type: No Deal Desk
- OS Compatibility: N/A
- Mobile Commerce: N/A
- Accepts US Clients: No
XM Platform Features
- Supported cryptocurrencies: N/A
- Number of cryptocurrencies: N/A
- Number of tradable assets: N/A
- Number of currency pairs: N/A
- Number of stocks: N/A
- Number of indexes: N/A
- Number of commodities: N/A
- Number of bonds: N/A
- Number of options: N/A
- Number of bills: N/A
- Education services: Yes
- Social trading / copy trading: No
- Trading signals: Yes
- Email alerts: No
- Mobile alarms: No
- Guaranteed stop loss: No
- Guaranteed order limits: No
- OCO orders: No
- Following SP/TP: No
- Number of ETFs: N/A
- Auto trade: No
- API trading: No
- VPS services: Yes
- Trading with charts: No
- Trading on margin: No
- Offer Hedging: No
- Suggest Promotion: No
- One-click trading: Yes
- Expert advisors (EA): Yes
Why Do You Need an XM Review?
There are so many Forex companies and investors are struggling to choose the most advantageous one for themselves. At this point, the best forex brokers ranking offer traders what they are looking for. With the XM review we have prepared, we have created a detailed information source and analysis about XM Forex company. Don’t forget to check our reviews for other forex and crypto companies.