XM Review 2020

XM has low trading fees for CFDs and charges no withdrawal fee. On the other hand, forex fees are only average, and there is a fee for inactivity.

How we ranked fees

We ranked XM's fee levels as low, average or high based on how they compare to those of all reviewed brokers.

First, let's go over some basic terms related to broker fees. What you need to keep an eye on are trading fees and non-trading fees.

• Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
• Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

In the sections below, you will find the most relevant fees of XM for each asset class. For example, in the case of forex and stock index trading, spreads, commissions and financing rates are the most important fees.

We also compared XM's fees with those of two similar brokers we selected, XTB and eToro. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of XM alternatives.

To have a clear overview of XM, let's start with the trading fees.

XM trading fees

XM trading fees are low. XM has many account types, which all differ in pricing. The Standard, Micro, and Ultra Low accounts charge higher spreads but there is no commission. The XM Zero account charges lower spreads, but there is a commission. The following calculations were made using the Standard account.

We know it's hard to compare trading fees for CFD brokers. So how did we approach the problem of making their fees clear and comparable? We compared brokers by calculating all the fees of a typical trade for selected products.

We chose popular instruments within each asset class:

• Stock index CFDs: SPX and EUSTX50
• Stock CFDs: Apple and Vodafone
• Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP

A typical trade means buying a leveraged position, holding it for one week and then selling. For volume, we chose a $2,000 position for stock index and stock CFDs, and $20,000 for forex transactions. The leverage we used was:

• 20:1 for stock index CFDs
• 5:1 for stock CFDs
• 30:1 for forex

These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let's see the verdict for XM fees.

CFD fees

XM has generally low CFD trading fees. Compared to its competitors, the fees are about the same or lower.

Forex fees

XM's forex fees are average compared to its competitors.

Real stock fees

Clients onboarded under IFSC can also trade real stocks using the Shares Account.

The real stock fees are lower than XTB's, but lag behind eToro's commission-free real stock offers.

The commissions are volume-tiered with a minimum fee.

Non-trading fees

XM has average non-trading fees. There is no account fee and XM charges no withdrawal fee in most cases, though bank withdrawals below $200 carry a $15 fee.

There is a $15 one-off fee after 1 year of inactivity, and this is followed by a $5 monthly fee if the account remains inactive.

XM account opening is hassle-free and straightforward. You may be able to trade on your account already on the same day.

Can you open an account?

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75.55% of retail CFD accounts lose money

XM accepts customers from all over the world. There are a few exceptions though; among others, you can't open an account from the USA, Canada, China, Japan, New Zealand or Israel.

What is the minimum deposit at XM?

The required XM minimum deposit is $5 for the Standard and Micro accounts, which is very low. The minimum deposit is $100 for XM Zero accounts and $50 for XM Ultra Low accounts.

Account types

XM offers many account types, which differ in pricing, base currencies, minimum deposit and contract size.

Islamic or swap-free accounts are also available. With Islamic accounts, a flat commission is charged if you hold your leveraged position overnight instead of the percentage-based financing rates.

XM doesn't offer corporate accounts. If you sign up for a non-European entity, you will not be eligible for European client protection measures.

How to open your account

XM account opening is fully digital, fast and straightforward. You can fill out the online application form in 20 minutes. Our account was verified on the same day.

You can select many languages other than English:

To open an account at XM, you have to go through these steps:

1. Fill in your name, country of residence, email address and telephone number.
2. Select the trading platform (MT4 or MT5) and account type.
3. Add your personal information, such as your date of birth and address.
4. Select the base currency and the size of the leverage.
5. Provide your financial information and answer questions about your financial knowledge.
6. Verify your identity and residency. You can upload a copy of your national ID, passport or driver's license to verify your identity, while utility bills and bank statements are accepted as proof of residency.

XM's deposit and withdrawal processes are fast and inexpensive, and offer you several options.

Account base currencies

At XM, you can choose from a great selection of account base currencies. The available base currencies are: EUR, USD, GBP, CHF, JPY, AUD, RUB, PLN, HUF, ZAR and SGD. The available account currencies depend on which account type you open.

This account base currency selection is more competitive than that of similar brokers.

Why does this matter? For two reasons. If you fund your trading account in the same currency as your bank account or you trade assets in the same currency as your trading account base currency, you don't have to pay a conversion fee.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. These usually offer bank accounts in several currencies with great currency exchange rates, as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

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Deposit fees and options

XM charges no deposit fees. You can use bank transfer and credit/debit cards for depositing funds. Clients onboarded under IFSC can also deposit using the SticPay electronic wallet.

A bank transfer can take several business days, while payment with a credit/debit card is instant.

You can only deposit money from accounts that are in your name.

XM withdrawal fees and options

XM charges no withdrawal fees. The only exception is bank (wire) transfers below $200, which incur a $15 fee.

For credit/debit cards and electronic wallets, the withdrawal amount cannot exceed the amount you deposited using the same instrument. This means that you can only withdraw your trading profits via bank transfer.

How long does it take to withdraw money from XM? We tested debit card withdrawal and it took 2 business days.

You can only withdraw money to accounts that are in your name.

How do you withdraw money from XM?

• Log in to your account
• Go to 'Withdraw Funds'
• Select the withdrawal method
• Enter the withdrawal amount

Compare to other brokers

XM's web trading platform is provided by MetaTrader. It is highly customizable and has a clear fee report. On the other hand, the platform lacks price alerts and the design is outdated.

XM does not have its own trading platform; instead, it uses third-party platforms: MetaTrader 4 and MetaTrader 5. These platforms are very similar to each other in functionality and design. One major difference is that you can't trade stock CFDs on MetaTrader 4, only on MetaTrader 5.

We tested the MetaTrader 4 platform as it is more widely used.

MetaTrader 4 is available in an exceptionally large number of languages.

Look and feel

The XM web trading platform has great customizability. It is easy to change the size and the position of the tabs.

However, the platform feels outdated and some features are hard to find. For example, it took us a while to figure out how to add an asset to the watchlist.

Login and security

XM requires two-step authentication for the account login on the website where you can deposit and withdraw. The trading platform itself, however, doesn't have two-step authentication.

Search functions

The search functions are OK. You can find assets grouped into various categories. However, we missed the usual search function where you can type in the name of an asset manually.

Placing orders

You can use all the basic order types. However, you won't find more sophisticated order types such as 'one-cancels-the-other'. The following order types are available:

• Market
• Limit
• Stop

To get a better understanding of these terms, read this overview of order types.

There are also order time limits you can use:

• Good 'til canceled (GTC)
• Good 'til time (GTT)

Alerts and notifications

You cannot set alerts and notifications on the XM web trading platform. This feature is available only on the desktop trading platform.

Portfolio and fee reports

XM has clear portfolio and fee reports. You can easily see your profit-loss balance and the commissions you paid. These reports can be found under the 'History' tab. We couldn't find a way to download them.

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75.55% of retail CFD accounts lose money

XM has a great mobile trading platform, offered by MetaTrader 4. It is a well-designed and user-friendly platform with a good search function. However, Touch/Face ID login is not supported.

XM offers MetaTrader 4 and MetaTrader 5 mobile trading platforms. Similarly to the web trading platform, we tested the MetaTrader 4 platform on Android.

Once you have downloaded the MT4 mobile trading platform, you should access the relevant XM server, e.g. XMUK-Real UK. 

Just like on the web trading platform, you can choose from many languages on the mobile trading platform as well. Changing the language is a bit tricky on Android devices, as you can do it only if you switch the default language of your mobile.

Look and feel

XM has a great mobile trading platform, we really liked its design and user-friendliness. It is easy to find all the features it provides.

Login and security

XM requires only one-step login for the platform, but provides two-step account login to access deposit and withdrawal functions. A two-step login procedure for the trading platform would be safer.

You can't use fingerprint or Face ID authentication. Offering this feature would be more convenient.

Search functions

The search functions are good. You can search by typing the name of the product or by navigating the category folders.

Placing orders

You can use the same order types and order time limits as on the web trading platform. 

Alerts and notifications

You can set alerts and notifications for your mobile, although only through the desktop trading platform. It would be much easier if you could set these notifications on the mobile trading platform as well.

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75.55% of retail CFD accounts lose money

In design and functionality, XM's MetaTrader 4 desktop platform is almost the same as the web trading platform. One major difference is that you can set price alerts on the desktop trading platform.

For desktop trading too, you can use the MetaTrader 4 and 5 platforms; we tested MetaTrader 4.

It has the same design, is available in the same languages, offers the same order types, has the same search functions, and offers the same portfolio and fee reports as the web trading platform.

The desktop trading platform doesn't have two-step authentication; however, XM provides a two-step account login procedure on the website where you can deposit and withdraw funds.

The major difference is that you can set alerts and notifications on the desktop trading platform in the form of mobile push and email notifications. To set these, you have to add your email address and mobile MetaQuotes ID (you can find it in the MT4 app's settings). You can add them if you go to 'Tools' and then 'Options'.

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75.55% of retail CFD accounts lose money

XM provides CFDs and forex for all clients, while real stocks are available only for clients opening their accounts under the IFSC-regulated entity. Popular asset classes, like real ETFs, bonds or options are missing.

XM is a CFD and forex broker with a great number of currency pairs available for trading. However, the CFD selection is lower compared to some XM alternatives.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

You can't change the leverage levels of the products, which is a drawback. Changing the leverage manually is a very useful feature when you want to lower the risk of your trade. Be careful with forex and CFD trading, as the preset leverage levels may be high.

Real stocks and ETFs

XM provides real stocks for clients onboarded under XM's IFSC-regulated entity. You can trade stocks only using the Shares Account. The real stock selection lags behind that of similar competitors.

Social trading

XM offers a social trading service. The Mirror Trader platform allows investors to mirror professional traders on their own trading accounts and execute trades manually, semi-automatically or automatically. 

XM offers a wide range of technical tools and a great economic calendar. On the downside, it provides no fundamental data on assets.

XM's research tools have two sources:

• The 'Research & Education' section on the website
• MetaTrader trading platforms

The 'Research & Education' section is somewhat limited if you choose a language other than English. For example, there are no technical analyses or market overviews on non-English websites. If you go with English, you can access extra features like:

• Markets Overview: a summary page of all the latest news on the markets
• XM Research: a page that consists of analyses, reviews and comments on market movements
• Technical Summaries: a short collection of instrument movements by the minute, hour or day
• Podcasts

These are all great additions to XM's research side, not many brokers have such a variety of tools ready.

Trading ideas

Fundamental data

XM does not offer fundamental data on assets.

Charting

XM has OK charting tools. You can use 31 technical indicators. These charting tools can be found on the MetaTrader trading platforms.

On the negative side, the design is outdated and some features are hard to use. For example, it was hard to figure out how to remove an indicator from the chart.

News feed

A news feed is available on the ‘Markets’ and ‘News’ pages under the 'Research & Education' tab. We liked that news items are categorized based on product types. You can also find Video news.

XM offers a great economic calendar. We liked that the calendar has a filter function where you can filter for countries, data type and importance.

Compare research pros and cons

XM's customer service is fast and is available in many languages, via email, phone and live chat. The relevancy of answers is OK. Phone support is not available on weekends, though.

You can contact XM via

• live chat
• phone
• email

Answers are quick, and their relevancy is mostly OK.

Live chat is quick to respond to the first message but gets a bit slower with subsequent questions. We found that sometimes we had to ask the same question multiple times to get a straight answer.

XM phone support was fast, but we didn't always receive relevant answers. For example, we didn't get a clear answer to our query on how swaps are calculated. On other days, the answers were on point – it's hit-or-miss.

Email support works great. We received answers within a day and they were all relevant.

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75.55% of retail CFD accounts lose money

XM does a great job in education. You can toy around with a demo account, watch trading platform tutorials, and learn from educational videos and high-quality webinars.

At XM you can learn in the following ways:

• Demo account
• Platform tutorial videos
• General educational videos
• Webinars

Most of the education section on XM is based on video content. You can dive deep into topics ranging from an introduction to financial markets through money management and trading strategies to technical analysis. Each chapter has several lessons, all available for XM users only.

Beyond these prerecorded materials, they offer live training both online and offline for various experience levels. 

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75.55% of retail CFD accounts lose money

XM is regulated by three financial authorities globally, including the top-tier ASIC. It is a well-established brand but is not listed on any exchange and does not disclose financial information.

Is XM regulated?

Yes, XM is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), and the International Financial Services Commission of Belize (IFSC). Trading.com, the other brokerage service of XM's parent company, is regulated by the top-tier UK Financial Conduct Authority (FCA).

There is a separate XM legal entity called Trading Point MENA Limited, which is regulated by the Dubai Financial Services Authority (DFSA), for clients from the Middle East and North Africa, but these clients are onboarded through the Belize entity, XM Global Limited.

Is XM safe?

To be certain if a brokerage is safe, we highly advise that you check two facts:

• how you are protected if something goes wrong
• what the background of the broker is

How you are protected

XM operates several subsidiaries, and which one of these will serve you depends on your residency. This is important for you because the investor protection amount and the regulator differ depending on the entity.

*Clients from these countries – except Belgium, Cyprus, Greece and Switzerland – can also open an account at Trading.com, which is regulated by the UK's Financial Conduct Authority (FCA). The investor protection amount provided at this entity is £85,000.
 

XM provides negative balance protection for both EU and non-EU customers.

Background

The private company behind the XM brand is Trading Point Holdings. It was established in 2009. The longer the track record of a broker, the more proof we have that it has successfully weathered previous financial crises.

On the other hand, the company doesn't disclose financial information and isn't listed on any exchanges. These would increase transparency.

Find your safe broker

XM is regulated by several authorities globally, including the top-tier ASIC.

On the plus side, we liked the low CFD and withdrawal fees. The account opening process is seamless and hassle-free. There is a wide range of educational tools of great quality.

XM has some drawbacks though. Its product range is limited to FX and CFDs. Its forex fees are average, and non-EU customers are not covered by any investor protection.

We recommend XM for those who are interested in CFD and forex trading and prefer MetaTrader trading platforms. Feel free to test it via the demo account.

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75.55% of retail CFD accounts lose money