[XM Review and Reputation] Good or Dangerous Broker?
XM is the world’s largest premium broker.
Judging from transaction costs alone, XM is not advantageous over other brokers.
However, there are many benefits to using XM.
Benefits of using XM
- There is campaign for opening account 30USD & Up to + 100% deposit bonus. You can start trading with undeposited or small deposits and get big profits.
- XM has low hidden costs such as slippage due to its excellent execution capabilities that make use of the largest number of customers in the world. Using the XMP loyalty program will reduce the real cost.
- XM provides good customer support.
- XM is the world’s largest and reliable broker. There is no worry about damage such as stop loss hunting or withdrawal refusal.
XM operating company and regulations (license)
Traders use regulations and licenses as a reference for broker reliability.
XM is a corporation based in Cyprus called “Trading Point Holdings Ltd”.
The operating company has acquired licenses in a total of 4 countries to provide services around the world.
|Trading Point Holdings Ltd【head office】||Cyprus||(CySEC/Cyprus Securities and Exchange Commission)
|Trading Point of Financial Instruments UK ltd||UK||(FCA/Financial Conduct Authority)
|Trading Point of Financial Instruments Pty Ltd||Australia||(ASIC/Australian Securities and Investments Commission)
|Tradexfin Limited||Seychelles||Seychelles Financial Authority（FSA）License
XM has acquired a total of 4 licenses: Cyprus (CySEC), UK (FCA), Australia (ASIC) and Seychelles. The company’s scale and reliability can be highly evaluated.
|Commission||None||None||$ 10 round for 1 lot|
|Leverage||1：888 ($5 – $20,000)|
1：200 ($20,001 – $100,000)
1： 100($100,001 -)
|1：888 ($5 – $20,000)|
1：200 ($20,001 – $100,000)
1： 100 ($100,001 -)
|1：500 ($100 – $20,000)
1：200($20,001 – $100,000)
|Order||Special STP||Special STP||ECN|
|1 lot currency unit||1,000||100,000||100,000|
|Min trade size||0.01lot (MT4)|
|Max number of positions||200||200||200|
|Account currency||USD, EUR, JPY||USD, EUR, JPY||USD, EUR, JPY|
* Swap-free accounts are available.
“Zero account” costs less than “Standard account”.
However, “Zero account” cannot use XM’s advantages of up to twice the deposit bonus and loyalty programs such as XMP.
Evaluation of trading environment
Transaction costs (spread & commission)
Simply looking at the transaction costs of XM may seem higher than small ECN brokers.
In simple comparison, there are many brokers that offer lower spreads and commissions than XM.
However, XM’s standard account has a very high execution ability. Execution speed is fast and slippage is low.
Therefore, the hidden cost is low.
XM uses its own special execution method, so it can realize overwhelming execution power.
XM once matches the order that can be offset within the company, and then sends the order to an external liquidity source.
This is possible because XM has over 1 million customers.
By matching orders within XM, XM can achieve overwhelming execution speed and fewer slippages.
XM also has no worries about requotes or refusal to execute.
If you use broker that causes requotes or rejections, there is risk of sudden loss.
With XM, there is no such worry.
You should not simply look at average spreads, commissions, etc. when determining broker transaction costs.
Considering hidden costs such as slippage, XM is the broker that can trade with low cost.
In addition, you can make even more profitable deals by using various bonus programs.
On the other hand, the Zero account is ECN, and all orders flow to the external market, so the slippage is relatively large compared to the Standard account.
Leverage varies with account funds.
If your balance is less than $ 20,000 with a standard account, you can trade at leverage 1: 888, which is an excellent leverage condition.
By using high leverage and up to 2x bonus programs, you can aim for big profits with a small amount of money.
On the other hand, if the funds exceed $ 100,000, the leverage will be 1: 100. This is a little low.
If the funds are large, the leverage conditions may not match if you use high-risk trade logic.
Margin call / Stop out
- Margin call：50％
- Stop out：20％
XM’s margin call / stopout level is an advantage over other brokers.
If the price goes against the position, the lower the stopout level, the later the timing of forced closing will be delayed, leaving a chance for the price to reverse and make profits.
However, the stopout level is not very important if you do not take high-risk trading techniques.
Safety and Risk Assessment of XM
Negative Balance Protection
The XM website clearly states, “Because negative balance reset is applied to all customers, there will be no loss beyond the account balance.”
During the Swiss franc shock, XM has a history of resetting customer negative account balances to zero.
With XM, you can trade with confidence because there is no loss beyond the deposit amount. In other words, there is no risk of debt.
Investor fund protection
Financing companies regulated by the CySEC (Cyprus Securities and Exchange Commission) are required to join the ICF (Investor Compensation Fund). The body of the XM operating company is regulated by CySEC.
Even if an ICF member broker goes bankrupt, customers will be compensated by ICF up to € 20,000.
However, XM has licenses from four countries, and depending on your district, you may use a legal entity other than the CySEC license.
Therefore, even if XM goes bankrupt, there is no guarantee that the account funds will be returned.
On the other hand, the official website says: “Your funds will be transferred to a bank account prepared by us and managed separately. These funds are not included in our balance sheet and will not be used for payment to creditors at the time of liquidation. ”
It’s a little confusing, but in the first place, it’s very unlikely that XM will suddenly go bankrupt, so you don’t need to worry too much.
Deposit / Withdrawal method
XM offers a variety of deposit options.
- Credit card
- Bank transfer
However, deposit and withdrawal options vary depending on your residence.
After registering as a member, you can check the deposit method from the deposit page.
Please note that some options may not be available depending on where you live.
XM is the broker with the world’s best bonus program.
The following bonus programs are available.
XM bonus program
- Account opening bonus 30USD
- Deposit bonus (up to + 100% / up to 5000 USD)
- Bonus points according to the number of trading lots
This opportunity should be used because you can trade with a small deposit.
Also, you can get 30USD just by opening an account, so you can start trading without depositing.
Please note that bonuses are only available as trading margin and cannot be withdrawn.