XM Broker – Is XM Safe and Secure?
What Is XM?
Claiming to have completed close to 2.5 billion trades for over 3.5 million clients, XM is a broker well-deserving of a closer look, and on paper, there are very few brokers that can compete with these numbers.
The XM Group has been in operation since 2009 under the trading name of Trading Point of Financial Instruments. This platform is licensed and regulated by ASIC, FCA, CySEC, IFSC and the DFSA.
On top of this, XM has picked up numerous awards over recent years. This includes Best FX Broker Europe & Australasia at the World Finance Awards 2020 and Global Forex Broker of the Year at the Global Forex Awards 2019.
Top Rated Forex Betting Provider 2020
Regulated BrokerVariety of CoinsAvailable via App
66% of retail investors lose money|
when trading CFDs with this provider
Safety & Trustworthiness
Regulation is a good barometer of safety. XM is regulated by authorities such as the Cyprus Securities and Exchange Commission, Australian Securities and Investments Commission and the International Financial Services Commission.
ASIC, CySEC and the IFSC are considered the pinnacle of regulators in the industry. The exchange’s ability to adhere to strict regulations laid out by the aforementioned authorities and also the FCA and the DFSA can only be excellent news for traders.
As part of the regulations with the above authorities, XM stores client funds in segregated bank accounts. Client funds should never be stored in bank accounts used for operational purposes.
Segregated accounts also help protect client funds in the event of financial issues at the broker. If issues such as insolvency or bankruptcy occur, these accounts are not touched.
Daily auditing is also carried out on all client accounts to ensure that there is enough liquid capital within the trading organisation.
Transactions on the XM platform are protected by 128-bit SSL encryption technology. Also required as per regulations, this technology prevents your financial information from falling into the wrong hands.
What Can You Trade with XM?
Clients can look forward to trading and betting on many assets on XM. Across seven different asset classes, there are over 1,200 trading instruments. This provides you with a diverse range of betting opportunities.
There are 57 forex pairs including USD/EUR and over 1,200 CFDs. Of the latter, the majority are stocks, but you will also find 30 indices, 8 commodities, 4 metals and 5 energies.
Depending on your location, you may also trade five cryptocurrency CFDs. Previously only possible under the UK, Australia, Cyprus and Belize branches, this is no longer the case.
XM offers clients a choice between two globally popular trading platforms. MetaTrader 4 and MetaTrader 5 are available for PC, Mac, Android and iOS users. Both platforms are known for their ease of use, being intuitive and their accessibility across multiple devices. This might not be the wide choice of platforms that other brokers offer, but it should be more than adequate for most traders.
If you are lacking disk space and would prefer not to download MT4 or MT5, both are available as a Web Trader. This allows you to see market information in real-time via your browser. Clients using the smaller storage capacity of iPhones, iPads or Android mobile devices will find the Web Trader particularly useful.
For the more serious trader, the ability to have your trading platforms on multiple devices will add to convenience. You could check the markets on the go via your mobile device before making use of more in-depth features on your computer when at home.
Clients should note that XM operates with ‘variable’ rather than ‘fixed’ spreads. This eliminates the need for insurance premiums. Fixed spreads often call for insurance being higher. Due to restricting betting close to the issuing of news announcements, insurance premiums can become worthless at fixed spread brokers.
Spreads on the Micro and Standard Accounts can be as low as 1 pip on major forex pairs and 0.6 pips on the Ultra Low Account. You will not have to worry about paying a commission on the above accounts too. As for the Zero Account, there is a commission, but spreads can be as low as 0 pips.
Betting with leverage carries a risk, something that to their credit, XM warns their clients about. Leverage can bring greater rewards, however. At XM, depending on the account type, asset and trade size, clients can choose leverage as low as 1:1 and as high as 888:1.
Clients can manage and monitor their leverage risk. Your margin requirements will not change throughout the week. They will also not widen during the weekends or throughout the night.
XM offers clients the choice of four main account types.
Almost identical, the Micro and Standard Accounts have a low deposit requirement of just $5. Clients also have the choice of nine base currencies to choose from. There is not much difference between both accounts other than the Micro account having a lower maximum trade size.
The XM Ultra Low Account offers fewer base currencies, but lower spreads on average. It requires you to make a minimum deposit of $50. Another difference is that there are no bonuses offered to holders of this account type.
An XM Zero Account is also available. Offering spreads as low as 0 pips, this account requires a minimum deposit of $100. Clients have to pay a commission when using the zero account which equates to $7 per $100,000 traded.
It should also be noted that XM also provides an Islamic Account for those who wish to trade under the principles of Sharia law.
Deposits and withdrawals can be done in any currency on the XM trading platform. They convert these to your selected base currency if required. The minimum deposit and withdrawal amounts at XM come in at just $5.
You can choose from a wide range of payment methods when depositing and withdrawing. This includes credit/debit cards, bank wire and local bank transfer, as well as the e-wallets Skrill, Neteller and WebMoney. The payment methods offered to you are subject to change depending on your location.
Withdrawals are subject to a pending time of up to 24hrs. Once cleared, you can expect waiting times to be:
- Bank Wires/Credit/Debit Cards – 2 to 5 business days
- E-wallets – Same day
Before you can withdraw, your account needs to be validated. This will involve sending copies of documents such as photo ID and utility bills.
There are no fees charged by XM. They will cover all transaction fees.
To showcase what is on offer at XM, there is a demo account that you can take advantage of. This account requires very little in terms of information when signing up and will let you get to grips with the XM platform.
You have a virtual balance of $100,000 to play with and the same trading and betting conditions as authentic accounts. There are no time restrictions on the demo account either, so you can get a real understanding of the platform while fine-tuning your trading and betting strategies.
Pros & Cons of XM
XM comes with a positive reputation and it is easy to see why. Fees are competitive compared to other popular brokers, minimum deposits open the doors for traders with smaller budgets and there is a diverse range of assets to trade.
Throw in an educational area that aids traders of all experience levels, good sign-up bonuses, no order rejection and reliable trade executions and you have a solid trading and betting platform. More importantly, strong regulation from some of the best regulators in the industry ensures a safe and fair trading experience.