XM is a global forex and CFD broker that was founded in 2009. It is regulated by multiple top-tier financial regulators, including the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). Let's take a closer look at XM to see if it is safe, legal, and legit.
Is XM Legal?
Yes, XM is a legal and regulated forex and CFD broker. It is authorized and regulated by the following financial regulators:
- Financial Conduct Authority (FCA) in the United Kingdom
- Australian Securities and Investments Commission (ASIC)
- Cyprus Securities and Exchange Commission (CySEC)
- International Financial Services Commission (IFSC) in Belize
These regulators ensure that XM complies with strict standards around capital adequacy, consumer protection, and anti-money laundering. The fact that XM holds licenses from multiple top-tier regulators indicates that it is operating legally.
Is XM Real or Fake?
XM is a real and legitimate forex and CFD broker.
It has been in business for over 10 years and has over 3.5 million clients worldwide.
Here are some signs that indicate XM is a real broker:
- Regulation – As mentioned above, XM is regulated by top-tier regulators like FCA, ASIC, and CySEC. This proves it is a real broker.
- Awards – XM has won numerous awards from well-known organizations like Global Brands Magazine, World Finance, and Global Banking & Finance Review. These awards validate that XM is a recognized real broker.
- Membership – XM is a member of the Financial Commission, an independent organization that provides protection to forex and CFD traders. Scam brokers are not members of such reputable organizations.
- Company History – XM has been operating since 2009, giving it over a decade of history. This longevity proves XM is a genuine business.
So in summary, the evidence clearly shows that XM is a real broker and not a fake one.
Is XM Safe?
Yes, XM is a safe forex and CFD broker. It uses the latest security technologies to protect client funds and data.
XM also has a segregation policy in place, meaning client funds are kept separate from the company's funds.
Here are some of the measures XM takes to ensure safety:
- Segregated accounts – Client funds are held in top-tier banks and segregated from company funds. This protects client funds even in case of broker bankruptcy.
- Negative balance protection – XM offers negative balance protection on all account types, meaning traders cannot lose more than their account balance. This prevents large unexpected losses.
- SSL encryption – XM uses advanced SSL encryption to protect all data including personal and financial. This prevents identity or data theft.
- Compliance – Stringent compliance with regulatory capital and reporting requirements ensures the long-term financial stability of XM.
So in summary, XM has extensive safety measures and policies in place to protect client funds and privacy. Traders can feel secure depositing money with XM.
Is XM Legit?
Yes, XM is a legit forex and CFD broker. Multiple top-tier financial regulators regulate it and has a good reputation in the industry. XM has also won numerous awards for its services, including Best Forex Broker Global 2022 from Global Forex Awards.
Here are some reasons that prove XM's legitimacy as a broker:
- Regulatory oversight – XM is supervised by tier-1 regulators like FCA, ASIC, and CySEC who ensure regulatory compliance. This proves legitimacy.
- Transparency – XM publicly discloses all relevant company and trading information to maintain transparency. Legit brokers operate transparently.
- Reputation – With over 10 years of operations, XM has earned a positive reputation evident through industry awards and 3.5 million clients. A scam broker cannot build such positive reputation.
- Client funds safety – XM keeps client funds in segregated accounts at top banks. This proves XM takes appropriate measures expected of a legit broker.
In summary, XM demonstrates all the qualities and criteria you expect from a legitimate broker in terms of regulations, transparency, reputation and client fund safety.
XM a Scam?
No, XM is not a scam. It is a legitimate and regulated forex and CFD broker. XM has been in business for over 10 years and has a good reputation in the industry. XM has also won numerous awards for its services.
Here are some key reasons that prove XM is not a scam:
- Regulation – XM is authorized and regulated by top regulators like FCA, ASIC and CySEC who actively monitor XM for compliance. This level of oversight is not possible with scam brokers.
- Segregated accounts – XM holds client funds in segregated bank accounts at tier-1 banks. This guarantees fund safety and proves XM is not a scam operation.
- Transparency – XM discloses all relevant trading conditions, company details, leadership team in a transparent manner. Scam brokers typically lack transparency.
- Trading execution – XM uses reputable liquidity providers and bridges to ensure fair and reliable trade execution. Scam brokers cannot provide such execution quality.
- Client support – XM has 24/5 multilingual customer support via phone, email and chat. Such a high level of support is uncommon among scam brokers.
In summary, XM shows all the characteristics of a legitimate broker in terms of regulation, fund safety, transparency, execution and customer support. There is no evidence to indicate XM is a scam.
XM Owner Net Worth
The net worth of XM's owner is not publicly known. However, XM is a profitable company, with revenues of over $200 million in 2021. The company has likely made its founders quite wealthy over the past decade of operations.
However, it's difficult to ascertain the exact net worth of XM's owners since they are private individuals and do not publicly share their net worth. The good news for clients is that XM's financial strength as a brokerage does not depend on any one individual owner.
Can We Trust XM?
Yes, we can trust XM. It is a regulated and reputable forex and CFD broker with a good track record. Here are some reasons why XM can be considered trustworthy:
- Regulation – XM is regulated by tier-1 regulators like FCA, ASIC and CySEC. Being regulated builds trust in brokers.
- Awards – XM has won over 40 international awards from well-known industry publications. This level of recognition indicates XM is highly regarded and trustworthy.
- Credentials – XM has licenses to operate across multiple jurisdictions demonstrating compliance with stringent standards. This proves XM's credentials as a broker.
- Fund safety – Segregated customer funds, negative balance protection, and adherence to strict financial standards ensure XM prioritizes fund safety. This builds trust.
- Trading infrastructure – XM utilizes an advanced trading infrastructure with top-tier liquidity providers and bridge connections. This provides reliable trading worthy of traders' trust.
In summary, XM demonstrates all the qualities of a trustworthy broker in terms of regulations, awards, credentials, fund safety and trading infrastructure. Traders can consider trusting XM with their investments.
How Does XM Make Money?
XM makes money from the following sources:
- Spreads – XM earns a profit on the difference between the bid and ask prices of the instruments it offers. Wider spreads mean higher profit margins for XM.
- Commissions – XM charges a commission on trades executed on its Zero account type. The commission provides added revenue for XM.
- Overnight financing fees – XM charges overnight financing fees on positions held overnight. This generates income as traders keep positions open.
- Inactivity fees – XM charges an inactivity fee on accounts that have been dormant for more than 6 months. This incentives account usage.
- Crystallized Tangible Assets – XM uses the fractional precious metals investment systems of XM Crystal to generate profit from trader's investments in physical metals.
In summary, XM can make substantial revenues through spreads, commissions, financing fees, and account inactivity fees. These represent the standard methods brokers use to profit from client trading volumes.
Is XM an International Broker?
Yes, XM is an international broker. It accepts clients from over 196 countries. XM has established a global presence with localized websites and support across major markets in Europe, Asia, Africa, and the Middle East.
Here are some facts indicating XM's international broker status:
- Global regulation – XM regulated in UK, Australia, Cyprus, Belize proves it operates internationally.
- Localized support – XM offers 24/5 support in over 30 languages showing its global client base.
- Global awards – XM won awards like ‘Best Forex Brand Europe 2022' demonstrating international recognition.
- Trading infrastructure – XM uses tier-1 bank and Non-Dealing Desk execution model suitable for global markets.
- International client base – XM has over 3.5 million clients from 196 countries showing wide international reach.
In summary, through its regulatory footprint, localized services, global awards, trading infrastructure and client base diversity, XM establishes itself as a trusted international broker.
XM Available Countries
XM is available in the following countries:
- United Kingdom
- Australia
- Cyprus
- Belize
- South Africa
- Singapore
- Thailand
- Indonesia
- Malaysia
- Vietnam
- Philippines
- India
- Pakistan
- Bangladesh
- Sri Lanka
- Nigeria
- Kenya
- Tanzania
- Ghana
- Uganda
- Zambia
- Zimbabwe
- South Korea
- Japan
- China
- Hong Kong
- Taiwan
XM accepts clients from over 196 countries across continents like Africa, Asia, Europe, Oceania, North America, and South America. The main requirement to open an account with XM is the client must be over 18 years and provide proof of identification and address verification.
Unlimited Leverage
XM offers unlimited leverage on all of its trading accounts. However, it is important to note that trading with high leverage can be very risky and can lead to significant losses.
Here are some key things to know about XM's unlimited leverage offering:
- No enforced leverage limits – XM does not impose fixed leverage limits or margin call levels on any accounts. Traders can set their leverage as high as 1:888 based on personal risk appetite.
- Flexible margin requirements – XM has flexible margin requirements starting as low as 0.5% depending on leverage. This allows opening positions of very high notional value with little margin.
- Risk warning – XM advises traders to use leverage wisely based on knowledge & experience. Higher leverage increases risk of margin calls and amplified losses.
- Unmatched liquidity – XM provides depth of liquidity suitable for high leverage trading by tapping into multiple liquidity providers.
- Real-time margin monitoring – Traders can monitor margin usage real-time and modify leverage to avoid margin closeouts.
In summary, XM provides the flexibility of unlimited leverage but traders must use it responsibly by matching leverage to risk appetite and market volatility.
How to Trade on XM
Trading on XM involves the following simple steps:
Step 1: Open a Trading Account
You can open a free live or demo trading account directly on the XM website. The account opening process is fully digital requiring you to fill out a registration form and upload KYC documents.
Step 2: Fund Your Account
Once your XM account is opened, you need to deposit funds in it to start live trading. XM offers multiple account base currencies and several payment methods like bank transfer, credit cards, e-wallets to fund your account.
Step 3: Download the Trading Platforms
XM provides access to powerful platforms like MT4, MT5 and XM WebTrader. You can download the desktop platform on Windows and Mac or use the web version. Apps are also available.
Step 4: Analyze the Markets
Conduct technical and fundamental analysis of the markets you want to trade to identify trading opportunities. Use XM's analysis tools and research.
Step 5: Open and Manage Trades
Use the XM platforms to open, manage and close your trades. Key actions include placing orders, modifying stops, and closing positions.
In summary, you can start trading seamlessly with XM in just a few simple steps of opening an account, depositing funds, downloading platforms, analyzing markets, and managing trades.
Pros of Trading with XM
Here are the major pros of trading with XM:
- Regulated across multiple jurisdictions
- Award-winning broker with years of reputation
- Segregated client funds in tier-1 banks
- Negative balance protection
- Advanced MT4/MT5 platforms offered
- Ultra-low spreads from 0 pips
- Commission-free trading on most accounts
- Fast execution speeds and slippage control
- Unlimited leverage offered
- No deposit/withdrawal fees
- 24/5 multilingual customer support
Cons of Trading with XM
Here are some potential downsides of trading with XM:
- No trading options for US clients
- Inactivity fees charged after 6 months of account dormancy
- Weekend spreads can sometimes widen
- Platforms can be complex for novice traders
- Minimum initial deposit of $5 required
- Lack of investing products like stocks
- Limited localized account payment methods in some countries
Awards Won by XM
Some of the awards won by XM include:
- Best Forex Brand Europe 2022 – Global Forex Awards
- Best Forex Trading Platform Europe 2022 – International Business Magazine
- Best Forex Trading Experience 2022 – Global Banking and Finance Review
- Best FX Broker Europe 2021 – World Finance Awards
- Best Trading Platform 2020 – Online Personal Wealth Awards
These awards recognize XM's trading platforms, client service, competitive pricing, and industry-leading trading infrastructure. The awards span across multiple years signifying consistent quality of service.
Bonus Offers by XM
XM runs various promotional offers for new clients that include:
- Welcome bonus – Up to $5000 bonus credited for new deposits
- Refer-a-Friend bonus – Earn up to $600 for each referred friend
- Zero spread rebates – Cash rebates on trades executed on Zero accounts
- Loyalty program – Points on trades can be redeemed for cash bonuses
- Price alerts – Earn $100 for signing up to price alerts program
These XM bonuses and promotions provide new clients with opportunities to earn extra cash and trading credits. However, bonus terms and conditions apply.
XM Withdrawal Limits and Timelines
- Withdrawal limits – No maximum limits. Minimum $5 withdrawal.
- Withdrawal processing – Typically 24 hours but can take 3-5 days.
- Withdrawal methods – Bank wire, credit/debit cards, Skrill, Neteller, FasaPay, UnionPay.
- Failed withdrawals – Handled as per refund policy. $10 fee if bank rejection.
XM aims to process withdrawals within 24 hours on working days. There are no caps on withdrawal amounts. Secure online methods and bank wires offered for withdrawals.
XM Leverage Options
XM offers ultra-high leverage up to 1:888 on all major asset classes including forex, commodities, metals, stocks, and indices.
Key points about XM leverage:
- Forex pairs – Maximum 1:888 leverage available on major, minor and exotic pairs.
- Commodities – Up to 1:500 leverage offered on energies, metals and more.
- Indices – 1:500 leverage offered on major indices like FTSE, NASDAQ, DAX.
- Stocks – Maximum 1:20 leverage available on equities like Apple, Google, Twitter.
- Cryptocurrencies – Up to 1:5 leverage offered on cryptos including Bitcoin, Ethereum, Litecoin.
XM allows customizing leverage to suit risk. Lower leverage of 1:10 to 1:100 recommended for prudent risk management.
Opening an Account with XM
Opening an XM trading account involves the following steps:
Step 1 – Visit XM.com website and click on “Open Live Account”. Provide your basic personal info.
Step 2 – Choose your account type – Micro, Standard, or Zero. Also select base currency.
Step 3 – Verify your identity by uploading documents to prove ID and address.
Step 4 – Fund your account using one of the many payment methods accepted by XM.
Step 5 – Download and install the XM trading platforms – WebTrader or MT4/MT5 desktop platform.
Step 6 – Explore the platforms' features, tools, and settings to customize your trading environment.
The account opening process with XM is fast, digital, and can be completed online in minutes. Reach out to the 24/5 support team if you need any assistance while opening your account.
Fees and Spreads at XM offers competitive spreads and fees:
- Spreads – Raw spreads starting from 0.1 pips on popular forex pairs. Typical spread on EUR/USD around 0.8 pip.
- Commissions – No commissions on Micro/Standard accounts. $3.50 round turn commission on Zero accounts. Minimum $1 charged per lot.
- Overnight Financing – Paid or earned on positions held overnight across forex, metals, commodities, indices.
- Deposits/Withdrawals – No deposit or withdrawal fees. Some payment methods may have processing charges.
- Inactivity Fees – Charged at the rate of 10 units of account currency monthly if no activity for 6 months.
XM provides direct market execution with competitive spreads. Commission-free trading offered on most Trading Platforms Offered by XM
XM provides access to two powerful trading platforms:
MT4 Platform
- Popular industry-standard Metatrader 4 platform
- Available on Windows, Mac, Android, iPhone, Huawei devices
- Advanced charting with 100+ indicators and templates
- Expert advisors for algorithmic/automated trading
- Custom indicators can be installed
- Fast trade execution using latest bridge technology
MT5 Platform
- Multi-asset platform for trading forex, stocks, cryptos
- Advanced technical analysis tools
- Algorithmic trading via MQL5 language
- Integrated trading signals and copy trading
- Available across PC, Mac, mobile devices
- Virtual Hosting provides cloud-based MT5 environment
Both platforms offer desktop, web, and app versions. The XM MT4 platform is also available as a web platform called XM WebTrader with similar features.
XM Customer Support
XM provides 24/5 multilingual customer support via the following channels:
- 24/5 Live chat – Instant chat with XM support representative in over 25 languages
- Email support – Typically responds within 1 hour even on weekends
- Local phone support – Toll-free local phone numbers for over 45 countries
- 24/5 Call back request – Request a callback from XM support
- VIP services – Dedicated accounts managers for high volume traders
- Social media – Active support through Facebook and Twitter channels
XM aims to provide fast customer support in the client's native language. Support during weekends sets them apart from competitors.
XM Resources for Traders
XM offers traders the following resources:
Education
- Trading courses and webinars for beginner to advanced traders
- Video tutorials covering platforms, tools, analysis, strategies
- Ebooks and written guides on technical and fundamental analysis
Market News & Analysis
- Daily market outlook videos and analysis from research experts
- Latest financial news, economic data calendar, trading central signals
Trading Tools
- Built-in MT4/MT5 tools like expert advisors, technical indicators, calculators
- Web tools such as economic calendar, pip value calculator, margin calculator
Account Managers
- Experienced account managers provide trading ideas, signals, analysis
- Offer personalized guidance for optimal usage of XM services
XM equips traders with a variety of trading resources across education, market analysis, tools and expert support.
Conclusion
XM is a well-regulated and trusted forex and CFD broker that provides a safe and competitive trading environment suitable for most traders. XM offers advanced trading platforms, very low spreads, high leverage levels and good execution quality. Customer support covers multiple languages and is available 24/5. While XM is a reputable broker, traders should use caution with high leverage trading which carries inherent risks. Overall, XM represents a solid choice for currency traders across skill levels seeking decent pricing and responsive client services.