- Company: XM is the trading name of Trading Point of Financial Instruments Ltd.
- Founded: 2009, prior to 2013 XM operated under the name xemarkets.
- Payment Options:
- Platforms: MT4 for both Mac and Windows, XM Webtrader and various Mobile Platforms
- Accounts Available In: USD, GBP, AUD, EUR, JPY and CHF
- Minimum Deposit: $5
- Regulation: Regulated by CySEC of Cyprus, ASIC of Australia and as a Financial Services Provider in New Zealand.
- Social Trading: N/A.
- Support Options: Phone, Callback, Live Chat and Email.
XM offers its customers the ever popular MetaTrader 4 platform for both Mac and Windows. The XM version of MetaTrader works just as one would expect it too and allows users to automatically trade the available markets using Expert Advisors, with only one restriction. Expert Advisors may not place more than 200 pending orders at one time, this will only affect a very small number of Expert Advisors. In addition to offering MetaTrader 4, XM also offers a strong web trading platform which allows clients of the brokerage to manage and open positions from any computer with an internet connection. Those who want to trade on the move will also be pleased to hear that the brokerage offers a range of mobile trading applications which allow clients to monitor, manage and open positions wherever they are. Currently XM provide mobile trading applications compatible with the majority of Smartphone devices. The range of platforms offered by XM.com is impressive and should be enough to satisfy the majority of traders.
- Leverage: Up to 888:1 on Forex, 100:1 on all other instruments
- Scalping: Allowed
- Expert Advisors: Allowed
- Trailing Stops: Yes
- Spreads: Variable, typical spread on EUR/USD 1.8 pips.
- Minimum Pip Distance on Stop/Limit Orders: 4 pips.
XM operate a Dealing Desk for phone orders, but state that the vast majority (99%>) of orders are processed using an STP execution model. This means that the vast majority of client orders are processed through to one of the brokerages liquidity providers. STP brokerages are favoured by many traders as the interests of the brokerage and the client are better aligned. XM is competitive in regards to spreads, with the typical spread on the EUR/USD being around 1.8 pips but as a STP broker spreads are of course variable. XM also offers traders the ability to take advantage of significant amounts of leverage with the brokerage offering flexible leverage of up to 888:1, it is important to realise that leverage can work for you and against you. XM allows for clients to engage in a wide range of trading strategies and allows clients to scalp and hedge their positions. Additionally the use of Expert Advisors is permitted, with clients being able to use any type of Expert Advisor they please. Though XM.com require clients to have less than 200 pending orders open at any one time to ensure that servers run smoothly. Overall, the trading conditions on offer with XM.com are very favourable.
- Number of Currency Pairings: 54, 20 of which are exotic.
- Other Instruments: A range of Equity, Precious Metals and Commodity CFD’s.
The brokerage focuses mainly on Forex, with XM offering a total of 54 different currency pairings including 20 pairings which are typically thought to be exotic. The range of currency pairings on offer include pretty much every pairing the average retail trader is going to be interested in trading. In addition to offering a good range of FX pairings, XM also allows its customers to trade a range of Equity, Precious Metal and Commodity Contracts-for-difference (CFD’s). While the range of CFD’s is relatively limited the ability to trade a range of different instruments all from one platform is something which may be attractive to many traders who want to trade Indices, Precious Metals and Commodities on the side.
- Support Methods: Live Chat, Phone, Call back and Email.
- Telephone Numbers: A Selection of International Phone numbers.
- Support Languages: Arabic, Chinese, English, French, German, Greek, Hindi, Hungarian, Indonesian, Japanese, Korean, Polish, Malay, Portuguese, Spanish and Russian.
In all my personal dealings with the firm they have been nothing but helpful and I have never encountered any major problems. Support is available through a number of different methods and the brokerage provides support in a number of different international languages. Overall the brokerage appears to try its very hardest to provide a high level of customer care.
- Regulated: Based and Regulated in Cyprus by CySEC. XM is additionally registered as a Financial Services Provider in New Zealand and is regulated by ASIC of Australia
- MiFID Regulated: Yes, XM can accept clients from throughout the European Union.
- US Traders: XM does not take on US customers as the firm lacks the necessary US regulatory approval.
- Regulatory Record: Fined by the CTFC back in 2010 and received a 10,000 Euro fine from CySEC in 2013.
The brokerage is regulated by CySEC of Cyprus and is also a registered Financial Services Provider in New Zealand. With Cyprus being a member of the European Union and therefore party to MiFID the brokerage is able to offer it services to all residents of the European Union. Trading Point of Financial Instruments Ltd. the firm which operate XM has had a couple of run ins with regulators since they begun offering Forex trading services back in 2010. In 2010, the brokerage received a $140,000 fine from the CTFC for accepting US clients despite the fact US regulatory law prevents US residents from opening accounts with firms not regulated by relevant US authorities. Trading Point Ltd weren’t the only brokerage to be targeted by the CTFC, with around 24 brokerages being on the receiving end of CTFC action. More recently the firm were fined a total 10,000 Euros by CySEC for failings relating to the brokerages Anti-money laundering and client segregation procedures. In the announcement CySEC stated that the firms previously clean regulatory record played at mitigating role regarding the size of the fine, with the firm having ensured that it now fully complies with CySEC regulation. In 2014, XM.com became regulated in Australia by ASIC further adding to their range of regulatory licences and allowing the firm to operate in Australia and take on Australian clients.
XM is one of the better retail Forex brokerages offering its clients the ability to take advantage of tight spreads and excellent execution. Those looking for a STP brokerage to trade with should give XM some serious consideration
XM.com, previously known as xemarkets and Trading Point has recently launched their new Contest Arena earlier this month. The approach taken by XM is interesting as the brokerage’s Contest Arena differs from the standard real or demo contests offered by brokerage’s. Traditionally, trading contests have run for periods in excess of a month and have been open to all traders who are eligible for the contest, with the trader(s) who have made the greatest returns being awarded cash prizes paid out by the brokerage. A large number of brokerages offer such contests as they can be useful tool to attract new clients or increase the trading volume of existing customers. XM’s Contest Arena differs with clients paying an entrance and admin fee before battling it out to win the prize or a share of a prize fund, with Contests running for a maximum of four hours.
How does the XM Contest Arena work?
Firstly, to enter into the Contests hosted on the XM Contest Arena platform individuals must have a real money account with the brokerage. Users with a real money account are able to register a user name and then enter the contests arena with their login credentials. Once they have logged in they will be greeted by a list of Fixed and scheduled contests. As the name suggests Scheduled contests begin at a set time, while traders can enter into a Fix contest and simply await for the required number of opponent(s) to join before starting the contest.
To enter into contests traders must first buy a ticket with it being possible enter into a contest with as little as $1.50. The majority of the cost of entry is then placed into the prize pool, with the rest going to XM for hosting the contest on their platform. Once you have entered into the Contest you are given login in details to MetaTrader 4 account created specifically for that particular contest. Traders are then given play money to trade with over the duration of the contest period, with contests being one to four hours long.
Different contests allow traders to trade a different range of instruments, with the majority of trading contests being FX pairings only. Additionally some contests allow for the use of Expert Advisors while others prohibit it. It is important that individuals make sure they understand the conditions on the Contest before paying the entry fee. Once the time is the up the individual(s) who have the greatest balance are rewarded the prize money, with the payout structure being outlined before a trader enters into a Contest.
New Approach to FX Contests
The way that the XM Contest Arena works is pretty innovative with such a concept never being tried before. In creating the Contest Arean, it appears that the brokerage has gained some inspiration from how online poker rooms run their tournaments, with the arena’s interface being familiar to anyone who has played online poker before. Unlike the contests traditionally offered by brokerage’s traders are required to pay their own entrance costs and will lose all those funds should they not manage to place in a payout position.
With the length of Contests limited to a maximum of four hours, expect traders to engage in high risk aggressive trading as they try and make as much return as they can in the allotted time period. The short length of these trading contests aren’t going to suit those who trade longer time frames, but will likely popular with scalpers who are willing enter into lots of large positions during the contest period. If these contests begin to take, you will likely see traders developing specific strategies in regards how to succeed in such a contest scenario.
The XM Contest Arena is an innovative idea which has flipped how FX trading contests normally work on its head. Whether this new format of contest begins take of in any serious manner seems uncertain and it remains to been seen whether there is significant demand from traders for contests run in such a way. Those interested can find out more at XM.com.