XM

XM Review
  • Instrument Variety
  • Leverage: (888:1)
  • Scalping: Allowed
  • Trading Conditions: Favourable
  • Regulation: CySEC, ASIC, FSC (NZ)
  • History: 2 Fines CYSEC, SEC
  • User Feedback:

Summary

XM (XM.com) is one of the best Forex brokers with the most favorable conditions in the market. High leverage, fast execution, tight spreads, and excellent response make them truly top notch. They have been on the receiving end of 2 regulatory fines, but have amended the issues, and are generally consider highly trustworthy in the FX community. In addition the context arena functionality is both interesting, and innovative. Very recommended.

4.6

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Write/Read XM (XM.com) Customer Reviews

Important Facts

  • 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.

Platform(s)

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.

Trading Conditions

  • 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.

Instruments

  • 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.

Customer Service

  • 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.

Regulation

  • 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.

Overall

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

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Context Arena

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? 

XM Contest Arena

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.

Conclusion

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.

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XM (XM.com) Customer Reviews

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XM Review

Feb 13, 2015 by Oleg

I was using this broker before my account was blown out by the crazy movements in the Swiss Franc back in January. Thankfully, XM didn't choose to pursue the negative balances in client accounts, which was great for me! Spreads and execution are pretty good, and I never had complaints with them regarding those.


4.0 4.0 1 1 I was using this broker before my account was blown out by the crazy movements in the Swiss Franc back in January. Thankfully, XM didn't choose to pursue the negative balances in c XM (XM.com) Review

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18 thoughts on “XM (XM.com) Review

  1. XM.COM is a Market Maker, you can view what services they are licensed to provide on the CySEC websites which shows they can provide “dealing on own account” and therefore are a market maker

    1. First off, being licensed to deal on their own account doesn’t mean that a firm is necessarily operating as a Market Maker. Many firms have the ability to operate as a Market Maker, in fact there are a number of regulated firms that offer both dealing and non-dealing desk accounts.

      According XM.com however they are a Market Maker but over 99% of orders are processed using a STP model of execution,

      Found on their FAQ page as of 25th November 2013 @ http://www.xm.com/faq

      Are you an ECN or an STP broker?
      Strictly speaking, we are a market maker as we have a dealing desk primarily responsible for phone orders. However, we operate with an STP execution model. Almost all (>99.35%) of our clients’ orders are executed in under 1 second, and we have a policy for no re-quotes and no rejections.

      All our clients’ positions are covered, and we find it important that our clients benefit from trading with us. The more money our clients make, the more they can trade – and the more they trade, the more money we make by covering them at a better price. By covering our clients’ positions we eliminate any risks and we do not benefit from our clients’ losses.

      Moreover, we continuously help our clients with their trades by releasing numerous fundamental (and soon to come technical) analysis reports throughout the day.

  2. The profits i made recently, I used to open accounts until such time i had 31 accounts. The Account Manager called sometime in between asking if i will deposit funds to the newly opened accounts, I said no that i was growing the fund from the profits, the conversation turned awkward and i sense he needs to tell me that i need to deposit funds….then the compliance department emailed me to limit my trades/orders to 200…which i followed. Then my account manager called me demanding I sent him an email asking him to close some of my accounts without plausible explanation. since i was following the compliance department’s limit of less than 200 trades i ignored it, he did not say how many accounts i should close and again any plausible reason for it.

    Last April 3 they closed all my accounts, while i had around 81 orders ( way below their 200 limit) I emailed them what was happening, and why did i see some notation that i was an “abuser”.

    Then April 6, 2015 i received the following:

    “Dear Sir,

    I regret to inform you that because of the high frequency of transactions/orders you requested/performed,
    which have caused serious negative impact on performance of our servers, in order to protect the quality of
    execution and performance of our severs we have been forced to suspend your account.

    Accordingly, we regret to inform you that, in accordance with the terms and conditions, we have decided, with
    immediate effect to close all of your trading Accounts with Trading Point………

    In view of the above, please note that you will be strictly prohibited from opening any new trading account(s)
    and trade with our company. Nonetheless, in cases where you may successfully open an account and trade
    with our company due to any technical and/or human error, we reserve every right to immediately close your
    account upon identification, nullify any profit/loss generated and refund the original amount of deposit,
    excluding any deposit and withdrawal charges, back to the same source of deposit.

    Please note that, in accordance with the terms and conditions, our decisions are final and binding on all
    participants and that, other than the notification set forth herein, no further correspondence will be entered
    into.

    Dea”

    I replied to them copy furnished the Cysec, even knowing that they will have no further correspondence, in the following manner:

    “Thank you for the feedback, however what about the balance for Account 13072655 it has $12.44?

    So the problem is that your server cannot handle numerous accounts, YOU SHOULD STOP ADVERTISING
    THAT YOUR XM MT4 MULTI TERMINAL would work and can handle hundreds of accounts. THAT IS FALSE
    ADVERTISING.

    I shall withdraw all the money left after you give feedback on the Account 13072655.

    Don’t worry I wont open an account with you people ever. IN RETURN FOR YOUR BAD SERVICE ( closing
    accounts without warning when the problem is in your end and categorizing me as ABUSER —abuser of
    what?) I shall also make sure your office in the Philippines will have difficulty in securing clients.

    I hope the people at CYSEC monitors this for the sake of the decent CYPRUS FOREX BROKERS.”

    I honestly believe i did not do anything to warrant closure of all my trades….all i did was believe in this:

    LESSON LEARNED—-

    1. DO NOT BELIEVE ANYTHING AT THE WEBSITE OF XM.COM
    2. ALWAYS EXPECT TO BE TREATED BADLY BY XM.COM IF YOUR TRADES OR ACCOUNTS DOES NOT
    COMMENSURATE TO THE EXPECTED PROFIT OF “XM CASINO” ( where the house always wins)
    3. NEVER OPEN AN ACCOUNT WITH MARKET MAKERS THAT OFFERS BONUSES AND RIDICULOUS LEVERAGE

  3. because they dont want to say we are a dealing desk and money maker and make money when you lose and orders doesnt go directly (its a fact about dealing desks) , they said we are 1% DD and 99 % STP

    the truth is micro accounts are treated using their DD and standard accounts are treated using STP
    because the interbank wont accept .01 lot directly
    but they dont care if a great trader knows they are twisting the truth and left them because they are hunting the one who dont know because he loses and they make money from his loss
    they know this info is hard for you to reach so they tell you the funny 99%

    dont send a guy to reply to this comment because you ll look stupid and greedy

    1. They are honest about being a market maker (not money maker) and this is how they are licensed. I don’t get the big fuss about it. Have you had bad experiences with them? Our assumption about them is quite opposed to what you said. We feel they benefit good traders with STP no-requote policy, executed very quickly.

      Please elaborate.

      1. why they didnt said the truth that any lot below .1 (not .01 as i mentioned) will be done through the dealing desk not STP
        instead they give you the illusion that your orders are 99% STP ,

        THE INTERBANK WONT TAKE ANY LOT BELOW .1 DIRECTLY FROM THEM

        so they are .1 and below dealing desk and .1 and above STP , not 99% as they claim

        1. Mike, thanks a lot for taking the time to elaborate. We will look into it. They could be moving the trades to liquidity providers that do accept lot below .1. We will ask for their response on this matter, and if things are not the way we expect them to be, we will adjust their rating. Have you personally dealt with them, or any other broker?

  4. WARNING!! Be very careful with this company. I opened an account and ordered a debit card to have full access to future investments. The card arrived but it took more than 6 months to get it activated and when it finally was activated it did not work. Now 2 years after I signed up I asked the company for a full refund and they deny it.

    1. Thank you. Could you add your full details so I’d ask them to come around and respond to that? I have never seen any similar complaint about them.

    2. Dear Upset Customer,

      You have left a claim without sharing your MT4 ID. I kindly ask you to follow up with your MT4 ID to initiate an investigation and transparently present the full data of your claims.

      Also, please note that in order to use your XM card, you need to fund it either by withdrawing funds from your MT4 account or via direct bank wire.

      Kind regards,
      Andrey – Official Representative of XM (Trading Point of Financial Instruments Ltd.)

    1. Could you elaborate on that? We have been sending referral traffic consistently to XM.com and we can say it’s the opposite of scam, why do you think otherwise?

  5. Dear Sir/ Madam,
    I am based in Saudi Arabia and I intend to open a trading account with the xm but I am unable to access the website as the system blocks the website every time I attempt to open it. Kindly email me a solution to the problem .
    Thank you.

  6. Very popular broker with good trading conditions. But when i read their terms and conditions, i understood that it is a 100% bucket shop that attract client with unbelievable bonuses and advertising. If you have any question about this or another company, i’m ready to share my experience, just add me in skype – (removed by admin).

    1. Hi Vov, why do you think so? We would be happy if you could share your story here.
      On one hand you say great trading conditions. Unbelievable bonuses.
      On the other hand you refer to them as a bucket shop.
      Do you mean they are passing on the trades to their liquidity provider? they do that, indeed, like almost any other brokerage.

      I have removed your Skype details – this will get scraped by spam bots in no time and they will collapse your Skype account …

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