You may hear about XM forex broker, but maybe you don’t know if it is reliable, or whether you should work with this broker or not. This article will be bringing an overall review about the features of XM broker such as its trading cost, regulations, trading platforms, account types…
XM was founded in 2009 and has been developing rapidly by now with more than 1.500.000 clients from 196 countries. There are many seminars that are held in over 120 countries to provide knowledge about forex system to traders. This review is mostly based on the regular standards of one of the best forex brokers in 2018.
XM IS A REGULATED BROKER
It is important to know which regulations that a broker has. It could show if a broker is reliable or not by their regulations. It is not often easy to obtain a license and so, a broker having it should be trusted and reliable.
Regulations of US&UK are believed to be the best although there are still many discussions on this issue. US&UK has the best financial management system, which gains trusts and beliefs from most traders. Brokers with US&UK regulations also have the best trading platforms, techniques, financial health and management systems… and so does XM. XM has FCA – a regulation from UK, CySEC from Cyprus, ASIC from Australia and FSB from South Africa. Therefore, it can serve many traders in these areas and XM should be the trusted broker in the forex market.
COSTS AND BENEFITS OF XM
In common, traders prefer the brokers with low cost of transaction, especially the scalpers who have many trading lots at a time.
Like FXCM and Forex.com, US and UK brokers, XM has the same low spreads. It is only 1.7 pips for a EUR/USD trading with regular accounts. Commission is only $6 for trading ECN account, whereas, other brokers charge $7 with the same accounts. XM offers a bonus program called Loyalty program, which lot back an amount of money when you complete a transaction/ lot. Depending on your trading currencies, account types and trading time, this program will rebate the relative amount of money that could minimize the cost of transaction effectively. That’s the reason why professional traders prefer it.
The lot-back amount is from $3 (0.3 pip) to 10$ (1 pip) for each completed transaction with the increase by time of rebated amount. After that rebated amount, trading cost is now lower than FXCM and Forex.com brokers and the spreads are even decreased into only 1 to 1.4 pips.
XM has another program called deposit bonus, which provides you the money based on the amount of deposit. This can reduce the trading cost dramatically as you can get up to $5000 of the bonus and maximum deposit rate at 100%.
In brief, due to many bonus programs with high benefits and advantages, XM attracts traders with its low trading costs.
CUSTOMER SERVICE OF XM
It is always necessary to have support from the brokers to traders. As forex itself is much complicated, it is very difficult to trade and work in the forex market without any guides or helps. XM, in this term, has the best customer services which provide the best quality. It supports more than 30 languages including many Asian languages such as Thai, Vietnamese, Indonesian, and Chinese… It also offers 24/7 services with local banking supports. Traders, therefore, get many benefits thanks to the supports from XM.
THE EXCELLENT TRADING PLATFORMS OF XM
XM always keeps its trading platforms up-to-date with automatic transfer system. It also supports platforms for PC, smartphones or Tablets for the traders’ convenience with high quality of performance. It is much important that XM has never been accused of any bad trading platforms.
THE GREAT PAYMENT SYSTEM OF XM
It would be wrong if traders are not concerned about the payment. Why? It is because payment system regards to deposit/withdrawal issues, which are very important to any traders. It often costs much when using most payment methods in current forex market. As most reliable brokers are overseas, then transferring money across many countries costs more than transferring money locally. It is even illegal to transfer money to forex brokers in most countries in Asia. In Asia, you will be charged about 1.7 – 4% of total transaction when using Credit card to pay oversea. Therefore, it is advised that traders should work with brokers supporting local payment methods.
A good payment system should be fast, unlimited and free. Following are the standards for a good payment system for your consideration:
– Fast deposit and withdrawal
– Local payment supported
– Low or even free-of-charge fee for deposit or withdrawal
– High minimum withdrawal limitations
In forex market, XM allows traders to deposit through many free different international payment methods like using Credit/debit cards, Neteller, Skrill, Webmoney, PerfectMoney, Bitcoin, Alipay, Nganluong Wallet or local banks such as: Bank Central Asia, Bank Mandiri, Bank Negara Indonesia, Bank CIMB NIAGA, Bank Rakyat (Indonesia), Bangkok Bank, Bank of Ayudhya, Kasikorn Bank, Krung Thai Bank, Siam Commercial Bank, Kbank Mobile Banking (Thailand). Therefore, XM is believed to have the best payment system in Asian countries such as Vietnam, China, and Thailand.
KIND OF ACCOUNTS PROVIDED BY XM
XM now provides 3 kinds of account: Micro, Standard and Zero that are suitable for each trader. Micro is mostly for beginners or new traders, while Standard account is preferred by regular traders. Experts are likely to use the Zero account.
Micro account has no commission and low spread, which is very beneficial for newbies and beginners. Moreover, its minimum amount of deposit is only $5 with the high leverage up to 1:888. There is negative balance protection in XM, which is safe for traders in any cases. This account also allows 200 orders at a time with pending positions included.
Standard account is mostly for normal or experienced traders. This type is nearly the same with the Micro account with some important differences as following:
- The contract size is much bigger with 100,000 for a lot
- MT4 and MT5 trading platforms have the same minimum trading lots
- The lot restriction per ticket is smaller with only 50
Zero account is specifically for experts as it is based on commission and has the most competitive prices. The total cost including $5 per side commission is 1.1 pips (0.1 spread + 1.0 RT commission). The average spread for a EUR/USD is only 0.1 pips without a commission. As it has no re-quoting with steady market conditions and lower spreads, experts really like this account type.
Besides, there is another type of account called XM Islamic account, which is especially for Muslim clients. It is the free swap type of account for Islam traders.
In conclusion, XM is considered to be the best forex broker in my opinion. Its advantages and benefits have just been explained clearly above. The most important thing is that XM has never been caught or accused of any bad rumors, which means that XM is very trusted and reliable. However, there are some tips when trading with XM that are listed below:
- Practice with Micro account to have experience in forex market
- Cryptocurrency trading conditions are the best
- XM supports local payment methods so take advantage of it
- The spread in daytime is always lower than that in night time