XM is a worldwide brokerage firm regulated by ASIC in Australia, CySEC in Cyprus, and the IFSC authority in Belize. Offering competitive stock CFD and withdrawal fees, XM facilitates user-friendly and prompt account opening processes. Clients can access a variety of educational resources, including webinars and demo accounts. However, XM’s product range is somewhat limited, primarily focusing on CFDs and forex trading. While its fees for forex and stock index CFDs are average, clients outside the EU do not benefit from investor protection.
Safety
Trading Point Holdings is a private entity operating under the XM brand, founded in 2009. A broker’s track record over time serves as evidence of its resilience through past financial crises. Conversely, the company does not publicly disclose financial information, as well as it is not listed on any exchanges, which could enhance transparency.
XM is subject to regulation by the Cyprus Securities and Exchange Commission, the Australian Securities and Investments Commission, and the Financial Services Commission of Belize. Additionally, another legal entity under XM, known as Trading Point MENA Limited, exists and falls under the regulation of the Dubai Financial Services Authority.
| Country | Legal Entity | Regulator | Protection Amount |
|---|---|---|---|
| EEA Countries | Trading Point of Financial Instruments Ltd. | Cyprus Securities and Exchange Commission (CySEC) | €20,000 |
| Australia | Trading Point of Financial Instruments Pty Ltd. | Australian Securities and Investments Commission (ASIC) | No protection |
| Middle East | Trading Point MENA Limited | Dubai Financial Services Authority (DFSA) | No protection |
| Rest of the World | XM Global Limited | Financial Services Commission of Belize (IFSC) | No protection |
Account Opening Process
Opening an account with XM is easy and uncomplicated, with the possibility of accessing your account on the same day. You can fill out the online application form in 20 minutes. XM welcomes customers globally, with a few exceptions. Notably, individuals from countries such as the USA, Canada, China, Japan, New Zealand, and Israel cannot open accounts.
Account Types
| Account Type | Description |
|---|---|
| XM Ultra Low Micro | Account for EEA, Australia, and clients from other countries (No commission with higher spreads, contract size = 1,000) |
| XM Ultra Low Standard | Account for EEA, Australia, and clients from other countries (No commission with higher spreads, contract size = 100,000) |
| XM Zero | Account for EEA clients (Commission with very low spreads, contract size = 100,000) |
| Shares | Account for clients outside of EEA and Australia (Commission with market spreads, minimum deposit =$10,000) |
Products
CFDs and forex trading are accessible to all clients, whereas real stocks are exclusively available to clients under the FSC-regulated entity. Asset classes such as ETFs, bonds, or options are not offered. XM functions primarily as a CFD and forex broker, offering an extensive range of currency pairs for trading. However, its selection of CFDs is relatively narrower compared to certain alternative options available through XM.
Stocks
XM offers access to real stocks exclusively for clients registered under XM’s IFSC-regulated entity. This capability is accessible through the Shares Account, providing a significant advantage over its competitors. This feature allows clients to diversify their investment portfolio and participate directly in stock ownership.
Fees
XM offers competitive trading fees for CFDs and imposes no charges for withdrawals. However, its fees for forex and stock index trading are merely average, and there is an inactivity fee applicable.
Average Stock Commissions
The spread encompasses all fees associated with stock CFDs. The average spread cost during peak trading hours depends on the individual stock that you are interested in trading.
Withdrawal, Inactivity & Other Fees
XM does not impose any account fees, and generally, withdrawals are free of charge. However, bank withdrawals below $200 incur a $15 fee. Additionally, after 1 year of inactivity, there is a one-time maintenance fee of $15, followed by a $5 monthly fee for continued account inactivity.
| Fee Tyoe | Fee Type |
|---|---|
| Account Fee | ❌ |
| Deposit Fee | ❌ |
| Conversion Fee | 0.01% |
| Inactivity Fee | $15 after a year of inactivity ($5 per month if the account remains inactive) |
| Withdrawal Fee | ❌ |
Conclusion
In conclusion, XM has operated for over 13 years and oversees four regulated entities. Clients of the brokerage benefit from a transparent approach, providing swift access to vital information regarding account types, legal documentation, commissions, and fees. Additionally, XM offers an in-house mobile trading platform for added convenience. Clients can select from several account types and a diverse range of base currency options. The available trading instruments encompass forex pairs, commodities, indices, and stocks, with CFDs on cryptocurrencies offered selectively across the XM Group entities. While the assortment of forex pairs is standard, the variety of commodities, indices, and stocks is extensive.
