XM is well-regarded for offering competitive spreads to traders in the UK and Europe. While its no commission spreads aren’t the lowest, the platform options, market range, and client support position it as a huge player in the global forex market.
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XM Summary
XM has 3 types of commission-free account types, including a micro-lot trading account, making the broker a good choice for beginners. All accounts promise no requotes or rejections, fast execution and unlimited access to MT4 and MT5 including expert advisors. To get started a low minimum deposit of $5 will be required.
Whilst a decent choice for new traders we think advanced traders may find XM lacking advanced trading tools and wish a RAW-style account was available. XM is regulated ASIC in Australia, CySEC in Cyprus and IFSC in Belize so if you are in the UK, you might be better off considering a different broker.
XM’s offers four account types differentiated by lot sizes and pricing: the Micro Account is for trading in micro-lots with no commission, while the Standard Account caters to standard lots with spread-only costs.
If you are in Europe or the UK you will have the option of a Zero Account where you can access spreads as low as 0.1 pips + commission.
In our analysis, XM’s Zero Account showed competitive spreads for key pairs. The average spread for EUR/GBP was 0.30 pips, and for USD/JPY, it was 0.10 pips.
These ECN spreads are among the industry’s best, matching or surpassing top brokers like FP Markets and Pepperstone.
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Commission Account Spreads
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|---|---|---|---|---|---|
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0.10 | 0.90 | 0.70 | 0.10 | 1.30 |
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0.10 | 0.20 | 0.20 | 0.30 | 0.40 |
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0.10 | 0.20 | 0.30 | 0.20 | 0.30 |
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0.20 | 0.20 | 0.40 | 0.20 | 0.30 |
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0.44 | 0.42 | 0.40 | 0.20 | 0.83 |
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0.17 | 0.30 | 0.54 | 0.24 | N/A |
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0.10 | 0.50 | 0.60 | 0.30 | 1.10 |
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n/a | 0.50 | 0.60 | n/a | 0.30 |
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0.50 | 0.70 | 0.60 | 0.50 | 0.80 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 12/01/2024
We compared the 38 brokers across the 9 most traded currency pairs and found XM has more expensive average spreads for 5 of them. The overall average was also the highest of all the brokers we compared primarily due to USD/SGD rate which I verified twice as it was so high.
| Raw Account Spreads | XM | Average Spread |
|---|---|---|
| Overall | 2 | 0.72 |
| EUR/USD | 0.1 | 0.28 |
| USD/JPY | 0.1 | 0.44 |
| GBP/USD | 0.4 | 0.54 |
| AUD/USD | 0.8 | 0.45 |
| USD/CAD | 1.3 | 0.61 |
| EUR/GBP | 0.7 | 0.55 |
| EUR/JPY | 0.6 | 0.74 |
| AUD/JPY | 1.5 | 0.93 |
| USD/SGD | 12.5 | 1.97 |
Overall, while for some currency pairs XM has low RAW account spreads they are overall expensive compared to brokers like Pepperstone, Eightcap and IC Markets. That said, the commission rate of this account type also has a significant impact on trading costs hence we explore this next.
XM Zero Account holders pay a commission fee of $3.50 per standard lot, per $100,000 traded ($7 round-turn). While this commission fee is competitive for USD base accounts, there aren’t options for AUD, EUR or GBP accounts. This can lead to conversion costs and generally, local currency accounts (eg AUD) have lower commission rates.
| Commission Fee | USD | AUD | GBP | EUR |
|---|---|---|---|---|
| XM Commission Rate | $3.50 | N/A | N/A | N/A |
| Industry Average Rate | $3.44 | $3.32 | £2.44 | €2.91 |
The XM Micro and Standard Accounts are commission-free account types with spreads starting from 1 pip.
Our analysis of over 40 leading brokers’ average monthly spreads revealed that while XM’s no commission spreads are competitive, there are other brokers offering tighter spreads.
Specifically, for the EUR/USD and AUD/USD pairs, XM’s average spread is 1.60 pips.
| Standard Acount Spreads | EUR/USD | USD/JPY | GBP/USD | AUD/USD | USD/CAD | EUR/GBP | EUR/JPY | AUD/JPY |
|---|---|---|---|---|---|---|---|---|
| XM Average Spread | 1.6 | 2 | 1.8 | 2.3 | 2.3 | 1.8 | 2.1 | 3 |
| Industry Average Spread | 1.2 | 1.4 | 1.6 | 1.5 | 1.8 | 1.5 | 1.9 | 2.1 |
XM Islamic accounts stand out remarkably from most other forex brokers’ standard offerings. The key difference is that, unlike most forex companies that charge additional fees by widening the spread on Islamic accounts, XM does not impose any extra charges.
There are no additional charges when you make a deposit or withdrawal. However, there is an inactivity fee of $10 after 90 days.
Verdict on XM Spreads
XM average spreads were at the higher end and the brokers commission rate was mid-tier compared to other brokers. This will result in higher trading costs compared to most other brokers we compared.
XM offers traders the choice between MetaTrader 4 (MT4) and MetaTrader 5 (MT5), each catering to different trading needs.
| Trading Platform | Available With XM |
|---|---|
| MetaTrader 4 | Yes |
| MetaTrader 5 | Yes |
| cTrader | No |
| TradingView | No |
| Proprietary Platform | Yes |
Alongside a broader range of CFD products, MT5 also brings enhancements in trading and analysis tools compared to its predecessor, MT4.
MetaTrader 4 on XM is tailored for forex traders looking to develop and execute automated trading strategies.
Traders can use Expert Advisors (EAs) for market scanning and automated trade execution, with the ability to create EAs using MQL4 or download them from the MetaTrader Marketplace.
MT4 also supports backtesting of strategies, though it’s limited to single currency analysis.
MT4 Features:
MetaTrader 5 (MT5) expands on the capabilities of its predecessor, MT4, offering a comprehensive multi-asset trading platform. It’s suitable for traders looking to engage in forex as well as other markets like stocks, stock indices, and precious metals.
Key Enhancements in MT5:
XM’s mobile trading apps, available for both MetaTrader 4 and MetaTrader 5, offer full functionality, mirroring the capabilities of the desktop and WebTrader platforms.
These apps, compatible with a variety of devices including iPhones, iPads, and Android phones and tablets, ensure that mobile users have unrestricted access to all market types and order options.
This design provides a seamless and consistent trading experience across different devices, allowing traders to manage their activities efficiently while on the move.
Trade Experience
XM’s trading experience is defined by its commitment to reliability and efficiency. Key aspects include:
Regarding safety, XM holds a trust score of 67, which reflects its top-tier regulation, established reputation, and customer reviews.
XM accepts clients from all over the world and is overseen by multiple top-tier regulators including the Australian Securities Investments Commission (ASIC), the UK’s Financial Conduct Authority (FCA), and the Cyprus Securities and Exchange Commission (CySEC).
| XM Safety | Regulator |
|---|---|
| Tier-1 | ASIC FCA CySEC |
| Tier-2 | DFSA |
| Tier-3 | FSC-BZ |
XM was established in 2009 in Belize City, Central America. The online broker has no regulatory issues on record during its 15 years of business.
On TrustPilot, XM has an average score of 3.3 out of 5 from 531 reviews. This score suggests that there may be some issues with client satisfaction, offering a varied perspective on the broker’s service quality and customer experience.
To start trading with XM, an initial minimum deposit of $5 is required for Micro and Standard accounts, $50 for Ultra-Low accounts, and $50 for Zero Accounts.
When funding an established trading account, no minimum deposit is required, although certain e-wallet payment methods require a minimum of $5.
XM offers USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, and RUB as base currencies for Micro and Standard Accounts.
For Ultra Low and Zero Accounts, a more limited selection of base currencies are available as shown below.
| XM Accounts and Fees | Micro account | Standard Account | Ultra Low Account | Zero Account |
|---|---|---|---|---|
| Restrictions | None | None | Australia and select countries only | UK and Europe only |
| Base currency options | USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB | USD, EUR, GBP, CHF, AUD, HUF, PLN, RUB | EUR, USD, GBP, AUD, PLN, HUF | USD, EUR, JPY |
| Minimum trade volume | 0.01 Lots (MT4) 0.1 Lots (MT5) | 0.01 Lots (MT4) 0.1 Lots (MT5) | Standard Ultra: 0.01 Lots Micro Ultra; 0.1 Lots | 0.01 Lots |
| Minimum deposit | $5 | $5 | $50 | $100 |
To deposit funds in an XM trading account, clients can use credit cards (Visa and Mastercard), debit cards, bank transfers, Western Union or e-wallets.
A downside to XM is its withdrawal fees for small sums. If a customer withdraws less than $200 from their trading account via bank wire transfer, they will incur a $15 administration fee.
Other Fees
While many brokers start charging clients account inactivity fees after 6-12 months, XM traders who have not traded for 90 days will be charged a monthly inactivity fee of $5.
XM offers a diverse range of over 1,250 CFD trading products, including forex, shares, indices, and commodities.
While many of the best brokers charge traders a commission fee for stock CFD trading, XM provides commission-free commodity and share trading.
| CFD type | Number of symbols/pairs |
|---|---|
| Forex | 57 |
| Stocks | 1144 In Total 469 on NYSE + NASDAQ 165 on LSE 20 on ASX 17 on FWB 10 on EuroNext |
| Commodities | 8 |
| Equity Indicies | 18 Cash Indices 12 Futures Indices |
| Precious Metals | 2 |
| Energies | 5 |
XM traders can get in touch with the broker’s customer service team via phone, live chat, and email 24/5.
Although a good range of contact methods are offered by XM, there is no customer support available on weekends.
XM’s customer support team are multilingual, with representations fluent in English, Japanese, Chinese, Hindi, Arabic, Spanish, Italian, French, Russian, Hungarian, Portuguese, Czech, Slovakian, Bulgarian, Romanian, Dutch, Korean, Bahasa Indonesia and Bahasa Malay.
Personal Account Manager
All XM clients are allocated a personal account manager who is available to assist you with any account or trading question you may have. XM personal account managers have a reputation for ensuring their clients get the best from their trading activities.
XM provides a comprehensive suite of research and educational resources, including trading guides, webinars, and fundamental analysis tools.
Educational Materials
XM offers a wide array of educational materials, designed to cater to traders of all levels, enhancing their trading knowledge and skills.
These resources are integral to XM’s commitment to providing a thorough educational experience, helping traders to understand market dynamics and develop strong trading strategies.
Market Research And Analysis
XM also provides a diverse suite of market research and analysis tools to keep traders informed and ahead in the financial markets.
XM, established 15 years ago, has carved a niche in the online brokerage industry with its diverse offerings and client-centric approach.
The broker’s extensive range of over 1,250 CFD products, including forex, stocks, commodities, and indices, caters to a broad spectrum of traders. XM’s competitive ECN spreads, particularly for UK and European traders, and the availability of both MetaTrader 4 and MetaTrader 5 platforms, make it a versatile choice for various trading strategies.
The addition of personal account managers for each client further enhances the personalised trading experience. While XM’s no commission spreads may not be the lowest, its commitment to providing a dynamic trading environment, coupled with strong customer support, positions XM as a significant player in the global forex market.
XM offers varying leverage levels depending on the region and regulatory body ranging from 30:1 to 888:1 for forex trading.
For instance, under FCA in the United Kingdom, CySEC in Cyprus, and ASIC in Australia, the maximum leverage is 1:30.
In contrast, XM Global Limited, regulated by IFSC in Belize, offers leverage ranging from 1:1 to 1:888 for balances between $50 and $20,000, 1:1 to 1:200 for balances between $20,001 and $100,000, and 1:1 to 1:100 for balances over $100,001.
Traders outside Europe, Australia, and Dubai can access leverage as high as 1:888. This tiered leverage approach is designed to promote responsible trading, especially at higher volumes.
XM offers guaranteed negative balance protection across all accounts, ensuring traders don’t owe more than their account balance. This protection includes a 50% margin call and a 20% stop-out level to manage potential losses. In cases of slippage leading to a negative balance, XM resets the account to $0, preventing debt accumulation. However, XM does not provide guaranteed stop-loss orders.
Yes, XM charges a monthly inactivity fee of $5 for accounts that have been inactive for 90 days, which is a shorter period compared to the 6-12 months typically observed with many other brokers.
This review of XM is grounded in CompareForexBrokers’ comprehensive and methodical approach. Our methodology, updated for 2024, involves a detailed analysis of 40 brokers across eight key categories, including trading costs, trading experience, trust, trading platforms, customer service, market range, education, and funding.
This process is backed by rigorous testing and research, conducted by a team of traders and industry experts. We employ both manual assessments and automated testing through Expert Advisors, Indicators, and Scripts to ensure accurate and unbiased evaluations.
Our goal is to provide traders with clear, factual, and up-to-date information, helping them find the best forex broker that aligns with their trading needs.
Verdict
Fees
Trading Platforms
Safety
Funding
Product Range
Support
Market Research
Ask an Expert
Which XM account is best for scalping?
While XM does allow scalping, since most accounts are commission free, their spreads will be wider compared to a RAW account. For this reason, there are better brokers to consider but if you wish to scalp trade with XM, your best account would be XM Ultra Low Account.
Which account is best for XM?
This really depends on your preference and experience. For beginners, the Micro Account at XM is ideal for managing smaller trades with lower risk. Experienced traders may prefer the XM Zero Account for its lower spreads and cost efficiency.
Which documents do I need to provide to become an XM client?
Exact documents required with XM will vary by regions but generally you will need identification, proof of address, payment method verification and in some cases tax documentation
How long does XM verification take?
XM verification should take 3 to 7 days in most cases.
How does XM affiliate program work?
XMs affiliate program has a commission of $25 for each lot referred. Commissions are available on 2nd tier refferals as well.