XM Review 2018

XM, a member of Trading Point Group, is well-known too many retail traders out there. This is because they are highly regulated and based in the United Kingdom, which of course is a significant benefit being under the auspices of the Financial Conduct Authority. This offers the trader a certain amount of comfort and stability to look forward to and a reliable brokerage.

As you will see in this XM Review, XM offers a multitude of markets, allowing the trader to re-create what it would be to manage money in a hedge fund. XM is giving the opportunity to play the global markets as the professionals do. This eliminates the need to have several brokerage accounts open to truly diversify.

XM Review
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Trading Platforms and Tools

With XM, you use the popular Metatrader4 or Metatrader 5 platforms (mobile, web and desktop). This reliable technology has been trusted by hundreds of thousands of traders around the world and has both proven themselves to be extremely stable.

Beyond that, these platforms also offer connectivity to mobile devices, allowing you to trade “on the go” as well.

XM Review | MetaTrader 4

XM Review | MetaTrader 4 (Source: XM.COM)

Another considerable advantage to using these platforms is that they allow you to use so-called “Expert Advisors,” which allow the functionality of the platform to expand.

There are a seemingly endless amount of trading robots that are available for automatic trading, or even the ability to write your own indicators. These platforms are incredibly intuitive and extraordinarily flexible.

​Tradable Markets

One of the great things about XM is a brokerage is the massive amount of market instruments that you have at your fingertips. In fact, there are over a thousand instruments that you can trade at XM, so there is always an opportunity.

This opens up the door to traders that may not necessarily have the ability to trade during regular hours in their home country.

For example, if you work during the day in London, you may find yourself being forced to trade during the Asian session, which is difficult for some traders to do because of the brokerage. At XM, you could be trading the currency market while trading shares of Australian companies for example.

XM offers the world at your fingertips. Forex trading, stocks, commodities, equity indices, precious metals, energies, and cryptocurrencies are all available.

Keep in mind that these are all contract for difference markets, which has a certain amount of benefit built in as leverage is higher, the margin is lower, and of course, you can trade outside of regular market hours.

XM | tradeable markets

XM | tradeable markets

CFD markets include the following: indices, cryptocurrencies, shares, and commodities. Some of the highlights of the CFD offerings include:

  • ​US SP 500 CFD
  • ​France 40 CFD
  • ​Greece 20 CFD
  • Bitcoin
  • ​Litecoin
  • Cotton
  • ​Corn
  • ​Copper
  • ​US Natural Gas
  • Gold
  • Silver
  • Hundreds of shares in the United States, United Kingdom, Italy, Greece, Germany, Finland, Australia, and many other countries.

​The margin on shares starts at 10%, while the margin on indices starts at 0.5%. Commodities require 2% margin, while cryptocurrencies require 20%. You will find that this margin is rather small compared to some of the bigger brokerages out there.

Keep in mind that margin may be different depending on your home country, as some countries allow for more margin than others.

For example, in the United States, margin levels are typically much higher thereby making leverage much lower. (the USA is used as an example, XM currently doesn’t take American clients.)

Commissions and Fees

XM Spreads and Fees

XM Spreads and Fees (source: xm.com)

Margin rates and spreads are extremely low at XM. So as long as you are careful and responsible, this can be a huge help. Margin, of course, can help or hinder your trading results and make sure that you use special care.

However, with the tools and the trading platform that they offer, you can keep your total risk in check. However, you should note that the spread is variable and adapts to market conditions.

Education and ​Research

XM has a ton of research and analysis available for their clients. Most of it focuses on technical analysis and how to set up a trading system, with a multitude of video tutorials and demonstrations available.

Beyond that, the tool section is packed with an economic calendar, Forex calculators, and the ability to sign up for Forex signals for an extra cost.

Market analysis is free, and XM provides a good value when it comes to analysis. The analysis covers all markets that the brokerage offers, which of course gives you an idea as to how the trading day may be setting up.

For those of you with somewhat limited experience, this can be a huge benefit as it gives you the thought process of an expert to help guide you.

Even if you do have some experience, quite often you will find that using an expert’s analysis along with your own can give you an idea as to potential trading opportunities and can even point out things that maybe you have missed.

There are a ton of webinars that XM will offer, and in 18 languages, seven days a week, using 42 separate webinars choose one.

Because of this, it is truly accessible to the international trader, with such diverse languages as German, Filipino, Bengali, Japanese, Polish, Russian, and of course English. Beyond webinars, there are plenty of videos offering education and analysis overall.

You will find that the research and education section of the website is quite extensive. What’s even more impressive is that it’s offered for free to the general public, showing the desire of XM to help the retail trader.

​Customer Service

Support is strong at XM, with a phone line that you can call in the United Kingdom that is open 24 hours a day, five days a week. There is also live chat, and of course email.

Their support specialist can operate in a multitude of languages, giving traders around the world the ability to communicate back and forth with the broker.

Response time is something that XM prides themselves on, and they are continually trying to improve that. There is also an FAQ section that answers a lot of the issues that you might have while trading these markets.

XM Review Summary

​Rating

​Overall 3.8

Platforms & Tools

​4.0

​Tradable ​Markets

3.5

Commissions & Fees

​3.5

​Education & Research

​4.0

​Customer Service

​4.0

XM is a long trusted and well-known brokerage firm based in the United Kingdom, so obviously it falls under stringent regulation. As an FCA monitored brokerage, there is a multitude of built-in financial protections for the retail trader to take advantage of.

This means that the firm is well-capitalized and insured, as well as heavily regulated overall. This gives a safety of funds that many other brokerages in some other countries won’t be able to offer.

At the end of the day, it’s the flexibility that seems to matter the most to traders who choose XM. The ability to trade around the world and with a platform that you know and love is a huge benefit that you don’t find at most places.

In fact, algorithmic traders will love trading at XM, because you can run that program in the background 24 hours a day and on different instruments.

There are of course many traders who are interested in cryptocurrencies now, which of course XM offers in the CFD form, simplifying the ability to speculate on digital currencies without going through the hassle of digital wallets, being hacked, and all that comes with security.

Long gone are the days of being able to trade one instrument successfully without at least monitoring the rest of the world. The global financial crisis over a decade ago demonstrated just how interconnected the markets have become.

​The ability to trade at a brokerage house like XM, gives you a multitude of opportunities, but it also keeps you in the loop as to what’s going on in markets around the world.

You will find that XM offers so much in the way of variety and interconnected markets that you will not only be able to trade multiple correlated markets. But maybe sometimes what’s more important, you’ll be able to find markets that are not correlated, mitigating some of your risks.

However, I prefer to trade stocks on the NYSE and NASDAQ stock exchanges and use my favourite stock screener Trade Ideas to find the appropriate entry points.

But for traders outside of the United States, XM might be an attractive brokerage. XM has a significant advantage in comparison to other CFD brokages. They are located in the UK while most of their competitors are located in Cyprus.

​XM Review 2018 - They offer the world at your fingertips | via @daytradingz

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