XM Review 2024

Rating 7/10

Max. Leverage

1:1000

for Forex

Minimum Deposit

$5

EUR/USD Spread

1.7 pips

Benchmark

Visit XM

XM is a forex and CFDs broker with a platform for trading foreign exchange currency pairs, metals CFDs, energies CFDs, indices CFDs, crypto CFDs, stocks CFDs, commodities CFDs, and shares.

XM was founded in 2009 and launched the website trading-point.com. In 2013, after acquiring XEMarkets.com, it changed its trading name to XM.com. The broker is licensed by top-tier financial regulators in Belize, Australia, Cyprus, South Africa and Dubai.

This review of XM gives you an overview of the account types, trading fees, tradable instruments, trading platforms, customer support and deposits/withdrawal options available on the platform.

XM is the trading name of Trading Point Holdings Ltd, which is regulated under different names by various Tier-1 and Tier-2 financial regulators. XM is also regulated with the FSCA in South Africa.

Here are some of the jurisdictions in which XM is regulated.

1) Financial Services Commission (FSC), Belize: XM is licensed in Belize as ‘XM Global Limited’ with license number 000261/309. Traders in South Africa are registered under this regulation.

2) Australian Securities & Investments Commission (ASIC): XM is regulated in Australia as Trading Point of Financial Instruments Pty Limited with ACN (Australian Company Number) 164-367-113 since 2013 and is licensed to provide financial services in Australia.

3) Cyprus Securities and Exchange Commission (CySEC): XM is regulated in Europe by CySEC as Trading Point Of Financial Instruments Ltd and authorized to offer investment service, with license number 120/10 issued in 2010.

4) Dubai Financial Services Authority (DFSA): XM is regulated in Dubai, UAE as Trading Point MENA Limited, DFSA Reference Number: F003484, authorized to carry on financial services in 2019.

5) Financial Conduct Authority: XM holds a UK license as well. They used to hold a temporary license. Now they are permanently regulated under the name Trading Points of Financial Instruments. Their FCA number is 705428 with an office in London.

6) Financial Sector Conduct Authority: XM is regulated as a financial service provider in South Africa under the name. XM (ZA) Pty Ltd. Their authorisation number is 49976. However, XM (ZA) Pty Ltd only acts solely as an intermediary between the client and XM Global Limited. XM (ZA) Pty Ltd is not an issuer of CFD products.

The leverage on XM varies, depending on the instrument you are trading. The maximum leverage on XM is 1:1,000, which applies to major forex pairs, other instruments have lower leverage limits.

With leverage of 1:1,000, you can open a trade position worth 1,000 times your deposit. For example, if you deposit $100 you can place a trade worth $100,000.

XM leverage also has limits based on your total equity. Total equity of US$5 to US$20,000 can access a maximum leverage of 1:1,000, total equity of US$20,001 to US$100,000 has a maximum leverage of 1:200, and total equity of more than US$100,00 have a maximum leverage limit of 1:100.

XM offers 4 types of trading accounts for retail clients: Micro, Standard, XM Ultra Low and Shares Accounts. You can request Islamic Accounts on XM or open demo accounts to practice trading on the platform.

Below are details of the various account types currently available on XM and their features:

1) Standard Account: The XM Standard Account is available on MT4 and MT5 platforms and lets you trade Forex and CFDs on indices, energies, metals, cryptocurrencies, stocks and agriculture commodities.

This account does not charge commission fees for opening or closing trade positions. Spreads start from 1 pip for major pairs and you pay swap fees for keeping a position open overnight on the Standard Account.

The contract size for this account is 100,000 for 1 lot, with a required minimum deposit of US$5 (R91), and a minimum trade lot size of 0.01. The maximum number of open positions on the Standard Account is 300 with a leverage limit is 1:1,000.

You have negative balance protection with this account, which means that you cannot lose more than the money you deposit. If you make a loss on a trade position, your account cannot run into a negative balance.

2) Micro Account: The XM Micro Account is also available on MT4 and MT5 platforms and lets you trade Forex and CFDs on indices, energies, metals, cryptocurrencies, stocks and agriculture commodities.

This account is spread only and charges no commission for opening or closing trade positions. Spreads start from 1 pip for major pairs and you pay swap fees for keeping a position open overnight on the Standard Account.

The contract size for this account is 1,000 for 1 lot, with a required minimum trade lot size of 0.01, a maximum of 300 open positions and leverage of 1:1,000.

The minimum deposit on this account is US$5 (R91) and you also have negative balance protection.

3) XM Ultra Low Account: The XM Ultra Low Account is available on MT4 and MT5 platforms and offers lower spreads. You can open a Micro Ultra Low or Standard Ultra Account.

Spreads on this account start from 0.6 pips for major pairs, no commission fees are charged for opening or closing trade positions, and you do not pay swap fees on some selected instruments if you keep a trade position open overnight.

The contract size for this account is 100,000 per 1 lot for Standard Ultra and 1,000 per 1 lot for Micro Ultra. The minimum trade lot size is 0.01, and the maximum number of open positions is 300 with a leverage limit is 1:1,000. The Ultra Low Account does not qualify to receive bonuses.

This account also requires a minimum deposit of US$5 (R91) and you have negative balance protection.

4) Shares Account: The XM Shares Account is designed for experienced traders, available on MT4 and MT5 platforms and supports only USD as account currency. You can only trade shares with this account.

Spreads on this account depend on the underlying exchange and commissions start from US$5 per trade. This account is swap-free by default, so you do not pay swap fees for keeping a trade position open past the market’s closing time.

The contract size for this account is 1 share per 1 lot, with a minimum trade size of 1 lot, and a maximum number of open positions is 50. This account does not use leverage.

This account requires a minimum balance of US$10,000 and you have negative balance protection.

5) Islamic Account: XM offers an Islamic Account that is swap-free for Muslim traders who want to adhere to the sharia law of no-riba.

To avoid paying swap fees, Islamic Accounts on XM pay commissions for every trade.

You can convert a Micro, Standard, or Ultra Low Account to Islamic status, and the same features will apply, except that the Islamic Account does not pay any swap fees.

If you want an Islamic account, first open a Standard, Micro or Ultra Low Account, then contact customer support to convert your account to the swap-free status. Note that you will have to agree to the terms of conditions of the Islamic Account.

XM Base Account Currency

Base account currencies supported on XM are AUD – Australian Dollar, USD – United States Dollar, EUR – Euro, GBP – British Pound (Sterling), SGD – Singapore Dollar, and ZAR – South African Rand. You can choose one when creating an account.

Your trades, deposits, withdrawals, profits and losses are measured in your account base currency. Note that some account types cannot have some currencies.

Fees on XM South Africa vary based on instruments traded and account type. Find an overview of XM fees here:

Trading fees

Spreads: XM charges spreads whenever you trade instruments, which is the difference between the bid and ask prices. The lowest spreads start at 0.6 pips for Ultra Low Account and 1 pip for the Micro and Standard Account. Here are the average spreads on XM:

Commission fees: XM offers commission-free trading for all account types except Shares and Islamic Accounts. This means that you will not pay any commission when you open or close trade positions on the platform.

The Shares Account charges a minimum commission of USD 5 per trade while commissions on Islamic Account depend on the instrument being traded.

Swap fees: If you keep a trade position open past the closing time of the market which is 22:00 GMT, the trade rolls over to the next day and you incur a rollover fee also called overnight funding cost or swap fee, this is applicable to all account types on XM except Islamic and Shares Accounts.

The swap fees depend on the instrument you are trading, the leverage used, the spread, and whether your position was long (buy) or short (sell).

Islamic and Shares Accounts are swap-free and do not pay any swap fees for holding a position overnight.

Non-trading fees

Deposit and Withdrawal fees: XM does not charge any fees for deposits and withdrawals on all payment methods which applies to all account types. Although, all deposits and withdrawals below 200 USD processed via international bank wire transfer incur a fee of US$15 (R273) per transaction.

Some international banking institutions may charge independent fees.

Account Inactivity charges: If you do not perform any trade on your account or log in for 90 days, your account is considered inactive, and will be charged US$5 (R91) every month as inactive account fees on any funds in the account. If you have no funds in it, no fees will be charged.

How to Open XM Account in South Africa?

To start trading on XM, follow these steps to open an account.

Step 1) Visit the XM website homepage at www.xm.com and click on ‘OPEN AN ACCOUNT’

Step 2) Fill out your name, email, and phone number on the form that appears. Select your country of residence, preferred trading platform and account type, check the box below ‘Confirmation’ to receive newsletters then click the ‘PROCEED TO STEP 2’ button.

Step 3) Provide your date of birth and address, and choose whether you are a US citizen or not.

Step 4) Select your preferred base account currency, set maximum leverage and choose if you want to receive bonus then answer questions about your financial, employment, and education background and knowledge/experience as an investor.

Step 5) Create a password, check the confirmation box to agree to the terms and conditions, then click ‘OPEN A REAL ACCOUNT’.

Step 6) Got to your email inbox and click the verification link sent, then log into the XM dashboard (Member Area)

Step 7) On the dashboard, click on VALIDATE YOUR ACCOUNT HERE, then provide your Tax Identification Number (TIN) and click Submit.

Click on START VERIFICATION to upload a government-issued ID card or utility bill to verify your identity and address.

Note that until your account is verified, you cannot place trades or initiate withdrawals.

Payment methods accepted for deposits and withdrawals on XM include cards, e-wallets (Skrill, Neteller), and online bank transfers from local banks in South Africa.

Learn about the minimum amount and the time it takes to process deposits and withdrawals from XM below:

XM Deposit Methods

Here is a summary of payment methods accepted by XM for deposits.

XM Withdrawal Methods

Here is a summary of payment methods for withdrawals accepted on XM Trading.

What is the minimum deposit for XM?

The minimum deposit on XM is US$5 (R91) for all payment methods which applies to all account types.

How do I put money in my XM account?

Step 1) Log in to your XM Member Area through the XM website or by visiting my.xm.com/member/.

Step 2) Click on the DEPOSIT FUNDS tab on the dashboard and select the payment method you would like to use.

Step 3) Enter the amount you want to deposit, click DEPOSIT, and follow the on-screen instructions to complete the deposit.

What is the XM minimum withdrawal?

The minimum withdrawal on XM South Africa is US$5 (R91) and withdrawals are processed within 24 hours.

How can I withdraw from XM?

You can follow these steps to withdraw your money from XM.

Step 1) Log in to your XM Member Area (dashboard).

Step 2) Click on the WITHDRAW FUNDS tab.

Step 3) Select a withdrawal method and the trading account you wish to withdraw from, enter the amount you want to withdraw and follow the on-screen instructions to complete your funds’ withdrawal on XM.

Below are financial instruments that can be traded on XM

Trading platforms supported by XM are:

1) XM WebTrader: XM offers a web trader that can be accessed online on any device. The web trader is owned by the XM Group.

2) XM App: The proprietary XM Trading mobile app (XM App) is also available for traders on Google Play Store and Apple App Store for mobile devices.

3) MetaTrader 4 and MetaTrader 5: The MT4 & MT5 trading applications are supported by XM and integrated for trading financial markets offered by XM. You can access the platforms via the web, desktop, and mobile devices (Android & iOS).

XM offers a number of promotions to traders in South Africa registered under XM Global Limited, regulated in Belize. Find a summary of various XM bonuses below:

1. Trading Bonus: This bonus is offered to new clients when you first create your live trading account. The bonus amount is $50 (R910)and is credited once your live trading account is validated.

   You do not need to deposit any funds to receive this bonus, you cannot withdraw it, but can withdraw any profits realised from using it to trade.

2. Deposit Bonus: This bonus is given to new clients on their first deposit of at least $5 (R91). The broker credits 50% of your deposit amount as a bonus to your account, capped at $500 (R9100). This is a non-withdrawable bonus on XM.
3. Refer Your Friend Bonus: The XM referral bonus is a $35 (R635) bonus given to existing clients for referring a new client to the platform. The new client also gets a $35 (R635) bonus. You can withdraw this bonus without having to trade. Although there are other Terms and Conditions for you to fully access the bonus.

Note that you will have to select the option to receive bonuses when creating your account, to qualify for the bonuses.

XM offers online customer support to clients via the following channels.

1) Live chat support: The XM live chat is available 24/7 for client enquiries and can be accessed on their website. The live chat is available in different languages, although sometimes, some language supports can be offline.

When our team tested, there was no wait time before an agent joined the chat and the answers provided were relevant. You will need to provide your email and name to start the chat.

2) Email support: XM offers email support for clients, you can find the email on the contact page of their website. The XM email address for enquiries is [email protected].

When our team tested their email support, we got no response after several hours. Email support is supposed to be available 24/7.

3) Phone support: XM offers phone support for clients in South Africa that is also available 24/7. The XM phone number is +501 223-6696.

Do we Recommend XM South Africa?

We recommend that you try out XM because, although they are they are licenced in South Africa and a top-tier regulator in ASIC, SA traders are registered under their Belize entity. This is an offshore regulation so you need to be are of the risks.

XM Markets have moderate fees, as they offer commission-free trading with competitive spreads, and offer free deposits/withdrawals. They also process deposits and withdrawals relatively faster than some brokers. Note that they charge dormant account fees of US$5 (R91) after only 90 days of inactivity.

The customer support of XM is fair, as their live chat is responsive during working hours and the email and phone are also active, although the email support is slow.

The website of XM is easy to navigate and has details about the account types, fees, trading conditions, and other information that clients might need. The broker also offers a variety of account types for you to choose from.

XM South Africa FAQs