In the world of internet forex trading, XM has a certain renown based on two aspects: first of all, there’s the brand name and URL used by the company, which is officially known as Trading Points Holdings. As a web address, XM.com is extremely easy to remember, and it is truly amazing that this broker was able to secure a domain name that would be commonly associated with a known American satellite radio network. Second, XM has the lowest minimum amount required to open a new account; with just $5, traders can start taking positions in the forex markets.
XM used to be known as Trading Points and XEMarkets. Traders who are searching for reviews of this company under its previous names should keep in mind that this broker has grown and expanded its financial footprint over the last few years; this also means that the company has improved its operations in an effort to address previous complaints.
Licensing and Jurisdiction of XM Forex Broker
Trading Points Holdings is licensed in many jurisdictions. XM is a licensed broker in the European Union by virtue of its registration with the Cyprus Security and Exchange Commission under document number 120/10. The company is also registered in Cyprus, where the brands XM and Trading Point of Financial Instruments are registered.
XM is regulated under the European Markets in Financial Instruments Directive. Further licenses are held in the United Kingdom by virtue of registration number 538324 with the Financial Conduct Authority. In Germany, XM is an authorized broker registered with the Federal Financial Supervisory Authority (BaFin).
Even though XM started doing business in Europe with its Cyprus licensing, the regulatory climate has prompted the company to seek further licensing in Spain, Sweden, France, the Netherlands, Italy, and Hungary. XM also holds licenses in Australia and New Zealand. XM does not take clients who are citizens of the United States of America.
Deposits and Withdrawals
XM’s $5 minimum deposit makes it the most affordable internet forex broker. Even at this broker’s highest leverage, forex traders will not be able to take good market positions with just $5; however, XM also offers a $30 bonus to new clients who complete the account verification process by means of providing documentation. In other words, it is possible to start trading with XM with just $5. The company also offers other bonus programs up to $3,000 for certain account levels.
The deposit options offered by XM range from traditional bank transfers to credit cards and from electronic payments to cash voucher services such as Boleto. Withdrawals can be requested by means of credit card payments and bank transfers, which may take a few days to materialize. Electronic payments tend to be faster as they are approved within 24 hours and completed rather quickly.
Online Trading Platforms
XM utilizes a white label version of the popular and reliable MetaTrader 4 platform, also known as MT4. This platform is ideal for forex traders thanks to its charting and technical analysis features; however, traders can also take positions in other instruments such as equities and commodities, which are also offered by XM on a derivative basis.
The MT4 desktop application is available for Windows and Mac operating systems. Enhanced MT4 apps are available for traders who wish to manage multiple accounts and apply automated trading options.
XM clients who do not use Windows or Mac OS can still trade via WebTrader 4, a platform that can be accessed through modern browsers regardless of operating system use. This is ideal for traders who own Linux computers. Mobile trading is also possible on the iPad, iPhone, Windows Mobile, and Android platforms with dedicated apps. The mobile options are not as extensive as those of the MT4 desktop apps.
Customer and Trading Support
XM offers online and telephone support 24 hours a day from Monday to Friday. On weekends and during the break period of the forex markets, support is offered during a few hours each day until the Sunday afternoon before Wall Street resumes trading.
Some XM traders have complained of slippage, which is when prices drop at the time trades are executed. This issue happens at other online brokerages as well, and it is due to trading taking place at a time of heavy volume and when the market is being impacted by geopolitical factors being reported in the news.