Jan 03 2022 0
When we are starting with a new broker, the question: should I trade with XM? Always come to mind, but trading in XM is a choice you will not regret. Here are the reasons: XM is a prestigious broker to operate in Forex and with CFDs on stocks, commodities and stock indices. Although it is relatively young since it was founded in 2009, it has grown at a dizzying pace, having surpassed half a million customers worldwide in 2018. Therefore, it has become one of the most famous trading brokers in the sector.
That the broker has many users and that a large number of traders trust are really good things but is the XM broker safe?
An aspect by which XM stands out is that it complies with all the demands that we can have on regulation. XM is a Cypriot broker, so the entity for which it is registered is the CySEC of Cyprus. However, if you do not trust Cyprus very much, remember it is a member of the European Union like Spain, France or Germany. It is also registered in practically all European supervisory bodies, such as the FCA of Great Britain, the BaFin of Germany, and of course, the Spanish CNMV.
If we add to the entities for which it is regulated that it complies with the MiFID regulations, and that client funds are kept in segregated accounts of the company's money, we can say that XM regulations are among the safest and most reliable brokers in the world in 2020.
How is XM payment system?
After seeing how safe this broker is, it seems clear that, when we want to take out the money, it does pay. However, there is one issue to clarify. One of the advantages that XM has is that it offers a welcome bonus of 25 euros exclusively for new customers. That is, if you sign up, you get 25 euros without having to enter anything.
Get 30$ welcome bonus here
However, you have to read the fine print well because they put the condition that this bonus cannot be drawn, but that we can withdraw the benefits we get with it after performing a minimum of operations.
What makes XM different?
It is a Market Maker type broker so it is a DD broker (dealing desk). One of the most remarkable aspects of this broker and that it’s mentioned everywhere, especially in the publicity that it does, is that they allow leverage of up to 1: 500. Some users take this as a negative since it entails a high risk in trading; however, 1: 500 is the maximum leverage of the account, and we can select different values from 1:1, 1:10, up to the maximum allowed.
Another of the most representative aspects is that the execution of the orders is done through "Market Execution," and therefore there is no possibility of re-rating or rejection. This point is valued positively by most traders since in many cases the re-labels spoil a profitable trading strategy.
XM has different accounts that are the MICRO account (to operate with micro lots), STANDARD (standard lot size) and ZERO (has low spreads from 0 pips and commission of $5 for every $100,000 negotiated). All types of robots (Expert Advisors) are allowed in all accounts for automatic trading, and any kind of trading strategy is allowed (Scalping included). Most traders agree that scripts and robots run flawlessly in XM.
See more XM account types here
The commissions are something that we have to study with care, because the lower they are, the better returns we will get with trading. XM does not charge commissions, what it does have are spreads, that is, differentials between the prices at which a position can be opened, and the costs at which it can be closed.
XM offers two options to traders, a fixed spread or a floating spread. With floating spreads, we can get one of the lowest spreads that can be found in CFD brokers.
With the adjusted price differentials of XM, you do not need to move so much to make a profit. The coverage for the EUR/USD currency pair is 1.8 pips which are considered to be better than what most brokers can provide.
Another characteristic point is that they claim to execute 99.35% of the orders in less than 1 second. Many of the opinions of the traders agree that the execution is very fast and they do not have recotizations.
As for the default XM Spreads, they are variable, although they can be requested to be fixed by paying a premium insurance since the fixed premiums are higher. As far as the opinions of traders on Spreads, there is a lot of diversity. Most are right in saying that the Spreads in the best-known currencies are reasonable but in other pairs, they are quite high.
The XM demo account does not have an expiration date unless it is not used for more than 120 days. The registration of the demo account takes approximately one minute and is a very simple process to perform. When creating the demo account, we can choose the currency, the leverage used and the initial deposit.
A point in favor of this broker is that both withdrawals and income are exempt from management fees by XM. They allow numerous forms of payment/withdrawal including credit/debit card, Moneybookers, Neteller, among others.
In addition to the fact that XM is a regulated online broker, there are a lot of other powerful reasons why they outperformed all the recommended stockbrokers today. The wide range of negotiable tools, multiple online trading platforms, quick withdrawal processing and highly flexible business conditions are just some of its great advantages. An unlimited demo account and an extremely low deposit are also worth mentioning. XM has all the attributes of being a reliable and superior agent for any stock trader and CFD.