The Comprehensive Review Of the Forex Broker
Forex trading brings along with it a world of opportunities for unrealized profits, while the whirlwind of available brokers does their job at leaving one disoriented. One of the major players is XM.com. With the company having been able to amass a following, this article will go through what XM.com offers, covering its features, benefits, and possible drawbacks to let you decide.
Background and Regulation of Broker
Founded in 2009, XM.com is a Cyprus-based forex broker who holds licenses with several regulatory bodies, including the Cyprus Securities and Exchange Commission and the International Financial Services Commission of Belize. While having licenses with these multiple bodies lends a layer of security, it is important to realize that regulations can differ by jurisdiction.
Account Types and Trading Platforms
Xm.com offers several types of accounts for its clients. The major ones are discussed as follows:
Micro Account: This type of account is for those who want to trade in micro lots. The minimum lot size is 0.01, and the minimum deposit required to open this type of account is less.
Standard Account: As the name suggests, this account is the most popular one. It offers lots that come under the category of standard lots. In this case, the minimum trade size is 1.0, and the execution is standard.
ULL Account: The account features ultra-low latency and is tailor-made for professional traders who need the fastest possible order execution speed.
Shares Account: It is a trading account in shares, indices, and other CFDs.
XM.com has two major trading platforms:
MetaTrader 4 (MT4): This platform is hugely popular and user-friendly due to the fact that it offers a high degree of customization options, automated trading in the form of Expert Advisors, and thousands of technical indicators one can use in analyzing the market.
MetaTrader 5 (MT5): This platform is developed as a successor of MT4 and comes with hedging, alongside more advanced order types.
Both platforms are available for download on Windows, Mac, and mobile devices to make it easy to trade on the move.
Trading Instruments
XM.com has a variety of products in its trading instruments, including the following:
Major Forex Pairs: EUR/USD, USD/JPY, GBP/USD, etc.
Minor Forex Pairs: Less commonly traded, offering potentially higher volatility.
Exotic Forex Pairs: This comprises pairs that involve less-traded currencies, which may include wider spreads.
Commodities: Gold, Silver, Oil, and other popular commodities
Stock CFDs: Sell and buy shares of the company without really having the security in possession
Equity Indices: Sell and buy according to the derived value of the indices, such as S&P 500 or DAX 30.
Cryptocurrencies: A few famous cryptocurrencies, including Bitcoin and Ethereum, are available for trading. Please note that the selection might differ because of imposed regulations.
That heterogeneity opens the doors to various styles of trading and risk levels.
Trading Conditions
Trading decisions are influenced by many factors. Here is what XM.com has to offer:
Spreads: XM.com offers variable spreads, which means that the sell and buy prices are different. They state that they are very aggressive, but always compare since those things change over time.
Commissions: Commission structures vary depending on account types. Some accounts have commissions built into the spread; some others may charge an amount per trade for commissions.
Leverage allows traders to control larger positions with less of an initial deposit, while it increases profits and losses by a significant amount. For this reason, XM.com offers different leverage depending on the instrument and regulatory environment.
Margin Requirements: This is the least amount of capital needed to retain a leveraged position. Higher leverage comes with lower margin requirements, but at the same time, it may mean bigger losses in potential.
These are only some of the facts that every trader needs to be aware of, which allow calculating probable trading expenses and how to deal with the risk.
Extra Features and Services
The features XM.com has added to enhance trading as a whole include the following:
Educational Resources: XM has given a huge library of seminar, educational, and webinar material for educating traders of all levels.
Market Analysis: XM.com provides daily updates of the markets, research reports on the markets, and a live economic calendar that keeps traders up-to-date on market conditions.
Customer Support: Multilingual customer support is available 24/5 by phone, live chat, and e-mail.
Islamic Swap-Free Accounts: Especially for Muslim traders, it excludes swap charges or interest for those overnight positions.
Such features can enable traders to stride with more confidence and make informed decisions in the forex market.
Possible Drawbacks/Points for Consideration
Although XM.com offers a great variety of features, some of the possible drawbacks could be:
Few Cryptocurrencies Available: XM.com has very few cryptocurrency options available to trade compared to some competitors.
Inactivity Fees: Where it involves inactivity in the long-term accounts, service may be charged.
Variable Leverage: Regulation around leverage differs by jurisdiction.