If a broker is in the field for many years and is experienced, then we assume that it can be trustworthy and genuine. Well, we better not. XM has been in the market since 2009. But still, there are numerous issues associated with the broker which it has failed to resolve. Therefore, it is very crucial that one analyses things before going all in. In this review, we will talk about why XM is not a safe choice for traders.
XM Review: Scam or not?
We have two major reasons to say that the broker is not safe to trade with. First, the broker does not hold a banking license. And second, the financial information regarding the broker is not available. This poses a serious safety threat for traders to go with the broker. Therefore, we do not think trading with XM can be safe. Think twice before you invest your money with the broker.
So, any broker that does not have a license, then one should not board it for the registration, forget about trading. It may be stealing your information or planting a bug into your device. So, be alert. XM scam seems a relevant terminology. Guide yourself to legit brokers like PrimeFin, InvestLite and TradedWell.
XM Review: Account Types
XM offers three account types but with minimal disparity. All the account types seem to offer bare minimum features with low leverage. In the shares account, there is no leverage provided. On most of the trading products, leverage is as low as 1:2. Spreads depend on the underlying exchange. Even though the broker claims to have a minimum deposit as low as 5 dollars, the minimum deposit is as high as 10,000 dollars on the shares account.
There are limited assets under each category of instruments available with XM. This leaves traders with very fewer options to make profitable investments. Compared to other brokers like HFTrading, PrimeFin, TradeATF, the broker has pretty low numbers under each category. There are no bonds, ETFs, or options.
Another major disadvantage is that you cannot change the level of leverage on products according to your convenience. Manual variation in leverage comes handy when you want to mitigate risks in your trade.
Here is a range of instruments offered by XM:
- Index CFDs: 28
- Currency Pairs: 57
- Commodity CFDs: 15
Looking at these numbers, we do not think it is viable to trade with XM. These numbers are unacceptable and might limit your trading opportunities. A diversified portfolio can never be achieved with such a small number.
The broker offers MT4 for mobile and web trading. The whole interface seems pretty messed up and chaotic. There are multiple tabs put together without any structure and it can be really difficult to understand the functioning of the broker. The design is pretty outdated and there are no touch id login functions. Moreover, when many brokers have moved to a more advanced MT5 platform, why stick to the thing from the past?
The account opening process of XM is extremely ambiguous. When you click on the registration tab of the XM website, a signup page appears asking for email and password. That is all. No one knows what comes next. This leads to hesitation among clients and they might not want to further with the process. It would have been better if the broker set up a clear process of account opening on its website.
A high trading fee is charged by XM. There are also some quite hefty fees involved with Complex Financial Derivatives (CFDs). The stock and forex fee seem comparatively higher than other well-reputed brokerage firms. An inactivity fee is also involved when the account is not used for a particular period of time. All these fees together can make up a big number.
The broker claims that it charges a minimum deposit as low as 5 dollars. But when looked closely, it seems that the minimum deposit “starts from” 5 dollars and can go up to 10,000 dollars. This is extremely high looking at the low-quality service of the broker. Why not be straightforward and transparent about your deposits or charges? This is a major red flag of the broker.
Customer Service and Support
The broker claims 24/7 customer support and service. But we tested practically, there are no replies to emails, ever. The response time of calls is too long. The live chat feature seems to be dysfunctional most of the time. So in the moments of despair, you cannot reach out to any executive. Hence, one feels suffocated and out of help. And it creates negative air for the XM broker.
Research and Education
For research purposes, there is nothing mentioned on the website of the broker. There are no calculators, calendars or analytical tools available for research with the broker. For educational purposes, the material is quite limited and restricted. There are no VOD, webinars, Ebooks available. This just shows how less the broker cares about the education of its clients and traders.
Cons of trading with XM Review
Here is a summarized list of why the broker is not worth your money:
- Services in limited countries
- No banking license or publicly available financial records
- A very low number of trading instruments
- Limited trading platforms with outdated features
- Poor user interface
- Delayed and unresponsive customer service
- High fees for forex and CFDs.
Poor product information
The lack of information regarding products listed on seems partly incorrect and convoluted. In that case, a trader does not know how to trade in the financial market. Thus, the purpose of being on the broker fails.
If you have read the above review, you would understand why we think XM is not the right choice. The broker lacks many basic and important features. Also, there are safety issues as there is no banking license available with the broker. You cannot look over the financial statements as they are not publicly available. Why not go with brokers like HFTrading, PrimeFin, TradeATF who are highly regulated and transparent with their clients and traders.