Brief information about XM:
Trading Point Holding is the parent company of the online broker XM, an FX broker, and a global CFD (A contract for difference (CFD) is a popular form of derivative trading. CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies, and treasuries) founded in 2009. The parent company Trading Point Holding has two significant brands one is XM and the other is Trading.com.
There are three financial authorities regulating XM as it is also available globally, they are:
1) the Cyprus Securities and Exchange Commission (CySEC),
2) the Australian Securities and Investments Commission (ASIC)
3) the International Financial Services Commission of Belize (IFSC).
UK’s Financial Conduct Authority (FCA) regulates trading.com also note that the trading.com is available only for most EEA residents.
Now we are going to focus on the XM brand.
I would like to start with a Disclaimer that due to leverage there is a high chance you may lose your money rapidly because CFD is a complex instrument. If we look upon the statistics we will find that 75.55% of the retail investor accounts lose cash when trading CFDs with this provider. and so we will suggest you consider whether you understand how CFDs work and take your time and research thoroughly so that you could conclude if you can afford to take the high risk of losing your money or not.
XM pros and cons
What makes XM stand out is the hassle-free account opening which is user-friendly and fast also, a point to be noted is that XM has low CFD and withdrawal fees. Here you can also use many educational tools, such as webinars and a demo account.
On the other hand, XM has a limited product portfolio as it offers mainly CFDs and forex Its forex fees are average you wouldn’t find it too high or too low, and there is no investor protection for clients onboarded outside the EU. which makes it totally your decision further.
Pros of XM broker
• Low CFD and withdrawal fees – The XM brokers don’t charge much and that makes withdrawal easier.
• Easy and fast account opening – this facility helps investors do his work quickly with satisfaction.
• Great educational tools Compare to other brokers- Educational tools are the need of the hour, seminars,webinars, videos, or anything provided by the broker to gain knowledge, and insights about trading is always appreciated by an investor.
XM broker’s Cons
• Limited product portfolio- limits the approach of an investor
• Average forex fees- A foreign transaction fee is a surcharge on your bill that appears when you make an investment that crosses through a foreign bank or is in a currency other than the U.S. dollar (USD).
• No investor protection for non-EU clients – this puts non-EU clients at risk and hence it is important to understand that a business like this flourishes only by the trust of its investors/ customers. Hence, they should do something about it to increase their credibility among non-EU clients too.