Forex Market

XM Review for South African traders 2022

Published by
Lethabo Ntsoane

XM was founded in 2009 and today has a presence in 196 countries around the world. As a trading point for financial instruments, it is registered. The company has a number of licenses all over the world. It is considered as one of the world’s most well-regulated Forex brokers. Over 1,5 million people use the company’s platform to trade. XM handles around $320 billion in monthly trades. In terms of trade volume, XM is the world’s second largest broker.

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XM Regulation

As previously stated, the XM Group owns a number of brands that are regulated by several agencies. The XM Group (XM) is a regulated internet broker group. In 2009, the Trading Point of Financial Instruments was established. The Cyprus Securities and Exchange Commission regulates the corporation in Cyprus. XM is a Cyprus-based company with the license number (CySec 120/10). The Australian Securities and Investments Commission regulates Trading Point of Financial Instruments (Pty) Ltd. The business was founded in 2015. A license number has been assigned to XM (ASIC 443670). In 2017, XM Global was established.

The International Financial Services Commission of Belize regulates it. (IFSC/60/354/TS/19) is the company’s registration number.

XM and the South African Financial Services Conduct Authority

XM is not regulated in South Africa and hence does not hold an FSCA license. The company is awaiting FSCA registration. This indicates that the business is on the verge of obtaining an FSCA license. Simply because XM is not FSCA-registered does not make it untrustworthy. Due to the extent to which XM is regulated, it has a responsibility to be circumspect in its transactions. Due to the fact that the company is multi-regulated, you can be certain that they are transparent.

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As a South African trader, you can utilize XM to conduct online transactions. XM is regarded as a reputable broker. It is governed by the European Union’s Markets in Financial Instruments Directive (MiFID). MiFID improves market transparency throughout the European Union’s financial markets and harmonizes regulatory disclosure requirements for specific markets.

XM Account types

Prior to trading, you must open a Forex trading account. XM offers four distinct types of trading accounts. These accounts, however, differ and should be picked with care. Depending on the type of trader you are, you must pay attention to the lot size, spread, and the maximum number of open positions. These will assist you in selecting the appropriate account. Additionally, the amount you invest in Forex is significant and plays a significant effect in account selection.

4 account types offered by XM :

Zero Account

Even clients with Standard or Micro accounts are eligible for a free Zero account. Brokerage services are completely free. This account allows you to trade up to 56 currency pairs. To trade on this account, a minimum deposit of $100 is required. This account is used to trade gold, silver, stocks, and commodities. Clients are safeguarded from negative balances by the XM negative balance protection, which ensures that any loss is limited to the amount deposited.

The Zero account is available on MetaTrader 4 and MetaTrader 5. This account does not include a membership bonus.

XM Standard Account

Standard account allow users to access multiple trading and currency options. Minimum deposit on the standard account is $5. It has a minimum spread size of 1 pip. Although similar to the micro account, the standard account doesn’t limit your lots in 1000 but to 100000 instead. This increase your trading volume availability.

XM Micro account

Trading can begin with a spread of as little as 1 pip with the micro account’s 11 currency account options. It offers a variety of trading instruments, including CFDs on stocks/shares, currency, commodities, equities, gold, silver, renewable energy, and crypto currencies. It permits the opening of 200 positions and imposes a transaction size restriction on MT5. The XM micro account includes hedging, trading bonuses, and negative balance protection. For clients registered with Trading Point of Financial Instruments Ltd, the margin call and stop out limits are 100% and 50%, respectively.

Whereas the remainder of the group’s entities receive 50% and 20%, respectively. Trading software MT4 and MT5 are also available for automated trading anytime and anywhere.

XM Ultra low account

The account enables you to trade micro or normal lots. Can trade with spreads as little as 0.6 pips. A minimum deposit of $50 is required to open an extremely low account. Additionally, the account type creates some variation between Micro standard and Micro extreme. This imposes restrictions on the trade volume and contact size, depending on which one you choose. XM gives a free sample account.

This is for people interested in either testing their trading abilities or learning how to trade. There are no financial hazards. On a demo account, you can trade up to $100,000.00. The demo account is merely a representation of the amount you may have lost or earned on a real account. It is prudent to utilize money quantities equivalent to those you will trade on a live account. This will greatly assist you since you will know precisely the volume required to execute a trade. Your trading volume will be transparent in every way.

XM Competitive Advantages

  • XM is regulated by FCA (UK), CySEC & ASIC.
  • Very low average EUR/USD spread of 0.8 pips with Ultra Low Account.
  • Quick order execution & zero Re-quotes.
  • Negative Balance protectionZero fees on deposits & withdrawals.
  • Fast & knowledgeable live chat support.
  • Offers full service educational package on Forex.
  • Get daily updates on current affairs to help with your trading.
  • Withdrawals up to 3 days.
  • R0. 00 charged on withdrawals and deposits.

XM Competitive Disadvantages

  • Customer care available from Monday to Friday.
  • XM doesn’t hold a FSCA license yet, however, they have a pending license application with the FSCA.
  • Doesn’t have support offices in South Africa although can be contacted on their international line.
  • No distinct account variation as micro, standard and zero account are identical or similar.
  • PayPal payments are not supported currently.

Deposit Methods

XM allow for various ways to deposit money into trading accounts. Traders have multiple options to choose from that are available in every country that XM is functional. Here are ways to deposit money into your trading account :

  • Credit cards
  • Bank wire and Local Bank Transfer (available in some regions)
  • E-wallets including Neteller, Moneybookers Skrill, Western Union, MoneyGram, WebMoney, China UnionPay, SOFORT, iDEAL, etc

Withdrawals

Withdrawals can only be made to the same account that the deposit amount came from. If a credit card was used, then the withdrawal can only be done to the same credit card used to make a deposit. XM

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charges zero fee on deposits and withdrawals.

Conclusion

With over a decade of experience, XM is a reputable and well-regulated broker. Although it is not regulated in South Africa, it is nonetheless one of the country’s best brokers. The broker makes it simple for South Africans to deposit and withdraw money. With over 1,5 million traders, XM’s service and technology are undoubtedly of high quality to support such a large client base. It is regarded as one of the top ten forex brokers in South Africa by Rateweb. With XM, you receive more than you pay for. There are numerous free instructional tools available to help you improve your trading. Additionally, you receive free daily self-help news and data that assist you in trading more effectively.

XM Review for South African traders 2022
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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

Published by
Lethabo Ntsoane
Tags: XM Forex
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