- User-friendly interface
- invisible presence of Mr. Usain Bolt
- flexible leverage between 1:1 – 888:1
- unacceptable likehood of losing money
- indifferent customer support
- bad communication
- possibility of verification issues
XM: Sad Story Of A Broker That Could Have Been Outstanding If It Wasn’t Greedy
Today I’m reviewing XM.com, and there is a reason for that. Although the overall appearance feels pretty good, this broker is oftentimes mentioned as “scam” on various traders boards. Actually, it was hard for me to imagine a scam broker these days since the regulation got pretty tight in the recent years, and brokerage itself became a highly competitive area where reputation that isn’t crystal-clear means inevitable and immediate death to the company. Let’s find out whether XM needs stigmatizing or demythologizing.
XM is a registered international broker with the headquarters in Belize City, and a decent set of trading tools. They have offers for both novice and experienced traders and a good choice of trading instruments. Looks fine by now.
XM works since 2009 and is licensed by IFSC, FCA, CySec, and ASIC that give the company a solid legal force. This is a truly strong point for me, because as I mentioned earlier, I have much higher safety expectations when it comes to companies that I give my money to. However, an info block saying they have 1 mln clients in 196 countries raised some concerns: if you do some simple calculations, you’ll see that it’s slightly over 5,000 users in each, which is far less impressive.
The company offers 55 currency pairs and CFDs on precious metals, energies, equity indices, cryptocurrencies (BTC) and individual stocks. Looks like a standard set that will suit about 99% of traders.
Accounts, Spreads, & Leverage
XM offers 3 account types: Micro, Standard, and Zero. Last one is a zero spread account that comes with a commission and a minimum deposit of $100 (min deposit for other accounts is $5).
One thing that makes this broker stand out from the crowd is an unusual flexible leverage between 1:1 – 888:1 and a negative balance protection option that is meant to keep your funds safe… kind of.
The point is when you dive into the related forum discussions, you’d find negative comments claiming the broker is unreliable, lacks communication, and loses any interest to their clients once they make a deposit, which is actually pretty hilarious because their slogan goes like “Big. Fair. Human”. Considering everything I’ve already mentioned, they actually broke all the promises they build their philosophy upon.
Available Trading Platforms
The broker offers a usual MT4 (PC, Mac, Webtrader, iPhone, iPad, Android) and MT5 (same) platforms and a mobile app.
Basically, people in trading-related chatrooms complain about two things: customer service and verification process. Although they are easy to reach in the beginning, the communication gets stuck once your account is registered and deposits made. I found several complaints about getting no feedback whatsoever in a difficult situation upon withdrawal. By the way, withdrawal delays seem to be a common issue at XM, and when it happens, oftentimes people have no chance to get help, which sounds totally insane to me. Knowing that, a Complaints Form on their website looks like a bad omen.
Second common issue, verification process, raise even more concerns. Being a complicated manipulation by nature, verification at XM tends to be trickier than I would expect from a broker. It wouldn’t be a problem though if quickly resolved, but forum folks claim the company may terminate your account because of this unresolved issue. Needless to say, your money stays with them. That's one bad omen on top of another.
One thing that most dissatisfied internet comments share is an observation on XM’s special interest for traders with high profits: once you start making a solid income, things goes wrong all of a sudden. It may or may not be a coincidence, but it’s up to you to decide whether it’s worth trying.
There are several specials to be found at XM; particularly, a 100% deposit bonus and a loyalty program that requires you to trade and earn XM Points that can be redeemed for credit bonus rewards. Also, they offer free VPS services and don’t charge fees for deposits and withdrawals (with a few exceptions).
One fancy thing that one sees first when opens a website is a photo of Usain Bolt, their official ambassador. It certainly would give the company some credit… if not for the controversial portrait of the broker. If I had a chance to trust my funds to Mr. Bolt, I wouldn’t hesitate a second, but unfortunately that’s not how things work with trading.
Although XM makes tempting promises, the word of mouth makes me think that some of them may not be kept. I don’t feel like duplicating each and every internet complaint here (they are easy to find in Google), but I feel like sharing the concerns and give you some food for thought. So, the set of trading instruments and certain trading conditions look appealing, but you may lose your money attempting to verify your operations, or be left alone in a complicated situation. To me, being ignored in a difficult situation coming from a broker’s side is a no-no.
That being said, I don’t see the point in discussing any advantages of the site, since risking my funds is the last thing I want to do.