XM is an ASIC regulated forex and CFD broker in Australia. They offer tight spreads on more than 1300 instruments with AUD accounts and local phone support. Check review before opening your trading account at XM.
XM is an ASIC-regulated market maker that offers low-cost trading services on various forex and CFD instruments. The Australian clients are registered under the legal entity Trading Point of Financial Instruments Pty Ltd which is regulated by the Australian Securities and Exchange Commission.
Australian traders can open the forex and CFD trading accounts with AUD as a base currency. Deposits and withdrawals can be done in AUD but there is a limited number of accepted methods. Clients can choose the most suitable account type for trading.
XM Australia Pros
XM Australia Cons
Table of Content
We have thoroughly reviewed every aspect of XM for Australian clients. Read our review to know whether it is safe to trade with XM in Australia or not, what are the trading costs that can be incurred at XM in Australia? Which account type is best at XM? All such common queries have been considered in this review.
|Broker Name||Trading Point of Financial Instruments Pty Limited|
|Regulation||ASIC, IFSC, CySEC|
|Year of Establishment||2009|
|Trading Platforms||MT4 & MT5|
|Trading Instruments||Forex, CFDs on Metals, Energy, Indices, Shares, Commodities.|
The safety of traders and their funds largely depends on the regulatory authority that has authorized the business in their jurisdiction.
Following are the details of the regulatory license of XM.
XM is regulated by the ASIC with the legal entity Trading Point of Financial Instruments Pty Ltd under license number 443670 and ABN number 32 164 367 113. The ASIC license was acquired by XM in 2013. Australian clients at XM are registered under ASIC regulation.
Australian clients are protected at XM due to ASIC regulations. The broker has to keep clients’ funds in a segregated bank account. The maximum leverage that can be offered to retail clients is 1:30 as per ASIC compliance. They also offer negative balance protection.
CySEC is a tier 2 regulatory authority that grants Financial Service Providers (FSPs) permission to operate their business in the European Union. Australian clients are not registered under CySEC regulation.
Most international clients at XM are registered under IFSC regulation but Australian clients are not registered under ASIC regulation.
The ASIC regulation makes XM safe for Australian clients. XM has been in the forex and CFD trading business since 2009. It is a member of Trading Point Group which is a group of financial services providers and holds multiple regulatory licenses. XM is a subsidiary of Trading Point Holdings Limited.
Trading Point Holdings Limited is regulated by the FCA of UK (705428) under the name Trading Point of Financial Instruments UK Limited. The parent company of XM is regulated by top-tier offshore regulatory authorities.
The clients at XM in Australia are registered under the ASIC regulatory license held by Trading Point Holdings Limited.
XM charges a tight spread on various trading instruments and offers cost-efficient trading on Forex and CFDs. We have separately reviewed every component of the fee structure that is incurred from Australian traders.
The spreads with the Micro and Standard account type are similar as they only differ based on lot size. The Ultra-Low account type at XM offers the best spreads on all instruments starting from 0.6 pips. The table below describes the average typical spreads associated with all the account types at XM in Australia.
|Trading Instrument||Average Spread with Standard Account (pips)||Average Spread with Ultra Low Account (pips)|
|US Crude Oil||3||3|
|US Tech 100||1||1|
The commission for US shares is 0.04$ per share, UK shares are 0.10% per transaction, and German shares are 0.10% per transaction. The minimum commission per transaction for shares in the USA is 5 USD, the UK is 9 USD, and Germany is 5 USD.
Inactivity fees of 5$ or equivalent are charged each month after 90 days of inactivity. The inactivity period at XM is defined as 90 consecutive days with no order execution, deposit, withdrawal, or internal transfer. This fee of 5$ is charged each month until the account balance reaches 0. No charge is imposed if the account balance reaches zero.
According to our review, the spreads at XM are slightly above average with the Standard and Micro account types. The spreads with the Ultra-Low account are much lesser without any added commission or higher deposit requirement.
Hence, if you are choosing the Ultra-Low account type while opening the account, XM is among the most affordable forex and CFD brokers in Australia. If you choose the Standard or Micro account at XM, you might be paying higher than average spreads on forex and CFD instruments in Australia.
There is no trading commission involved in trading forex and CFDs. The swap fees are slightly higher than average in Australia. Inactivity fees are the only non-trading fees that can be incurred by traders.
XM allows traders to choose between 4 different account types. 3 of them offer forex and CFD trading and can be opened with AUD as the base currency. The shares account can only be used to trade available shares and must be opened only with USD as a base currency. Our detailed review of each account type can assist you in choosing the most suitable account type for yourself with consequences.
All the 3 account types described above can be opened with AUD as the base currency and allow access to all the available trading instruments on MT4 and MT5 trading platforms. The MT4 trading platform does not support CFD trading on stocks.
The minimum deposit with each of these accounts is $5 for USD-based accounts and AUD 5 for AUD-based accounts. The maximum leverage is 1:30 for all the account types in Australia.
XM has a separate shares trading account that can only be opened with USD as the base currency and a minimum deposit of $10,000. This account is structured to trade shares on a commission basis.
Overall, there are 3 choices of trading accounts for CFDs and currency pairs. However, there is only a slight difference between them. The Ultra Low Account at XM is the best account type as it offers trading at tight spreads. The availability of each account type with AUD as the base currency and $5 minimum deposit is a major advantage for Australian traders.
The account opening process at XM is simple and fast. Clients can start trading the same day they open their accounts after completing the whole process. To open the account at XM you will need an address and identity proof to be submitted for verification.
The first step is to enter the basic details like name address, email, phone number, etc. A verification link is sent to the email after this. Upon following the link, clients will land on another form where other details are to be entered. The account type, base currency, and trading platform are selected by the client. XM also requires clients to enter basic employment and financial background.
After this, the account needs to be validated by submitting the address and identity proof. In general, it takes less than a day for executives at XM to verify the documents and allow clients to start trading. After verification, a confirmation mail is sent to the client. Trading can be started after making a deposit through any of the available methods.
To open a demo account at XM, traders need to visit the official website of XM and click on “Open a demo account”. Clients need to enter their basic details like first name, last name, country of residence, city, phone number, and email address. XM also allows traders to choose between 22 languages for the demo account.
Each client can open up to 5 demo accounts. The demo account at XM is very useful for beginners as well as experienced traders as each demo account can be configured according to the requirements of the clients.
Clients can choose between MT4 and MT5 as trading platforms for the demo account. The pricing structure can also be chosen between Standard and XM Ultra Low Standard account types. 10 currencies can be chosen as the base currency of the account including USD, EUR, GBP, ZAR, AUD, etc.
The maximum leverage of the demo account can be chosen from 1:1 to 1:1000 for major forex pairs. The investment amount can be chosen from 1000 to 5,000,000 units of the base currency. For the best use of the demo account, traders must choose the amount that will be deposited by them in future. Traders must also choose the account password that will be used to login into the demo account.
Once the demo account is configured, the login details of the demo account will be available in the personal area. This detail can be used to log in on the chosen trading platforms on the web, desktop, and mobile.
According to our analysis, the demo account at XM is very useful as it can be configured in multiple ways according to the suitability of the traders.
The deposit and withdrawal methods depend on the country from which you are trading with XM. For the clients residing in Australia, there are 3 methods to fund the account and withdraw. The withdrawal method has to be the same as the deposit method at XM.
If less than $200 is withdrawn, $15 will be charged as a withdrawal commission. For more than $200, no commission will be charged from the Australian clients.
The minimum deposit amount through this method is $5 while the maximum amount per transaction. The deposits are processed instantly while the withdrawals can take up to 3 business days to reflect in the bank account.
The Skrill and Neteller account should be registered with the same name as the account at XM. The deposits, as well as withdrawals, are reflected instantly via Skrill. The minimum amount that can be deposited at XM is $5.
All the trading positions are opened, closed, and modified through the trading platforms. Hence, the trading platform is one of the most important aspects of a forex broker. XM offers multiple trading platforms for different devices. We have separately reviewed the available trading platforms at XM in Australia for desktop, mobile, and web.
Web Trading Platform
MT4 WebTrader and MT5 WebTrader are two options as web trading platforms at XM. These platforms can be used through any web browser from desktop, mobile, and tablets. MT4 and MT5 webtrader have single-step login and are available in more than 40 languages.
The web trader at XM is highly customisable and can be linked with online trading tools and plugins. The research and analysis tools are limited when compared with MT4 and MT5 for desktop devices.
Mobile Trading Platform
Traders who prefer to trade on the go through mobile and tablet devices have 3 options to choose from for trading platforms. XM offers MT4, MT5, and a proprietary trading application called XM App. All these mobile trading platforms are available for Android and iOS devices.
MT4 and MT5 mobile trading apps are quite common among forex traders. These apps can be downloaded and linked with an XM account to trade through mobile and tablets. Both these trading platforms are very simple to use. They are fast and all the features are easily accessible. Alerts and notifications can also be set so traders do not miss out on trading opportunities.
The XM Trader App is a proprietary trading platform of XM designed only for mobile and tablet devices for Android and iOS devices. Apart from trading, the XM app can also be used for account management and accessing the latest news. The trading area is similar to MT5 but looks better. 90 indicators are available with the XM app.
Desktop Trading Platform
For desktop devices, XM offers the two most widely used trading platforms for forex and CFD trading. MT4 and MT5 trading platforms can be downloaded on desktop devices and linked with an XM account to trade online.
MetaTrader 4 or MT4 is the most basic trading platform designed in 2005 with a very simple interface and basic features. The look and feel of the interface are similar to Windows 98. It is considered an ideal platform for beginners and is the most chosen trading platform globally.
MT5 is an upgraded version of MT4 with more indicators, time frames, and patterns. MT5 has a modern-looking window with better features for automated trading. MT5 is preferred by experienced traders but is ideal for all types of traders.
Apart from MT4 and MT5, no other trading is available at XM. Both platforms are available with all account types.
XM allows trading on currency pairs and CFDs of stocks, indices, commodities, and energies. Following are the details of each asset class that can be traded by opening an account with XM.
XM does not offer trading on cryptocurrencies. The number of instruments available to trade is higher than many of the regulated forex and CFD brokers in Australia.
The customer support service at XM is available via the live chat window and email. We tried to raise several queries at different times of the day to provide an honest review for the Australian clients.
The live chat window can help Australian traders to resolve any queries. The availability of a local phone number for customer support is a major advantage for Australian clients at XM.
Yes, XM registers Australian clients under ASIC regulation which makes it safe for Australian clients. XM offers tight spreads with the Ultra Low account and allows traders to choose between MT4 and MT5 trading platforms.
XM is a market maker but allows opening trading accounts with AUD as the base currency. Free deposits and withdrawals through local bank transfer is advantageous. They also have a local phone number in Australia for customer support which is an advantage for Australian clients.
Yes, XM is an ASIC-regulated market maker with registered legal entity Trading Point of Financial Instruments Pty Limited under license number 443670. Australian clients at XM are registered under ASIC regulation.
Yes. XM offers trading on US100, US30, and US500 indices of NASDAQ with cash CFDs as well as Futures CFDs.
$5 is the minimum deposit amount at XM for all the account types. Local bank transfers, credit/debit cards, and wallets can be used to deposit and withdraw at XM in Australia.
XM is a market maker and can take the other side of the trade to generate revenue. However, it is an ASIC-regulated broker and can be trusted due to strict regulatory compliance. They offer tight spreads with AUD accounts and free local bank transfers.