XM has established its position in reputable forex trading globally. Much of that is thanks to an influential advertising campaign. In Vietnam, XM forex has also attracted the attention of many traders in the forex world. Do you know why the XM market is so highly rated? If not, please follow the MForex article to discover more about the XM forex exchange through the content below.
General introduction to the XM market
Certificates and operating licenses of XM Forex
It can be said that the XM market is one of the forex exchanges with a leading number of reputable certificates. Along with that comes recognition from many well-known regulatory agencies such as FCA and ASIC.
XM’s position was established through receiving operating licenses from Cyprus and Australia. In Cyprus, XM is officially licensed by the CySEC Regulatory Authority with license number 120/10. At the same time, in Australia, XM received ASIC’s financial services license (No. 443670) in 2015.
Receiving an operating license from ASIC takes up to 6 years from the date of commencement of operations. This is truly a testament to the fact that getting a license from ASIC is not simple. In addition to these two licenses, XM market is also registered and complies with the management of several reputable financial agencies such as:
- UK – FCA
- Germany – BaFIN
- Spain – CNMV
- Hungary – MNB
- Ý – CONSOB
- France – ACP
- Finland – FIN
- Ba Lan – KNF
- Netherlands – AFM
- Sweden – FI
All these certifications and licenses together highlight the XM market commitment and reputation in the field of forex trading.
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Achievements that XM Forex achieved
After more than 10 years of operation, the XM market has recorded many important achievements. XM Forex is gradually strengthening its position in the market. Here are some of the awards that XM Forex has achieved in recent years:
- “Award for Broker with Best Customer Service”
- “Global Best Online CFD & FX Trading Broker Award”
- “Award for Best Forex Platform in Europe, Oceania”
- “Award for Best FX Training Broker in the Middle East – North Africa Region”
- “Award for the Best Trading Experience”
- “Award for XM – Best FX Service Provider”
- “Award for Most Transparent and Trusted Broker Globally”
- “Award for Best FX Broker Europe, Oceania, Latin America, Middle East”
- “Award for Best Forex Trading Platform 2022” and “Award for Best Mobile App”
How are traders’ rights protected when trading at XM Forex?
From the licenses that XM owns, traders can completely feel secure when investing in forex at XM. Because the XM market is protected by many different reputable management agencies and organizations such as IFSC, FCA, CySEC, and ASIC.
These financial institutions all apply extremely strict regulations to their members. Along with acting as an intermediary to solve all problems if customers encounter difficulties. Furthermore, CySEC always maintains an Investor Compensation Fund. That helps ensure when an exchange goes bankrupt or becomes insolvent. At this time, investors will be insured up to the prescribed level of 20,000 euros.
In particular, both ASIC and the FCA require accounts to be segregated. The purpose is to ensure that customer deposits are not combined with company accounts. Thus, the XM market cannot use customers’ money for other purposes. Both of these funds, from deposits to company funds, must be deposited with leading banks in Australia according to ASIC regulations.
Furthermore, ASIC also requires the exchange’s account to have a minimum of one million Australian dollars or more (equivalent to 16 billion VND). To ensure there is enough money to pay customers. This sign proves that XM Forex is a safe trading platform. At the same time, it is a reliable choice for trading.
What trading products does the XM market have?
XM market offers customers a rich and diverse range of trading products. This allows customers to choose to trade forex, CFDs of stock indices, commodities, precious metals, and energy. All from the same trading account. These products are all centralized on a single trading platform. To create favorable conditions for easier and more effective transactions.
Specifically, there are 8 asset groups that you can trade at the XM market :
- Forex: With over 50 currency pairs including major, minor, and rare pairs. Traders can participate in foreign exchange trading with many options.
- Commodities: XM offers CFD trading on 8 commodities, including agricultural products such as coffee, cocoa, corn, soybeans, flour, and sugar.
- Precious metals: Trade with two precious metals, gold and silver, two traditional assets with stable values.
- Stock CFDs: With more than 1180 different stock codes. Many traders can participate in stock CFD trading on the XM CFD platform.
- Stocks: With more than 100 different types of stocks, you can trade mainly on the Share account.
- Stock indices: XM offers trading on 14 cash indices, 10 futures indices, and 5 dividend indices. This helps you participate in the index market.
- Cryptocurrencies: You can trade CFDs on over 31 popular digital currencies. Including BTC, ETH, SOL, XLM, ZRX, SUSHI, LINK and many more.
Trading conditions on the XM market
Conditions for trading XM with stocks
- Minimum price fluctuations of stock codes range from 0 to 0.01. This provides flexibility in tracking price changes at the XM market.
- Spreads are valid from only 0.012. Demonstrate efficiency and competitiveness in the transaction process.
- The minimum trading volume is different for each stock: 0.1 lot for NBG stock and 1 lot for other stocks. To create flexible conditions for different types of transactions.
- The deposit percentage for stock trading ranges from 5% to 20%. Depending on each specific stock, it provides a choice appropriate to the risk level.
- The buy swap value paid ranges from -2.23% to -5.16% and the sell swap value received ranges from -0.84% to -5.44%. Swap fees apply for about 3 days, from Wednesday to Thursday. In addition, participants should note that the XM Swap plays an equally important role.
- The minimum level to place Stop Loss and Take Profit orders from the current market price is between 0.0004 and 0.05. To help adjust profits and losses in detail.
In addition, when participating in stock CFD trading on XM, even though they do not have voting rights when executing BUY orders, traders still receive dividends when the company pays dividends to shareholders. On the contrary, with a SELL order, the trader will have to pay dividends. The purpose is to ensure fairness and transparency in transactions.
XM Trading conditions with indices
- Minimum price fluctuation of indexes: ranges from 0.001 to 1. Applicable to indexes such as Chi50 and JP225.
- Spreads are only from 0.05 with the USDX index. This demonstrates efficiency and competition in the transaction process.
- The deposit percentage for index trading varies depending on the specific index: 0.5% for JP225. 1.5% level with SING and CHI50 index. While the remaining indexes deposit 1%.
- The minimum level to place Stop Loss and Take Profit orders from the current price ranges from 0.01. To help adjust profits and losses in detail.
- Similar to stock CFD trading, when trading cash index CFDs on the XM market, the trustee of an index will receive dividends for BUY trades. At the same time, you must pay SELL transaction dividends (except GER30 which is not affected by the adjustment). This ensures fairness and clarity during the CFD trading process.
Instructions on how to buy stocks and indices on the XM market
XM forex platform allows traders to trade stocks and indices on MT5 (MetaTrader5). So, to buy stocks and indices on the XM market, you need to open an MT5 account.
Once you have an account and money in your account, you can proceed to buy stocks and indices by following these steps:
Step 1: Select the stock/index you want to buy
Open MT5 and select “View/Market Watch” on the toolbar.
Right-click the Market Watch window and select “Symbols”. In the Symbol window, you can select CFDs/Cash Indices to trade indices. Or choose CFDs on Stocks to trade stocks.
Step 2: Place an order to buy stocks/indexes on XM Forex
Select stocks/indexes in the Symbol window to display the corresponding trading symbols. Right-click on the transaction code and select “New Order”.
Fill in transaction information on the XM market as follows:
- Market Execution: Select if you want to buy the stock/index at the market price at the time of placing the order.
- Volume (Total volume of traded orders).
- Stop Loss (Stop loss point).
- Take Profit.
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Then, select “Buy by Market” to place a buy order.
You can also place an order to buy stocks/indexes at a better price using the Pending Order:
Choose the appropriate order type and fill in the expected price.
Fill in other parameters similar to the previous instructions. Click the “Place” button, the Pending Order will wait until the stock/index price reaches the price you set. Then the command will be executed.
Step 3: Track purchases
To track the loss/profit and cost results of the stocks/indexes you have purchased, open the Toolbox window by selecting “View/Toolbox”.
Step 4: Sell stocks/indexes when profitable or want to stop trading
To sell stocks/indexes to withdraw capital or stop trading, you close the order on the Toolbox window. This is not related to short-selling (SELL) orders.
Place your mouse on the trade you want to close, right-click and select “Close Position”.
Then, select “Close … by Market”, the order will be executed and the shares/indexes you purchased will be liquidated and added to your Balance account.
Through the above steps, you have successfully purchased stocks and indices on the XM market. Trading stock and index CFDs on XM also brings the advantage of being able to execute sell orders (Sell) to profit when stock/index prices fall.
Conclude
Above are detailed instructions on how to trade on the XM market. Overall, after more than 10 years of operation, XM Forex has continuously improved to provide customers with the best services. Hopefully, with the sharing from MForex, users can trust and feel secure in trading on the XM forex exchange.
FAQ
What are the minimum and maximum withdrawal limits at XM Forex?
The minimum amount that can be withdrawn is from $5 to $15 depending on the withdrawal method you use. There is no limit to the maximum amount that can be withdrawn at XM.
Is there a surcharge on the XM exchange?
Currently, XM will charge an account maintenance fee if the account does not make a trade within 90 days. Each month, you will have $5 deducted until your account balance reaches $0.
Is XM forex exchange reputable?
XM has been highly appreciated for its reputation as a broker. MForex exchange has operating licenses from reputable financial organizations such as FSC, CySEC, ASIC, and DFSA. In addition, with more than 13 years of operation in the field of foreign exchange investment, XM has affirmed its reputation. In addition, there is no information or indication that XM has ever committed fraud against customers in the past.
