The Safety & Security of XM

When choosing a broker to trade with, one of the important factors to keep in mind is the safety and security of the broker. There are several things that can define the safety and security of the broker you choose to use. 

One of the main things to focus on is the regulatory guidelines that a certain broker follows. While working on the XM broker review, we found that they are regulated in five different jurisdictions. Here is the list of licenses held by XM: 

• Cyprus Securities and Exchange Commission;
• Australian Securities & Investments Commission;
• Dubai Financial Services Authority;
• Financial Conduct Authority, UK;
• International Financial Services Commission, Belize.

These licenses allow XM to offer services to traders in different parts of the world. Thanks to the CySEC license, this broker has access to the whole European market, while the license from Belize allows it to offer services to numerous jurisdictions around the world.

Policies that XM follows

To guarantee the safety and security of its clients, XM has adopted numerous regulatory guidelines over the past few years. These regulations are aimed at ensuring that every single client of the broker has the opportunity to ensure the safety and security of their funds, while also enjoying high-quality trading services.

One of the policies that XM follows is negative balance protection, which is specifically important for those who use leverage when trading. Leverage is quite a useful thing for Forex traders, as it can amplify the profits made during trading. 

However, in addition to increasing the prospective profits made during Forex trading, high leverage can also increase the possible losses. To ensure traders are not able to lose more money than they have in their accounts, negative balance protection is adopted. This means that the broker will automatically close all of your positions in order to avoid your balance going into a negative.

Apart from this, XM also keeps the funds of its clients in separate bank accounts. This means that no matter what goes wrong, traders will be able to access their funds. Even if the broker goes bankrupt, you won’t have to worry about the balance you had with the broker disappearing overnight.

Available Assets on XM – What Can You Trade?

There are over 1,200 assets available for traders to choose from on XM. While this might not sound like much, especially compared to other leading brokerages in the market, it should still be enough to give traders the opportunity to easily find the kind of trades they might be looking for.

Traders can have access to all of these available assets with any account. However, keep in mind that shares can only be traded with the special Shares account. As for CFD shares, they can be traded with other accounts as well.

Forex

XM offers clients access to all types of Forex currency pairs, including major, minor, and exotic currency pairs. There is a total of over 55 currency pairs available for trading on XM. The XM leverage for FX trading is up to 1:1000, however, keep in mind that there might be some restrictions on the maximum leverage based on your location. 

Shares

When it comes to trading markets, investing in stocks is the way to go for many people. Thus, it is quite important for brokers to ensure they offer these assets to their clients. There are two ways for individuals to trade shares on XM.

The first option is very common for brokers in the market today, namely, trading stocks as CFDs. This method includes traders making certain predictions about the possible direction prices could take and then opening contracts according to their predictions. 

While this is a very common way of trading stocks today, not everyone is really into this strategy. For those who prefer not trading CFDs, XM offers a special “Share Account”, which allows traders to buy and sell shares of leading companies directly. 

Indices

On XM, traders can have access to numerous indices. The total number of indices available on XM is 14. This includes the largest and best-known indices around the world, representing industries of countries like the US.

Indices offered by XM give you the opportunity to have cost-effective and direct access to global markets. 

Among the indices available on XM are AUS200Cash, SWI20Cash, US500Cash, and many others. Indices such as S&P 500 and Nikkei 225 can also be traded.

Commodities

There are 8 different commodities available on XM. This includes soft and hard commodities such as cocoa, coffee, copper, and many others. Trading commodities can be done using CFDs. 

This means that rather than buying the commodities directly, the clients of XM simply speculate on the possible price movements of these assets. Commodities can play a huge role when it comes to portfolio diversification.

Cryptocurrencies

Digital currencies are some of the most popular assets today. On XM, they can be traded as CFDs. There are five crypto assets available for clients of XM. For these XM allows traders to use leverage of up to 1:250, which is quite high. 

The crypto market can be accessed 24 hours a day, 7 days a week. Among the crypto assets that can be traded on XM are BTC, BCH, ETH, LTC, and XRP. Digital assets can be great for investors to diversify their portfolios.