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XM

XM Review
Trader's rating 3.4
Editor's rating 4.7

Trading Accounts

 

Account type  Minimum deposit  Minimum trade size  Maximum leverage  Average Spreads
Micro  $5  0.01 1:500 1.7 pip on EUR/USD
Standard  $5 0.01 1:500 1.7 pip on EUR/USD
Zero  $100 0.01 1:500 0.1 pips on EUR/USD + $7 / lot (round trip) 

 

XM offers its clients three types to choose from: Micro, Standard and Zero. You may choose from commission-free trading (in Micro and Standard accounts) or tighter spreads, involving commission fees and higher initial deposit (Zero account). The broker offers high leverage levels and floating spreads. Beginners can sign up for Micro accounts with as little as $5, and micro lots are available for trade on all accounts.


What is more, swap-free (Islamic) accounts are available, designated for clients who are not willing to earn interest for religious reasons.


The Company. Security of Funds

 

Company Country Regulation
Trading Point of Financial Instruments Ltd. Cyprus  CySEC
Trading Point of Financial Instruments UK Limited UK FCA
Trading Point of Financial Instruments PTY Ltd. Australia ASIC

 

Based on the sunny island of Cyprus, XM offers great trading conditions for trading in a wide range of instruments, including currency trading, CFDs on commodities, indices, precious metals, energies and stocks on two trading platforms (MT4 and MT5). What is more, XM provides ultra-fast execution (99.35% of all trades executed in less than 1 second), as well as awesome bonuses & promotions.

 

XM is a brand name of Trading Point Holdings Ltd, which wholly owns Trading Point of Financial Instruments UK Ltd (XM UK), Trading Point of Financial Instruments Pty Ltd (XM Australia) and Trading Point of Financial Instruments Ltd (XM Cyprus).

  

FCA, CySEC and ASIC apply certain rules and requirements to regulated firms, which are not as stringent as those in the US, for instance, however they provide a good level of credibility. Besides, licensed brokers are required to keep customer funds in segregated accounts, separated from the company’s operating funds.

 

As a further guarantee to clients’ funds, all companies regulated in UK and Cyprus are covered by compensation schemes as additional guarantee to clients funds. All deposits with a UK regulated forex broker up to £50,000 per client are guaranteed by the Financial Services Compensation Scheme (FSCS) - UK’s statutory compensation scheme for clinets of authorised financial services companies. Similarly, Cypriot Investment Firms are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, If the company is in default.

 

Currently, however, Australian forex brokers are not covered by any compensation scheme.

 

Trading Conditions


Minimum Initial Deposit

In order to open an account with XM, traders have to invest just $5. Such low minimum initial amount is rather attractive, as typically brokers require $100 - $300 as a start.


Spreads & Commissions

This broker offers variable spreads. The typical ones on commission-free accounts amount to 1.7 pips on EUR/USD. According to us, the conditions on the Zero account are better: spreads averaged 0.1 pips on EUR/USD and commission $3.5 per standard lot traded (per side). So, basically trading costs on the Zero account amount to around 0.8 pips, commission included, which is a great offer. What is more, you can open a Zero account with just $100.


Leverage
XM offers flexible leverage between 1:1 to 1:500. Using leverage means that you can trade positions larger than the amount of money in your trading account. Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.


Trading Platforms

 

When trading with this broker, you will be offered both MetaQuuotes;s platforms - the Metatrader 4 (MT4) and MetaTrader 5 (MT5).

 

MT4 is an internationally acclaimed trading software, offering a full array of trading tools and features: more than 50 built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options for them. Traders can download ready-made or create their own EAs and let the program do all the work, no human emotions involved. The MT4 with XM is availavle in all forms and shapes: desktop, web, and mobile.

What is more, XM provides MT4 MultiTerminal, which offers a practical and convenient way to manage multiple accounts simultaneously from a single interface (PAMM).

 

Recently MetaQuotes has been putting a stronger emphasis on the MT5: the hedging function was finally added to it and all versions of the platform have been ehanced. As a result, the number of brokers that support the platform has been on the increase. XM also followed suit and added it to its offerings. 


Besides, free Virtual Private Server (VPS) hosting is offered to both new and existing customers of XM who deposit a minimum of $5,000 and trade at least 5 round turn lots per month. VPS hosting allows the execution of orders 24 hours, 5 days a week.


Promotions

 - Free VPS for clients who maintain a balance (Equity-Credit) USD 5,000 or currency equivalent. No end date for this promotion;

 - $30 Non-Deposit Trading Bonus for new clients only. No end date for this promotion;

 - The two-tier deposit bonus offers 50% deposit bonus up to $500 and 20% deposit bonus up to $5,000. No end date for this promotion;

 - The XM Loyalty Program offers the clients XM Points (XMP) per lot traded. These XMP can be redeemed at any time for credit bonus which can be used for trading purposes only. No end date for this promotion.

 

*Clients registered under Trading Point of Financial Instruments Ltd are not eligible for bonuses. 

 


Deposit/Withdraw Methods


XM accepts the most commonly used Local Payment methods today including Credit/Debit Card, Neteller, Skrill, Bank Wire Transfer, etc. Their coverage is quite extensive and adds more flexibility on adding funds into the account


XM covers all deposit and withdrawal transfer fees for payments made via Neteller, Moneybookers and all major credit cards (including VISA, VISA Electron, MasterCard, Maestro and China UnionPay). Additionally, all deposits and withdrawals above 200 USD processed by wire transfer are also included in our zero fees policy.


Conclusion


XM is a EU award-winning broker that offers wide range of trading products and account types on two great platforms under competitive conditions. What is more, it provides Negative Balance Protection, as well as lucrative bonuses to its clients. To sum up the above, here are the advantages and drawbacks with regards to this broker:

 

Pros  Cons
Well-regulated (FCA, ASIC and CySEC licenses) No significant disadvantages
Negative Balance Protection  
Low trading costs on the Zero account  
MT4 and MT5 available  
Attractive Promotions  
Fast execution speed  

 

Why XM?

- Licensed in UK and Australia
- Tight Spreads from 1 Pip
- Leverage up to 888:1
- Deposit bonus up to 5000 USD
- 24 Hour Support
- No Requotes
- Personal Account Managers
- Automated Trading
- Loyalty Program
- Phone Trading
- Hedging Allowed
- Islamic Account

Registered with

- FSA, UK 
- BaFin, Germany 
- CNMV, Spain
- AFM, Netherlands
- FI, Sweden
- FIN, Finland
- PSZÁF, Hungary
- CONSOB, Italy
- ACP, France
- KNF, Poland

Crypto Facilities

Crypto Facilities Review
Trader's rating 5
Editor's rating 3.8

Trading accounts

 

Account type Minimum deposit Leverage Maker Fee Taker Fee
Standard Undisclosed 1:50* -0.03% (rebate) 0.05%

* Trading conditions at this exchange are more specific due to the nature of the products available for trading. For more details check the full review.

 

Crypto Facilities is a platform for cryptocurrency futures trading. This makes them one of the options for miners, looking to hedge their exposure. The most well-known other similar platform is BitMEX

Warning: Several other companies have used Crypto Facilities' FCA registration number. As far as we know, their original website is the only one at which they operate. Here is proof of their disagreement and frustration with these scammers:



 

 

The company, security of funds

 

Company Country Regulation
CRYPTO FACILITIES LTD UK FCA

 

Crypto Facilities is registered in the United Kingdom and more importantly overseen by the Financial Conduct Authority (FCA). This is very unusual as the British watchdog usually doesn’t look at companies dealing in the crypto-space. That being said, this is derivatives trading company, and the crypotocurrencies are only the underlying asset.

 

While the FCA oversees a lot of companies (like forex brokers) and enforces a lot of rules, there are a few specifics in regards to Crypto Facilities. You are probably familiar with the Financial Services Compensation Scheme (FSCS), especially if you have read some of our reviews on forex brokers. This is a mechanism, which guarantees client funds, in case their brokerage goes bankrupt. As point 3.2 of the Membership Agreement at Crypto Facilities states, the FSCS does not apply, as your account balance is kept in cryptocurrencies, which are not yet defined as either “money” nor a “Specified Investment”. 

 

That being said, all of the client accounts are held in segregated cold-storage wallets, backed by Elliptic, an industry-leading crypto-security company. Additionally the blockchain settlement is insured by an “A-rated, Fortune 100 underwriter”. Given the fact the company is based in the UK, you probably have a pretty good idea of which insurer they are referring to, presuming you have any knowledge of that market. 

 

With such major security claims, it probably wouldn’t surprise you to hear that Crypto Facilities has not been hacked yet. In general, this company appears to be much more secure than a lot of the traditional cryptocurrency exchanges.

 

Crypto Facilities partnered with the CME group in order to provide two Ethereum indices. They are the CME CF Ether-Dollar Reference Rate (Ether Reference Rate), which will provide a daily benchmark price in U.S. dollars at 4 pm London time, and the CME CF Ether-Dollar Real Time Index (Ether Real Time Index), which will allow users access to a real-time Ether price in U.S. dollars. Price data is gathered from two of the most reputable exchanges: Kraken and Bitstamp.  Being connected with such an established derivatives trading institution, like the CME Group is a positive sign.

 

There aren’t that many user reviews on Crypto Facilities, which is understandable, given the relatively complicated nature of their offering. The few comments we found were all positive.

 

We feel the need to reiterate, trading on this venue is very different from other cryptocurrency exchanges. The company has even set-up a questionarie, which one must fill before being allowed to trade. This is done in order to protect unsophisticated enthusiasts from loosing their funds due to not understanding the nature of margin trading.

 

Trading conditions

 

Account types (cash and margin)

Before we begin discussing the trading conditions at Crypto Facilities, we must mention the accounts are only kept in Bitcoin, Ethereum and Ripple. Additionally, before you begin trading, you must transfer coins (internally) between your main (cash) account and one of your margin accounts. The latter vary by trading instrument. While all of this seems very complicated, in reality it isn’t. Here is how the wallet interface looks:

 

 

Each of your secondary wallets serves as your trading balance for that particular futures contract. This provides a form of risk management, which is always appreciated. 

 

Trading instruments (cryptocurrencies)

Crypto Facilities supports Bitcoin (with the newly agreed upon symbol XBT, instead of the more traditional BTC), Ethereum (ETH) and Ripple (XRP) futures trading. 

 

The currently available crosses can be seen in the previous screenshot, where three coins are traded against the USD and there is an XRP:XBT pair. 

 

In terms of maturity, contracts are weekly, monthly and quarterly (for some instruments).

 

Leverage

The maximum leverage ratio offered by Crypto Facilities is 1:50 for Bitcoin to USD trading. The conditions vary for different instruments and are a bit more complicated than the ones offered by other companies. Here is a preview:

 

 

Be sure to fully understand the meaning of all the terms listed here before you start trading. 

 

Margin netting, between long and short positions is available, presuming you trade from the same margin portfolio. 

 

We must mention, that there are other derivatives based on digital assets. These are the spot CFDs, available at some forex brokers. While Bitcoin and Ethereum are the most popular, Litecoin is also occasionally being offered. While these CFDs are linked to the current price of the asset in question and not the future value, they do have some further specifics. You can read all about them here, if you are interested.

 

Fees

The fees at Crypto Facilities are charged in XBT, ETH and XRP, in accord with the specific contracts. Here are the details:

 

We have to compare these fees with ones charged by the major competitor offering a similar service. The taker fee at BitMEX is 0.075%, while market makers get a 0.025% rebate, which makes Crypto Facilities the cheaper trading venue.

 

Summary 

 

While the above description of the trading conditions may appear complicated, here is a table, summarizing it all:

 

 

 

Trading platform

 

The trading platform at Crypto Facilities is web-based. While this shouldn’t come as a surprise to anyone familiar with cryptocurrencies, there is an argument to be made for desktop solutions.  The platform was updated to feature charting by TradignView (which is a top-tier third party provider) and have an interface which is generally cleaner.

 

 

The order book is arranged in two columns, which traders versed in traditional markets will prefer to the single column approach, used by many exchanges. 

 

Update: This section of the Crypto Facilities website is apparently taken down, but we will keep the following text. 

 

The “analytics” section off the website offers some extra features.. Here is how the index charting looks (The overall index allows comparison to the quotes provided by Bitstamp, Bitfinex, BTC-E, Coinbase and ItBit.):

 

 

And here is a preview of the futures curves, which allow one to see if the market is in a contango or backwardatiwon:

 

 

Our opinion of the Crypto Facilities platform is neutral. While it offers some futures-specific elements, the main trading window is less than ideal. Additional tools will probably needed for serious trading.

  

Methods of payment

 

The only way of transferring funds in and out of Crypto Facilities is the blockchain. Once you register an account, you are given Bitcoin, Etherum and Ripple wallets, to facilitate your trading. As mentioned above the control to specify how much to put into each margin wallet and how much to leave as “cash” is a neat feature.

 

Conclusion

 

Crypto Facilities is a London-based cryptocurrency futures trading platform, overseen by the FCA. While the they do not participate in the FSCS, they still follow other major rulings. The company’s overall security appears to be much higher than what is currently offered by other exchanges. That being said, trading at Crypto Facilities is not for everybody. The mere concept of futures trading is somewhat more complicated than the ordinary crypto trading. Add the volatility of cryptocurrencies on top of that and you get a potentially explosive combination. More experienced traders, as well as miners looking to hedge their “virtual crops” may find this to be one of their best options. Here are the pros and cons of Crypto Facilities:

 

Pros Cons
FCA-regulated (FSCS doesn’t apply) Complicated trading environment
Top-tier security features Accounts held in crypto
Blockchain settlement insured Only accepts blockchain transfers
Charts by TradingView  
Two-factor Authentication
 

 

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