XM Forex Trading is highly popular but has limitations, such as certain operational restrictions that other brokers do not have, despite its apparent lack of disadvantages.
XM offers a high leverage of 1,000x, which significantly increases the risk of capital loss, as losses and profits from currency fluctuations are magnified compared to lower leverage levels.
Not all trading instruments at XM can utilize the 1,000x leverage; restrictions apply to various currencies and commodities, with leverage as low as 22.22x for some instruments.
XM imposes account maintenance fees after 90 days of inactivity, which can consume the balances if the account remains dormant without any trading activity.
Although XM markets itself as offering free deposit and withdrawal, actual conditions apply, such as transfer fees and conditions on profit withdrawals that can limit accessibility to funds.

Unlike the merits of Forex broker XM (XMTrading), we explain over ten disadvantages.

Even the most popular XM has disadvantages that other Forex brokers can do, but XM cannot.

Before starting Forex with your precious money, let’s understand the disadvantages of opening an account with XM.

XM’s Disadvantages

Regardless of domestic accounts, XM (XMTrading) is the most popular Forex broker.

Currently, there are absolutely no disadvantages to opening an account with XM, but there are things that other Forex brokers can do that XM cannot.

While there are many advantages to starting Forex by opening an account with XM, here we will explain the disadvantages of XM compared to other Forex brokers (Forex Brokers/Forex Companies).

What is XM (XMTrading)?

XM’s High Leverage Increases the Likelihood of Losing Money

Forex broker XM (XMTrading) offers 1,000x leverage, increasing the likelihood of depleting your own capital and exiting the market.

Whether you order $100 worth of USD/JPY with 1,000x high leverage of XM or with 25x low leverage of a domestic account, the profit or loss from a 1 yen movement differs by 40 times.

For a 1 yen movement, XM incurs 40 times the loss of a domestic account

Here is the difference in profit and loss when ordering $60 worth of USDJPY with “1,000x high leverage of XM” and “25x low leverage of a domestic account.”

With 1,000x high leverage of XM, do not forget that the amount of money lost when you lose is 40 times higher risk compared to a domestic account.

FX Simulator Here

XM’s Leverage is “Definitely Not 1,000x”

Forex broker XM (XMTrading) does not guarantee that the leverage will always be 1,000x.

• If the deposit or profit increases, the leverage can be reduced below 1,000x
• 1,000x leverage applies mostly to all FX currency pairs and to gold and silver only

At XM, only popular instruments are tradable with 1,000x high leverage.

Instrument List Here

Instruments That Cannot Be Traded with 1,000x High Leverage at XM

Below is the list of instruments that cannot be traded with 1,000x high leverage at XM.

XM’s trading environment and trading conditions, including leverage, may change according to market conditions, so please check the accurate information on this page of instruments and leverage list.

Leverage per Instrument Here

With XM Stocks, Japanese Stocks Cannot Be Traded

Even though you can trade stocks with Forex broker XM (XMTrading), you still cannot trade Japanese stocks.

XM trades foreign stocks such as U.S. stocks.

List of Stocks Here

XM’s Stocks Do Not Offer Shareholder Benefits or Dividends

Stocks at Forex broker XM are traded through mechanisms such as CFDs, leverage trading, and margin trading, and do not allow for physical trading that provides shareholder benefits and dividends.

XM’s stocks, like FX, are CFDs that allow you to start with less money due to leverage.

Stock Trading Here

XM’s FX Accounts Incur Account Maintenance Fees. Not Free

Once you open an account with Forex broker XM (XMTrading), you will incur account maintenance fees if you leave it dormant for a certain period.

XM has a mechanism called a dormant account, and if there has been no trading, depositing, withdrawing, fund transfers, additional account openings, or bonus receipts for more than 90 consecutive days, account maintenance fees (account maintenance charges) will incur.

When Quitting FX at XM, You Must Withdraw All Balances

The account maintenance fee at Forex broker XM (XMTrading) is a disadvantage that only applies to traders who have remaining balances in their accounts.

Yes, it will only be charged if your account has not been used for over 90 days.
After this period, if there has been no use of trading, depositing, withdrawing, fund transfers, additional account openings, or registration, the account is considered dormant.

When an account becomes dormant, all remaining bonuses, promotional credits, and XMPs automatically disappear from the dormant account. All dormant accounts will be charged a monthly fee of $10, or the full remaining balance if less than $10. No charges apply if the trading account balance is zero.

Help Center Here

Although XM Does Not Refuse Withdrawals, Profit Cancellation Does Occur

Forex broker XM (XMTrading) is not a scam, so there are no withdrawal refusals, but there is a possibility of profit cancellation.

Profit cancellations and account terminations (account cancellations) by XM for traders deemed in violation of the terms of use occasionally become topics on X (formerly Twitter).

Terms of Service (in English) Here

Excessive Scalping Not Allowed at XM

Forex broker XM allows scalping, hedging, and automated trading (automated transactions), but some systems used for scalping are considered server attacks and are countered.

The reason XM does not ban scalping is that using scalping EAs or morning scalping EAs, which are equivalent to server attacks, will result in trading restrictions such as leverage limits.

Cannot Live Off Swaps at XM

Some traders using XM’s (XMTrading) platform cannot experience the “dream swap life” due to the lack of swap points delivery on certain account types.

XM’s latest account type, “KIWAMI Extreme Account,” offers popular FX currency pairs like USD/JPY as swap-free, making them unsuitable for earning through swaps.

Check swap details for each symbol here

Who Can and Cannot Live Off Swaps with XM’s FX

If you are looking to live off swaps, do not open a KIWAMI Extreme Account with XM.

“If you want to earn swaps, do not choose the KIWAMI Extreme Account at XM.”

Compare account types here

“Completely Free Deposit and Withdrawal Fees at XM” is a Myth

FX broker XM (XMTrading) does not always offer free deposit and withdrawal fees.

Withdrawing profits from XM requires a substantial amount of funds accumulated or else withdrawal fees are applied.

Check the latest fees here

When You Can’t Withdraw Profits from XM, Withdrawal Conditions Apply

Profit withdrawals from FX broker XM are not unconditional and may be subject to withdrawal restrictions and conditions.

To prevent money laundering, profits from XM can only be withdrawn via bank transfer, according to withdrawal rules.

What is the account opening bonus?

XM’s Operating Hours are Not 24/7, 365 Days a Year

The basic service hours of FX broker XM (XMTrading) are 24 hours during weekdays.

Although you can open an account with XM over the weekend, identity verification will not be completed until the next business day due to customer support being closed.

Sign up with XM here

Apart from Cryptocurrencies, No Trading on Weekends at XM

At FX broker XM, FX trading is not available on weekends.

“Unlike stocks, FX can be traded at any time 24 hours a day,” it is often explained, but this only applies on weekdays, and services are closed on weekends at XM, except for cryptocurrencies.

Check the exact trading hours here

XM Allows Bitcoin Trading but Does Not Allow Buying

While you can trade cryptocurrencies like Bitcoin with FX broker XM (XMTrading), you cannot actually purchase and own them or sell owned cryptocurrencies.

At XM, unlike stocks, you can trade expensive Bitcoin for just a few USD via cryptocurrency FX (crypto CFDs).

What is cryptocurrency FX?

XM Does Not Allow Trading on TradingView

XM, unlike some other FX brokers, does not allow trading on TradingView.

Get the XM app here

XM is Not a Registered Broker, but Claims of Fraud and Danger are False

FX broker XM (XMTrading) has been warned by financial institutions as an unregistered broker, but rumors of it being a scam and dangerous are false.

What is XM (XMTrading)?

Beware of Scams Involving XM’s Demo Accounts

XM is a popular and well-known FX broker, making it a target for investment scams impersonating celebrities and others.

Scam salons using XM’s demo accounts to show fake profit images, and imitation sites using domain names similar to XM’s brand, have been on the rise, with investment scams frequently discussed on TV. XM has been issuing warnings about this in 2023.

If you feel something is suspicious with XM, contact their customer support directly through thislink.

Official Site (xmtrading.com)

FAQs to summarize the article

What are the main disadvantages of trading with XM Forex?

Xm Forex Trading is known for operational restrictions and high leverage risks that increase the potential for capital loss, among other disadvantages.

How does XM Forex’s leverage work and what are its risks?

XM offers a high leverage of up to 1,000x, which can magnify both profits and losses. This high leverage is not available for all instruments and can pose significant financial risks.

Are there any fees associated with an inactive XM account?

Yes, XM imposes a maintenance fee on accounts that remain inactive for more than 90 days, potentially consuming the account balance.

Does XM charge for deposits and withdrawals?

While XM advertises free deposits and withdrawals, conditions such as transfer fees and limitations on profit withdrawals apply, which might restrict access to funds.

Can all trading instruments use the 1,000x leverage at XM?

No, not all trading instruments at XM can utilize the 1,000x leverage. Certain currencies and commodities have much lower leverage limits.

What happens if my XM account becomes dormant?

If there is no activity in your XM account for over 90 days, it will be considered dormant and subject to a monthly maintenance fee unless the balance is zero.

Are profits from XM always withdrawable?

No, XM may cancel profits if trading activity is found to violate their terms, such as fraudulent practices or manipulative strategies.

Can I trade Japanese stocks with XM?

No, XM does not offer trading in Japanese stocks. It primarily deals in foreign stocks, like U.S. stocks, through CFDs and leverage trading.

What are the trading hours for XM services?

XM services are available 24 hours during weekdays, but limited trading options are available on weekends, mainly restricted to cryptocurrencies.

Does XM allow trading on all popular platforms?

No, XM allows trading on platforms like MT4 and MT5, but does not support trading on TradingView or cTrader.