Flat Earth Forex staff have a long history with XM, with our first deposit being 343 Euros in 2013. This is an interesting broker in that it allows margin trading (leverage) up to 888% and allows full hedging. After losing quite a lot of money (more than 23,000 Euros) trying to trade profitably with XM, we discovered some techniques which, if used judiciously, will enable the average trader to become a reasonable trader and retain much more profit. However, in general, this broker is to be avoided in our opinion, as the margin leverage it offers is far too generous ~ for a reason! Offering such leverage, and operating from a bucketshop jurisdiction like Belize (it’s new HQ), allows companies like XM to trade against client accounts with impunity (in fact, we suspect the algos and procedure calls for doing so are built right into the platform; and have been in place from the outset).
As a broker, we don’t recommend anyone to trade with XM, because (in general) they will blow up their account very frequently, especially if they are tempted to employ leverage higher than 100:1. We managed a high-leverage, losing account with XM for more than 20 months by hedging it, which naturally hedged the hedge that XM was applying against us on the gold price (the only asset we had in the account). Eventually, we lost the account because XM actively trades against its clients, in our opinion, perhaps more than any other broker out there. With a huge veneer of respectability (and dumbed-down support agents who themselves never trade anything: fact!) and with enormous pilfered funds at its disposal, XM will be around for a very, very long time and it will continue its predatory activities for the forseeable future. Our adice: avoid!