CFD Review: xemarkets

Important Facts 
  • Regulatory Authority: Regulated in Cyprus by CySec. 
  • Instruments: Forex, Indices and a selection of energy and precious metal commodities.
  • Leverage: Up to 888:1 on certain Forex instruments. Leverage of up to 100:1 on Commodity CFD’s 
  • Unique Features: Support for an array of trading platforms, demo accounts and Islamic accounts. 
  • Minimum Deposit: $5 for a Micro Account. 
The Platform 
Xemarkets offers a bewildering array of platforms to it’s clients. First off their is the standard MetaTrader 4 offering with MetaTrader being many Forex traders ideal platform this will be music many’s ears. The XEM MT4 platform is pretty much your standard MetaTrader 4 platform and works as you would expect it too. Secondly, xemarkets offers a no download required web trading platform which is a pretty decent offering for a web platform though of course it is not as sophisticated as MetaTrader 4 but would allow you to make and execute trades on other people’s computers. Then of course as one would expect in this day and age they offer a number of Mobile based trading platforms all built for xemarkets by Metaquotes the creator of the MetaTrader platform. These platforms support the Iphone, Ipad and Android devices unfortunately their is no mobile trading platform that supports Blackberry’s. Then there is a mirror trader which allows an individual to copy the signals of a number of other traders, this is pretty much a basic social trading kind of tool and may be quite appealing to some. Then there is the option MAM trading which allows money managers to operate multiple accounts at once by simply using one special MetaTrader 4 platform. Finally there is the option of adding in ZuluTrade support which is another example of a way you can engage in social trading with xemarkets. 


Special Features 
Though I have already remarked about the number of different ways you can trade with xemarkets, I do have to say they do provide support for a huge array of different trading options which is pretty special. Again you will a number of features that traders often appreciate including the option of opening a demo account, as well as all the basic educational tools that one would expect from a Forex provider. With xemarkets offering trading seminars from time to time though these mainly seem occur in places in Asia. For those who are Muslim there is also the ability to open an Islamic account from as little as $5. The only other thing to remark on really is the insane leverage that is offered on a number of Forex instruments, while many providers offer leverage up to about 200:1 very few offer leverage up to 888:1. While this increases the potential returns to be made it at the same time increases the amount of risk which is something that people should be aware of.  

Spreads 
xemarkets offers only floating spreads but in general these spreads are pretty tight and can often be as low as 1 pip on some of the major currency pairs. However one has often got to be quite careful with floating spreads as during periods of market instability they tend greatly widen which means you can end up getting a bit of a raw deal. However it appears that in the majority of cases you will get quite a good deal with xemarkets when it comes to the spreads. Though its often beneficial to have look at the spreads on offer with a number of dealers before you make a final decision about what account to open. This is particularly important if you intend to trade only a particular instrument. All in all I have to report that the spreads on offer at xemarkets are pretty reasonable. 

Customer Service 
People seem to have some mixed feeling about the customer service provided by xemarkets. While many have complimented xemarkets on admitting their mistakes and then making up for them others haven’t been quite as complimentary. Though I have seen representatives from xemarkets take a good deal in effort in explaining or attempting resolve people’s issues. The website lists a number of different ways to get into contact with the company, including live chat, email and telephone contact details. The transparency offered on the website seems pretty good listing both the addresses of its Cyprus and New Zealand based offices in full.  

Regulation 
xemarkets is the trading name of Trading Point of Financial Instruments Ltd. The company holds a CySec licence and has done for a while. Quite recently Trading Point Ltd. announced it would be merging its other platform named Trading Point with its xemarkets platform. In 2011, Trading Point of Financial Instruments was ordered to pay a $140,000 fine to the CFTC of the USA for violating US regulatory rules. This is due to the Dodd-Frank act of 2010 preventing non CFTC regulated brokers from accepting American clients, Trading Point has now amended its ways and no longer accepts US based traders. As far as my research can tell Trading Point has never been penalized for breaches of MiFID regulation which is something that should be taken as a positive. The CFTC fine does slightly bring into question xemarkets compliance to regulation as the company should have really withdrawn from the American markets well before September 2011. 

Overall, xemarkets seems to provide a pretty decent service to its clients. The only thing I find a tad concerning this the regulatory breach concerning the acceptance of US clients though those issues seem to have been resolved.

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