But before you make a deposit let us confirm if XM is a legitimate broker in South Africa plus there are other things you need to know.
Is XM a regulated forex broker?
Yes, XM is regulated in South Africa: we visited the Financial Sector Conduct Authority (FSCA) to verify XM credentials, and here is a summary of our findings:
- The FSCA licensed XM in 2019
- XM is registered as a limited liability company in South Africa
- XM’s Financial Service Provider (FSP) license number is 49976
- Your account & deposits are under South African laws
- XM is not an FSCA authorized Over The Counter Derivative Provider (ODP)
- XM holds a category 1 FSCA license (meaning they act based on your instructions only)
- The 2001 Financial Intelligence Centre Act mandates XM to report any suspicious deposits to the South African Authorities
Yes, XM Global Ltd is also regulated by the Financial Services Commission in Belize with license 000261/397. In Cyprus, XM is registered as Trading Point of Financial Instruments and they are regulated by CySEC.
Summary table of XM regulated entities
| XM entity | Regulator | Coverage |
| XM ZA (Pty) LTD | FSCA South Africa | South African accounts are registered with this entity |
| Trading Point of Financial Instruments LTD | CySEC | European accounts are held here |
| XM Global LTD | FSC Belize | All other accounts are registered under this entity |
What else do I need to know before making a deposit with XM?
Now that we have confirmed that XM is a legitimate broker regulated by the FSCA South Africa, you also need to know the following before making a deposit at XM:
- How much is the minimum deposit in XM?
- What are the steps to start trading with XM?
- What currency can I use to deposit?
- What are the deposit methods at XM?
- What is the deposit speed/time?
- When do I get a margin call to deposit additional funds?
- Are there any hidden deposit fees at XM?
- Is there any deposit bonus at XM?
- Who do I complain to if my deposit is delayed?
How much is the minimum deposit in XM?
XM minimum deposit is 95 ZAR ($5) and with this amount, 3 account types are at your disposal. You can opt to register from theMicro Account, Standard Account, or Ultra-low Account.
The Micro Account is a small sized account not meant for large volume trading (you trade micro lots) and was built for beginners. The XM minimum deposit for Micro Account is 95 ZAR or $5.
The Standard & Ultra-low Accounts on XM are full-sized trading accounts and with them you can trade all XM markets in larger volumes (Standard lots). These accounts also have a $5 minimum when it comes to deposits.
XM also offers copy trading and to copy trades of other XM traders, you need to make a deposit.
XM copy trading minimum deposit is not a fixed amount, every Strategy Provider sets their own minimum investment amount so if you wish to copy them you must deposit the minimum investment amount they specify.
What are the steps to start trading with XM?
- Start: decide to trade CFDs and weigh the risks. CFDs are leveraged instruments so there’s a chance you might lose the entire money you deposited.
- Register with your email: supply your email address and create a password, after this XM automatically creates a wallet for you as well as a user-profile.
- Verify your profile: upload required identification cards and proof of residence.
- Create a live account: choose between XM Micro, Standard, or Ultra-low account types.
- Deposit: select a deposit method and make your first deposit
- Place your first trade
Which currency can I use to deposit into XM?
XM allows you to pay in money into your account using any currency so if you have ZAR currency you can deposit it into your ZAR account.
If your account base currency is at variance with the currency of the money you are depositing, XM will convert it to match your account currency, but this attracts a fee.
What are the acceptable deposit methods at XM?
XM clients can deposit using Local Banks, Credit/Debit Cards, eWallets, & Bank Wire. All deposits go into your XM Wallet. XM does not accept deposits into your account from third parties as per FSCA, FSC, & CySEC regulation.
To view your deposits, go to your XM wallet and view history. You can apply search filters and select ‘deposit’ so all your deposits are displayed easily.
Also note that you cannot deposit into another XM traders account by moving funds from your XM wallet. However, you can move funds around your own trading accounts via internal transfer.
What is the deposit speed/time at XM?
- Local Bank deposits will reflect on the same day
- International Bank Wire deposits will take 5 days
- Visa/Master credit or debit card deposits will reflect same day.
- Skrill deposits reflect same day.
When do I get a margin call to deposit additional funds?
XM margin calls can come at any time, XM does not give a specific level your margin must fall to before a margin call is placed to you.
Section 4 of the XM risk disclosure statement says XM will start closing some of your trades once your margin level drops to 50%. Once you notice this you should quickly make a deposit into your XM wallet.
Failure to make a deposit after the margin level falls to 50% means you risk all your trades being closed forcefully even if it means closing them at a loss and this happens once your margin level drops to 20%.
However, since XM offers Negative Balance Protection, the likelihood of your trading account going into negative because of XM forcefully closing your losing trades, is zero.
Are there any hidden deposit fees at XM?
No, XM does not charge deposit fees. If you happen to deposit via International Bank Wire (meaning you transfer from an oversea bank account to XM’s bank account), XM will cover any fees charged by their bank if your deposit is from $200 and above.
Do I get Bonus on my deposits into XM?
Yes, XM gives bonus on deposits to new and existing clients, but XM Ultra-low Accounts are not eligible. The bonus itself is not withdrawable, only the realized profits from trading with the bonus can be withdrawn.
The XM bonus cannot exceed $5,000. You get a 50% bonus on any deposits till your bonus earned reaches $500, after that any deposits you make attract a lower deposit bonus of 20%.
Fast facts about XM bonus:
- Ultra-low Accounts are not eligible for bonus
- Both new & existing XM account holders are eligible for bonus
- Bonus cannot be withdrawn only profits can
Why is the XM Ultra-low Account excluded from bonuses? The XM Ultra-low Account already offers low fees such as spreads from 0.6 pips & no overnight fees on forex trades. This could be why XM excluded it from participating in bonuses.
Visit the XM website to learn more about XM bonus
Who do I complain to if my deposits are delayed?
XM has various complaint resolution channels, and these channels are open 24/7 even on weekends. XM also has a physical office at Cape Town, South Africa
The fastest way to lay a complaint is through live chat which you can access from the XM website or mobile app.
You can also reach XM via email (the addresses are on their website). XM has no local phone number on their website but alternatively you can fill in a complaint form by logging into your member’s area.
Other common questions asked about XM minimum deposit
Finally, we will discuss some questions many traders ask about trading on XM. Please readon.
Can I trade for $5 on XM?
XM minimum deposit is $5 but that doesn’t mean you can’t deposit above that. Because of the 1:1000 leverage that XM South Africa offers; it is possible to trade with an initial margin of $5. However, if you sustain losses while trading XM will require you to deposit more funds urgently or they will close your positions.
What is XM minimum deposit for Micro Account?
The XM Micro Account minimum deposit is $5 or 95 ZAR.
What is XM minimum deposit for NASDAQ?
The minimum deposit for NASADAQ on XM is $5 but the spread that goes to XM alone is from $3.5 so you will be needing a lot more than $5 to successfully trade the NASDAQ on XM.
Is XM South Africa an FSCA approved ODP?
No, XM does not have an ODP license instead the FSCA licensed them to offer derivatives as intermediaries. This means they only act on your instructions and cannot act or decide for you.
XM minimum deposit in South Africa
Traders in South Africa can register with XM and pay a $5 or 95 Rand minimum deposit to open their accounts.
XM offers ZAR account currency so if you open a ZAR account you don’t pay currency conversion fees when you put in and take out money in ZAR currency.
XM also accepts deposits from local South African banks so this makes it more convenient. Your deposits are safe at XM South Africa as they are strictly regulated by the Financial Sector Conduct Authority (FSCA) a body established by South African law to oversee forex brokers who hold its license.
Final Statement
XM minimum deposit is low, but you should always keep funds on standby to service margin calls. A low minimum deposit does not mean the risk of trading is reduced, in fact the risk is even higher because if you deposit too little funds your equity may be unsustainable, and your trades forcefully closed by XM.
