CXM Direct review

Founded in 2015, CXM Direct is a global Forex and CFD (Contracts for Difference) broker that offers access to currency pairs, metals, indices, energies, crypto, and EU/US stocks via MetaTrader trading platforms.

The company is regulated by the Financial Conduct Authority of the UK (FCA), and the Financial Services Commission of the Republic of Mauritius. It’s important to note that the broker operates globally, however, residents from some countries cannot open live trading accounts with CXM Direct. The broker doesn’t provide financial services to the residents of Algeria, Belarus, Canada, China, Cuba, Iran, Myanmar, North Korea, Russia, Sudan, Syria, UK, and the USA.

Let’s delve into more details about the broker and its offering to find out whether it’s worth opening a live trading account with CXM Direct or not.

CXM Direct trading platforms

Choosing a proper trading platform is crucial for success in trading. Trading platforms have multiple uses, they help traders conduct technical analysis, execute multiple order types, help traders manage their risks, and help in trade automation and copy trading. CXM Direct offers some of the most popular trading platforms: MetaTrader 4 and MetaTrader 5. Let’s learn more about each.

MetaTrader 4 (MT4)

MT4 was designed for trading currency pairs. The platform was released in 2005 by the Russian software company MetaQuotes. MT4 became instantly popular among traders and even today, the majority of Forex traders use this platform. There are two major reasons for the platform’s popularity: the platform is highly reliable, and there are record numbers of custom made trading algorithms available. MetaTraders trading algorithms are called Expert Advisors (EAs), and they help automate trading. MT4 comes with 30 preinstalled trading indicators, 31 graphic objects, and 9 timeframes. There are 4 pending order types for traders to choose from when entering a trade. As a downside, fund transfer between accounts is not possible when using MT4, and Depth of Marker (DoM) feature isn’t available. The DoM feature enables traders to analyze bids and ask prices.

MetaTrader 5 (MT5)

MT5 was released in 2010 and is an improved version of MT5. However, both platforms are actively used today. MT5 is mainly chosen by multi-asset traders because the platform supports not only FX and CFDs (Contracts for Difference), but also bonds, shares, and futures. This platform provides DoM features, comes with 38 pre-installed technical indicators, 44 graphic objects, and 21 timeframes. In addition, MT5 has 6 pending order types compared to MT4’s only 4. As a downside, MT5 is a bit more complex than MT4.

Both platforms are highly reliable and trusted by the majority of brokers and traders globally. Moreover, there are MetaTrader platforms for any device. Traders can use mobile, desktop, or web trading versions of the MetaTrader platforms.

CXM Direct trading assets

CXM Direct offers access to a wide range of trading instruments, such as: currency pairs, metals, indices, energies, crypto, and EU/US stocks. Maximum available leverage for CXM global clients is unlimited, and traders can start opening regular accounts from 50 USD (For Cent account minimum initial deposit amount is 50 USD).

There are 60 currency pairs for trading, including major, minor, and exotic ones. And there are over 200 instruments as CFDs. Moreover, there are 58 crypto assets as CFDs. It should be mentioned that trading CFDs is not the same as investing in assets. CFDs are best assets for market speculations, but for investing long term, a better option is to purchase physical assets such as real crypto tokens, physical metals, and real stocks. The major benefits that come with trading CFDs are:

• Option to short sell: CFDs can be traded in both long and short direction.
• Leverage can be applied: leverage helps increase purchasing power using borrowed funds from the broker.
• High liquidity: CFDs are traded in a highly liquid market that creates low spreads and more trading opportunities.

CXM Direct account types

There are multiple ways to make money in the markets. And traders are using different strategies from one another. Some day trade, while others swing or position trade. In addition, there are high frequency traders, news traders, scalpers, and so on. To meet the needs of different traders, CXM Direct offers various account types, let’s take a look at comparison table:

The offered leverage is huge, however, it should be mentioned that traders that are registering from the UK will have much less leverage due to the FCA’s requirements. It should be noted that leverage can lead to opening oversized trading positions and ultimately cost traders their entire account, which is why it’s always a good idea to manage risks while trading CFDs with high leverage.

Educational material at CXM Direct

Quality education plays an important role in the success of any trader. CXM Direct provides its clients with educational videos. The educational material touches important aspects such as trading basics, tutorials on how to use the client member area, and trading tools.

On the other hand, it should be mentioned that all the material provided is pretty basic. While the information provided may be interesting for beginners. The broker does not offer anything particularly new for more practiced traders.

Final thoughts

To sum everything up, CXM Direct is an average broker. The offered platforms, MetaTrader 4 and MetaTrader 5 are offered by many other brokers as well, and trading conditions do not stand out. Maximum available leverage is unlimited for Standard and ECN accounts, however, high leverage is dangerous for most traders due to risks associated with the use of high leverage.