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XM provides several distinctive account types that may confuse newcomers at first glance. Here's a short guide to choose the right one.
In order to choose the best trading account type, it is central to grab a deep understanding of all types available. This goes beyond merely knowing their respective name. Therefore, this article will address the basic information on how to choose the best XM account type that you may need for the best outcome.
In general, XM provides the following accounts for its traders:
- Micro, where 1 micro lot represents 1,000 units of the base currency.
- Standard, where 1 standard lot is the equivalent of 100,000 units of the base currency.
- Ultra Low Micro, an account to trade with micro lots and spreads as low as 0.6 pips.
- Shares, an account specifically designed to accommodate stock trading.
What are the differences between these four accounts? Let's examine the details of each account in the article below.
What Are XM Account Types?
As stated above, XM offers four trading accounts: Micro, Standard, Ultra Low Micro, and Shares. Each account has its own specifications. Here's the complete explanation.
Micro Account
Micro Account offered by XM provides traders with a wide range of base currency options, including USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, and ZAR.
The contract size for this account is set at 1 lot, which equals 1,000 units of the base currency. Traders can enjoy a generous leverage of 1:888, and the account includes negative balance protection to limit potential losses.
The spread for trades in this account is as low as 1 pip, and there are no commission charges. The minimum deposit required to open a Micro Account is just $5.
Standard Account
Next, Standard Account by XM allows traders to choose from a variety of base currency options, including USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, and ZAR.
The contract size for this account is set at 1 lot, which is equivalent to 100,000 units of the base currency. Traders can enjoy a leverage of 1:888 and benefit from negative balance protection too.
The spread, commission, and minimum deposit for Standard Account are the same as Micro Account.
Ultra Low Micro Account
XM's Ultra Low Micro Account offers flexibility in terms of base currency options, including EUR, USD, GBP, AUD, ZAR, and SGD. The contract size for this account differs in two types. For Standard Ultra, 1 lot is equal to 100,000, while for Micro Ultra, 1 lot is equal to 1,000.
The leverage offered for this account is 1:888, and there is no negative balance protection. Traders can benefit from low spreads, starting as low as 0.6 pips.
Commission fees are not applicable, and the minimum deposit required to open an Ultra Low Micro account is just $5.
Shares Account
The Shares Account type offered by XM allows for trading in shares, with the base currency options being in USD. The contract size for this account is 1 share, and there is no leverage provided.
There is no negative balance protection, and the spread is subject to the underlying exchange. Commission fees are not charged for trades made in this account.
The minimum deposit required to open a Share account is $10,000, higher than the other account types.
Choose the Best XM Account That Complements You
Following the details above, you may have recognized that each account has its own distinctive characteristics that highlight traders' various needs.
For instance, XM micro account allows trading from 0.01 lots to eliminate the risk of having to trade with a standard lot. Meanwhile, the ultra low account underlines the importance of tight spreads compared to other accounts.
After knowing such key information, you may adjust XM accounts' specifications to your needs.
- If you're a beginner and minimizing the risks is at your top priority, XM Micro Account is the best choice.
- If you're quite experienced and looking for higher opportunities while being aware of the increased risks, XM Standard Account can be the right one for you.
- On the other hand, XM Ultra Low Account is suitable for scalpers, day traders, or other types of traders who put low spreads at the forefront of their strategies.
- Lastly, XM Shares Account can be a good idea should you want to try a hand at trading in the stock market.
For further reference, this table could help you compare more properties of XM accounts so you can easily sort out the best trading account:
| Features | Micro | Standard | Ultra Low Micro | Shares |
| 💲Base currency options | USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR | USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR | EUR, USD, GBP, AUD, ZAR, SGD | USD |
| Contract size | 1 lot = 1,000 | 1 lot = 100,000 |
| 1 share |
| Leverage |
|
|
| No leverage |
| 🔢Spread on all majors | As low as 1 pip | As low as 1 pip | As low as 0.6 pips | Subject to the underlying exchange |
| 💸Commission | ❌ | ❌ | ❌ | ❌ |
| 📈Maximum open/pending orders per client | 300 positions | 300 positions | 300 positions | 50 positions |
| 📊Minimum trade volume | 0.1 lots (MT4 and MT5) | 0.01 lots |
| 1 lot |
| ⚠️Lot restriction per ticket | 100 lots | 50 lots |
| Depending on each share |
| 🔁Hedging allowed | ❌ | ❌ | ❌ | ❌ |
| 🕋Islamic account | Optional | Optional | Optional | ❌ |
| 👛Minimum deposit | $5 | $5 | $5 | $10,000 |
In addition to the 4 account types above, trading in XM demo account is highly recommended if you are a noob in forex trading as this will help you trade with virtual money. The risk would be zero as the gains and losses are merely a simulation in the demo account.
XM Group is a group of regulated brokers and it is owned by Trading Point Holdings Ltd. Entities under XM Group have significant experience as financial services providers worldwide.
Trading Point of Financial Instruments Ltd was established in 2009 with headquarters in Limassol, Cyprus, Trading Point of Financial Instruments Pty Ltd was established in 2015 with headquarters in Sydney, Australia, XM Global Limited was established in 2017 with headquarters in Belize and Trading Point MENA Limited was established in 2019 with headquarters in Dubai.
XM Group is regulated by the CySEC (Cyprus Securities and Exchange Commission) - Trading Point of Financial Instruments Ltd, FSC (Financial Services Commission) – XM Global Limited, the ASIC (Australian Securities and Investments Commission) - Trading Point of Financial Instruments Pty Ltd and DFSA (Dubai Financial Services Authority) - Trading Point MENA Limited.
XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and EN Live Edu that is instructed by 16 global experts.
In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Crypto, Stock CFDs, Turbo Stocks, Commodities, Equity Indices, Precious Metals, Energies, & Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.
Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip.
To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. Minimum deposit of $5 applies to Standard, Micro, and also Ultra-Low Accounts. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.
For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.
To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).
All in all, there is no doubt that XM has gone global with its deep commitment to providing services in more than 30 different languages across the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.
For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.
What's Next?
You should start by heading to XM's official website and opening the registration page for new traders.
The steps that follow should be easy since you can just pay attention to the given instructions and fill out the forms accordingly.
Remember that after completing the process, an email will be sent to you automatically to provide you with access to the Member Area. You will be facilitated to manage the functions of your account that include:
- Checking your open positions
- Changing leverage
- Accessing support
- Accessing trading tools
- Depositing or withdrawing funds
- Viewing and claiming unique promotions
- Checking your loyalty status
XM broker is an established international firm and has become a true leader in the trading industry. Founded in 2009, the company works with the main principle of being "fair, trustworthy, and dependable". XM claims to support no re-quotes and real-time execution, where traders can choose from 10+ trading platforms suitable to any device.
38 Comments
Julio
Dec 31 2022
Angga
Dec 31 2022
Julio
Dec 31 2022
Angga
Dec 31 2022
Julio
Dec 31 2022
April
Jan 30 2023
Julio: Choose micro account if you want to trade with only $5 to get the best trading condition and not getting margin call earlier. The margin call in XM is at 50% level and 20% stop out. Meanwhile, the safe leverage for micro traders is 1:200 (source :What is the best leverage for micro).
With that trading condition, you are ready to count the free margin. What you needed now is to know margin that you use to trade. You can use the margin calculator at this website. If you use 0.01 lot micro account, you will get $ 0.0544. And now, to find equity just count: $5.000-$0.0544 = $4.9456 (Equity)
Now you are ready to count free margin. Use this Formula to know the percentage of free margin : Equity/Margin x 100 % ($4.9456/$0.0544 x 100% ) = 9091.1%! So, it is very posible and yet limitless to trade with XM Micro account with just $5!
Varuna
Jan 30 2023
quite interesting, the article said an ultra low account is suitable for scalpers and the minimum deposit is also very cheap, starting at 5 USD. I also see that the leverage offered is quite large, up to 1:888. The question is, how do you get 1:888 leverage? Are there any special requirements that must be met?
Samuel Raya
Jan 30 2023
Varuna: There is no requirement to get leverage 1:888 (now, instead of 888, XM offers leverage 1:1000). How to activate the leverages? It is very simple to confirm the maximum leverage of your XM Group account. Log in to MT4 using any account you have opened. Hover over the account in the "Browser" on the left side of MT4. Maximum leverage like "1:888" or "1:1000" is displayed in the pop-up screen that appears. Choose that and voila, you are ready to trade with that leverage.
Careful:
High leverage can be a double-edged sword if you don't use it wisely!
Agus
Jan 30 2023
Samuel Raya: Sorry, why leverage will be double-edged sword? I dont understand that because not only you, many traders also said about this and even the comments above recommended to use leverage 1:200 and not recommended to use leverage 1:888.
What kind of risk that I get if I use high leverage at trading? Thank you, hope you can answer my question.
Samuel Raya
Jan 30 2023
Agus:
A double-edged sword means it is possible to kill an enemy in front of you but can injure you if the enemy retaliates. So leverage can help you to trade, but also because of this you can be called on margin. Why? Because with high leverage you will get very high buying power and you can trade with multiple positions at the same time. But at the same time, the pips that give you profit and loss don't have that power either. This means that the value of 1 pip with or without leverage is always the same (eg: 1 standard pip = $10).
and floating loss can have very high make very huge margin impact and imagine if you can trade up to 10 times with 10$ for example, you can get margin call with only 2 floating loss trades!! Therefore, high leverage can be a trap to get traders to overtrade.
Jojo
Jan 30 2023
Samuel Raya: Agree! This is why activating high margins requires a special step just like the XM brokers do. It is better to have medium leverage than high or low leverage. And in my opinion, leverage has 1:888 or 1:1000 are dangerous trading tools and require very careful and wise use. So the best leverage for beginners is the leverage that has at least 1:100.
Mamun Bin Rashed
Mar 25 2023
What are the key factors to consider when ing the best XM account type for your trading needs and goals? Specifically, how do the features and benefits of the Micro, Standard, and XM Zero account types differ in terms of trading costs, leverage, spreads, and other key criteria? Additionally, how can traders evaluate their own risk tolerance and trading strategies to determine which account type will be the most suitable and effective for their needs? Finally, what are some best practices for opening and funding an XM account, and how can traders take advantage of the educational and research resources offered by XM to maximize their trading success?
Aybe Chy
Mar 25 2023
How does XM's offering of multiple account types compare to other forex brokers in the industry, and what are the advantages and disadvantages of this approach for traders? Specifically, how does XM's approach to account types differ from other brokers that may offer only one or two account options, and how does this impact traders' ability to customize their trading experience and access the features and tools they need? Additionally, what are some potential risks and drawbacks associated with offering multiple account types, such as confusion for new traders or difficulty in comparing account options, and how can traders navigate these challenges to make informed decisions about their trading accounts?
Ahmed
Jun 20 2023
When it comes to XM's account offerings, each account type caters to different trader needs. Specifically, the XM micro account stands out by allowing trading from 0.01 lots. This feature brings a significant advantage: it eliminates the risk associated with trading standard lots.
So, here's my question for you: What are the key benefits of trading with micro lots (0.01 lots) compared to cent lots, and how does this feature offered by XM's micro account enhance traders' risk management and flexibility? Additionally, how does trading with micro lots eliminate the need for traders to expose themselves to the higher risks typically associated with standard lot sizes?
Hayle
Jun 24 2023
@Ahmed: Trading with micro lots (0.01 lots) has some cool advantages over cent lots, and XM's micro account feature takes risk management and flexibility to a whole new level. With micro lots, you can be super precise in sizing your positions. It's great for traders with smaller account balances or those who want to play it safe. Plus, it saves you from the higher risks that come with standard lot sizes. No need to worry about big potential losses here!
The best part? Micro lots give you more freedom. You have better control over your trade sizes, so you can manage your positions like a pro. Set tight stop-loss levels, trail your stops – you name it! It's like having a personalized risk management strategy at your fingertips.
Micro lots are perfect for learning and testing strategies too. You can dive into live trading without breaking the bank. Gain experience, build confidence, and fine-tune your skills without putting a ton of money on the line.
With XM's micro account, you get the power to manage risks and trade on your terms. It's all about being precise, flexible, and smart about your trading decisions.
Judith Ultra rojas
Aug 14 2023
I was recruited by Ms.agnes dei catalan reyes for xm trading. I am asking her about my state of account in xm but until she can't provide. I 'd been trading for more than a year now.can you help me? Thanks
Okinawa
Sep 11 2023
A popular global broker with a large customer base and a good reputation, XM is a good choice for most UK traders. It has some of the lowest fees in the industry, provides excellent research and education, and has a beginner-friendly trading app. It also has an excellent suite of trading tools and its customer service is responsive and well trained.
A well-regulated market maker broker XM offers trading on over 1000 instruments, including over 57 Forex pairs. Trading conditions are average compared to other similar brokers, with a spread of 1.7 pips (EUR/USD) on the Standard Account and 0.8 pips (EUR/USD) on the Ultra-Low Account. Low minimum deposit requirement of 5 USD on all account options, making it great for novice traders.
XM also offers trading on the most popular platforms – MT4 and MT5 and allows all trading strategies in addition to an arsenal of world-class educational and market analysis materials and excellent customer service.
XM has won many awards for its services and offerings over the years, including:
Overall, due to a long history of responsible behavior, strong international regulations, and wide industry recognition, we consider XM to be a trustworthy and safe broker.
Xerx Lugnar
Sep 14 2023
According to the article, it appears that both brokers offer real micro accounts. In addition to having micro accounts, the required deposits for these accounts are also in micro amounts. For instance, XM's minimum deposit is $5, while FBS requires only $1. This means that both brokers offer very low deposits, which is beneficial for beginners who want to try Forex Trading without having to deposit a lot of money. However, I am not entirely sure about the concept of a "micro account." While I understand that a micro lot has a standard value of 0.01 lot, they are uncertain about the volume of trading for a micro account, whether it is the same as a standard account or lower.
Whalien
Sep 15 2023
The concept of micro account is the minimum volume you can trade is 0.01 lot. And it is actually not to different to standard account but some brokers may limited your trading. From the maximum lot you can open in one trade to the instrument asset that you can trade. Meanwhile, the standard account can offer more wider and more freedom in trading. And there is also big different in the spread and commissions since the micro account may offer lower commission and higher spread or vice versa.
So, for me, the micro account is actually standard account that limited by broker.
Liam Melker
Sep 16 2023
You know, if you are a beginner trader that little knowledgeable about the Forex world would be interested in the minimum deposit offered by XM. I mean for only 5 dollars even unemployed people like me can afford 5 dollars to trade or even teenagers can afford. But as I know, in Forex, it still takes a lot of money to trade, right?
What I want to ask:
Is $5 on XM standard account enough to trade? I mean if the trading conditions are also supported by a high leverage of 1:888. As I know if you deposit $100 you can still trade but I'm not sure about $5. And anyway I'm curious, about the lever itself, where I get 1:888 leverage?
Lenan
Sep 17 2023
Man, there are 2 things that become an indicator for you to know if your money is enough to trade or not.
By finding the margin call and stop levels set by the broker and calculate your own margin.
To calculate your margin, it's simple with the following formula:
((Equity-margin)/margin x 100%))
Equity is your deposit and margin is the amount used in trading. Margin can be found simply using the formula (Price x Lot Size / Leverage) or you can simply visit the Forex Margin Calculator on this website
For all the details about margin calls and how to calculate them, you just need to go to this article: Forex Margin Call and Stop Out.
Okay, back to the topics :
For example, trading with $5, leverage 1:888 and trade in the most commonly traded currency pairs, EUR/USD with a standard account and with 0.01 lot. The margin you will get is $1.32.
And margin level that is currently yours is 278%.
Meanwhile, The margin call notification level for the XM forex broker or XM margin level is 50%. XM margin call level means that if account equity drops below 50 per cent, the trader will get a notification that the margin call level is shallow and that there are possibilities shortly that positions be liquidated (forcibly closed). XM stop-out level is 20%.
It is enough to do 1-2 entries in there since the margin call level if you trade 2 times is only at 178% and remember to trade with 0.01 lot!
Fernandes
Sep 18 2023
I think for beginners it is better to use this $5 deposit to practice. I don't see any chance of profiting from it. I mean you also need to calculate the spread that occurs in the trade.
Yes, you can trade with 5 dollars but with a note, only 1 out of 2 trades, right? I think both of these exchanges must be profitable. If you lose once your margin will be limited to 1 and if you don't manage your risk your loss can be bigger and with just one trade you will be required to deposit.
Ok Imagine if we are trading with 0.01 with leverage of 1:888, the required margin is $1.32. The pip value if you trade with 0.01 lots is $0.10 (Standard = $10, Mini = $1 and Micro = $0.10).
The remaining equity is $3.68 and also margin free is also $3.68. For example, if you lose 25 pips, the loss you get is 25 pips x 0.1 USD = 2.5 USD, and the free margin you have left is 1.18 USD. Based on the calculation, your margin on a trade that lost 30 pips is 89%, which is the margin call. So the maximum number of pips you can lose if you trade for 2 trades is 12 pips. You have to be very careful with trading, especially day trading and this is very limited trading.
Vanacrono
Sep 18 2023
There are so many accounts that I can choose in XM. Surprisingly we can choose the account without the need to pay any commission which is good for beginner traders. I mean, as you know, sometimes the brokers will charge commission in trading and can reduce the significance of your profit. Based on XM, there are 3 types that we can choose and I am confused to choose that. So, What factors should a trader consider when choosing an account type on XM, and how do these factors relate to their trading strategy, level of experience, and risk tolerance?
Vermillion
Sep 19 2023
Hi there! I think you need to pay attention for this. Firstly, you should consider the trading platform that you prefer to use, as XM offers two types of trading platforms: MetaTrader 4 and MetaTrader 5. You should choose an account type that is compatible with your preferred trading platform.
XM offers three main account types, including the Micro, Standard, and XM Ultra Low accounts. Each account type has different features and trading conditions that suit different trading needs and goals. The Micro account is ideal for beginners who want to start trading with small amounts of money, while the Standard account is suitable for more experienced traders who want to trade larger contract sizes and have access to more trading tools and features. The XM Ultra Low account is suitable for traders who want to trade with tight spreads and without any commissions.
You should also consider the level of leverage offered by XM, as high leverage can increase your potential profits, but also increase your risk. You should choose a leverage level that matches your risk tolerance and trading strategy.
Additionally, you should consider the trading instruments offered by XM, which include Forex, CFDs, and cryptocurrencies. You should choose an account type that offers the trading instruments you want to trade.
Finally, you should consider the trading conditions offered by XM for each account type, such as spreads, commissions, and trading hours.
Punch T
Sep 20 2023
Additional information, in my opinion, if you are a scalper, then XM's Ultra Low account might be a suitable choice for you. This account type is specifically designed for scalping and offers some of the lowest spreads on the market, starting from 0.0 pips. Additionally, the Ultra Low account does not charge any commissions, which can further reduce trading costs.
It's important to note that XM offers some of the tightest spreads on the market, which can be beneficial for scalping. Furthermore, XM allows hedging and scalping strategies, allowing traders to take advantage of short-term price movements in the markets.
As a beginner and scalper, the Ultra Low account may be the best option for you. However, it's important to remember that when choosing an account, you should consider your individual needs and trading goals to ensure that the account type you choose meets your requirements.
Phil Khun
Sep 20 2023
Hello good morning senior traders, even though I'm still just reading articles about the world of trading, I am very enthusiastic when I hear and read things related to trading information and other instructions that will make me a successful trader. I am interested in the article presented by this author, it is very useful, and straightforward and the choice of words is easy for trader readers to understand, even if those reading it are beginners like me.
But after I researched it further, it seems like XM is less developed in the US. Why does this happen? Why is the XM US broker trading account opened late?
Kelly
Sep 21 2023
Dude, as far as I know XM does not accept US traders due to US Regulatory Authority regulations: CFTA. And your regulator also prohibits traders from dealing with an unregulated broker. This is because of US tax policy and since unregulated brokers are not allowed to operate there, it means they don't have to pay taxes there. Or in other word, trader can easily trade without taxes in there.
It is also to prevent US traders from avoiding their taxes. so usually when you sign up there will be a note that they don't accept US clients due to regulations and if you are asked and you say no the documents uploaded after the confirmation step will be pending . And it restricts you from opening an account directly in XM
Punch T
Sep 22 2023
That's right, not many brokers accept US traders. One of the main reasons why forex brokers do not accept US clients is because of the strict regulations imposed by the US government. The US government has implemented a number of regulations regarding forex brokers, including the Dodd-Frank Act which was introduced in 2010. This law requires forex brokers to register with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) which can be a lengthy and expensive process.
Apart from that, forex brokers are also required to fulfil a number of other requirements, including maintaining minimum capital requirements and submitting regular financial reports to the authorities. These regulations can be difficult for forex brokers to comply with, which is why many choose not to accept US clients.
Well despite the many regulations in the US, it is important to remember that these regulations are designed to protect traders and ensure that the forex market operates fairly and transparently. As a result, it is important to choose a regulated and trustworthy forex broker, even if they do not accept US clients.
Apart from these reasons, In the US, forex brokers are only allowed to offer a maximum leverage of 50:1 on major currency pairs and 20:1 on minor currency pairs. This is much lower than the leverage that is offered by brokers in other countries, such as Australia and Europe, where leverage of up to 500:1 is available. The restrictions on leverage in the US can make it difficult for traders to make a profit, as they are not able to take advantage of the same level of leverage that is available in other countries. As a result, many traders choose to use offshore forex brokers that offer higher leverage, which is why many US forex brokers do not accept US clients.
This is all done to protect traders from fraud and cyber crime.
Sonny
Nov 25 2023
It's mentioned that XM's Micro Account offers a variety of base currency choices, including USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, and ZAR. The contract size for this account is fixed at 1 lot, equivalent to 1,000 units of the selected base currency. Additionally, traders can benefit from a substantial leverage of 1:888. I'm curious about the concept of 1,000 units and how it relates proportionally to other unit sizes. Furthermore, is a leverage of 1:888 considered safe for beginners in trading? Also what is base currency that mentioned in here?
Johan
Nov 29 2023
In the context of XM's Micro Account, when we talk about 1,000 units, it essentially refers to the quantity of the chosen base currency. So, if you're dealing with USD, for instance, 1,000 units would mean $1,000. The proportionality comes into play if you use a different unit size; for example, if you were dealing with 10,000 units, it would be $10,000.
Now, regarding the leverage of 1:888, it's crucial to approach it with caution, especially for beginners. While high leverage can amplify potential profits, it also magnifies the risks. Using such high leverage requires meticulous risk management, as the same proportion that can multiply gains can equally increase losses. For beginners, it's often recommended to start with lower leverage and gradually increase as they gain experience and confidence. Always trade within your comfort zone and employ risk management strategies to ensure a safe trading environment.
Hasnih
Nov 29 2023
Johan
Dec 1 2023
Let me break it down for you! First off, if you're looking to kickstart your trading journey without diving in with a massive stash, the Micro account is where it's at. You gotta get the lowdown on this account – know the deal with trading costs, the leverage they offer, and what's up with the spreads. It's all about making a savvy choice, you feel me? Now, the Standard account is like the all-around champ, catering to a wide range of traders. It's got its own perks with different trading costs and leverage options to spice things up.
But, if you're all about them low spreads and need things to move in the blink of an eye, the XM Zero account might be your jam. Take a deep dive into the nitty-gritty details of each account type to see if they match up with what a scalper like you needs. Check out the costs, see what leverage is up for grabs, and get the lowdown on those spreads. I'd say, especially if you've got some trading stripes, give the Zero account a whirl for your scalping game.
Octa
Dec 22 2023
What factors should be taken into account when selecting the most suitable XM account type based on your trading requirements and objectives? Specifically, what distinctions exist in terms of trading costs, leverage, spreads, and other critical criteria among the Micro, Standard, and XM Zero account types? Furthermore, how can traders assess their risk tolerance and trading strategies to identify the most appropriate account type for their needs? Lastly, what are recommended approaches for initiating and financing an XM account, and how can traders make optimal use of XM's educational and research resources to enhance their trading outcomes?
Kelvin
Dec 26 2023
Hey there, in my opinion, when choosing the ideal XM account type for your trading goals, several key factors come into play. It's crucial to understand how the features and benefits differ among the Micro, Standard, and XM Zero accounts, particularly in terms of trading costs, leverage, spreads, and other essential criteria. Evaluating your own risk tolerance and trading strategies is equally important to determine which account type aligns best with your needs.
Practical considerations also come into play when opening and funding an XM account. Exploring the educational and research resources offered by XM can significantly contribute to your trading success. Taking advantage of these resources enhances your understanding of the market and can inform your decision-making process. FYI, you can read about the first step in trading : Start Forex Trading: Three Steps To Place Your First Order before you choose your broker!
Tonny
Dec 26 2023
Hey there, I'm eager to understand the concept of hedging in trading. The article mentions that XM's accounts, specifically designed for beginners such as Micro, Standard, and Ultra Low Micro, do not allow hedging. Could you shed some light on why hedging is restricted in these accounts meant for novices? Furthermore, I'm curious about the potential dangers associated with hedging, especially if undertaken without proper caution. It would be great to get some insights into the specific risks involved in hedging activities for those who are just starting out in the trading world. Thanks!
Insigne
Dec 28 2023
Hey there! Hedging in trading involves offsetting the risk of one investment by making a second investment. Now, concerning XM's accounts designed for beginners like Micro, Standard, and Ultra Low Micro, the restriction on hedging could be aimed at simplifying the trading experience for novice traders. Hedging strategies can be complex and may not align with the learning objectives or risk tolerance of beginners. (read : Why Hedging is Not Allowed in Some Countries?)
As for the risks associated with hedging without caution, it's essential to understand that while hedging can mitigate some risks, it's not foolproof. Poorly executed hedging strategies could lead to reduced profits or even losses. Additionally, hedging might involve additional costs such as spreads or fees, impacting the overall returns. Novice traders may lack the experience needed to navigate the complexities of hedging effectively, making it potentially risky for them.
Christian Dante
Feb 22 2024
The article mentions that XM provides multiple account options, including Micro and Standard accounts, both of which I've personally tried. It explains that in a Micro account, each micro lot represents 1,000 units of the base currency, while in a Standard account, one standard lot equals 100,000 units of the base currency.
However, when I traded with 0.1 lot, I didn't notice any difference between the two account types. So, I'm curious to know if there's actually any distinction, and if so, could someone provide an example to clarify?
Muller Sebastian
Feb 26 2024
Hey there! In a Micro account, where 1 micro lot represents 1,000 units of the base currency, trading 0.1 lot would equate to 100 units of the base currency (0.1 lot x 1,000 units/lot = 100 units).
On the other hand, in a Standard account, where 1 standard lot equals 100,000 units of the base currency, trading 0.1 lot would amount to 10,000 units of the base currency (0.1 lot x 100,000 units/lot = 10,000 units).
So, even though you're trading the same lot size of 0.1, there's a significant difference in the actual amount of currency being traded between the Micro and Standard accounts. In this case, trading 0.1 lot in a Standard account involves a much larger volume of currency compared to trading the same lot size in a Micro account. (also read this article about micro, so you will know instantly the different between micro and standard : Cent Vs Micro Account, Which One Is Better?)