XM ultra low account vs Standard account

XM is a highly experienced multi-asset broker that is respected around the globe. Established in 2009, the broker has successfully amassed a user base exceeding 5 million traders from 190 countries. XM is well regulated in multiple jurisdictions such as the UK, Australia, Cyprus, Dubai, and Belize.

XM offers over 1200 tradable instruments to its clients from various asset classes, including currency pairs, shares. Indices, commodities, and crypto. The broker offers high leverage of up to 1000:1 to its clients.

There are a million ways to make money in the markets. Each trader has a different personality and trading style. Some traders prefer to trade actively such as intraday traders, scalpers, news traders, and High Frequency Traders (HFT). Others are less active in the market and spend more time in market analysis, such as swing traders and position traders. In order to meet the needs of different trader types, XM offers Micro, Standard, XM Ultra Low and Shares accounts.

Micro accounts are best suited for beginners and strategy testers that wish to test their trading strategies live with low risks. Traders interested in equities can open a Shares account, which is a dedicated share trading account with minimum initial deposit requirements of 10,000 USD.

For trading Forex and CFDs (Contracts for Difference) the most popular account types are Standard account, and XM Ultra Low. We’ll compare both platforms with each other in this article and explain their unique features.

Standard Account vs XM Ultra Low Account comparison

Standard and XM Ultra Low accounts are the most popular Forex trading account types with XM. Both accounts are easy to open as there are low barriers to entry. Traders can open both accounts with as low as 5 USD initial deposits. Let’s take a look at the comparison table below for more information.

XM Standard account

The standard account is a popular option for beginner traders and professionals that prefer to trade less frequently such as swing traders and position traders. The account type offers higher spreads than the XM Ultra Low account, on the other hand, there are more base currency options available. Traders can open live accounts in the following currencies: USD, EUR, GBP, JPY, CHF,‎ AUD, HUF, PLN, SGD, or ZAR. By choosing the account currency that you use the most in your daily transactions you can save a lot of money on currency conversions.

Maximum available leverage on the Standard account is 1000:1, however, leverage might be lower depending on your location. Leverage availability is capped in some countries and brokers have no other option but to stay in line with local regulations. Choosing a high leverage can be dangerous for some traders, especially for beginners, as leverage can increase trade sizes dramatically. Leverage is often referred to as a double-edged sword as it can amplify returns as well as losses.

XM Ultra Low account

The Ultra Low trading account is best suited for active traders such as day traders, news traders, algorithmic traders, scalpers, and High Frequency Traders (HFT). The spreads on this account start as low as 0.6 pips. Traders that place orders frequently, prefer low spreads as this way, they can save fees on trading. Maximum available leverage is 1000:1. Available account currencies are EUR, USD, GBP, AUD, ZAR, and SGD.

Hedging is allowed for both account users. Hedging strategies in Forex are utilized to manage risks. The primary purpose of hedging is to minimize the impact of potential losses due to increased currency fluctuations. In general, traders that hold long positions open hedging positions in the opposite direction to minimize risks, and when the risks are gone, the hedging positions get closed. It should be noted that hedging strategies are difficult to implement and require good understanding of the markets.

Both Standard and XM Ultra Low trading accounts support Islamic trading by offering swap free versions of these accounts. In the Islamic finance, the payment or receipt of interest is strictly prohibited. In order to make trading available for Muslim traders, the swap-free accounts charge zero interests. Instead, trading fees are increased. In addition, it should be noted that some tradable instruments are absent on the swap-free accounts.

Key Takeaways

To sum it all up, XM is a reputable multi asset broker that offers various account types to meet the needs of different trader types. The most popular Forex and CFD trading accounts are XM ultra low account and Standard account. The Standard account is best suited for beginners and traders that place orders less frequently such as position traders and swing traders, spreads on this account start from 1 pips on EUR/USD. The XM Ultra low trading account is best suited for active traders such as intraday traders, scalpers, news traders, high frequency traders, and algorithmic traders. The Ultra low account offers lower spreads starting from 0.6 pips. Maximum available leverage is 1000:1 for both accounts, and the minimum initial deposit required to open an account is as low as 5 USD.