Does XM allow scalping?
Scalping has become a relatively common practice on an array of broker platforms. Although the procedure can be highly lucrative, it takes time and effort to understand and perfect. Therefore, it is not recommended for everyone, especially not those who need help understanding the investment realm and/or the types of financial products they are investing in. Nevertheless, taking the time to research and investigate can enable users to find the best platforms and practices for scalping. The following is a closer look at how XM handles scalping.
What are the trading restrictions on XM?
XM has a limit of 100 lots per ticket. However, the restrictions you are bound by depending on the type of account. For instance, when using the Standard Account with XM, 1 lot is 100,000. It has a restriction of 50 lots per ticket and a minimum trade volume of 0.01 lots. When using micro accounts, 1 lot is 1,000 with no commissions. Islamic accounts have a limit of 100 lots per ticket.
XM is considered to be highly suitable for scalping. This is primarily because it offers no restrictions on scalping. However, the account type plays a major role in the process. This is because every account type is bound by an entity under which the XM follows regulatory obligations– traders can use leverage on a scale from 1:1 to 888:1. So, if you want to better understand which leverage you can use, you can simply refer to the conditions of your residency.
XM execution speed, fees, and spreads
The XM platform recently updated the maximum leverage to 1:1000. However, leverage 1:1000 does not apply to clients registered under the EU-regulated entity – The maximum leverage for the Trading Point of Financial Instruments is 30:1.
XM also has no restrictions on scalping trades. However, even though XM sets a limit to high leverage(1:1000) when traders prefer scalping once a crucial economic event makes the news. Otherwise, there are no restrictions on making scalping trades.
Additionally, clients can conduct as many EA or cross-trade within the same XM account as they wish. However, cross-trade between multiple XM accounts or cross-trade between XM and other brokerage houses (or cross-trades with other brokerage houses' FX accounts) are strictly prohibited. XM fees are flexible– all trading costs are calculated into the spreads with the tightest spread offering and no hidden fees.
XM Spread and Fees Explained - Is It Cheap Broker?Here is a chart of the most common spreads on XM:
| EUR USD Spread | 1.6 pips | 1.5 pips | 1.3 pips |
| Crude Oil WTI Spread | 5 pips | 9 pips | 3 pips |
| Gold Spread | 35 | 9 | 40 |
| BTC USD Spread | 60 | 20 | 0.75% |
Comparison of scalping conditions at XM and its competitors
| XM | Tickmill | Pepperstone | |
|---|---|---|---|
| Average commission | $3.5 per lot plus a small spread cost | EURUSD Pro account: $2.00 commission per lot per trade plus spread cost. 0.2 pips is the average spread cost during peak trading hours.
GBPUSD Pro account: Pro account: $2.00 commission per lot per trade plus spread cost. 0.5 pips is the average spread cost during peak trading hours. |
$7 per round turn on a 100,000 |
| EURUSD average spread | 0.1 Pips | 0.1 Pips | 0.09 Pips |
FAQ
Can you change your account type on XM?
Unfortunately, you cannot change your account type on the XM platform. However, you can have up to 8 accounts. Therefore, if you wish to use a different type of account, you simply need to apply for a new account.
How long does it take to withdraw funds on XM?
After 24 hours, XM completes the withdrawal. However, the time it takes to receive your funds depends on the method by which you request them. For instance, it takes two to five working days for a bank transfer, while it takes anywhere from a week to a month when using a credit or debit card.
What account types are available on XM?
XM offers the following account types:
XM Standard Account
XM Micro Account
XM Ultra Low Account (Standard)
XM Ultra Low Account (Micro)
XM Shares Account
Can you trade crypto CFDs on XM?
Yes, you can trade cryptocurrency CFDs on all account types available on XM.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.