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XM is a well-known Forex broker that offers a variety of accounts to fit the needs of all traders. Micro, Standard, Ultra-low, and Shares accounts are available on its website. Down below, we will focus on the XM Ultra-low account, its pros and cons, and see if this account is suitable for you.
Generally, the XM Ultra-low account is a great option for those looking to trade with small account sizes. Let’s discover more about it together.
At the moment, you can find a lot of online trading platforms, but it is important to find a reliable and suitable one for you, based on whether you are a beginner or a professional with a lot of experience.
The XM platform has many important features one can benefit from when choosing between accounts to trade on. Each trading account on XM has its own trading features which can make a huge difference in your trading experience. So let’s take a look at these features and review the most important ones.
The first thing we would like to discuss is leverage. For XM Ultra-Low accounts, the lowest leverage ratio is 1:100, while the maximum leverage goes up to 1:200. This is an excellent range because most regulatory agencies have specific constraints, and regulated businesses always have to obey the rules in order to remain licensed. Because XM is a registered brokerage business, the leverage ratio given for the XM Ultra-Low account is fully acceptable and follows both CySEC and IFSC qualifying guidelines.
In addition to this, leverage of up to 1:200 is not very risky compared to leverage that goes all the way to 1:1000. So, in case your trade is unsuccessful, you might not have to deal with huge losses.
Spreads are another key thing to keep an eye on when choosing Forex brokerages. For the XM Ultra-Low account, spreads on all majors are as low as 0.6 pips. You should be aware of the spread's cost, but keep in mind that the spread should be seen in context. When there is a lack of liquidity and spreads are increasing, a person should probably think twice before trading. The XM Ultra-Low account has some decent spreads. What you do with it though, is entirely up to you.
The most ideal base currency possibilities are available with the XM Ultra-Low account. It offers just enough options, compared to its competitors, as a trader has a sufficient number of alternatives from which to pick. Users of this account type get access to the most popular currency pairings. The following are the Ultra-Low account's possible base currencies: EUR, USD, JPY, and GBP. The currencies given above are the most common currencies on XM live account and outside it as well.
The quantity of investment capital deposited by the trader is measured by contract sizes. There are several contract sizes available for the XM Ultra-low account. One lot for the normal Ultra-Low account is 100,000, whereas one lot for the Micro-Ultra is 1,000.
Contract sizes vary by asset type, but financial firms normally standardize them. Traders and brokers who use it make the market far more transparent, straightforward, and efficient without having to complete a lot of extra paperwork.
We've looked at a lot of basic information concerning the XM Ultra-Low account, and have discussed its main features. Now we'll look at the data and see what the XM Ultra-Low account has to offer in terms of pros and check out what the downsides might be.
The XM site offers negative balance protection for any kind of account. It means that XM live account’s operations are always protected when trading on margin. Even if the market circumstances will change quickly against your trades, you will never go into a negative balance. It's a fantastic tool for managing one's account risk.
Another advantage for traders might be the trade volume. It's a good approach for developing one's trading abilities. The term refers to the amount of a certain asset that has been exchanged in a given amount of time. The transaction volume for an XM Ultra-Low account can be as low as 0.01 lots.
XM also allows their customers to hedge. For many experienced traders, this is a highly beneficial technique if implemented with the correct planning. The only exception, in this case, is the shares account.
Another advantage of the XM Ultra-Low account is that you won’t have to pay any commissions.
Finally, the XM Ultra-Low account minimum deposit is quite affordable. For an XM Ultra-Low account it’s just 5$, which makes it an attractive offer and very affordable to beginner traders.
The XM Ultra-Low account also has some downsides. The inactivity fee is one of the bad parts of owning an XM live account. If your account has a record of 1-year inactivity, you will be charged a $15 one-time fee, followed by a 5$ fee for each month that the account remains unused.
Unfortunately, the company can also not provide full protection for non-EU customers, which is another important con to consider.
All of the XM live accounts accept different minimum deposit amounts. In the case of the XM Ultra-Low account, the minimum deposit is 5$. This is a relatively good price for beginners who just want to start trading.
The standard lot for XM Ultra-Low accounts is 0.01, which is quite good for beginners, compared to other types of accounts.
Yes, the XM Ultra-Low Account is a good choice for beginners. If you are a beginner with a deposit of just $5, you get access to over 700 instruments. You'll also get leverage of up to 1:100 and tight spreads from as low as 0,6 pips. On top of that, there's no commission on trades. So you can focus on your trading and not worry about the cost. If you're looking for a beginner-friendly account with great value, the XM Ultra-Low Account is the perfect choice for you.