This article explains how to use the MT fund balance when using an xmtrading account. For those who have just started FX, there may be times when you don’t understand the meaning of terms while trading. When you first started trading with MT4/MT5, you may have wondered, “What is credit?” or “What is the difference between balance and credit?” When you first start using it, you may be confused because you don’t know what the notation means, so I’ve written an article about the difference.
- XMtrading
- XM Overview and Features
- What is XM’s Balance?
- What is XM Credit?
- The Difference Between Balance and Credit (Bonus)
- Balance and Credit Rules
- How to Check Your Balance and Credit (Bonus)
- How to Reset a Negative Balance
- How to Reset Your XM Demo Account Balance
- What are the leverage restrictions based on account balance?
- Frequently Asked Questions
XMtrading
| Operating company | Tradexfin Limited Fintrade Limited |
| Head office location | Unit E, F28, Eden Plaza, Eden Island, Republic of Seychelles |
| Founding year | 2009 |
| Financial License | （FSA）SD010：Tradexfin Mauritius Financial Services Commission (FSC：)：Fintrade Limited Cyprus Securities and Exchange Commission (CySEC)：Trading Point of Financial Instruments Ltd |
| Language support | English、日本語、Malay、Thai |
| Platform | MetaTrader 4 (MT4)／MetaTrader 5 (MT5) |
| Service Countries | Over 190 countries |
| Number of users | Over 1 million accounts |
| Max Leverage | 1000x |
| Eligible products | Forex、Metal、Stocks、Equity Indices / Index CFD、Energy CFD、Commodities、Cryptocurrency |
XM Overview and Features
This guide provides a beginner-friendly overview of XM (often referred to as XMTrading in Japan), including its features and characteristics. We’ll introduce the features before going into detail. Remember that investing involves risks, so read the terms and conditions carefully before depositing the maximum amount and completing the paperwork. There are ongoing bonuses and campaigns, as well as free features and programs; please check them out.
XM Overview
XMTrading is a widely known overseas FX and CFD broker.
It primarily offers trading in FX (foreign exchange), gold, crude oil, stock indices, and stock derivatives, and is often used for its Japanese language support and high leverage. According to official information, it supports over 1,400 instruments and MT4/MT5/WebTrader.
1) High Leverage of up to 1,000x
A major feature of XM is its high leverage, which makes it easy to conduct large trades even with small capital.
Standard, Micro, and KIWAMI accounts offer a maximum leverage of 1,000x, while the Zero account offers a maximum leverage of 500x.
Advantages
Easy to trade even with small amounts of capital
Easier to improve capital efficiency
Points to note
Profits and losses can be large
It is dangerous for beginners to start with high leverage right away
2) Multiple account types to choose from
XM is characterized by its ease of choosing an account type that suits your trading style.
The main differences are as follows:
Standard Account: General and suitable for beginners. A good option if you’re unsure.
Micro Account: Suitable for small-amount practice. Makes it easy to reduce the trading volume per trade.
KIWAMI Account: Suitable for those who prioritize spreads.
Zero Account: Suitable for intermediate to advanced traders who prioritize narrow spreads and consider commissions.
For beginners, the Micro Account or Standard Account are relatively easy to understand.
3) MT4/MT5 compatible
XM supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which have many users worldwide.
Advantages
Easy chart analysis
May allow the use of automated trading (EA)
Abundant information and explanations, making it easy to learn
Especially for those who want to start overseas forex trading, the ability to use MT4/MT5 is a significant advantage.
4) Relatively comprehensive Japanese support
XM provides services for Japan, including a Japanese member page, app, help section, and live chat.
The app also provides guidance for account management and inquiries.
Reasons why it’s suitable for beginners
Easy to start even if you’re not good at English
Less confusing with deposits, withdrawals, and account settings
The platform’s support team will quickly answer any questions you have, from whether it supports scalping and hedging, to order execution in the market, the price movements and mechanisms of financial instruments, and even how to install and download the MT4 smartphone app. They may even provide solutions to their partners in real time.
5) Multiple deposit and withdrawal methods
XM supports multiple withdrawal methods, including domestic bank transfers, cards, online wallets, and cryptocurrencies.
This is advantageous in terms of ease of use, but the actual processing time, fees, and conditions vary depending on the method, so it’s necessary to check before starting. There’s plenty of information available, and it supports Sticpay and debit cards, making it very user-friendly. If you have the opportunity, you should try it as soon as possible.
6) Frequent bonuses and campaigns
XM is often known among overseas forex brokers for its account opening bonuses and deposit bonuses.
Bonus promotions are also featured on the official website.
Advantages
Easy to start with minimal initial capital
Easy to use for practice
Points to note
Be sure to check the “withdrawal conditions,” “eligible accounts,” and “eligible regions” for bonuses
Starting solely for the bonus is not recommended
You can ask questions about the event details. There are also noteworthy affiliate programs, giveaways, and contests. The event is streamed on both browsers and smartphones, so anyone can view the special offers on the website.
What is XM’s Balance?
XM’s “Balance” refers to the “realized funds” in your account at this very moment.
To put it simply, the balance is the “realized funds” that do not include unrealized gains or losses that have not yet been settled.
For example:
Deposit 100,000 yen
Second trade: Realized gain of +5,000 yen
Second trade: Realized loss of -2,000 yen
Then the balance = 103,000 yen.
At this point, even if you still have open positions with unrealized gains of +8,000 yen or unrealized losses of -8,000 yen,
this is not yet reflected in the balance.
The difference between “Balance” and “Effective Margin”
This is where XM beginners often get confused.
Balance
→ Realized funds
Equity
→ Current account balance
In other words,
Equity = Balance + Unrealized Profit/Loss + (Credit/Bonus depending on account conditions)
XM’s guide also displays “Balance,” “Equity,” “Required Margin,” “Excess Margin,” and “Margin Maintenance Ratio” separately on the account screen.
Understanding with a concrete example makes it clear.
Example 1: When you have no open positions
Deposit: 100,000 yen
Open Positions: None
In this case
Balance: 100,000 yen
Equity: 100,000 yen
→ Same.
Example 2: When you have unrealized profits
Deposit: 100,000 yen
Current unrealized profit: +7,000 yen
In this case
Balance: 100,000 yen
Effective margin: 107,000 yen
→ Since you haven’t realized the profits yet, the balance won’t increase.
Example 3: When you have unrealized losses
Deposit: 100,000 yen
Current unrealized losses: -12,000 yen
In this case
Balance: 100,000 yen
Effective margin: 88,000 yen
→ In this situation, what’s important is the effective margin, not the balance.
What is XM Credit?
XM’s “Credit” refers to the “trading bonus funds” provided by XM.
To put it simply:
With XM, your account has two components:
Balance (your own money)
Credit (XM bonus)
For example:
If you deposit 100,000 yen
XM provides 50,000 yen in credit
Then, visually, it will look like this:
Balance: 100,000 yen
Credit: 50,000 yen
In this case, your trading capacity will be close to 150,000 yen.
In other words, the biggest feature of credit is that it increases the available margin you can use. XM’s guidelines also state that deposit bonuses are “usable as effective margin.”
The Role of Credit
Simply put, credit is “supplementary funds for trading.”
What you can do:
Can be used as margin for taking positions.
Increases your resilience before a stop-loss is triggered.
Makes trading easier with a little more leeway, even with small deposits.
What you cannot do:
Withdrawal of the credit itself.
Using the credit directly as cash.
This is quite important.
Example 1: Account with credit
Deposit: 100,000 yen
Credit: 50,000 yen
The image in this case is:
Balance: 100,000 yen
Credit: 50,000 yen
Effective margin base: Equivalent to 150,000 yen
In other words, even though you only deposited 100,000 yen, you have the margin power of 150,000 yen, making trading easier.
Example 2: When a profit is made
Deposit: 100,000 yen
Credit: 50,000 yen
Profit: 20,000 yen confirmed
In this case:
Balance: 120,000 yen
Credit: 50,000 yen
This is how it works.
The important thing here is that
the profits will be added to your balance as your own money.
The Difference Between Balance and Credit (Bonus)
The difference between XM’s “Balance” and “Credit (Bonus)” can be summarized as follows:
Balance
Money you deposited
Realized profits
Money after realized losses have been reflected
Generally, this is withdrawable
Credit (Bonus)
Trading funds provided by XM
Can be used as margin
Cannot be withdrawn directly
However, profits generated using this credit can be withdrawn
For example:
You deposit 100,000 yen
XM grants you a 50,000 yen credit
At this time, your account balance will look like this:
Balance: 100,000 yen
Credit: 50,000 yen
In other words,
Your own money is 100,000 yen, but your trading capacity is close to 150,000 yen.
The most obvious difference is “whether or not you can withdraw it”
Balance
→ Withdrawable
Credit
→ Not withdrawable
This is the biggest difference. For example, if your account has:
Balance: 100,000 yen
Credit: 50,000 yen
This doesn’t mean you can withdraw all 150,000 yen just because you have 150,000 yen.
Basically, you can only withdraw from your balance.
Credit is merely supplementary funds to assist with transactions.
Balance and Credit Rules
XM’s balance and credit rules are crucial for beginners, especially when it comes to understanding the distinction between “your own money” and “bonus money.”
Balance is “your own money”
Money deposited
Realized profits
Money after realized losses have been reflected
→ This is generally money that can be withdrawn.
Credit is “XM bonus”
Account opening bonus
Deposit bonus
Trading funds granted through some campaigns
→ Can be used as margin, but cannot be withdrawn directly.
Profits can be withdrawn
Even when trading using credit,
the profits generated will increase as “balance,”
so the profit portion is eligible for withdrawal. XM also states that “profits earned from trading using bonuses are withdrawable.”
Credit may decrease when withdrawing
This is a very important rule at XM.
When you withdraw funds from your balance, your credit (bonus) may decrease proportionally.
This is clearly stated in the deposit bonus information.
There are some restrictions on trading using only credit.
XM’s loyalty rules stipulate that:
The way points and some campaigns are counted differs depending on whether the trade is made using only credit or a combination of balance and credit.
In particular, sometimes only the portion made with your own balance is eligible.
The most important “usage rules”
At XM, both balance and credit can be used as margin.
That is, for example:
Balance: 100,000 yen
Credit: 50,000 yen
Then, your apparent trading strength is close to 150,000 yen.
In this situation, credit plays a very important role in calculating required margin and margin maintenance ratio.
At XM, margin calls and stop-loss orders are triggered based on required margin and effective margin.
How to Check Your Balance and Credit (Bonus)
To check your XM balance and credit (bonus), you only need to remember two methods: “How to view it on MT4/MT5” and “How to view it on the XM Member Area.” XM’s system also has a notification function; you’ll receive a notification if your balance becomes dangerously low. Use this feature immediately before a stop-loss is triggered.
① How to check it in MT4/MT5 (Most practical)
This is the easiest way to view it during actual trading.
Steps
Open XM’s MT4 or MT5
Open “Terminal” (MT4) or “Toolbox” (MT5) at the bottom of the screen
Click the “Trade” tab
View the account information section below
The official XM guide also states that you can check your margin information here.
The main items displayed are as follows:
Balance
Equity
Margin
Free Margin
Margin Level
Profit
In MT5, the “Credit” column is also displayed. XM’s guide explains that “Credit = Bonus earned with XM” in the MT5 trading tab.
② How to check on the XM Member Page (Convenient for checking bonuses)
If you want to see if your credit has been properly credited, the Member Page is quite easy to use.
Steps
Log in to the XM Member Page
Display the target trading account on the home screen
Click the “…” in the lower right corner of that account
Open “Account Information”
Check the “Credit” column
XM-related guides state that deposit bonuses can be checked in the Member Page under “Account Information” → “Credit”.
Reasons why the Member Page is easier to view:
The Member Page is easier to understand than MT4/MT5 in terms of:
Which accounts have bonuses?
Which accounts are eligible?
The status of bonuses and campaigns
③ How to check using the XM app (easiest on smartphones)
If you’re viewing on a smartphone, the official XM app is very easy to use.
Steps to view your balance using the XM app:
Open the XM app
Tap “Orders”
Tap the wallet icon in the upper right corner
Check your account information
According to the XM app guide, you can check the following here:
Account balance
Profit/Loss
Effective margin
Required margin
Margin maintenance ratio
Excess margin
and more.
How to Reset a Negative Balance
To reset a negative balance on XM, basically think of it this way:
Check if all positions are closed.
If there are open positions remaining, profit and loss are still being adjusted, so it may not immediately return to zero.
Where to check:
MT4/MT5 “Trade” tab
XM app order screen
Here you can check your balance, effective margin, and profit/loss. XM’s guide also indicates that you can check margin information in the MT4/MT5 “Trade” tab.
Wait a while.
XM’s negative balance reset is often automatic.
In other words, even if your account balance becomes negative due to:
Forced stop-loss
Sudden fluctuations
Gaps (opening/closing)
Weekend jumps
XM usually adjusts it to zero. Since XM offers a “negative balance reset,” this is the expected behavior.
If it doesn’t return to normal after some time, contact support.
This is the most reliable method.
If
your account balance remains negative after several hours to the next business day
contacting XM support is the quickest solution.
What should I do if it remains negative?
The most reliable solution is to contact support.
At XM, in situations like this, it’s faster to contact support than to try changing any settings yourself.
What to provide when contacting support
Sending the following information will help expedite the process:
Account number
Date and time the balance became negative
Current balance
Whether all positions are closed
MT4/MT5 screenshot (helpful)
How to Reset Your XM Demo Account Balance
The easiest way to reset your XM demo account balance is, in effect, to “create a new demo account” by applying through the platform. This will automatically reset your balance. Alternatively, if you contact support, they will compensate you if you haven’t violated any prohibited actions. It’s as simple as clicking a button. We will provide the latest information on detailed operations and progress. Let’s build up our knowledge base together.
Method 1: Add a New Demo Account (Easiest)
Open the XM app
Tap the “≡” icon in the upper left corner
Open “My Account”
Tap “Account Switching / Add Account” in the upper right corner
Select “Demo Account”
Set the following:
MT4 / MT5
Account Type
Leverage
Base Currency
Investment Amount (Initial Balance)
Creation Complete
The XM app guide also explains that you can create additional demo accounts using this process.
Method ②: Creating a New Demo Account from the PC Member Page
PC Procedure
Login to the XM Member Page
Open “My Account”
Click “Add Account” → “Custom Demo Account”
Set the following:
MT4 / MT5
Standard / KIWAMI Extreme / Zero
Leverage
Base Currency
Investment Amount (Initial Balance)
Account Name
Set a Password and Complete
This method is almost the same as a “balance reset.”
When is it better to reset (recreate)?
In the following cases, it’s faster to recreate.
Examples where recreating is recommended:
You want to start over from scratch after losing your balance
You want to practice with assumed balances of 100,000 yen / 300,000 yen / 1,000,000 yen
You want to try different leverage levels
You want to change from MT4 to MT5
You want to change account types, such as Standard to KIWAMI Extreme
What are the leverage restrictions based on account balance?
It’s important to understand that XM’s leverage restrictions are not based on “account balance” but rather on “effective margin (Equity).”
Standard / Micro / KIWAMI Account
$5 – $40,000 → Maximum 1,000x
$40,001 – $80,000 → Maximum 500x
$80,001 – $200,000 → Maximum 200x
$200,001 and above → Maximum 100x
Zero Account
$5 – $80,000 → Maximum 500x
$80,001 – $200,000 → Maximum 200x
$200,001 and above → Maximum 100x
These criteria are listed in the XMTrading Labo guide.
What is Effective Margin?
Simply put:
It’s the “true total funds” of your current account.
Roughly expressed as:
Effective Margin = Balance + Unrealized Profit/Loss + Credit (Bonus), etc.
This is the general idea. XM’s explanation also states that effective margin includes bonuses and unrealized profit/loss.
Which instruments are subject to this restriction?
XM’s explanation specifically mentions this effective margin-based restriction for:
FX currency pairs
Gold
Silver
XAUEUR (Gold/Euro)
In other words, not all products are subject to the same 1,000x leverage under the same conditions.
Multiple accounts are considered “combined.”
This is quite easy to overlook.
XM states that if you have multiple accounts, the effective margin of all accounts is combined to determine the leverage restriction.
In other words, for example:
Account A: Effective margin $25,000
Account B: Effective margin $20,000
Then the total is $45,000, so
In standard accounts, the maximum leverage limit is 1,000x → 500x, which may apply.
Frequently Asked Questions
Here, we’ve compiled frequently asked questions about XM’s “balance, credit (bonus), and leverage restrictions,” selecting helpful information for beginners. When doing so, be sure to check safety and risk management as well. There are many risks involved with exchange rates, such as Bitcoin and currency pairs.
What is Balance?
Balance is
Your actual, fixed amount of money.
Specifically:
It reflects:
Money deposited
Money gained from profits
Money lost from losses
What is Credit (Bonus)?
Credit is
Bonus funds for trading provided by XM.
What is the difference between Balance and Credit?
Simply put:
Balance = Your own money
Credit = XM bonus
Can I trade using only Credit?
Yes, you can.
However, there are some points to note.
Caution
Even if you trade using only credit, you cannot withdraw the credit itself.
However, you can withdraw the profits generated from that trade.
Some campaigns and point conditions may exclude credit-only trading.
When does credit disappear?
Credit may decrease or disappear in the following situations:
Common cases:
When you withdraw funds
When you transfer funds
When you transfer to an account that is not eligible for bonuses
When account conditions change
When there is a stop-loss or a change in account status
Will credit decrease if I withdraw profits?
It may decrease.
XM has a rule that when you withdraw funds,
a corresponding amount of credit (bonus) will be deducted depending on the withdrawal amount.
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