It is said that XMTrading’s spreads are too wide compared to other companies depending on the account and time of day, making it difficult to win. I will explain them all in this article. XMTrading is a company with wide spreads among FX companies. However, traders dislike wide spreads. Why does XM have wide spreads? This has a deep connection with bonuses.
The reason why the spread is wide and the relationship between the bonus
The reason why the spreads are wide has to do with bonuses. There is a clear reason why the spreads are particularly wide on the Standard account. This is especially because the standard account is rich in bonuses. In addition, the standard account can be leveraged up to 1000 times. Because we provide a full range of services, there is a background that the spread, which corresponds to the transaction cost, is set wide. From the Forex company, they want traders to trade anyway and earn money. Therefore, we are enhancing the bonus to get you to trade.
Bonus system at overseas FX companies
Bonus systems and limited-time campaigns are similar for other companies, and can be found on the official websites of fxdd, iforex, bigboss, fxgt, threetrader, gemforex, exness, titanfx, etc. However, XM has high execution power and can be traded advantageously depending on the time of day. Spreads tend to widen when new trades are held in the market at the time of important economic indicators such as employment statistics. Even if you place an order, the spread will widen, you will not be able to make a profit, and the volatility will be high, so we do not recommend it.
Spread changes in real time
On XM, spreads fluctuate greatly in real time. Cashbacks such as XMP points are also available, but please be aware that depending on the market price and time, your funds may melt before you can use the points as margin. The timing of withdrawals is also important. XM also uses loss cut and zero cut, so it is very safe. We recommend that you try trading with a small amount first. The early morning hours will definitely expand.
Spreads vary depending on the product handled.
Spreads vary depending on the product handled. Please note that investments are completely different depending on spot, futures, currency pairs, precious metals (gold, silver), energy, virtual currency (Bitcoin), stock index, etc. If you are unsure, we recommend pairs with narrow real-time spreads such as the major USDJPY, EURUSD, EURGBP, and GBPUSD. Users should also be aware that swap points will be generated. You can check the spread using the quoted price.
Trade execution power is high overall
For reference, the trading environment is relatively favorable. 100% contract rejection will not occur. You can also rest assured that the server is running stably. You can also select the quantity for trades, choose lots based on chance, and perform high leverage trades. Multiple entries are easy with just one button. Please be aware that there are many holidays such as the year-end and New Year holidays, and you may not be able to trade on some days. We recommend starting with a small amount of capital.
The spread is too wide to win
Some people say that spreads are too wide to win, but this is only for scalping traders. Even if the spread is wide, it does not mean that the price range between buying and selling is 100 pips. If you use a strategy that takes several hours to compete, such as day trading, or a strategy that takes several weeks to trade, such as swing trading, you don’t have to worry about a little spread. In other words, depending on how you fight, the width of the spread will not matter so much.
When economic indicators are announced
The timing of economic indicator announcements is also spread in KIWAMI and ZERO accounts. In terms of domestic Japan time, the night hours are dangerous. There are many different indices such as euros, dollars, and pounds, so be careful in terms of currency units. The correct response is not to trade and to reduce your positions. At the very least, trade with a small amount. Even with the dollar/yen, the amount can easily make a difference and you can end up with the biggest loss. In finance, you can make money by using indicators, but even professionals can incur large losses, so be careful. The basic rule in the industry is not to do it without making additional entries.
Price fluctuations become more intense
When the above economic indicators are in effect, price fluctuations become intense, and in some cases the spreads become wider as a result. Although the management does not mention this, when testing major currencies, they do fluctuate frequently and the spreads become wider locally. If you look at the screen and feel that the liquidity is high, it is best to trade with a smaller amount. Check the lot size every time you click. If you do not have the knowledge, the London and New York markets are dangerous. Since unique price movements occur, use a slightly smaller lot size. Slippage is likely to occur and can easily result in losses. The conclusion is that it is basically correct not to do this when there are indicators.
Select a currency pair to start
There are currently currency pairs that are always moving well. EURJPY and GBPJPY tend to show trends, so it’s tough if they go in the opposite direction. If you do, it’s better to use exotic pairs. For example, EURTRY, EURDKK, EURZAR, EURNOK, and EURSGD for the euro, and GBPSGD, GBPDKK, and GBPSEK for the pound are safe. Users can do it with high leverage specifications, but it’s really too dangerous, so use the smallest lot size. It’s a bit unreliable, especially if it’s automated trading.
Spread comparison between XM and other companies
As you can see below, XM’s spread is relatively wide compared to other companies. Below is a comparison table of average spreads for each company. You can clearly see that XM is wide overall. If you prefer a less difficult market, we recommend a market that moves slowly in minor currencies or exotic currency pairs such as AUDCHF, CHFJPY, AUDJPY, USDTRY, and ERUTRY. It does not suddenly make a large movement and fly. On the other hand, GBPJPY is the most dangerous because of its high volatility.
| XM Standard | Axiory Standard | Titan-FX Standard | TradeTrust Standard | |
| USD/JPY | 1.6 | 1.4 | 1.28 | 2.15 |
| EUR/JPY | 2.35 | 1.49 | 1.43 | 2.18 |
| EUR/USD | 1.66 | 1.23 | 1.24 | 1.84 |
| GBP/JPY | 3.73 | 1.99 | 2.38 | 2.77 |
| GBP/USD | 2.43 | 1.62 | 1.75 | 2.31 |
| AUD/JPY | 3.52 | 1.96 | 1.76 | 2.87 |
| AUD/NZD | 3.77 | 2.46 | 1.92 | 3.34 |
| AUD/USD | 1.71 | 2.05 | 1.12 | 2.16 |
| NZD/JPY | 3.41 | 2.28 | 1.9 | 3.31 |
Accounts with narrow spreads
Many people may think that XM trading has narrow spreads and is difficult to trade and easy to lose. However, the standard account is not the only account available at XM. Below is a list of account types, but KIWAMI accounts have narrow spreads. However, while there is an advantage that the spread is narrow, there is also a disadvantage that there are not many bonuses. Ultimately it will be a question of which one to accept.
Spreads by account type
The KIWAMI pole account has narrower spreads than the standard account and costs less. Zero accounts have the disadvantage of increasing the real total cost due to transaction fees. If you are concerned about spreads and want to reduce fees, we recommend a KIWAMI account. Especially for scalping traders, KIWAMI may be the only choice.
| KIWAMI | Standard | Zero | |
| USD/JPY | 0.85 | 1.60 | 1.10 |
| EUR/JPY | 1.41 | 2.35 | 1.45 |
| GBP/JPY | 2.31 | 3.73 | 2.33 |
| AUD/JPY | 1.36 | 3.52 | 2.52 |
| NZD/JPY | 2.04 | 3.41 | 3.41 |
| EUR/USD | 0.76 | 1.69 | 1.06 |
| GBP/USD | 1.06 | 2.43 | 1.46 |
| AUD/NZD | 2.16 | 3.77 | 3.25 |
| AUD/USD | 1.19 | 1.71 | 1.35 |
Bonus is account opening bonus only
The disadvantage of the KIWAMI account is that the spread is narrower, so the bonus will be thinner. Compared to the standard account, the bonus is overwhelmingly less, and there is only an account opening bonus. Those who want to trade with bonuses should use a standard or micro account.
| Bonus | KIWAMI | Standard | Zero |
| 口座開設 | 13000 | 13000 | 13000 |
| 100%入金 | × | ～$500 | × |
| 20%入金 | × | ～$10000 | × |
| ロイヤリティプログラム | × | 〇 | × |
1000x leverage
KIWAMI account leverage is 1000x, which is the same as standard account and micro account. In addition, MT4 and MT5 can be used as the trading platform for KIWAMI Koku account. Depending on the symbol or currency pair, there may be sudden fluctuations, so there is a risk. You can check the rate on your smartphone or computer system, so usually check the chart before starting a trade.
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