You can trade virtual currency (Bitcoin) on XMTrading. I will explain the maximum leverage and the ability to trade 24 hours a day, 365 days a year. Until now, we have not been able to handle trading in CFDs (crypto assets) such as Bitcoin, Ripple, and Ethereum due to their high volatility. But in 2022, XM made a big decision. XM resumed trading of virtual currency CFDs on May 24th, and you can now trade 24 hours a day, 365 days a year on MT4 and MT5.
- XMtrading
- About XMTrading: Company and Features
- Cryptocurrencies Offered by XM Trading
- Cryptocurrency Spread List
- Cryptocurrency Swap Point List
- Maximum and Minimum Lot Sizes
- Required Margin for Each Cryptocurrency
- Leverage and Stop-Loss Rules for Each Cryptocurrency
- Is XM recommended for cryptocurrency trading?
- Disadvantages and Precautions of Cryptocurrency Trading with XM
- ⚠️ 1. It’s a “CFD transaction,” not spot trading.
- ⚠️ 2. High Swap Points (Carry-Over Costs)
- ⚠️ 3. Spreads are relatively wide
- ⚠️ 4. High leverage comes with high risk
- ⚠️ 5. Beware of Stop-Loss Orders (Margin Maintenance Ratio 20%)
- ⚠️ 6. 24-Hour Volatility and Event Risk
- ⚠️ 7. Balancing Swaps and Funding Costs
- How to Trade Cryptocurrencies with XM
- Reasons and Solutions for Unable to Trade Cryptocurrencies on XM
- 1️⃣ Cause ①: Account Type is Incompatible
- 2️⃣ Cause ②: Account is Not Activated
- 3️⃣ Cause ③: Incorrect Platform Instrument Selection
- 4️⃣ Cause ④: Insufficient Account Balance or Margin
- 5️⃣ Cause ⑤: Trading Hours or Maintenance
- 6️⃣ Cause 6: Regional Restrictions
- 7️⃣ Cause 7: Platform Malfunction/Cache
- Related
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 |
About XMTrading: Company and Features
Here’s a fairly clear summary of XMTrading’s “company” and “features,” divided into operational reliability and suitability for actual use. From the homepage, you can check the types and details of campaigns, bonuses, scalping, supported currencies (USD, EUR), and trading standards. It’s recommended if your goal is investment. In any case, let’s take a look at the details. There are also differences from cryptocurrency exchanges.
What is XMTrading?
XMTrading is an overseas online broker offering FX and CFDs.
The Japanese site handles FX, cryptocurrency CFDs, precious metals, stock indices, stock derivatives, commodities, energy, and thematic indices.
1) What is the “company” behind XMTrading?
The following company names are primarily found on the XMTrading website:
Tradexfin Limited
→ Regulated by Seychelles Financial Services Authority (FSA)
FinTrade Limited
→ Regulated by Mauritius Financial Services Commission (FSC)
TPS Management Limited
→ Has an office in Cyprus
In short, it’s not a Japanese domestic FX company, but a broker operated on an overseas corporate basis.
An Important Perspective Here
This isn’t simply a matter of choosing between “suspicious/safe,” but rather, it’s crucial to view it as “separate from domestic brokers registered with the Japanese Financial Services Agency.”
In other words, XM
has some differences from the rules of domestic FX companies.
However, it also offers the flexibility unique to overseas brokers.
2) XMTrading’s Biggest Feature
In a nutshell, its strengths lie in “bonuses, high leverage, Japanese language support, and the ease of use of MT4/MT5.”
These four points are why XM is popular among Japanese traders.
3) Main Features of XMTrading
① A Very Wide Range of Products
XMTrading officially offers the following products:
FX
Cryptocurrency CFDs
Precious Metals
Stock Indices
Stock Derivatives
Commodities
Energy
Thematic Indices
So, what’s so good about it?
With a single account,
you can easily access not only currency,
gold,
crude oil,
index-based trading,
and more.
This makes it ideal for those who want to see the overall market, not just FX.
② MT4/MT5 Compatible
XMTrading supports MT4, MT5, and WebTrader.
Furthermore, it’s accessible from PCs, Macs, iPhones, Android devices, and tablets.
What’s so great about this?
A large amount of information
Easy to utilize knowledge of indicators and EAs
Easy to migrate from other companies
Easy to use on smartphones
In short, it’s a good fit for those who want to continue learning while trading.
③ Multiple Account Types
XMTrading primarily offers the following account types:
Micro Account
Standard Account
KIWAMI Account
Zero Account
Each has significantly different features.
Micro Account
Suitable for small-scale practice
1 lot = 1,000
Smaller and easier to practice with
Standard Account
Most standard
1 lot = 100,000
Easiest for beginners to choose first
KIWAMI Extreme Account
Focuses on low spreads
Some swap-free features
Focuses on cost-effectiveness
Zero Account
Starts from 0 pips
Focuses on low spreads
Easier to use for those who prefer short-term trading
4) High leverage
According to XMTrading’s official information,
Maximum leverage is 1000:1 for Micro / Standard / KIWAMI Extreme, and 500:1 for Zero.
Advantages
Easy to start with small amounts
High capital efficiency
Easy for short-term trading
However, a very important point to note
This is also
“the condition under which beginners are most likely to lose their capital”.
In other words, XM is
easy to start with, but easy to lose money if you’re careless.
This is quite essential.
5) Strong Bonuses
XMTrading’s official website also features:
¥15,000 Trading Bonus (No Deposit Required)
Deposit Bonus
Other Promotions
These are some of the appeals.
This is why it’s popular:
Easy to start with minimal initial capital
Low initial barrier to entry
“Easy to try”
However, be careful
This is a common misconception, but
a bonus doesn’t necessarily mean you can freely withdraw cash.
Therefore, XM is a broker that “looks advantageous,” but requires understanding of the conditions.
6) Strong Appeal Regarding Execution and Support
XMTrading’s official website highlights features such as:
No requotes / No rejections
24-hour support
Negative balance protection (a zero-cut concept)
What does this mean?
Roughly speaking,
It emphasizes that orders are easily executed
There is a support system in place
There is a concept to prevent losses exceeding your account balance in the event of sudden changes
This means… This is a very important reassuring factor among overseas forex brokers.
7) Abundant Learning and Analysis Tools
XMTrading offers the following content officially:
Blog
Daily Market Analysis Videos
FX Webinars
Platform Tutorials
Trading Signals
Economic Indicator Calendar
FX Calculation Tools
This is surprisingly significant.
For beginners, it’s normal to not know what to look at after “opening an account.”
In that sense, XM’s strength lies in its user-friendly interface that makes it easy to navigate after starting.
8) Weaknesses and Points to Note about XMTrading
This is quite important.
XMTrading is popular, but it’s not perfect.
Different Assumptions from Domestic Forex Brokers
Since XM is operated by an overseas company, it’s dangerous to view it completely with the same mindset as a Japanese domestic forex broker.
In other words,
The sense of rules
The protection framework
The assumptions for use
are different in some aspects.
Cryptocurrencies Offered by XM Trading
XMTrading offers a wide range of cryptocurrencies as CFDs (Contracts for Difference).
This is not spot trading where you actually buy cryptocurrencies; instead, you trade only the difference in price fluctuations (there is no wallet holding). Because it’s a stable system, the service and programs are highly reliable. Check out the highly-watched cryptocurrencies now before you start.
🪙 Major and Representative Coins
The following popular coins are included:
BTCJPY / BTCUSD (Bitcoin)
ETHUSD (Ethereum)
XRPUSD (Ripple)
ZECUSD (Zecash)
XTZUSD (Tezos)
STXUSD (Stec)
SHIBUSD (Shiba Inu)
VAULTAUSD (Vaulta)
And many other cryptocurrency CFDs, from major to minor, are offered.
📊 Overall Scale
In total, approximately 58 types of cryptocurrency CFDs are available for trading (MT5 compatible).
MT4 offers a slightly smaller number of instruments, approximately 28-29 types, but it covers the most popular ones.
🧠 CFD Format
This format involves trading the price difference rather than holding the actual cryptocurrency.
Therefore, there are no deposits or withdrawals to your wallet, and no ownership of the coins.
📈 Trading Hours
Cryptocurrency CFDs are available for 24-hour trading (generally 24/7, including weekends).
📉 Leverage
Some major instruments support leverage up to 500x (varies depending on margin and instrument).
💼 Account Compatibility
Trading is possible with all accounts except Zero (Standard/Micro/KIWAMI).
🛠 Examples of traded cryptocurrencies (excerpt)
| 銘柄シンボル | 仮想通貨 |
|---|---|
| BTCJPY / BTCUSD | Bitcoin（ビットコイン） |
| ETHUSD | Ethereum（イーサ） |
| XRPUSD | Ripple（リップル） |
| ZECUSD | Zcash（ゼキャッシュ） |
| XTZUSD | Tezos（テゾス） |
| STXUSD | Stacks |
| SHIBUSD | Shiba Inu |
| VAULTAUSD | Vaulta |
Cryptocurrency Spread List
This is a clear and concise list of spreads (trading cost ranges) for cryptocurrency CFDs available on XMTrading.
*These are the officially published “minimum spreads” and may widen during actual trading depending on market conditions, time of day, and liquidity. Please be aware of this beforehand.
📊 Cryptocurrency CFD Spread List (Standard/Micro Account vs KIWAMI Extreme Account)
| 仮想通貨ペア | スタンダード / マイクロ | KIWAMI極 |
|---|---|---|
| BTCUSD | 約 23 | 約 19 |
| BTCJPY | 約 17,450 | 約 11,850 |
| BTCGBP | 約 25 | 約 20 |
| BTCEUR | 約 40 | 約 35 |
| ETHUSD | 約 2.55 | 約 2.03 |
| ETHGBP | 約 3.5 | 約 2.75 |
| ETHEUR | 約 5.5 | 約 4.5 |
| AAVEUSD | 約 2 | 約 1.5 |
| ADAUSD | 約 0.0015 | 約 0.0012 |
| ALGOUSD | 約 0.006 | 約 0.005 |
| AVAXUSD | 約 0.12 | 約 0.08 |
| AXSUSD | 約 0.45 | 約 0.30 |
| BATUSD | 約 0.015 | 約 0.01 |
| BCHUSD | 約 1.15 | 約 0.85 |
| COMPUSD | 約 0.55 | 約 0.45 |
| ENJUSD | 約 0.0055 | 約 0.0045 |
| FETUSD | 約 0.0025 | 約 0.002 |
| GRTUSD | 約 0.003 | 約 0.0025 |
| LINKUSD | 約 0.03 | 約 0.02 |
| LTCUSD | 約 0.75 | 約 0.60 |
| MATICUSD | 約 0.0025 | 約 0.002 |
| OMGUSD | 約 0.06 | 約 0.05 |
| SNXUSD | 約 0.10 | 約 0.075 |
| SOLUSD | 約 0.15 | 約 0.10 |
| STORJUSD | 約 0.015 | 約 0.01 |
| SUSHIUSD | 約 0.045 | 約 0.035 |
| UMAUSD | 約 0.07 | 約 0.05 |
| UNIUSD | 約 0.07 | 約 0.05 |
| XLMUSD | 約 0.0015 | 約 0.001 |
| XRPUSD | 約 0.00135 | 約 0.00093 |
| ZRXUSD | 約 0.0065 | 約 0.006 |
👉 These are examples of minimum spreads.
Spreads may widen further during periods of high market volatility
or low liquidity
Also, cryptocurrency CFD trading is not available on Zero accounts.
🔍 ① Cryptocurrencies have wider spreads than FX
While spreads of a few pips are common for FX currency pairs,
cryptocurrencies like BTCUSD and ETHUSD often have significantly larger spreads.
This is due to:
Differences in market liquidity
Broker’s risk management
This is a price formation unique to CFDs.
🔄 ② Differences depending on account type
Account Type Spread Trends Standard / Micro Basic Trading Conditions (Median) KIWAMI Extreme Slightly Narrower Spreads (Favorable)
KIWAMI Extreme accounts tend to have smaller spreads than Standard accounts for the same instrument.
(Examples: BTCUSD approx. 23 → approx. 19, ADAUSD approx. 0.0015 → 0.0012, etc.)
💡 Important Notes
✔ Spreads are variable, not fixed.
CFDs are not exchanges, so they constantly change depending on market conditions.
✔ Minimum spread = Best conditions
The listed value is an estimate of the narrowest possible spread; actual real-time spreads are usually wider than this.
✔ Cryptocurrency CFDs are not available in Zero accounts.
While FX and other CFDs are available in this type of account, cryptocurrency trading is not possible.
✔ Spreads may widen sharply during market fluctuations.
Cryptocurrency prices fluctuate wildly, so spreads tend to widen especially during events.
Cryptocurrency Swap Point List
This is an example list of swap points for cryptocurrency CFDs on XMTrading (primarily cases where the cost of holding the position is negative). *Swaps fluctuate daily and must be checked in real time on XM’s official MT4/MT5 or in the lab.
📉 XM Cryptocurrency CFD Swap Points (Example)
*The unit is “points/per day of holding,” and the value is often the same for both long and short positions. The values are for reference only; please check the latest values on MT4/MT5 before actual trading. ([turn0search4])
| 仮想通貨シンボル | ロングスワップ | ショートスワップ |
|---|---|---|
| BTCUSD | -6,886.79 | -6,886.79 |
| BTCJPY | -10,356.97 | -10,356.97 |
| BTCEUR | -7,846.56 | -7,846.56 |
| BTCGBP | -6,537.61 | -6,537.61 |
| ETHUSD | -196.14 | -196.14 |
| ETHEUR | -220.60 | -220.60 |
| ETHGBP | -183.80 | -183.80 |
| ADAUSD | -67.08 | -67.08 |
| XRPUSD | -225.80 | -225.80 |
| LTCUSD | -10.75 | -10.75 |
| BCHUSD | -27.20 | -27.20 |
| MATICUSD | -25.76 | -25.76 |
| STXUSD | -76.71 | -76.71 |
| DOGEUSD | -21.10 | -21.10 |
| SOLUSD | -14.97 | -14.97 |
| LINKUSD | -1.59 | -1.59 |
| ALGOUSD | -23.05 | -23.05 |
| BATUSD | -15.75 | -15.75 |
| SHIBUSD | -1.38 | -1.38 |
| ZRXUSD | -28.44 | -28.44 |
| 1INCHUSD | -0.22 | -0.22 |
(Example of a partial list)
🧠 What are swap points?
These are the costs incurred when holding a position overnight.
In cryptocurrency CFDs, swap points are generally negative (costs).
While there are days when you can see positive returns, like with FX currency pairs, it’s important to note that long-term holding of cryptocurrencies can easily lead to significant costs.
🗓 Regarding the timing of swap accrual
Swap can be checked on the MT4/MT5 trading platform.
Actual swap values fluctuate daily and are adjusted according to the instrument and market conditions.
If you hold an open position over Friday, there may be a rule that the swap for the weekend (3 days) will be credited all at once.
🔎 Important Points
✅ According to XM’s official guidelines, swaps are variable, and it’s essential to always check the latest value.
✅ Cryptocurrency CFDs have different designs than FX, such as no margin calls and zero-cut, and swaps are a trading cost.
✅ Swaps may not offset even with hedged positions (this varies depending on the situation, so checking on MT4/MT5 is essential).
Maximum and Minimum Lot Sizes
This section summarizes the minimum and maximum lot sizes for cryptocurrency CFD trading on XMTrading.
1️⃣ Basic Rules
XM’s cryptocurrency CFDs are CFD trades, so 1 lot = standard quantity.
Minimum Lot (1 lot unit): 0.01 lots
Maximum Lot Size: Varies depending on the instrument, account type, and margin, but generally around 10-50 lots is the upper limit.
Cryptocurrency CFDs are not available in Zero Accounts.
In short, trading is possible with very small amounts, but it’s important to note that there are maximum lot size limits depending on your capital.
2️⃣ Lot Size Guidelines for Each Cryptocurrency
| 仮想通貨ペア | 1ロットの単位 | 最小ロット | 最大ロット |
|---|---|---|---|
| BTCUSD | 1 BTC | 0.01 BTC | 50 BTC |
| BTCJPY | 1 BTC | 0.01 BTC | 50 BTC |
| ETHUSD | 1 ETH | 0.01 ETH | 500 ETH |
| XRPUSD | 1,000 XRP | 0.01ロット = 10 XRP | 50ロット = 50,000 XRP |
| LTCUSD | 1 LTC | 0.01 LTC | 500 LTC |
| BCHUSD | 1 BCH | 0.01 BCH | 500 BCH |
| ADAUSD | 1,000 ADA | 0.01ロット = 10 ADA | 50ロット = 50,000 ADA |
*Lot sizes and limits vary depending on the cryptocurrency.
For accurate information, please check the “Specifications” screen in MT4/MT5.
3️⃣ Notes for Each Account Type
Standard / Micro / KIWAMI Extreme Account
→ Cryptocurrency CFDs are supported
→ The minimum and maximum lot sizes listed above are guidelines.
Zero Account
→ Cryptocurrency CFDs cannot be traded.
Required Margin for Each Cryptocurrency
This section summarizes the required margin (per lot) for each cryptocurrency CFD on XMTrading.
*Required margin varies depending on account type, leverage, and instrument price. Here, we show a guideline based on a standard maximum leverage of 500x (for CFD accounts).
1️⃣ Basic Calculation Method
Required margin is calculated using the following formula: Required Margin = Value per Lot / Maximum Leverage
Required Margin = Value per Lot / Maximum Leverage
Value per Lot: Quantity of Cryptocurrency CFD × Current Price
Maximum Leverage: At XM, cryptocurrency CFDs have a maximum leverage of 500x
2️⃣ Estimates for Each Cryptocurrency (500x Leverage)
| 仮想通貨ペア | 1ロット | 仮想通貨価格目安 | 必要証拠金（500倍） |
|---|---|---|---|
| BTCUSD | 1 BTC | $30,000 | 約 $60 (約8,200円) |
| BTCJPY | 1 BTC | ¥4,000,000 | 約 ¥8,000 |
| ETHUSD | 1 ETH | $2,000 | 約 $4 (約550円) |
| XRPUSD | 1,000 XRP | $0.50 | 約 $1 (約140円) |
| LTCUSD | 1 LTC | $100 | 約 $0.2 (約27円) |
| BCHUSD | 1 BCH | $200 | 約 $0.4 (約55円) |
| ADAUSD | 1,000 ADA | $0.40 | 約 $0.8 (約110円) |
| SOLUSD | 1 SOL | $25 | 約 $0.05 (約7円) |
- The above are calculations based on estimated prices. Margin requirements fluctuate daily depending on actual prices.
- Required margin is converted depending on whether the account currency is JPY or USD.
3️⃣ Points to Note
Maximum leverage is 500x, but there are restrictions depending on the asset.
→ Especially for major assets such as BTCJPY and BTCUSD, 500x leverage is often applied, but for altcoins with low liquidity, it may be restricted to a lower amount.
Different Lot Units
→ Since XRP and ADA are set at “1 lot = 1,000 units,” always pay attention to the lot unit when calculating margin.
Required Margin is Variable
→ Because it changes daily according to fluctuations in cryptocurrency prices, real-time checking on the “Specifications” screen in MT4/MT5 is essential.
Leverage and Stop-Loss Rules for Each Cryptocurrency
This summarizes the leverage and stop-loss rules for cryptocurrency CFDs at XMTrading.
1️⃣ Leverage for Cryptocurrency CFDs
At XM, the basic leverage for cryptocurrency CFDs is up to 500x, but there are restrictions depending on the instrument and account type.
| 仮想通貨ペア | 最大レバレッジ |
|---|---|
| BTCUSD / BTCJPY | 500倍 |
| ETHUSD / ETHEUR / ETHGBP | 500倍 |
| XRPUSD / XRPJPY | 500倍 |
| LTCUSD / LTCJPY | 500倍 |
| BCHUSD / BCHJPY | 500倍 |
| ADAUSD / ADAJPY | 500倍 |
| SOLUSD | 500倍 |
| その他アルトコイン（LINK, AAVE, MATICなど） | 200〜500倍（銘柄により異なる） |
- At XM, major coins such as BTC have a maximum leverage of 500x, while altcoins may have leverage limits below 500x considering market liquidity and price fluctuation risk.
2️⃣ Cryptocurrency CFD Stop-Loss Rules
XM’s stop-loss is triggered when the account’s effective margin (Equity) reaches the margin maintenance ratio (Margin Level).
Stop-Loss Conditions
Account maintenance ratio below 20% → Forced stop-loss
Calculation formula: Maintenance ratio (%) = Effective margin (Equity) / Required margin (Margin) × 100 Maintenance ratio (%) = (Effective margin (Equity)) / (Required margin (Margin)) × 100
Zero-cut guarantee available
→ Even if the account balance becomes negative, no additional charges (margin call) will be incurred; it will be reset to zero.
Specific Example
Trading BTCUSD with 1 lot (1 BTC) at 500x leverage
Assuming an account margin of 10,000 yen
If BTC falls sharply and the account margin falls below 20%, XM will automatically close the position (stop-loss)
Because cryptocurrencies are highly volatile, the margin before stop-loss is less than with FX currency pairs.
3️⃣ Points to Note
Excessive leverage increases the risk of stop-loss in a short period.
Due to the high volatility of cryptocurrencies, 500x leverage is extremely high-risk.
Always check the balance between margin and lot size
With XM, taking positions with excessive lot sizes relative to your account balance will quickly result in a stop-loss.
It is important to manage your margin with sufficient margin, including swap points.
Cryptocurrency CFDs also incur swap costs, so additional costs must be considered for long-term holdings.
Is XM recommended for cryptocurrency trading?
👉 While XMTrading (XM) can be used as an entry point to cryptocurrency CFD trading, it’s not the best choice for those who want to seriously invest in and trade cryptocurrencies.
We’ll clearly explain the reasons in terms of “advantages and disadvantages.”
✅ Who should consider XM for cryptocurrency trading?
◎ Those who want to “experience cryptocurrency with CFDs”
XM handles cryptocurrencies as CFDs (Contracts for Difference),
It’s suitable for those who want to trade based solely on price movements without buying the actual cryptocurrency
And those with previous experience in FX or CFDs
CFD Features
Trading based on price differences, rather than “holding” cryptocurrency
No deposit or withdrawal required to the exchange wallet
Fees are only spread + swap
◎ Those who want to utilize leverage with small amounts
XM allows up to 500x leverage (depending on the instrument) even for cryptocurrencies.
In short,
Even with a small amount of capital, you can take large positions,
making it easy to use for those who prioritize capital efficiency.
◎ For those who want to unify on the MT5 platform
XM supports
MT4/MT5
Especially with MT5, there are many cryptocurrency CFD instruments
Therefore,
it has advantages for those who want to manage FX, stock indices, commodities, and cryptocurrencies on a single platform.
⚠️ People for whom cryptocurrency trading on XM is not recommended
✖ People who truly want to hold coins
Because XM uses CFDs
Coins are not deposited into actual cryptocurrency wallets
Web3 service integration such as NFTs and DeFi is not possible
✖ People who want to build wealth through long-term holding
Since CFDs incur swaps (holding costs),
Long-term holding (several weeks to several months) is costly
It tends to be less advantageous than long-term investment in spot assets
Disadvantages and Precautions of Cryptocurrency Trading with XM
This guide summarizes the disadvantages and precautions of trading cryptocurrency CFDs with XMTrading (XM), making it easy for beginners to understand.
Based on official XM information and general CFD trading rules, this guide focuses on the most practical points.
⚠️ 1. It’s a “CFD transaction,” not spot trading.
Cryptocurrency trading with XM is not about holding physical coins, but rather a Contracts for Difference (CFD).
✔ Meaning
The actual coins will not be in your wallet.
Staking, transfers, and DeFi use are not possible.
📌 Not suitable for these people:
Those who want to hold real coins.
Those who want to use NFTs and Web3 services.
Those who want to hold for long-term asset building.
⚠️ 2. High Swap Points (Carry-Over Costs)
Cryptocurrency CFDs incur significant swap (costs) each time you hold a position overnight.
Long-term holding leads to rapidly increasing costs.
Holding a position for more than a week can easily lead to profits and losses being squeezed by swaps.
📌 Example
Holding 1 BTC for several days or more can result in swap costs ranging from several thousand to tens of thousands of yen.
(Number of days held × Daily swap × Lot size)
👉 Countermeasures
Consider it suitable for very short-term to medium-term trading.
Always estimate the cost of carrying over positions.
Check swap points using MT5 specifications.
⚠️ 3. Spreads are relatively wide
Cryptocurrency CFDs tend to have wider spreads (trading costs) compared to FX.
Example:
The spread for BTCUSD can be tens to hundreds of dollars.
This is different from the few pips of major currency pairs.
📌 Why are they wide?
Cryptocurrencies have high volatility.
Intermediary costs for trading on exchanges
The risk tolerance of the CFD provider
👉 Countermeasures
Avoid trading during periods of low trading volume
Choose accounts with narrow spreads, such as the KIWAMI account
⚠️ 4. High leverage comes with high risk
XM offers leverage up to 500x for some cryptocurrency CFDs.
However, this also means that losses can increase rapidly.
📌 Characteristics of High Leverage
Even small price fluctuations can lower the margin maintenance ratio.
Stop-loss orders are more likely to be triggered.
👉 Countermeasures
Set leverage low.
Maintain a sufficient margin maintenance ratio.
Avoid excessive lot sizes.
⚠️ 5. Beware of Stop-Loss Orders (Margin Maintenance Ratio 20%)
XM’s stop-loss order is triggered when the margin maintenance ratio is below 20% (common to FX/CFD): Continued Holding = Effective Margin / Required Margin × 100 Continued Holding = \frac{\text{Effective Margin}}/\text{Required Margin}} × 100 Continued Holding = Required Margin / Effective Margin × 100
Automatic settlement (stop-loss order) is triggered when the ratio falls below 20%.
📌 Cryptocurrencies have volatile price movements,
and the margin maintenance ratio tends to drop rapidly.
👉 Countermeasures
Maintain a sufficient margin ratio
Always set a stop-loss
Reduce lot size
⚠️ 6. 24-Hour Volatility and Event Risk
Cryptocurrencies are more prone to volatility than other CFD assets (FX, stock indices, etc.)
✔ 24/7 volatility
✔ High likelihood of large price fluctuations
✔ Sudden changes due to news, regulations, and hacking information
Due to this nature, sudden changes can occur day or night.
👉 Countermeasures
Check news and order book information
Monitor with alerts/smartphone apps
Be careful during times when large movements are likely
⚠️ 7. Balancing Swaps and Funding Costs
With CFDs, holding costs may include not only swaps but also “funding costs” (funding fees).
✔ This fluctuates daily
✔ Higher for BTC and ETH
👉 Countermeasures
Avoid overnight positions
Check the swaps for the currency pair you are trading in advance
How to Trade Cryptocurrencies with XM
Here’s a step-by-step guide on how to trade cryptocurrency CFDs with XMTrading, explained in an easy-to-understand way for beginners.
1️⃣ Prepare an Account
Open an account through the official XM website.
Standard, Micro, and KIWAMI accounts support cryptocurrency CFDs.
Note that the Zero account does not support cryptocurrency CFDs.
Activate your account by submitting identity verification documents.
Examples of documents include: driver’s license, My Number card, passport, etc.
Examples of documents for address verification include: utility bills or bank statements.
Select your account currency.
Select according to your deposit currency, such as JPY or USD.
2️⃣ Deposit Funds
Bank transfer (domestic transfers accepted), credit card, online wallet, etc.
Minimum deposit is approximately 1,000 yen (depending on the account type).
Since cryptocurrency CFDs are margin trading, you do not need to deposit the full amount.
3️⃣ Choose a Trading Platform
XM offers MT4 (MetaTrader 4) or MT5 (MetaTrader 5).
MT5 Recommended: MT5 offers a wider selection of cryptocurrency CFDs, and provides easier access to real-time charts and swap information.
MT4 also supports some cryptocurrency CFDs (with fewer options).
4️⃣ Select a Cryptocurrency Instrument
In MT5:
Open “Market Watch”
Press “+” to display the Cryptocurrencies category
Right-click the instrument you want to trade → “Show Chart”
Examples: BTCUSD, ETHUSD, XRPUSD, etc.
5️⃣ Set Lot Size and Order Type
Lot Size: Minimum 0.01 lots
Order Type:
Market Order → Immediate trade at the current price
Limit/Stop Order → Order placed when the specified price is reached
Leverage: Up to 500x in account settings (restrictions apply depending on the instrument)
6️⃣ Placing an Order
Click the “New Order” button in MT5.
Enter the lot size, order type, and price (if a limit order).
Click “Buy” or “Sell”.
Buy → Long (buy if you expect an upward trend)
Sell → Short (sell if you expect a downward trend)
7️⃣ Managing Open Positions
Check your positions: Check in the “Trade” tab in MT5.
You can also check the spread, swap, and margin here.
Manage risk with stop-loss/take-profit settings.
8️⃣ Closing Positions
Right-click the relevant position in the “Trade” tab of MT5 → “Close”
The difference will be reflected in your account (increase if profit, decrease if loss).
Reasons and Solutions for Unable to Trade Cryptocurrencies on XM
This article summarizes the reasons why you might be unable to trade cryptocurrency CFDs on XMTrading and how to resolve them. It’s presented step-by-step for beginners.
1️⃣ Cause ①: Account Type is Incompatible
Cryptocurrency CFD trading is not possible with a Zero account.
Compatible Accounts: Standard / Micro / KIWAMI
🔹 Solution
If you want to trade cryptocurrencies, open an account other than a Zero account.
If you only have an existing Zero account, open an additional Standard account.
2️⃣ Cause ②: Account is Not Activated
Identity verification documents (ID, address verification documents) have not been submitted or approved.
Cryptocurrency CFD trading is not possible with an “unapproved” account.
🔹 Solution
Log in to your XM My Page.
Select “Activate Account” or “Submit Identity Verification Documents.”
Trading is possible after document approval.
3️⃣ Cause ③: Incorrect Platform Instrument Selection
MT4 only handles a limited number of cryptocurrencies (only BTC, ETH, etc.).
MT5 allows trading of a wider range of cryptocurrency CFDs.
🔹 Solutions
Check cryptocurrency CFD instruments using MT5
MT5 “Market Watch” → “+” → Add instrument from the Cryptocurrencies category
4️⃣ Cause ④: Insufficient Account Balance or Margin
Although cryptocurrency CFDs offer high leverage, a minimum margin is required.
If the lot size is too large, the order will not be executed due to insufficient margin.
🔹 Solutions
Deposit sufficient margin into your account.
Adjust the lot size to the minimum of 0.01 lots.
Check the required margin in MT5’s “New Order” before placing an order.
5️⃣ Cause ⑤: Trading Hours or Maintenance
Cryptocurrency CFDs are generally tradable 24 hours a day, but trading is unavailable during server maintenance or during the New Year holidays.
Attempting to place an order during trading suspension will result in an error.
🔹 Solutions
Check “Market Watch” in MT5/MT4 to confirm that the instrument is displayed.
Check maintenance information on the XM official website.
6️⃣ Cause 6: Regional Restrictions
XM offers cryptocurrency CFDs to residents of Japan, but restrictions may apply to residents of other countries.
🔹 Solution
Check the XM official website to see if your country of residence is eligible for trading.
If you are a resident of Japan, there should be no problem.
7️⃣ Cause 7: Platform Malfunction/Cache
Outdated MT4/MT5 cache or version may prevent you from displaying instruments or trading.
🔹 Solution
Update MT5 to the latest version.
Clear the cache and restart.
Re-add the instrument in the Market Watch view.
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