XM Trading has an account type called micro account. Micro account is a minor account type because there are not many users who open it, but it has merits, so it is one of the account types that can be recommended to open.
Micro accounts can be said to be a relatively minor account type, with only about 10% of users opening XM accounts. Most users choose the standard account. The standard account is orthodox and has a clear feature that it is suitable for beginners, but what are the features of the micro account?
Spreads tend to be exactly the same as standard accounts. Since the spread of the micro account is basically the same as the standard account, the advantages and disadvantages are the same as the standard account, and it is not suitable for scalping.
In addition, bonuses and leverage are the same as standard accounts. The deposit bonus is exactly the same as standard, and you can get 20% and 100% bonuses. And the loyalty program is the same, and like the standard account, points are awarded.
|account opening bonus||13000||13000|
1 lot is 1000 currency
The biggest feature of Micro account is that 1 lot is worth 1000 currency. There is a 100-fold difference in the amount of currency with 1 lot on the standard account. 1 lot of the standard account is 100,000 currency, which is 100 times that amount. Be careful when placing an order because there is a considerable difference between the micro account and the standard account even for the same 1 lot. It can be said that it is one of the accounts for beginners because it is an account type for users who want to do small amount transactions and trial transactions.
Zero cut system
XM has adopted a zero cut system for all account types. When trading with high leverage, if you are caught in a sudden market fluctuation and the forced loss cut does not work, there is a possibility that a negative amount exceeding the account balance will occur. In the case of the zero cut system, XM compensates for the negative amount, so there is no risk of incurring debt.
Account type comparison
Please refer to the following article for a comparison of micro accounts and other account types. I’m putting out a comparison table, so I think it’s helpful.
Disadvantages of micro accounts
The disadvantages of micro accounts are similar to those of standard accounts, so they have similar disadvantages.
Not suitable for scalping
As explained above, micro accounts are not suitable for scalping due to their wide spreads. It is suitable for methods that settle in a few hours like day trading, or in a few days to weeks like swing trading. Not suitable for short-term matches.
Micro accounts are not limited to one person. At XM, each person can open up to 8 accounts. Therefore, it is possible to open multiple accounts of the same type even with micro accounts.
can’t earn big
Micro accounts have the advantage that the currency unit is small, but conversely, you cannot earn a lot. Since the currency unit is small, even if you enter with the same 1 lot, the loss amount will be smaller than the standard account or zero account, but you can not earn big. Therefore, it can be said that it is an account for beginners who want to reduce risk.