XM Trading is a company with wide spreads among Forex companies. However, wide spreads are very disliked by traders. Why is XM widening spreads? This has a lot to do 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.
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.
Spread comparison between XM and other companies
As you can see below, the spread of XM is relatively wide compared to other companies. Below is a comparison table of average spreads for each company. You should be able to see well that the XM is wide overall.
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.
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.
The KIWAMI account leverage is 1000 times, which is the same as standard and micro accounts. In addition, both MT4 and MT5 are available for the KIWAMI pole account trading platform.