Until now, XM has not dealt with cryptocurrency CFDs (crypto assets) such as Bitcoin, Ripple Ethereum, etc. due to the high volatility. But in 2022, XM made a big decision. XM resumed trading of cryptocurrency CFDs on May 24th, making it possible to trade 24 hours a day, 365 days a year on MT4 and MT5.
- Virtual currency trading
- Characteristics of virtual currency trading
- Disadvantages of XM trading
- virtual currency leverage
- virtual currency spread
Virtual currency trading
As of January 2023, there are 27 cryptocurrency stocks (31 currency pairs) that can be traded on XM Trading. XM Trading supports a wide range of cryptocurrencies, from famous cryptocurrencies such as Bitcoin and Ethereum to minor cryptocurrencies. Compared to other Forex brokers, you can see that you can trade in many cryptocurrencies at XM.
Characteristics of virtual currency trading
Let’s take a look at 9 features of XM trading cryptocurrencies.
Tradeable on MT4 and MT5
XM allows you to trade Bitcoin on both MT4 and MT5. Most virtual currency exchanges use their own platform, and you have to get used to using the platform for each exchange, but with XM you don’t have to.
Trading possible from 0.01 lot
Bitcoin on XM can be traded from a minimum of 0.01 lot and a maximum of 12 lot positions can be ordered. The maximum number of lots for one position is 12 lots, but it is possible to hold larger lots by holding multiple positions.
Virtual currency trading as it is with FX account
At XM Trading, virtual currency trading is possible with the same account as the FX account. Some FX traders require a dedicated account for virtual currencies, so saving the trouble of opening an account is a big advantage of XM Trading.
However, please note that virtual currency trading is not possible with a zero account.
Bitcoin and virtual currency transactions are possible 24 hours a day, 365 days a year. However, please note that virtual currency transactions cannot be performed during maintenance. XM will be performing virtual currency server maintenance from 16:05 to 16:35 on Saturdays.
Maximum leverage is 250x
The maximum leverage for cryptocurrency trading on XM is 250x. Compared to other virtual currency exchanges, you can see that you can trade with a fairly high leverage. Among other companies in the same industry, FXGT is 1000 times, but the leverage is higher than other exchanges.
XMtrading offers swap-free and commission-free trading of all cryptocurrency instruments. Bitcoin is a virtual currency characterized by high swap points. If you hold bitcoin with FXGT, you will incur a fee of about 5000 yen even for just one day. On the other hand, if you trade with XM, you don’t have to pay any fees.
Disadvantages of XM trading
XM allows you to trade virtual currencies, but there are also disadvantages.
The spread on XMUSD is 23 pips for BTCUSD and 2.55 pipspips for ETHUSD. Compared to other Forex brokers, it has a slightly wider setting. Therefore, it is not very suitable for scalping.
It should be noted that cryptocurrencies are highly volatile. Virtual currencies have a higher volatility (price fluctuation range) compared to exchange rates and stock indices. If the volatility is large, it is easy to earn because the price range can be taken, but on the contrary, the loss may also be large. So automated trading is out of the question.
There is a disadvantage that leverage is limited by the number of lots. All cryptocurrencies that can be traded on XM are subject to maximum leverage limits based on the number of lots.
The maximum leverage is 250x for trading volumes up to 7 lots. On the other hand, 7 lots or more limits the maximum leverage to 50x.
deposit and withdrawal with bitcoin
XM does not yet support deposits and withdrawals with virtual currencies such as Bitcoin. Only fiat currencies such as Japanese yen, US dollars, and euros can be used for deposits and withdrawals.
virtual currency leverage
The leverage of virtual currency in XM is set as follows. For pairs that do not fall under the following, the ratio is set to 50x.
virtual currency spread
For the spread of virtual currency pairs, only the minimum spread is listed. This is because XM does not disclose the average spread of virtual currency pairs, so we do not know. Spreads vary depending on account type.