Summary of advantages and disadvantages of XM's Zero Account (Zero Account).

In this article.XM zero.(ZERO) account, and explains the advantages and disadvantages of the account.

Advantages and disadvantages of a zero (ZERO) account with XM.

Advantages of a zero account

There are three main advantages of using XM's Zero Account: 1.

Let's look at each of these in turn.

Wider spreads than standard accounts

Narrow spreads are the main feature of the ZERO account.

For example, in the case of USD/JPY, the currency most traded by Japanese, the average spread for a Standard account is 1.6 pips, while the average spread for a ZERO account is 0.1 pips.

The Zero account has a trading commission of $10 (1 pips) per lot, in addition to the spread. However, you can still trade with narrower spreads than with the Standard account!

Account opening bonus to test its usability.

XM's ZERO account offers a margin bonus of JPY 3,000 when opening a new account.

With this ¥3,000 bonus, you can test the usability of the ZERO account with zero risk.

This is a unique feature of XM, as other international FX companies do not offer bonuses if the account has the same specifications as XM's ZERO account.

For more information on the XM bonus, see the following article.

XM Textbooks.

XM's Bonus Campaigns (Promotions) Explained! | XM textbooks This article describes XM's bonus campaigns (promotions). XM's bonus campaigns XM currently offers a total of four bonus campaigns...

You can start trading with as little as ¥500.

The XM zero account has a minimum deposit set at 500.

For example, Gemforex's [no spread account], which has the same specifications as the XM zero account, has a high minimum deposit of JPY 300 000.

The ability to use accounts with narrow spreads for as little as one coin compared to other companies is a major advantage of using a XM zero account.

Disadvantages of zero accounts

Although the XM zero account has various advantages, it also has disadvantages. The three main disadvantages of zero accounts are listed above.

Let's look at each of these in turn.

A $10 round-trip transaction fee (external commission) is charged.

The spreads on the Zero account are much narrower than those on the Standard and Micro accounts.

Zero accounts, on the other hand, have a round-trip transaction fee (external commission) of USD 10 instead of narrower spreads.

In the spread calculation, $10 is equal in value to 1 pips. This means that if you have to pay a $10 transaction fee, you have to pay the spread plus +1 pips.

Therefore, the average spread for USD/JPY on a Zero account is [0.1 pips + 1 pips commission], which is 1.1 pips.

Compared to other companies, these XM transaction fees are higher.

For more information on fees for XM zero accounts, see the following article.

XM Textbooks.

XM Zero Account (Zero account) trading fee summary | XM textbook This article details the transaction fees for the XM Zero account. What are the commissions on the XM Zero account? Zero account commissions (round-trip 10 currency) are summarised at settlement for MT4 and MT5...

Maximum leverage limited to 500 times.

XM's standard and micro accounts have a maximum leverage of 1,000 times.

On the other hand.Maximum leverage on zero accounts limited to 500 times.The following information is available.

Therefore, you need to deposit more margin compared to a standard account, which allows you to trade in the same 100,000 currencies.

Cannot trade CFD stocks.

Zero accounts have fewer currency pairs to trade than standard or micro accounts.

You can trade FX currency pairs and precious metals such as gold and silver, but you cannot trade CFD stocks such as virtual currencies or stock indices.

The stocks listed above cannot be traded on a zero account.

Although not relevant for traders whose main focus is currency trading, the limited number of stocks available for selection is a disadvantage of the ZERO account.

No bonuses other than the ¥3,000 new account opening bonus.

XM offers six different bonus promotions for standard and micro accounts: new account opening bonus, deposit bonus, trading bonus (loyalty programme) and refer-a-friend bonus.

XM also offers event bonuses such as the Hanami Bonus and the New Year's Day Bonus, of which the Zero Account receives a ¥3,000 account opening bonus only when opening a new account.

Zero account offers no bonuses other than the new account opening bonus (USD 3,000).

summary

This article describes the advantages and disadvantages of a zero (ZERO) account with XM.