Which XM account type is better: standard account/micro account?

In this article, we will discuss the 'TheXM'Which account type should I choose for a standard account or a micro-account?

Click here for a list of XM accounts.

What is the difference between a XM standard account and a micro account?

First, the table below shows the differences between standard and micro accounts for XM.

In conclusion, there are only three differences between standard and micro accounts

I will explain in turn.

Lot, value and profit/loss per pips

On XM's trading platform [MetaTrader], the amount of positions is denoted as [lot], and there is a 100-fold difference in value per lot between a standard account and a micro account.

The value of one lot in a standard account is 100 000 currency, whereas in a micro account it is 1/100th of that amount, i.e. 1 000 currency. In other words, 100 lots in a micro account is equivalent to one lot in a standard account.

Assuming you trade USDJPY in a yen-denominated account, you would make a profit or loss of JPY 1,000/pip for one lot of trading in a standard account, and only JPY 10/pip for one lot of trading in a micro account.

In micro accounts, the lot size is 1/100th of a lot for FX currency pairs and gold and silver only.Note that platinum and palladium, CFDs on equities, CFDs on commodities, CFDs on energy (crude oil) and CFDs on virtual currencies are all treated the same as Standard.

Minimum and maximum lots

Standard accounts have a minimum of 1,000 currencies and a maximum of 5 million currencies.whereasMicro accounts have a minimum of 10 currencies and a maximum of 100,000 currencies.The minimum lot size is 0.1 lot. (Minimum 0.1 lot = 100 currency for MT5 micro accounts).

Standard accounts can have a maximum of 5 million currencies at any one time, while micro accounts can have a maximum of 100,000 currencies at any one time; positions exceeding 100,000 currencies must be split into two or more positions.

Incidentally, the maximum number of positions that can be held is 200 for both accounts. The Standard account allows up to 5 million x 200 positions = 1 billion currency, while the Micro account allows 100,000 x 200 positions = 20 million currency.

Currency pair display name

The stocks handled are the same for both accounts, but the micro account has [micro] at the end of the currency pair.

For example, [USDJPYmicro] for USDJPY, [EURUSDmicro] for EURUSD and [GOLDmicro] for GOLD.

Micro accounts can also trade CFDs on shares, CFDs on virtual currencies, etc., but they do not have [micro] attached to them, so the value of one lot is the same as the Standard.

After all, should I choose a standard or a micro account?

Even after all this explanation, some of you may still feel, "I don't really know which one to choose!" Some people may feel that they are not sure.

In conclusion, the following choices can be made.

If you start with a few tens of thousands of yen [Standard account].

The [Standard account] is the best option for those who can provide funds of between JPY 10,000 and JPY 20,000.

Standard accounts allow trades from as little as ¥1,000.

Even if you have a 1,000-currency position and it goes backwards by 100 pips, the loss will be limited to around ¥1,000, which is not a big blow if you have several tens of thousands of yen in margin.

Micro accounts] are recommended for small trades.

Micro accounts allow you to trade from as little as 10 currencies (100 for MT5), which is even smaller than a standard account, and are suitable for accumulating small profits.

However, the maximum lot size for the Micro account is 100 lots (100,000 currency), and if you want to open a position larger than that, you will need to split the order, so it is recommended that you switch to a Standard account once you have accumulated some funds.

If you want to trade CFDs other than Forex, a Standard account is best!

Micro accounts allow trading in small lots of 1/100th of a cent only for FX currency pairs and GOLD and SILVER.

If you want to trade a wide range of CFD instruments other than FX, such as the Nikkei 225, the NY Dow and other stock indices, crude oil and commodities, you will naturally need to select a [Standard account].

If in doubt, choose the safe [standard account]!

If you are not sure which account is right for you, you should choose [Standard account] for now.

You don't necessarily have to choose a micro account just because you have less money, and a standard account allows you to trade all XM stocks.

summary

In this article.XMexplained which standard account or micro-account should be chosen for the

In conclusion, if you are not sure which one is best for you, choose the Standard account.

Click here for a list of XM accounts.