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XM Zero Spread Account Review: Everything You Need to Know
If you are considering opening a Zero Spread account with XM, the first question you likely have is whether it is worth it. The short answer is: the XM Zero Spread account is designed for traders who want to minimize the cost per trade by having spreads close to 0.0 pips, but it comes with specific trading conditions that you must understand before committing. In this review, we will examine what the Zero Spread account at XM offers, its advantages, its limitations, and whether it truly benefits different types of traders.
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What Is a Zero Spread Account?
A Zero Spread account is a type of trading account where the broker offers a bid-ask spread as low as 0.0 pips on major forex pairs under normal market conditions. Instead of charging a spread, the broker often applies a fixed commission per lot traded. This structure is attractive for traders who require precise entries and exits, especially scalpers, day traders, and news traders.
With XM, the Zero Spread account aims to give traders direct market-like pricing without the variable spreads that can widen during volatility. However, while the spread may be effectively zero, you will still pay a commission, and other conditions like margin requirements and minimum lot sizes will apply.
Key Features of the XM Zero Spread Account
When reviewing XM’s Zero Spread account, the most notable features include:
· Ultra-low spreads – As low as 0.0 pips during liquid market hours on major currency pairs.
· Fixed commission per trade – Instead of paying for spreads, you pay a commission that is typically charged per standard lot.
· Fast execution – Designed for scalpers and high-frequency traders who need minimal latency.
· Access to multiple instruments – Not limited to forex; depending on XM’s offering, you may also access metals, indices, and commodities.
· Lower cost for high-volume trades – Particularly beneficial for traders placing large or frequent orders.
These features are appealing, but they need to be weighed against the potential downsides, which we will cover shortly.
How XM’s Zero Spread Account Works
In a standard trading account, you pay for the spread — the difference between the bid and the ask price — which varies depending on market conditions. For example, if EUR/USD has a spread of 1.2 pips, you are essentially paying that difference to open a position.
In the Zero Spread account, XM reduces this spread to near zero, meaning the entry price and exit price are almost the same in normal conditions. However, instead of making money from the spread, XM charges you a fixed commission per trade. For example, you might pay $6 per lot (round turn) regardless of the spread.
This structure benefits traders who execute many trades, especially in high-liquidity pairs, because they can save on spread costs. However, if you trade in low-liquidity times or on exotic pairs, the spread may not remain zero, and the commission might make costs comparable to standard accounts.
Advantages of the XM Zero Spread Account
1. Cost Transparency
With fixed commissions and no variable spreads to worry about, you can easily calculate your exact cost per trade. This is valuable for traders who track their risk-to-reward ratios precisely.
2. Better for Scalping
Scalping strategies rely on tiny price movements. Even a 1-pip spread can eat into profits, so a Zero Spread account provides a measurable advantage here.
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3. More Accurate Backtesting
When you backtest strategies, using zero or near-zero spread data results in more realistic performance metrics for strategies that depend on quick entries and exits.
4. Competitive Pricing for Large Trades
For high-volume traders, the savings on spreads can outweigh the fixed commission, making this account type more economical in the long run.
Disadvantages of the XM Zero Spread Account
1. Commission Fees Can Add Up
If you trade small positions or infrequently, the fixed commission may be more expensive than a standard spread-based account.
2. Spread Is Not Always Zero
During volatile news events or low liquidity periods, spreads can widen even in a Zero Spread account. This means you are not guaranteed 0.0 pips 100% of the time.
3. Requires Larger Lot Sizes to Maximize Benefit
Traders with small capital might not benefit much since the commission will take a higher percentage of their trade’s potential profit.
4. May Encourage Overtrading
Because spreads are minimal, some traders might be tempted to take more trades than necessary, which can increase risk exposure.
Who Should Use the XM Zero Spread Account?
The Zero Spread account is best suited for:
· Scalpers – who rely on very tight spreads to execute rapid trades profitably.
· Day traders – who open and close positions within the same day, benefiting from low-cost entries.
· High-volume traders – who can offset commissions with the savings from zero spreads.
· Algorithmic traders – whose strategies depend on precise execution without the distortion of wider spreads.
However, it is not ideal for:
· Long-term traders – since they open fewer trades and may find a standard account more cost-effective.
· Beginners – who might not fully understand commission-based pricing.
· Small account holders – who may see commissions eat into their profits disproportionately.
Comparing Zero Spread and Standard Accounts
While we won’t use a table here, imagine two scenarios:
· Standard account – You trade EUR/USD with a 1.5-pip spread and no commission. On a standard lot, that’s roughly $15 per trade.
· Zero Spread account – Spread is 0.0 pips, but you pay $6 commission per lot. In this case, you save $9 per trade, which can add up significantly over time if you trade often.
However, if your trade size is much smaller (like 0.1 lots), the savings are much smaller, and sometimes negligible after commission.
Things to Check Before Opening a XM Zero Spread Account
Before deciding, you should look into:
1. Exact commission rate – Know how much you will pay per lot traded.
2. Available instruments – Ensure the assets you want to trade are included with zero spreads.
3. Execution speed – Especially important for scalpers and algorithmic traders.
4. Deposit and withdrawal methods – Some brokers offset low spreads with higher transaction fees.
5. Minimum deposit – Zero Spread accounts often require a higher starting balance.
6. Regulation and safety – Make sure XM is regulated by a trusted authority for fund protection.
Is the XM Zero Spread Account Worth It?
If your trading style relies on precision, rapid execution, and multiple trades per day, the XM Zero Spread account can significantly reduce your trading costs. For example, a scalper executing 50 trades a day could save hundreds of dollars monthly compared to a standard account.
However, for swing traders or investors holding positions for weeks, the benefit is minimal since spread costs are less significant compared to potential gains or swap fees. In such cases, a standard account might be simpler and equally cost-effective.
Final Thoughts
The XM Zero Spread account is a competitive offering for traders who understand commission-based pricing and have strategies that rely on ultra-low spreads. It provides transparency in trading costs, makes high-frequency trading more affordable, and can improve strategy performance. That said, it is not a one-size-fits-all solution. For some traders, especially those with small accounts or low trading frequency, a standard spread-based account may be more practical.
If you decide to open a XM Zero Spread account, do so with a clear understanding of the commission structure, trading conditions, and your own trading strategy. Used wisely, it can be a powerful tool to reduce costs and enhance profitability, but like all tools in trading, it must match your style and goals.
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