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XM Ultra Low Account vs Standard Review
If you are considering trading with XM, one of the most important decisions you will make is choosing between the Ultra Low Account and the Standard Account. The key difference comes down to spreads, contract sizes, and trading costs. In simple terms, the XM Ultra Low Account offers tighter spreads and lower costs for active traders, while the Standard Account is better for beginners who prefer simplicity and flexibility. In this review, we will break down exactly how they compare so you can decide which suits your trading style.
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XM Ultra Low Account – What You Need to Know
The XM Ultra Low Account is designed for traders who want lower spreads and potentially better pricing for scalping, day trading, or high-frequency trading.
· Spreads: The Ultra Low Account offers spreads starting from 0.6 pips, significantly tighter than the Standard Account. This means your trades start closer to break-even, reducing the cost per trade.
· Minimum Deposit: Just like other XM accounts, the minimum deposit can be as low as $5, making it accessible to all traders.
· Commissions: XM charges no commission on this account type; costs are included in the spread.
· Contract Sizes: You can trade micro or standard lots, but each contract is smaller than the Standard Account, which can help manage risk more precisely.
· Leverage: Leverage can go up to 1:1000 (depending on your jurisdiction), giving flexibility to traders with different risk appetites.
The Ultra Low Account is best suited for traders who execute multiple trades in a day and want to minimize spread costs. It also works well for forex scalpers who need fast execution and low-cost entry.
XM Standard Account – What You Need to Know
The Standard Account is XM’s most popular and beginner-friendly account type. It offers straightforward trading with spreads starting from 1 pip and no commissions.
· Spreads: Slightly wider compared to the Ultra Low Account, starting from 1 pip.
· Contract Sizes: You trade standard lots (100,000 units) or micro lots (1,000 units), which is familiar to most retail traders.
· Minimum Deposit: Same as Ultra Low, you can start with as little as $5.
· Commissions: No commissions, trading costs are included in spreads.
· Leverage: Up to 1:1000, depending on the trader’s location and regulatory limits.
The Standard Account is a better choice for beginners because it has a familiar lot size, predictable spreads, and the simplicity needed to focus on learning trading strategies without worrying too much about micro-optimizing costs.
Key Differences Between XM Ultra Low and Standard Accounts
When choosing between these two account types, the spread size and contract size flexibility are the main factors to consider. The Ultra Low Account’s tighter spreads mean lower trading costs, especially for short-term traders. On the other hand, the Standard Account’s slightly higher spreads may not be a big deal for long-term traders who hold positions for days or weeks.
The Ultra Low Account offers more precise position sizing since the contract sizes can be smaller, which helps with risk management. The Standard Account, however, sticks to the more traditional lot sizing that many traders are used to.
Execution speed and order types are generally the same for both accounts, and both offer access to the same range of instruments: forex, commodities, indices, precious metals, energies, and more.
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Which Account Has Lower Trading Costs?
If you trade frequently, the Ultra Low Account will almost always result in lower trading costs. For example, if you open and close multiple positions daily, the difference between 0.6 pips and 1 pip adds up quickly. Over 100 trades, this can mean saving hundreds of dollars in spread costs.
For long-term traders, the difference in spread is less critical. If you hold positions for several days, a few tenths of a pip will not make a significant impact on your overall profitability.
Who Should Choose the Ultra Low Account?
You should go for the XM Ultra Low Account if you:
· Trade frequently or scalp the markets.
· Want the lowest possible spreads without paying commissions.
· Prefer to fine-tune position sizes with smaller contract sizes.
· Have enough experience to manage leverage and risk.
Who Should Choose the Standard Account?
You should consider the XM Standard Account if you:
· Are a beginner who wants to focus on learning trading without overcomplicating costs.
· Prefer traditional lot sizes for familiarity.
· Don’t mind slightly higher spreads because you trade less frequently.
· Want a straightforward account setup without worrying about optimizing spread differences.
Trading Experience on Both Accounts
Both accounts give access to MT4 and MT5 platforms, which means you get the same powerful charting tools, technical indicators, and expert advisor (EA) support. XM also ensures fast execution on both accounts with minimal requotes.
Both accounts come with negative balance protection, so you can’t lose more than your deposited amount. Additionally, both accounts give access to the same set of trading instruments, so your choice won’t limit the markets you can trade.
The Role of Spreads in Profitability
Understanding the impact of spreads is essential before deciding. The spread is essentially your cost of entering the market. In the Ultra Low Account, a EUR/USD trade might start with only 0.6 pips cost, while in the Standard Account, it could start at 1 pip. That 0.4 pip difference may seem small, but if you trade 10 lots in a day, it can be the difference between making and losing money, especially in high-frequency trading strategies.
The Verdict – Ultra Low vs Standard
If you want the lowest spreads possible and plan to trade actively, the Ultra Low Account is the smarter choice. It will help you reduce costs and potentially improve profitability.
If you are new to trading or prefer a simpler approach, the Standard Account is easier to handle and still competitive compared to many brokers in the market.
Both accounts are safe and reliable as long as you trade within your risk tolerance and understand the leverage you are using. XM’s regulation and reputation add to the security, so your choice comes down purely to trading style and cost preferences.
Final Thoughts
The XM Ultra Low Account and Standard Account are both strong options, but they cater to different types of traders. The Ultra Low Account is built for cost-conscious, active traders, while the Standard Account is better for beginners or low-frequency traders. Before choosing, think about how often you plan to trade, how sensitive you are to spread costs, and whether you prefer smaller, more flexible contract sizes.
If your strategy involves frequent trades where every pip matters, Ultra Low is the winner. If you trade occasionally and value simplicity over tiny cost differences, the Standard Account is a great place to start.
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