XMTrading: Are the stop levels of all overseas FX brokers zero? Advantages and disadvantages explanation

XMTrading

Is the stop level for XM orders of overseas FX brokers zero? We will introduce and explain key points regarding account brands, limit price settings, and prices in articles. XMTrading is one of the most popular FX traders. In August 2021, XMTrading announced that the stop level will be uniformly set to “0” for all stocks and products. This can be said to be good news for traders who use XMTrading. However, I am writing this article because some people do not know what a stop level means in the first place.

What is stop level

The stop level is the numerical value applied when placing a limit (stop loss) order. The stop level refers to the price range that must be the minimum interval from the current price. The stop level is generally set independently by the Forex trader, and it is important to check it before trading because there are cases where it differs depending on the brand and account even in the same trader.

For example, if the current price of the dollar/yen is “150.50 yen” and the stop level is “5 pips”, it is required to place a limit order (stop order) with an interval of 5 pips or more from “150.50 yen”. It is necessary to specify the price at the price of “¥150.45 or less”.

Should it be wider or narrower?

A narrower stop level is better than a wider one. If the stop level is narrow, you can freely set a limit price near the quoted price. If the stop level is too wide, the order price will need to move beyond the stop level and you may miss out on the profit.

Especially in short-term trading such as scalping, the weight of 1 pip is large, so it can be said that the wide stop level may hinder good performance and smooth trading. Narrower stop levels allow you to build clear and repeatable trading plans.

What happens if the stop level is too high?

If the stop level is high, pending orders such as limit orders and stop orders will be restricted. Pre-orders cannot be placed within stop levels, which limits your freedom and makes trading difficult. If you want to trade without stress with the order you want, choose an overseas Forex broker with a stop level as small as possible.

stop level is zero

XM’s stop level is zero. There will be a major update in 2021, with zero spreads for all products handled by XM. The stop level for all account types and all products is 0 pips. When setting limit/stop orders and limits, it is now possible to set any price.

How to check the stop level of XM

To find out the stop level of XM, you can check the details on the official website homepage. You may be wondering what the specifications are like, such as loss cutting. The point is that everything is zero. I hope that you can use the rate as a reference when you want to enter or withdraw funds during trading using automated trading (EA) tools.

After logging in, click to access the “Trade Products” → each product page. You can check it on the screen with just a tap from your smartphone. Let’s take a look at this and think about when is the best time.

Source : https://xmtrading.com/

For the English version, access each product page from “INSTRUMENTS”.

Source : https://xmtrading.com/

Let’s take a look at the image. At the far right of the list of conditions for each product, there is a “limit price and stop price level”, which is the stop level. You can see that the stop level is zero for all account types and all products. Let’s think about buying, selling, swap points, etc. comprehensively. Each chart is different.

Source : https://xmtrading.com/

Do stop levels change on XM accounts?

In addition to the “Standard Account” and “Micro Account”, XM offers a “Zero Account” with an extremely low spread. In XM, the stop level is set to “0” regardless of the account. Therefore, there are no disadvantages no matter which account you choose. There is also a rich platform called MT, and there is support if you wish, so you can rest assured. There is also a smartphone app that you can download and use for free.

Account typeStandard accountmicro accountKIWAMI pole accountzero account
SpreadFluctuationFluctuationFluctuationFluctuation
Maximum leverage1,000 times1,000 times1,000 times500 times
Minimum deposit amount$5$5$5$5
BonusNew account opening bonus deposit bonus
trading bonus
New account opening bonus
deposit bonus
trading bonus
New account opening bonusNew account opening bonus
Amount of currency in 1 lot100,000 currency1,000 currencies100,000 currency100,000 currency
Minimum order quantity0.01 lotMT4: 0.01 lot (10 currencies)
MT5: 0.1 lot (100 currencies)
0.01 lot0.01 lot
Maximum number of orders50 lots100 lots50 lots50 lots
Number of stocks handled[FX/currency pair] 57 stocks [FX/precious metals] 4 stocks [CFD/stock index] 30 stocks [CFD/Commodity] [CFD/Energy] 5 stocksSame as leftSame as leftSame as left
transaction feefreefreefree$5 each way

The stop level figures are different for each Forex trader

The reason stop levels are commonly set is to balance server load. The lack of stop levels increases the risk of server downs due to excessive scalping and automated trading. XM Trading has a stop level of 0, so it can be said that it is a Forex company where you can trade very comfortably.

Let’s compare the stop level 0 of XM with the stop levels of other overseas Forex brokers.

XMTradingAXIORYTitanFXGEMFOREXIS6FXFXGT
USD/JPY0pips0pips0pips2.0pips2.0pips6.2pips
EUR/USD0pips0pips0pips2.0pips2.0pips5.2pips
ERU/JPY0pips0pips0pips2.7pips2.7pips8.0pips
GBP/USD0pips0pips0pips2.6pips2.8pips8.4pips

If you want to increase your winning rate in Forex trading, we recommend that you choose a Forex broker whose stop level is as low as possible.

Advantages of stop level 0

With stop level 0, you can place orders at the price you want. If there is a stop level, a pre-order can only be placed at a price that is separated from the current price by the stop level. In addition, XM Trading with a stop level of 0 allows you to proceed with scalping trades in an advantageous manner. Scalping trades with a small price range of a few pips, so it is difficult to make a profit if orders are restricted at the stop level. It is said that scalping is not suitable for XM trading with wide spreads, but if the stop level is 0, it will be useful enough.

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