XMTrading: Which is better, an XMT Trading STP or ECN account? A thorough explanation of the latest version.

The overseas FX company xmtrading offers two types of order methods, STP and ECN, but there are differences between them. STP accounts and ECN accounts have different transaction costs such as commission and spread, and each has its own advantages and features. Here is a summary of the features, advantages, and points to note for XM’s STP and ECN accounts.

XMtrading

Operating company	Tradexfin Limited Fintrade Limited
Head office location	Unit E, F28, Eden Plaza, Eden Island, Republic of Seychelles
Founding year	2009
Financial License	（FSA）SD010：Tradexfin Mauritius Financial Services Commission (FSC：)：Fintrade Limited Cyprus Securities and Exchange Commission (CySEC)：Trading Point of Financial Instruments Ltd
Language support	English、日本語、Malay、Thai
Platform	MetaTrader 4 (MT4)／MetaTrader 5 (MT5)
Service Countries	Over 190 countries
Number of users	Over 1 million accounts
Max Leverage	1000x
Eligible products	Forex、Metal、Stocks、Equity Indices / Index CFD、Energy CFD、Commodities、Cryptocurrency

XM Overview and Features

XMTrading is an overseas broker that allows trading of FX, precious metals, stock indices, crude oil, and stock derivatives via CFDs. The Japanese website supports MT4/MT5/WebTrader/mobile apps, and features over 1,400 instruments, a maximum leverage of 1,000:1, and free deposit and withdrawal fees (with conditions).

1) Easy to Start with Small Amounts

XM offers Micro Accounts (for small amounts) and Standard Accounts (for general users), making it relatively easy for beginners to get started. It’s especially user-friendly for those who “don’t want to deposit a large amount of money right away.”

2) MT4/MT5 Support

XM supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are widely used globally.

Its strength lies in its compatibility with PCs, Macs, smartphones, and browsers, making it easy to use regardless of your environment.

3) Wide Range of Products

The following products are listed on the XM Japanese website:

FX (Foreign Exchange)

Precious Metals such as Gold and Silver

Energy such as Crude Oil

Stock Indices

Stock Derivatives

Thematic Indices

Cryptocurrency CFDs (Some information available)

Suitable for those who want to explore various options with a single account.

4) High Leverage

XM offers leverage up to 1,000:1. While this allows for large positions with limited capital, it also increases the risk of significant losses, so beginners should use it cautiously.

5) Abundant Bonuses

XM is well-known among overseas FX brokers for its generous bonuses. Official information includes, for example:

Account Opening Bonus (No Deposit Required)

Deposit Bonus

Loyalty Program (Points per Trade)

However, it’s important to note that bonuses themselves are non-withdrawable; only profits can be withdrawn, and a portion of the bonus may be lost upon withdrawal. Many people start without understanding this.

6) Low-spread accounts such as the Zero account are also available.

XM offers not only standard accounts but also low-spread focused accounts such as the Zero account. The official website advertises “spreads starting from 0 pips.”

However, these accounts often have different conditions, such as whether or not they charge fees or are not eligible for bonuses, so “narrow spreads” don’t necessarily mean “better.”

What is an STP account?

An STP (Straight Through Processing) account is a type of account where traders’ orders are not held by the dealer but are instead routed directly to an external liquidity provider (LP) for execution.

How STP accounts work

Normally, when you place a “buy” or “sell” order, that order is routed to the market via the broker.

In an STP account, this order is routed relatively directly to an external provider.

The flow is as follows:

You → XM → Liquidity Provider (bank, financial institution, etc.)

In other words, after XM receives the order,

it processes that order based on the external price.

1) Transaction fees are “more transparent”

STP accounts often have

no separate transaction fees

Instead, the cost is included in the spread

For example,

Buy price: 150.001

Sell price: 149.998

If there is a difference like this, that difference (spread) becomes the actual cost.

2) Spreads tend to be wider than ECN accounts

While STP accounts are convenient,
the spreads are often slightly wider compared to ECN accounts (low-spread types like Zero accounts).

In other words:

STP accounts
→ Wider spreads / No commissions

ECN accounts
→ Narrower spreads / Commissions

This is the difference.

3) Easy for beginners to understand

STP accounts have simple calculations.

Beginners often get confused about:

What constitutes a commission

Where costs are deducted

Advantage 1: Easy for beginners to use

With fewer complicated commission calculations,
it’s suitable for those who want to practice first.

Advantage 2: Good for small-amount trading

When starting with bonuses or small amounts of capital, like with XM,
STP accounts are relatively easy to use.

In particular,

It’s a good fit for the following stages:

Practicing with a demo account

Practicing with a small real account

Getting used to the operation first

Advantage 3: Less likely to make a mistake in choosing an account

When you’re wondering, “Which one should I choose just for now?”,

an STP-based Standard account is a safe bet.

Disadvantage 1: Often disadvantageous for scalping

In trades aiming for several pips repeatedly,

the spread width has a significant impact.

For example, if you’re aiming for 2-3 pips per trade,

having a spread of 1-2 pips from the start is quite burdensome.

Therefore,

For ultra-short-term trading

For dozens of trades per day

STP accounts can be disadvantageous.

Disadvantage 2: Slippage can occur during sudden market changes

This isn’t limited to STP accounts, but since orders are routed based on external prices,

slippage (execution at a price different from expected) can occur during sudden market changes.

What is an ECN account?

An ECN (Electronic Communication Network) account connects the prices of multiple banks, financial institutions, and liquidity providers (LPs) on a network, making it easier to execute orders at prices closer to the market.

How ECN accounts work

In a regular STP account, orders are routed externally through the broker.

In contrast, an ECN account provides more direct access to prices offered by multiple participants.

The flow is roughly as follows:

You → ECN Network → Banks/Financial Institutions/Liquidity Providers

In short, it’s characterized by a structure that makes it easier to buy and sell at prices closer to the market.

1) Narrower Spreads

This is the biggest advantage of ECN accounts.

For example, compared to regular accounts,

USD/JPY

EUR/USD

GOLD (XAU/USD)

spreads tend to be considerably smaller.

Therefore, it offers a significant advantage for those who want to minimize the cost of each trade.

2) Separate Transaction Fees

ECN accounts offer narrow spreads, but often incur separate transaction fees, such as:
$X per lot

$X round trip

This is a major difference from STP accounts.

In other words, the cost of an ECN account should be considered as:

Effective Cost = Spread + Transaction Fee

Overlooking this can easily lead to the misconception that “narrow spreads mean it’s definitely a good deal.”

Benefit 1: Strong for Short-Term Trading

ECN accounts are particularly well-suited for:

Scalping

Day Trading

Frequent trading styles

For example, for someone who trades 10 or 20 times a day,
the spread difference accumulates and becomes quite important.

Benefit 2: Easier to Manage Transaction Costs in Detail

Because ECN accounts separate spreads and fees,

it’s easier to analyze how much cost was paid

Which currency pairs are advantageous

Benefit 3: Easier to trade with a feel closer to market prices

ECN accounts are suitable for those who want to trade with a feel closer to the market in terms of price formation.

Disadvantage 1: Difficult for beginners to understand

This is the biggest weakness.

Beginners are often confused by the differences between:

Spread

Commissions

Effective costs

Judging solely by the visible spread is likely to lead to mistakes.

Disadvantage 2: Not always suitable for small-amount practice

ECN accounts are more beneficial for those who trade frequently.

Conversely,

Those who only trade a few times a month

Those who want to practice first

Those who prioritize bonuses

STP accounts may be easier to use.

Disadvantage 3: May not be eligible for bonuses

In overseas forex trading, ECN accounts may not be eligible for bonuses or may be partially excluded.

Even with XM, bonus conditions may differ depending on the account type, so caution is necessary.

Differences between STP and ECN Accounts

In short, the difference between STP and ECN accounts is:

STP Account = Easy to understand and get started with

ECN Account = A serious account focused on low costs

Understanding this difference before using XM will significantly prevent you from “choosing an account haphazardly and regretting it.”

STP Account

No commissions

Slightly wider spreads

Suitable for beginners

Suitable for small-amount practice

ECN Account

Commissions apply

Narrower spreads

Suitable for short-term trading

Suitable for intermediate to advanced traders

In other words,

Choose STP if you prioritize ease of use

Choose ECN if you prioritize cost

1) Differences in Order Mechanisms

STP Account

STP (Straight Through Processing) is

a system where orders are routed through the broker to external liquidity providers.

The flow looks like this:

You → XM → Bank/Financial Institution, etc.

In other words, it’s a type of order that is executed with a relatively simple structure. ECN Account

ECN (Electronic Communication Network) is a system that connects to a price network of multiple financial institutions and participants.

The flow is like this:

You → ECN Network → Banks/Financial Institutions, etc.

In other words, it’s a structure that makes it easier to access prices closer to the market.

2) Most Important: Cost Differences

This is extremely important.

STP Account Costs

In an STP account, basically,

Cost = Spread

For example,

Buy Price: 150.001

Sell Price: 149.998

The difference is the cost.

In other words,

Fees are easily visible

Easy for beginners to understand

ECN Account Costs

In an ECN account,

Cost = Spread + Transaction Fee

In other words,
Even if the spread appears narrow, you won’t know the true cost savings unless you add in the fees.

If you don’t understand this,

you’re likely to mistakenly think, “ECN is definitely better because the spread is narrower!”

In reality, it depends on your trading style.

3) Differences in Spreads

STP Account

Spreads are slightly wider

However, there are no commissions

For example,

If you trade a few times normally

If you hold positions with a swing-like approach

If you’re a beginner practicing

Then it’s not that much of a disadvantage.

ECN Account

Spreads are quite narrow

However, there are commissions

Especially if you buy and sell many times a day

If you aim for a few pips

If you scalp

Then this difference becomes quite significant.

Which is better, STP or ECN account?

XM has a leverage of 1000 times, so many traders who want to trade big with a small amount of money gather. With XM’s STP account, the minimum deposit amount is 500 yen and you can receive a deposit bonus of up to 500,000 yen, so STP accounts are gaining popularity due to the low hurdles of trading. STP is recommended for those who want to stick to high leverage trading, and ECN is recommended for those who want to reduce transaction costs such as scalping.

STP is standard, micro, KIWAMI account

The ECN account will be a ZERO account. The rest will be STP.

Account type	Standard account	micro account	KIWAMI pole account	zero account
Spread	Fluctuation	Fluctuation	Fluctuation	Fluctuation
Maximum leverage	1,000 times	1,000 times	1,000 times	500 times
Minimum deposit amount	$5	$5	$5	$5
Bonus	New account opening bonus deposit bonus trading bonus	New account opening bonus deposit bonus trading bonus	New account opening bonus	New account opening bonus
Amount of currency in 1 lot	100,000 currency	1,000 currencies	100,000 currency	100,000 currency
Minimum order quantity	0.01 lot	MT4: 0.01 lot (10 currencies) MT5: 0.1 lot (100 currencies)	0.01 lot	0.01 lot
Maximum number of orders	50 lots	100 lots	50 lots	50 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 stocks	Same as left	Same as left	Same as left
transaction fee	free	free	free	$5 each way

XM (XMTrading): Comparing the differences between all four XM FX account types and how to change them, and thoroughly explaining the latest recommended information

We will explain the trading characteristics, how to choose, and spreads regarding the four types of XMTrading account types (Standard, Micro, Zero, and Kiwami), and provide recommendations. There are about 4 account types in XMTrading. We will explain the differences between each, but if you are a beginner, we recommend starting with the standard account. This is because the differences are often not well understood in the first place, and it is better to change the steel type if you are dissatisfied with it after actually using it.

www.worldforexintroduction.com

2025.11.27

Which is better, STP or ECN?

In short, STP is recommended for most beginners.

However, ECN is a strong option for those who are serious about short-term trading.

Who should consider STP?

If any of the following apply to you, then STP is a good choice to start with:

You’re using XM for the first time.

You’re new to overseas forex trading.

You want to take advantage of bonuses.

You want to practice with a small amount first.

You’re more into regular day trading or swing trading than scalping.

You still find calculating “effective costs including fees” troublesome.

If you start with ECN, you’re likely to find yourself in a situation where:

“The spread is narrow, but for some reason, my profits aren’t increasing as much as I expected.”

The reason is simple: you tend to underestimate the importance of fees.

Who should consider ECN?

Conversely, if any of the following apply to you, then ECN is likely to be more valuable.

You trade multiple times a day.

You primarily use scalping.

Your trading style involves accumulating small gains of a few pips.

You’re very concerned about spread differences.

You can manage profits and losses including fees.

You prioritize actual trading costs over bonuses.

XM’s Zero account has a commission of $5 per USD 100,000 according to official information, and some currency pairs have very narrow average spreads. This difference becomes significant in short-term trading.

If you’re unsure, the answer is actually quite simple:

STP is generally a better fit. This is quite honest.

Why? Because the reasons beginners often lose money initially aren’t related to whether they use STP or ECN, but rather to these three things:

Using excessively large lot sizes

Delayed stop-loss orders

Using excessive leverage

In other words, what’s important at the beginning is

Being able to practice trading in a way that minimizes losses, rather than “optimizing” your account.

In this sense, STP is less prone to failure.

Frequently Asked Questions

Here’s a brief summary of common questions that beginners and users often have about XM (XMTrading), including investment risks, rates, and trading. Questions about account types, balances, bonuses, and deposits/withdrawals are particularly frequent. There are also campaigns and bonuses available, so be sure to check the detailed guide on the company’s website.

Q1: Which is better, an STP account or an ECN account?

Beginners, small-amount practice, bonus-focused → STP (Standard / Micro)

Short-term trading, scalping, low-cost focus → ECN (Zero)

It’s best to start with an STP account to get used to it, and then switch to an ECN account as needed.

Q2: What are the differences between Standard, Micro, Zero, and KIWAMI accounts?

Standard / Micro → STP-based, no commissions, slightly wider spreads, eligible for bonuses

Zero → ECN-based, narrower spreads, commissions, not eligible for bonuses

KIWAMI → Low cost under specific conditions, closer to ECN, bonus restrictions

Q3: What is the difference between balance and credit (bonus)?

Balance: Your own deposited money, withdrawable.

Credit: Bonus from XM, not withdrawable; only profits can be withdrawn.

Note: Credit can be used as margin for trading and for stop-loss determination, but it cannot be withdrawn.

Q4: What happens if my balance goes negative?

XM uses a zero-cut system, and XM will reset any negative balance.

However, be aware that the entire account balance may be lost.

Q5: Are there leverage restrictions based on balance?

At XM, the leverage limit decreases gradually as your account balance increases.

Example: Maximum 1,000:1 → Maximum 500:1 when balance exceeds $2,000, etc.

Q6: What is the minimum deposit amount?

Standard / Micro → $5 (or €5/£5)

Zero → $100 (varies depending on currency)

Q7: Can I receive a deposit bonus?

Standard / Micro → Deposit bonus available

Zero → Not eligible for basic bonus

Q8: Are there withdrawal fees?

With XM, withdrawals via bank transfer or e-wallet are free (conditions apply).

However, international transfers may incur fees from the receiving bank.

Q9: What is the leverage?

Maximum 1,000:1 (depending on account type and balance)

High leverage increases profits, but also increases losses, so be careful.

Q10: Is there slippage?

Yes. Especially with ECN accounts (Zero), which are directly connected to the market, prices may deviate during sudden market fluctuations.

It can also occur with STP accounts for currency pairs with low liquidity.

Q11: Can I trade using only bonuses?

Trading is possible using only credit (bonuses), but withdrawals are not possible.

Only profits can be withdrawn.