XMtrading is a company whose main focus is foreign exchange, but they handle not only foreign exchange, but also stocks, virtual currencies, precious metals, energy, etc. Crude oil, oil, etc. Here we have an article about the stocks and margins we handle for energy trading, and their characteristics.
- XMtrading
- XM Overview and Features
- About XM’s Crude Oil Trading (Energy CFDs)
- Crude Oil Trading Conditions
- Advantages and Disadvantages of Crude Oil Trading
- What is the minimum margin requirement for crude oil trading?
- How to Check the Expiry Month
- Important points to consider when trading crude oil with XM are crucial.
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
XM is an overseas online broker offering FX and CFDs (Contracts for Difference), operating under the XMTrading brand for Japanese users. It primarily offers trading in foreign exchange (FX), gold, crude oil, stock indices, stock derivatives, and cryptocurrency CFDs via MT4/MT5/WebTrader/mobile app. The official website highlights over 1,400 instruments, leverage up to 1,000x (depending on account and instrument), and free deposit and withdrawal fees (provided by XM).
1) Easy to Start with Small Amounts
Many XM account types can be started with a minimum deposit of the equivalent of $5.
Furthermore, the Micro account features a 1 lot = 1,000 currency units, making it easier to trade in smaller units than usual. It’s ideal for beginners who want to “try it out with a small amount first.”
2) High Leverage
XM offers leverage up to 1,000:1 depending on the account type.
However, the Zero account has a maximum leverage of 500:1. Furthermore, the upper limit varies depending on the instrument; for example, some commodities such as crude oil have lower limits.
While high leverage allows for large trades with small capital, it also increases the risk of large losses, so caution is necessary.
3) Multiple Account Types to Choose From
XM primarily offers the following four account types:
Micro Account: Suitable for small amounts and small lots. Ideal for beginners to practice with.
Standard Account: A general and easy-to-use standard type.
KIWAMI Account: Features relatively narrow spreads and attractive swap-free conditions.
Zero Account: Characterized by narrow spreads starting from 0 pips, suitable for short-term trading. However, there are trading fees, and the maximum leverage is 500x.
4) Abundant Trading Platforms
XM allows trading in the following environments:
MT4
MT5
WebTrader (Browser Version)
Smartphone App (iPhone / Android)
Therefore, it’s easy to use on both PCs and smartphones, making it convenient to check and place orders while on the go.
5) Wide Range of Trading Instruments
XM handles a wide range of products in addition to FX. The official website lists over 1,400 instruments. The main categories are as follows:
FX Currency Pairs
Gold & Silver
Crude Oil & Natural Gas
Stock Indices
Stock Derivatives
Cryptocurrency CFDs
Thematic Indices, etc.
This is convenient for those who want to trade various instruments with a single account.
6) Relatively Multiple Deposit and Withdrawal Methods
XM’s guide lists multiple withdrawal methods on the app, including domestic bank transfers, cards, bitwallet, STICPAY, BXONE, and cryptocurrencies.
However, the available methods and priority rules vary depending on the deposit method, identity verification status, and region, so it’s safer to check before actually using them.
About XM’s Crude Oil Trading (Energy CFDs)
In simple terms, XM’s crude oil trading (energy CFDs) is a CFD where you trade the price movement of crude oil, rather than buying crude oil itself.
There is no physical delivery of the commodity; you can buy (long) if you think the price will rise, and sell (short) if you think it will fall. XM primarily deals with WTI (US crude oil) and Brent (North Sea Brent).
Features of XM’s Crude Oil CFDs
From a beginner’s perspective, the following three points are key for XM’s crude oil trading:
You can buy and sell crude oil with a similar feel to FX.
You can use leverage.
Understanding the differences between spreads, swaps, and contract months (expiration dates) is crucial.
Crude oil, in particular, is a commodity that fluctuates more rapidly than currency, so
Entering based on a vague feeling that “it might rise” is extremely dangerous.
Types of Crude Oil Tradable on XM
XM’s energy CFDs mainly include the following crude oil-related instruments:
Spot CFDs (Cash)
OILCash (WTI-based)
BRENTCash (Brent-based)
Futures CFDs (with expiration dates)
OIL-APR26 (WTI Futures)
BRENT-MAY26 (Brent Futures)
OILMn-APR26 (WTI Mini Futures)
In short, XM handles both
“Spot CFDs with no expiration date” and
“Futures CFDs with expiration dates.”
Differences between Spot CFDs and Futures CFDs (Extremely Important)
Understanding this will significantly reduce the chances of making mistakes.
Spot CFDs (Cash)
Characteristics:
No expiration date
Can be held for a long time
However, overnight adjustments (effectively swap-like costs) apply
XM states that for energy spot instruments,
overnight adjustments occur every weekday,
and 3 days’ worth are reflected on Fridays.
Suitable for:
Those who want to hold positions for several days to several weeks
Those who want to trade crude oil with a “medium-term perspective”
Futures CFD
Features:
Has an expiration date
May be less susceptible to daily adjustment costs like with spot CFDs
However, settlement is required by the expiration date
XM states that there is no automatic rollover
In other words,
Leaving the position open beyond the expiration date is not allowed; you need to manually switch to the next contract month.
XM states that open positions will be forcibly closed on the expiration date.
Suitable for:
Those who want to trade with a set timeframe
Those who want to target events in a swing to short-to-medium term trading strategy
Leverage of XM’s Crude Oil CFD
XM’s energy CFDs state that the maximum leverage for crude oil is 200x.
This is not 1000x like in FX, so it’s easy to misunderstand.
For example, in the spot CFD table,
OILCash: Maximum 200x
BRENTCash: Maximum 200x
This is important.
Even if your account’s maximum leverage is 1000x, this does not directly apply to crude oil instruments.
In other words,
It’s dangerous to assume that “everything is 1000x because it’s XM.”
Understanding Margin
Calculating required margin for crude oil CFDs is slightly more complicated than for FX.
According to XM’s guidelines, the required margin for spot energy CFDs is calculated as follows:
Required Margin = (Number of Lots × Contract Size × Opening Price) ÷ Applicable Leverage
For futures CFDs, XM states:
“Number of Lots × Contract Size × Opening Price × Margin Rate”
This means that with crude oil,
if you enter an arbitrary lot size, you may end up with a much larger position than you intended.
Crude Oil CFD Spreads
Crude oil spreads tend to widen more than FX spreads, depending on the time of day and market conditions.
XM’s official example lists the following minimum spreads:
Spot CFD (Standard / Micro / Zero)
OILCash: 0.05
BRENTCash: 0.05
KIWAMI Account System
OILCash#: 0.03
BRENTCash#: 0.03
Futures CFD Example
OIL-APR26: 0.05
BRENT-MAY26: 0.05
However, these are only minimum values.
In reality, spreads tend to widen at the following times:
Before and after economic indicator announcements
When crude oil inventory announcements are made
Statements by key figures
Tensions in the Middle East
During sharp fluctuations in London-NY trading hours
Crude Oil Trading Conditions
XM’s crude oil trading conditions differ significantly depending on whether you trade “Spot CFD (Cash)” or “Futures CFD (Futures).”
Understanding these separately makes it much easier to understand.
XM’s Crude Oil Instruments (Target)
These are the three main types of crude oil you’ll see on XM:
Spot CFD
OILCash (WTI)
BRENTCash (Brent)
OILCash# (For KIWAMI Premium Accounts)
BRENTCash# (For KIWAMI Premium Accounts)
Futures CFD
OIL-APR26 (WTI Futures)
OILMn-APR26 (WTI Mini Futures)
BRENT-MAY26 (Brent Futures)
Trading Conditions for Spot CFD (Cash)
This is the easiest type for beginners to understand.
OILCash (WTI Spot)
Minimum Spread: 0.05
Minimum/Maximum Trade Size: 0.01 / 420 Lots
Minimum Required Margin Rate: 0.5%
Maximum Leverage: 200x
Long Overnight Adjustment: -0.85
Short Overnight Adjustment: -2.52
Limit/Stop Level: 0
Supported Platform: MT5
BRENTCash (Brent Spot)
Minimum Spread: 0.05
Minimum/Maximum Trade Size: 0.01 / 350 Lots
Minimum Required Margin Rate: 0.5%
Maximum Leverage: 200x
Long Overnight Adjustment: 0.5
Short Overnight Adjustment: -3.92
Limit/Stop Order Levels: 0
Supported Platform: MT5
For KIWAMI Extreme Accounts (with #)
OILCash#
Minimum Spread: 0.03
Other basic conditions are almost the same as OILCash (maximum 200x leverage, 0.01-420 lots, etc.)
BRENTCash#
Minimum Spread: 0.03
Other basic conditions are almost the same as BRENTCash (maximum 200x leverage, 0.01-350 lots, etc.)
Trading Conditions for Futures CFDs
Futures have an expiration date.
Unlike spot trading, you can’t hold them indefinitely; expiration date management is necessary.
OIL-APR26 (WTI Futures)
Minimum Spread: 0.05
Value per Lot: 100 Barrels
Minimum/Maximum Trade Size: 1 / 280 Lots
Minimum Required Margin: 1.5%
Minimum Price Fluctuation: 0.01
Minimum Price Movement: 1 USD
Limit/Stop Order Levels: 0
Supported Platforms: MT4 / MT5
OILMn-APR26 (WTI Mini Futures)
Minimum Spread: 0.05
Value per Lot: 10 Barrels
Minimum/Maximum Trade Size: 1 / 2,800 Lots
Minimum Required Margin: 1.5%
Supported Platforms: MT4 / MT5
BRENT-MAY26 (Brent Futures)
Minimum Spread: 0.05
Value per Lot: 100 Barrels
Minimum/Maximum Trade Size: 1 / 280 Lot Size
Minimum Required Margin Rate: 1.5%
Supported Platforms: MT4 / MT5
Leverage Conditions (Extremely Important)
This is very important.
Spot CFD
Maximum Leverage: 200x
That is, Required Margin Rate: 0.5%
Futures CFD
Futures are not viewed as “account leverage of XX times,”
but rather as a fixed margin rate.
Crude oil futures are based on 1.5%,
so in practice, it feels like approximately 66.7x leverage.
In other words
Spot CFDs offer higher capital efficiency.
However, they also carry a higher risk of price fluctuations.
Beginners should not underestimate this difference.
Advantages and Disadvantages of Crude Oil Trading
The advantages and disadvantages of trading crude oil with XM are quite clear.In short, crude oil is a commodity that “offers easy price fluctuations, but can collapse rapidly if not managed correctly.” Since investment services involve risks, please check the details on the platform. Currently, there is a guide available, and a great deal of information is explained on the homepage. You can view financial products, charts, terms of service, and ongoing bonuses.
Advantages of Crude Oil Trading
1) Large Price Movements, Numerous Profit Opportunities
Crude oil often moves significantly in a short period of time compared to major FX currencies.
XM also lists high volatility (rate of change) as a characteristic of energy products.
What are the advantages?
Easier to generate large price fluctuations in a single day
Easier to create opportunities in day trading and short-term trading
Prone to significant price increases when a trend is established
In other words,
It’s not a case of “too little movement to profit,” but rather “it moves, making it easier to target.”
2) Can Target Both Upward and Downward Moves
Crude oil CFDs can be traded both long (buy) and short (sell) without holding the physical commodity.
CFDs aim to profit from “price differences,” making them a strong point as they can generate profits even during market downturns.
Advantages
You don’t have to wait only for rising markets.
Opportunities exist even in crashing markets.
Easier to respond to news-driven market movements.
This is particularly well-suited for commodities prone to rapid fluctuations, such as crude oil.
3) Easy to trade with small capital
XM’s crude oil spot CFDs (e.g., OILCash / BRENTCash) have a minimum required margin of 0.5% (maximum 200x) and can be traded from a minimum of 0.01 lots.
Also, WTI mini futures OILMn-APR26 have a lot size of 10 barrels, which is smaller than typical futures.
Advantages
Easy to start even without large capital.
Easy to test small amounts.
Easy to adjust lot sizes.
For beginners, the ability to “get used to trading without immediately making large trades” is a significant advantage.
4) Access to Crude Oil with a Single FX Account
XM allows you to trade not only FX, but also crude oil, gold, indices, and more, all within the same account.
In other words, you can expand your market options beyond just currency trading.
Benefits
No need to use multiple brokerage firms
Option to view crude oil on days when FX is not moving
Easier to switch products depending on market conditions
5) Ability to Use WTI and Brent, Spot and Futures
XM primarily offers WTI/Brent as crude oil, along with Cash (spot CFD)/Futures (futures CFD).
Benefits
Spot CFD for short-term trading
Futures CFD for strategies with expiration dates
Choose between WTI/Brent based on your price movement preferences
In short, having options for “how to trade crude oil” is a strength.
Disadvantages of Crude Oil Trading
1) Extremely volatile price movements make it easy for beginners to be swayed.
This is the flip side of the advantages;
Crude oil has high volatility, meaning losses can be rapid.
XM explains that it’s prone to sudden changes due to many factors such as politics, supply and demand, the global economy, and weather.
Disadvantages
Prices can move against expectations more than anticipated in just a few minutes.
Unrealized losses increase rapidly.
Holding on with the expectation of a rebound is dangerous.
In other words,
products with many opportunities are also prone to accidents.
2) Spot CFDs incur overnight holding costs.
XM’s spot crude oil CFDs are subject to overnight adjustments (holding costs).
Furthermore, three days’ worth of adjustments are reflected on Friday.
Disadvantages
The longer you hold, the more significant the costs become.
While this might not be a concern for day trading, it cannot be ignored for swing trading.
It can be disadvantageous for both buying and selling.
In other words
It can be incompatible with the “hold on and it will eventually recover” strategy.
3) Futures CFDs require management of contract months and expiration dates.
Crude oil futures CFDs (e.g., OIL-APR26 / BRENT-MAY26)
expire on a specific future date and are settled in cash.
XM states that there is no automatic rollover.
Disadvantages
Cannot be left unattended
Requires manual settlement before expiration
Does not automatically move to the next contract month
Difficulties for beginners
Easily confused with OILCash and OIL-APR26
Easily mistakenly assumes “It’s the April contract, so it’s okay until the end of April”
This is a very common mistake with crude oil futures.
4) Spreads can widen suddenly
While XM’s crude oil has a relatively easy-to-understand minimum spread under normal circumstances,
execution costs can suddenly worsen during sudden market changes.
For example, the minimum spread for spot crude oil is 0.05 (KIWAMI is 0.03), and the minimum spread for futures is also 0.05.
Disadvantages
Difficult to enter trades around the time of economic indicator releases
Difficult to cut losses at the desired price
Easier to be affected by short-term trading
Crude oil is not only about “whether you’re right or wrong,” but also about “losing due to costs.”
What is the minimum margin requirement for crude oil trading?
XM’s minimum margin requirement for crude oil trading is not a fixed amount, but varies depending on the price and lot size.
Therefore, the correct approach is to first look at the margin rate. The minimum margin rate differs depending on the type of CFD.
Spot CFD (Cash)
OILCash (WTI) → 0.5%
BRENTCash (Brent) → 0.5%
OILCash# / BRENTCash# (KIWAMI) → 0.5%
→ Effectively equivalent to up to 200x leverage.
Futures CFD (Futures)
OIL-APR26 → 1.5%
OILMn-APR26 → 1.5%
BRENT-MAY26 → 1.5%
→ Effectively equivalent to approximately 66.7x leverage.
1) Understanding the Minimum Required Margin:
Spot CFD (OILCash / BRENTCash)
XM’s official calculation formula is this:
Required Margin = (Number of Lots × Contract Size × Opening Price) ÷ Applied Leverage
Alternatively,
It’s easier to understand if you think of it as:
Transaction Amount × 0.5%
For example:
If WTI crude oil is $80,
0.01 lots,
1 lot = equivalent to 100 barrels,
0.01 × 100 × 80 = $80 worth of trading
The required margin is 0.5% of that,
80 × 0.5% = $0.4
In other words,
If you only hold 0.01 lots of OILCash, the theoretical minimum required margin is approximately $0.4.
2) Minimum Required Margin for Futures CFDs
For Futures CFDs, XM’s official formula is this: Required Margin = Number of Lots × Contract Size × Opening Price × Margin Rate
Example 1: OIL-APR26 (WTI Futures)
According to XM’s official website:
Minimum Required Margin Rate: 1.5%
Value per Lot: 100 Barrel(s)
Minimum Trade Size: 1 Lot
If the price is $80,
1 × 100 × 80 × 1.5% = $120
Example 2: OILMn-APR26 (WTI Mini Futures)
According to XM’s official website:
Minimum Required Margin Rate: 1.5%
Value per Lot: 10 Barrel(s)
Minimum Trade Size: 1 Lot
If the price is $80,
1 × 10 × 80 × 1.5% = $12
3) Which is the easiest to start with the smallest amount?
Roughly arranged in order from smallest to largest:
Easiest to start with a small amount of money
0.01 lots of OILCash / BRENTCash
1 lot of OILMn (WTI mini futures)
1 lot of OIL-APR26 / BRENT-MAY26
In other words,
If you want to trade crude oil with the smallest margin, then O
How to Check the Expiry Month
Checking the expiration month for crude oil on XM is simple.
The easiest way is to “look at the instrument name.”
The part after the instrument name is the “expiration month.”
For example, on XM’s crude oil futures, it will be displayed like this:
OIL-APR26
OILMn-APR26
BRENT-MAY26
The “APR26” and “MAY26” parts are the expiration months.
In other words:
APR26 = April 2026 expiration
MAY26 = May 2026 expiration
This is what it means. On XM’s crude oil futures page, OIL-APR26 = WTI Oil Futures April 2026 is clearly stated.
1) The easiest way to check (MT4/MT5 Market Watch)
Where to look
Look at the list of instruments in Market Watch.
Crude oil will be listed there like this. OILCash → Spot CFD (No expiration date)
BRENTCash → Spot CFD (No expiration date)
OIL-APR26 → Futures CFD (April contract)
OILMn-APR26 → WTI Mini Futures (April contract)
BRENT-MAY26 → Brent Futures (May contract)
How to distinguish them
“Cash” in the name → No expiration date
Month name + year in the name → Expiry date
In other words,
“OILCash” and “OIL-APR26” are completely different.
2) How to check on the XM official website
On XM, you can check on the individual crude oil futures instrument page or in the energy CFD list.
For example, on the official page, it is displayed as follows:
Symbol: OIL-APR26
Content: WTI Oil Futures April 2026
Points to look for
When checking on the official page, look at the following:
Symbol (Example: OIL-APR26)
Content (Example: WTI Oil Futures April 2026)
Trading Hours
Minimum Margin Rate
Value per Lot
Is Expiry Approaching?
3) How to Read the Contract Month (Super Easy)
This is all you need to remember.
JAN = January
FEB = February
MAR = March
APR = April
MAY = May
JUN = June
JUL = July
AUG = August
SEP = September
OCT = October
NOV = November
DEC = December
Examples
OIL-JUN26 → June 2026 Expiry
BRENT-SEP26 → September 2026 Expiry
OILMn-DEC26 → December 2026 Expiry
Important Points Regarding Crude Oil Trading
Important points to consider when trading crude oil with XM are crucial.
While crude oil offers opportunities, it’s a commodity where careless handling can quickly lead to losses, unlike FX.
1) Highly Volatile Price Movements
Crude oil tends to move significantly in shorter periods than major FX currencies.
XM officially states that high volatility is a characteristic of oil.
Why is it dangerous?
Prices can fluctuate dramatically in minutes.
Profits can quickly turn into losses.
Holding on with the expectation of a rebound is dangerous.
Especially for beginners,
using the same lot size as you would for USD/JPY is dangerous.
2) High Leverage Can Be Dangerous If Used Too Much
XM’s spot crude oil CFD offers a maximum leverage of 200x.
Futures CFDs are managed by margin ratios (e.g., 1.5%), not account leverage.
At first glance, this might seem “not that high,” but
crude oil prices fluctuate wildly, so even 200x leverage is quite high-risk.
Common Mistakes
Looking like you have plenty of margin, but a sudden change can drastically worsen your margin ratio
A single adverse movement can trigger a stop-loss
Solutions
Don’t hold positions with your margin at its limit
Aim to limit losses to 1-2% of your account balance in a single trade
Enter with a lot size you can withstand losses on, not just a lot size you can hold
3) Spreads are not fixed and can widen suddenly
Even though XM’s crude oil spread appears relatively narrow under normal circumstances,
actual market conditions can see rapid widening due to news and inventory announcements.
Timing when spreads are likely to widen:
US crude oil inventory announcement
OPEC/OPEC+ related news
Deterioration of the Middle East situation
Sudden fluctuations during NY trading hours
Immediately after market open or during periods of low trading volume
Countermeasures
Avoid jumping in with market orders before or after announcements
When spreads widen, assume that you “cannot enter or exit at your desired price”
Beginners in indicator trading should avoid immediately after announcements
4) Spot CFDs incur costs simply by “holding” them
Spot CFDs such as XM’s OILCash/BRENTCash are subject to overnight adjustments (holding costs).
Furthermore, adjustments for 3 days are applied on Fridays.
Important Points Here
It’s not enough to just look at unrealized losses.
The longer you hold a position, the more the costs gradually take effect.
Costs can arise whether you’re buying or selling.
Solutions
Day trading makes this relatively easy to manage.
If you’re holding a position for several days or more, consider the carry-over costs.
For swing trading, consider whether “Cash is truly suitable.”
5) For futures CFDs, forgetting the “contract month” and “expiration date” is dangerous.
This is extremely important.
XM’s crude oil futures CFDs (e.g., OIL-APR26 / BRENT-MAY26)
do not have automatic rollover.
Furthermore, open positions on the expiration date will be forcibly liquidated.
Common Mistakes
Thinking “If I leave it alone, it will automatically move to the next contract month”
Thinking “It’s APR26, so I can hold it until the end of April”
Forgetting to close positions before expiration
Solutions
When trading futures, always check the contract month and expiration date.
If you want to hold it overnight, manually switch to the next contract month.
For beginners, starting with Cash (spot CFDs) is easier to manage.
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