XMTrading allows you to trade not only FX but also precious metals. This article provides a comprehensive explanation of the methods for trading CFD instruments such as gold and silver, including spreads and leverage. It highlights the unique features of each method, including calculations and leverage.
- XMtrading
- XM Overview and Features
- XM Overview
- 1) Easy to Start with Small Amounts
- 2) Relatively Clear Account Types
- 3) MT4/MT5 Compatible
- 4) Wide Range of Trading Instruments
- 5) Negative Balance Protection
- 6) Supports Hedging and Islamic Accounts
- 7) Strong Emphasis on Execution Speed and Order Execution
- 8) Disclosed Regulatory and Licensing Information
- About XM’s Precious Metals Trading
- Advantages of trading precious metals on XM
- Disadvantages and points to note about XM’s precious metal trading
- Precious Metals Trading Conditions
- Reasons for Trading Inability and Solutions
- How to Trade
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 broker primarily dealing in foreign exchange (FX) and CFDs. While it emphasizes conditions that make it easy for beginners to start, it’s crucial to understand from the outset that “easy to use” doesn’t equal “safe,” as CFDs and FX are extremely high-risk products. XM officially states that FX and CFDs are high-risk products and that many individual investor accounts experience losses.
XM Overview
XM, known as “XM Trading / XM Group,” is an overseas FX and CFD broker offering over 1,400 instruments including FX, stock indices, precious metals, energy, and stock CFDs. The trading platform primarily supports MT4/MT5 and can be used on PCs, smartphones, and via the web.
1) Easy to Start with Small Amounts
XM officially states that the minimum deposit is equivalent to $5. A key feature is that it’s easy to start an account without needing a large amount of capital.
2) Relatively Clear Account Types
Currently, official information mainly features the Ultra Low account and the Zero account.
Ultra Low Account: Emphasizes low spreads
Zero Account: Extremely small spreads (near 0) + fixed commission
These two accounts have different approaches to transaction costs.
3) MT4/MT5 Compatible
XM supports MetaTrader 4/5, which is widely used globally.
It’s an easy-to-use environment even for experienced FX traders, with features like automated trading (EA), chart analysis, and indicator utilization.
4) Wide Range of Trading Instruments
XM officially offers a wide range of instruments, including not only foreign exchange but also stock indices, gold and silver, energy such as crude oil, and individual stock CFDs.
This is suitable for those who want to trade while looking at the overall market, not just FX.
5) Negative Balance Protection
XM officially states that it offers Negative Balance Protection (Zero Cut/Negative Balance Protection).
A major feature is that it helps to mitigate the risk of margin calls even if losses exceed the account balance due to sudden fluctuations.
6) Supports Hedging and Islamic Accounts
According to official information, XM supports hedging (two-way trading) and Islamic Options (swap-free options). This makes it easy to adapt to your trading style.
7) Strong Emphasis on Execution Speed and Order Execution
XM officially highlights no requotes and no order rejections as major features, stating that 99% of trades are executed in less than one second. This is a key point for those who prioritize short-term trading.
8) Disclosed Regulatory and Licensing Information
XM’s official website states that Trading Point of Financial Instruments Ltd provides services under a CySEC (Cyprus Securities and Exchange Commission) license 120/10.
However, the applicable conditions may vary depending on the legal entity and region of service used, so it is essential to check the conditions for your country of residence before opening an account.
About XM’s Precious Metals Trading
XM’s precious metals trading involves buying and selling gold, silver, and other precious metals via CFDs (Contracts for Difference) rather than physically holding them.
It allows for both “price increase” and “price decrease” strategies, and is easy to use as an extension of an FX account. However, due to the leverage involved, the risk of price fluctuations is considerably high. XM officially states that CFDs are complex and high-risk products, and that 74.3% of individual investor accounts experience losses.
What is XM’s Precious Metals Trading?
XM treats precious metals as CFDs, where you trade based on price differences.
In other words, instead of actually holding gold or silver, you take a position on price fluctuations. XM officially explains metal trading as “trading price fluctuations without holding the physical assets.”
Main Precious Metals Tradable on XM
According to XM’s official information, the precious metals category mainly focuses on Gold and Silver.
On the broker’s page, it’s offered as “precious metals,” and after logging into your account, you can check the detailed trading hours and conditions for each product.
The following are some of the instruments that generally attract attention on XM:
GOLD
SILVER
*For actual trading instrument names, specifications, and times, it’s best to check the specifications list after logging in. XM also states that “All trading hours can be checked after logging in.”
Advantages of trading precious metals on XM
1) Attracts attention during inflation and geopolitical risks
Gold is often seen as a “safe haven asset” and can move for reasons different from stocks and currencies.
Therefore, it’s often used as a diversification option for those whose market outlook is biased when relying solely on FX.
2) Allows short selling
Unlike physical gold investment, XM’s precious metals CFDs have the advantage of allowing profits even during downturns.
It’s easier to develop strategies not only when you think “gold will rise,” but also when you think it will fall.
3) Easy to start with a small amount
XM accounts can be started with a minimum deposit of the equivalent of $5, making it easy to learn about precious metal price movements without immediately investing a large amount of capital.
4) Zero-cut (negative balance protection)
XM offers Negative Balance Protection.
Precious metals are prone to rapid fluctuations, so the ability to mitigate margin call risk is a significant source of reassurance.
Disadvantages and points to note about XM’s precious metal trading
1) Large price fluctuations, difficult for beginners
Gold and silver can move much more rapidly than major FX currencies.
They are particularly prone to sudden changes due to the following factors:
US interest rate outlook
Dollar exchange rate
Inflation indicators
Geopolitical risks such as the situation in the Middle East
Employment statistics/FOMC
In other words, entering based on a vague feeling that “it might go up” is likely to result in losses.
2) Affected by spreads and swaps
Spreads are a factor in short-term trading, while swaps are a factor in long-term holdings.
Especially with precious metals, holding costs can be a greater concern than exchange rates, so it’s best to consider “how many days you’ll hold it” beforehand.
3) Using excessive leverage is quite dangerous.
Gold’s price fluctuations are large, so holding large lots like you would with FX can reduce your capital far more than you expect.
A common mistake beginners make is “betting big because it’s a small amount.”
Precious Metals Trading Conditions
In short, XM’s precious metals trading conditions are:
“Trading gold and silver with spreads, fees, swaps, and margin requirements that vary depending on the account type.”
1) Main Tradable Precious Metals
The following are the main instruments commonly used on XM:
GOLD
SILVER
Some XPTUSD (Platinum) and XPD series (Palladium) are also available.
In other words, beginners will almost always start with
GOLD (XAU series) or SILVER (XAG series).
2) Trading Platform
XM’s precious metals are primarily traded using the following platforms:
MT4
MT5
XM’s official website also guides trading based on MetaTrader platforms.
3) Minimum Deposit
XM accounts have a minimum deposit of approximately $5, according to official guidelines.
Therefore, trading precious metals is relatively easy to start with small amounts.
However, “being able to open an account” does not equal “being able to trade gold safely.”
Gold is highly volatile, so lot management is especially important for smaller accounts.
4) Leverage
At XM, leverage varies depending on the product, region, and account conditions.
XM’s official general guide states that the maximum leverage is 30:1 (under EU regulations) for some products.
On the other hand, XMTrading’s guide for Japan may offer higher leverage conditions for some instruments, such as gold.
The actual applicable value will vary depending on your account type, region, account balance, and instrument, so it is essential to always check the “Specifications” in MT4/MT5 or the member page for final confirmation.
5) Spread
The first thing to look at when considering precious metal trading costs is the spread.
XM’s Basic Structure
Ultra Low Account
→ Spread-centric cost type
Zero Account
→ Extremely low spread + separate commission type
Image
Short-term trading (scalping/day trading)
→ Zero account may be more suitable
Ease of understanding is important → Ultra Low account may be easier to use
Note: XMTrading’s guide uses gold as an example to show the difference in minimum spreads for each account type.
6) Trading Commissions
This is quite important.
Understanding Commissions
Ultra Low Accounts
→ Generally no commission, costs are included in the spread
Zero Account
→ Separate commission applies
In other words, even if the spread appears narrow, you need to consider the commissions included.
7) Swap Points
Holding precious metals overnight may incur swaps (interest rate adjustments).
XM allows you to check this using the swap calculator and the MT4/MT5 specifications screen.
Points of particular importance
Gold and silver may incur daily swaps.
The swaps are generally reflected on Wednesdays for three days (adjusted for the weekend).
There are exceptions.
According to XMTrading’s information:
In the KIWAMI account, gold, silver, and XAUEUR are swap-free.
Some precious metals in futures CFDs are swap-free.
There is also an exception where the XPTUSD / XPDUSD system has its three-day swap payment date treated as Friday.
8) Lot size (contract size)
This is the most dangerous point for beginners.
In XMTrading’s information, as an example for gold,
1 lot = 100 oz (some accounts use 1 oz units).
Why is this important?
For example, with gold:
0.01 lot
0.1 lot
1.0 lot
The increase or decrease in profit/loss is completely different.
9) Minimum and Maximum Trading Volume
XMTrading’s guidelines, using gold as an example, state the following conditions:
Minimum trading volume: 0.01 lots
Maximum trading volume: Quite large
Practical usage for beginners
It’s almost certainly safer to start with around 0.01 lots.
Reasons for Trading Inability and Solutions
The reasons why you cannot trade precious metals (especially gold/silver) on XM are almost always one of the following:
In short, the most common reasons are “outside trading hours,” “insufficient margin,” and “incorrect instrument selection.” XM’s guidelines also list these three, plus maintenance, as the main reasons why gold trading is unavailable.
1) Outside Trading Hours
This is quite common.
According to XM’s guidelines, gold trading hours are:
Summer Time: 7:05 AM to 5:55 AM the following day
Winter Time: 8:05 AM to 6:55 AM the following day
Trading is suspended during the daily rollover time. Furthermore, trading closes early Saturday morning and remains closed until Monday morning. There are also changes to trading hours and closures on weekdays during public holidays and the New Year period.
Solutions
Check if it’s currently rollover time.
Check if it’s a weekend, public holiday, or year-end/New Year’s holiday.
Check XM’s announcements / trading time change information.
Check if the instrument updates have stopped in the MT4/MT5 quotes.
2) Insufficient Margin
This is also very common.
According to XM’s guidelines, new orders cannot be placed when the margin maintenance ratio falls below 100%. In other words, even if your balance appears sufficient, you cannot place orders if your surplus margin is insufficient.
Common Pattern
Account balance is present.
However, the effective margin is decreasing due to unrealized losses.
As a result, only new orders cannot be placed.
Solutions
Check the following in MT4/MT5 or the XM app:
Effective Margin
Required Margin
Surplus Margin
Margin Maintenance Ratio
Reduce lot size
Close some existing positions
Make an additional deposit
3) Leverage Restriction
This is easy to overlook.
XM’s guidelines state that as your effective margin balance increases, your maximum leverage may be gradually restricted. For example, exceeding a certain balance may increase your required margin, making it suddenly impossible to open the same number of lots.
Solutions
Check your current effective leverage in your member area or account settings.
Try using smaller lots instead of the same lot size as before.
If your balance or effective margin has increased, recalculate your required margin.
4) Incorrect Symbol (Instrument)
XM may display similar-sounding symbols depending on your account type and platform.
Therefore, you may see the correct symbol but be unable to place an order. XM’s guidelines also list “not selecting the correct symbol” as a possible cause.
Common Examples
Opening a different instrument similar to GOLD
Different display between MT4 and MT5
The required instrument is not displayed in the quotes
Viewing an instrument display that does not match your account type
5) XM Maintenance/Server Downtime
While rare, this does happen.
XM’s announcements also state that orders cannot be placed during maintenance or temporary service suspension.
Solutions
Check XM’s announcements
Check the server connection status
Check the connection indicator in the lower right corner of MT4/MT5
Restart the application
Try using a different connection (Wi-Fi / Mobile)
How to Trade
Trading precious metals (GOLD/SILVER) on XM is actually quite simple.
However, while “placing an order” is easy, “placing an order safely” is a different matter. Especially with gold, which experiences significant price fluctuations, deciding on lot size and stop-loss before placing an order is crucial.
1) Log in to your XM account
First, log in to your XM account.
Usually, you’ll need these two things:
Account number
Password
Trading is primarily done using one of the following:
MT4
MT5
MT4/MT5 mobile app
Even in XMTrading’s guides, precious metals trading is explained assuming MetaTrader 4/5.
2) Display GOLD/SILVER
After logging in, first display the instrument you want to trade.
Frequently used instruments
GOLD
SILVER
In XMTrading’s guides, the symbol for XM’s gold is generally displayed as “GOLD,” but the display may differ depending on the account type.
Display Method (MT4/MT5)
PC Version
Open “Market Watch”
Right-click on a blank area
Select “Show All”
Find GOLD / SILVER
Smartphone Version
Open “Market Watch” or “Quotes”
Click the + in the upper right corner
Select Metals
Add GOLD / SILVER
3) Open the Chart and See the Direction
Next, before placing an order, open the chart first.
Minimum things to look at
Is it currently rising or falling?
Recent highs and lows
Is it about to be announced as an economic indicator?
Beginner’s Guide
Highs being broken → Strong upward trend
Lows being broken → Strong downward trend
Sharp fluctuations up and down → Safer not to trade
The important thing here is to decide beforehand “where to cut your losses” rather than “where it looks like it’s going to rise.”
4) Determine the Lot Size
This is the most important part.
In XMTrading’s guides, the size of one lot for gold varies depending on the account type.
For example, for gold, Standard/Extreme/Zero accounts use 1 lot = 100 oz, while Micro accounts use 1 lot = 1 oz. The minimum trading volume also differs by account type.
Recommendation for Beginners
Start almost certainly with
0.01 lots.
Reason
Gold has large price fluctuations, so entering with something like “0.1 lots in a small account” is quite dangerous.
A Very Important Concept
The lot size should be determined not by “how much you want to win,” but by “how much you can afford to lose.”
Example
“I only want to lose a maximum of 2,000 yen in one trade.”
→ Determine the lot size by working backward from that.
This approach will help you survive longer.
5) Placing an Order (Buy or Sell)
This is where you place your order for the first time.
A. Market Order (Enter Now)
This is the simplest method.
When to Use
Want to Buy Now
Want to Sell Now
PC Version Instructions
Open the GOLD chart
Right-click → New Order
Enter Quantity (Lots)
Confirm that the Order Type is Market Order
Buy → You think it will go up
Sell → You think it will go down
Smartphone Version Instructions
Tap GOLD
Trade
Enter Quantity
Market Order
Buy
Sell
B. Limit/Stop Orders (Pending Orders)
Used when you want to enter a trade not immediately, but when you want to enter at a specific price.
XMTrading’s MT4/MT5 guides also provide instructions for setting up pending orders and IFO orders on mobile devices. MT5 also supports stop-limit orders.
Four Typical Types
Buy Limit
→ Want to buy if the price falls below the current level
Sell Limit
→ Want to sell if the price rises above the current level
Buy Stop
→ Want to buy if the price breaks above the current level
Sell Stop
→ Want to sell if the price breaks below the current level
In a very simple way for beginners:
Buying on dips → Buy Limit
Selling on rallies → Sell Limit
Buying on breakouts → Buy Stop
Selling on breakouts → Sell Stop
6) Always set stop-loss (SL) and take-profit (TP) levels.
Not doing this is extremely dangerous.
Stop-loss (SL)
“The price at which you will accept a loss and cut your losses if the price moves against you.”
Take-profit (TP)
“The price at which you will secure profits if the price moves to this level.”
Recommended approach for beginners
At a minimum,
It’s essential to decide on your stop-loss level before entering a trade.
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