This article explains and introduces the high execution speed, slippage, causes, countermeasures, settings, and profit-making methods for MT trading with XM (XMTrading). Completely avoiding slippage is extremely difficult and it occurs regardless of the overseas FX broker. To reduce trading costs, it is important to choose an FX broker that minimizes the frequency and magnitude of slippage.
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 Features
The following is a clear and concise summary of XM (XMTrading)’s features. It will serve as a comparison and decision-making tool when choosing an overseas forex broker. Check the information on swaps, spreads, etc., on their homepage to determine if it’s suitable for your investment.
🔹 XM Basic Overview
Establishment & History: A long-established overseas FX broker founded in 2009. It boasts a long track record and is used by traders worldwide.
Tradable Assets: FX (foreign exchange), stock indices, stock CFDs, commodities, precious metals, energy, cryptocurrencies, and many others.
Platform: MetaTrader4 (MT4), MetaTrader5 (MT5), XM official app.
Minimum Deposit: Account opening possible from as little as $5.
✅ Main Features & Benefits of XM
◆ 1. Caters to Users of Various Sizes
A popular broker used by over 5 million people in over 190 countries worldwide. Especially popular among Japanese users.
◆ 2. A Supportive Environment for Beginners
Designed to be easy for beginners to start with, featuring low minimum deposits, a wide range of account types, educational content, and Japanese language support.
◆ 3. High Leverage
With a maximum leverage of 1:1000, highly capital-efficient trading is possible (※Regional restrictions apply).
◆ 4. Diverse Trading Instruments
Handling over 1,000 instruments, including more than 55 currency pairs, stock indices, commodities, and stock CFDs, supporting diverse strategies.
◆ 5. Safety and Reliability
Operating with financial licenses from multiple countries (e.g., ASIC, CySEC, FSC, etc.), providing segregated customer funds and negative balance protection (a mechanism to prevent debt).
◆ 6. Abundant Educational and Analytical Tools
A wealth of learning content, including market commentary, videos, live streams, and webinars, supports beginners’ learning.
◆ 7. Bonuses and Campaigns
Campaigns such as initial account opening bonuses and deposit bonuses are available, potentially offering the advantage of increasing capital to start trading.
⚠️ Points to Note/Disadvantages
✖️ Spreads may be wider than other companies
While the “Ultra Low” account has narrower spreads, there is still a slight difference compared to the raw spreads of ECN brokers (e.g., IC Markets and Exness).
✖️ No proprietary platform
The lack of a proprietary, high-performance platform (e.g., cTrader), primarily using MT4/MT5, may be a drawback for some traders.
✖️ Service conditions vary by region
Leverage and bonus conditions may be restricted in regions such as the EU and Australia.
✖️ Dormant account fees, etc.
If there is no trading or login activity for a certain period, a dormant account fee may be charged (see terms and conditions for details).
What is Slippage in XM?
This explains slippage, a common issue in FX trading, specifically with XM. While slippage can occur with any broker, XM has its own unique characteristics and points to note.
1️⃣ What is Slippage?
Slippage is the difference between the price at which an order was placed and the price at which it was actually executed.
Example: A buy order was placed at 1.1000, but it was actually executed at 1.1003 → +3 pips slippage.
Slippage is mainly caused by sudden market changes, insufficient liquidity, and large orders.
2️⃣ Cases Where Slippage is Likely to Occur in XM
🔹 During Sudden Economic Indicator Releases or Statements by Key Figures
When price movements are large in an instant due to events such as US employment statistics or FOMC meetings, SL (Stop Loss) and TP (Take Profit) orders may not be settled at the specified price.
🔹 Low Liquidity Times
During times with fewer traders, such as early mornings, late nights, and holidays, spreads tend to widen, making slippage more likely.
🔹 Large Orders/Market Maker Specific
XM is a market maker (dealing desk), so during large orders or sudden market changes, there may be a difference between the order price and the execution price during internal processing.
3️⃣ Slippage as a Characteristic of XM
Almost No Problem in Normal Trading
→ Even in everyday scalping and day trading, slippage is hardly noticeable.
SL/TP Also Affected by Slippage
→ Stop-loss and take-profit orders are not “always” executed at the set price, and may be executed at an unfavorable price during sudden market changes.
No Guaranteed Stop Loss Offered
→ XM does not offer “Guaranteed Stop Loss,” so you need to manage the risk of increased losses due to slippage yourself.
(Brokers offering guaranteed stop-loss orders: easyMarkets, etc.)
4️⃣ Points for mitigating slippage
Avoid taking positions/placing orders during important economic indicator releases
Set a slippage tolerance range for EAs and automated trading systems
Trade during periods of high liquidity
Reduce the impact with small lot sizes or split orders
Set a wider stop-loss range to mitigate the impact of minor slippage
Is XM a broker less prone to slippage?
In short, XM is often rated as being “less prone to slippage” compared to many other FX brokers. However, this is not absolute and varies depending on conditions and circumstances. We will explain the advantages and limitations clearly.
✅ ① High execution speed (orders are easily executed)
XM officially demonstrates a high execution speed, with a 100% execution rate for all orders and over 99.35% of orders executed within 1 second. This high execution speed is a factor that reduces the probability of slippage.
✅ ② No requotes
Many overseas FX brokers may requote orders, but XM processes orders without requotes (no order rejections), thus reducing the risk of slippage.
✅ ③ High Transparency Due to NDD System (Low Risk of Broker Manipulation)
XM employs a system described as the “NDD system,” which prevents the broker from intentionally manipulating orders. Therefore, slippage is less likely to be intentionally exaggerated through opaque broker manipulation.
⚠️ However, it’s not “impossible”
Even though XM is said to have relatively low slippage, it’s not absolutely zero. Slippage can occur with other brokers in the following situations:
❗ During Sudden Changes such as Economic Indicator Announcements
When prices move significantly, there can be a difference between the order price and the execution price (this is common to all brokers).
❗ During Low Liquidity Times
During times with fewer trading participants (early mornings, holidays, etc.), the difference between the desired price and the execution price is more likely.
📊 How Does It Compare?
XM is often rated as having relatively low slippage among overseas FX brokers (high execution rate, no requotes).
However, compared to ECN brokers (e.g., Raw Spread/Raw ECN such as IC Markets), it may not necessarily be considered to have the least slippage. This is because these brokers are directly connected to the interbank market and are said to have even faster execution speeds (※It has been pointed out that XM is not an ECN/DMA).
Causes of Slippage on XM
Slippage on XM is caused by both broker-specific factors and market factors. We will explain each point clearly.
① Rapid Market Price Fluctuations (Sudden Increase in Volatility)
Timing of Economic Indicator Releases and Key Figure Statements
When prices move sharply instantaneously due to indicator releases such as US employment statistics, FOMC announcements, and Bank of Japan policy announcements, a difference occurs between the order price and the execution price.
Slippage can occur even with SL/TP orders.
② Low Liquidity Periods
During periods with few market participants (early mornings, holidays, daylight saving time transitions, etc.)
Due to low trading volume, it becomes difficult to execute orders at the desired price.
Slippage can occur even with small orders.
③ Broker’s Internal Processing
XM is a market maker type (dealing desk).
When there are large orders or rapid price movements, slippage may occur when the order is processed internally and cannot be executed at the desired price.
However, the execution rate is usually high, and there is almost no impact under normal circumstances.
④ Order Method and Order Size
Large orders and orders that are difficult to execute immediately using limit/stop orders
If the order size is large compared to market liquidity, partial execution or price discrepancies may occur.
Caution is required when placing small orders, such as in scalping.
⑤ Communication and Platform Delays
Internet connection and PC/server delays
Even a slight delay in order processing via the MT4/MT5 platform can cause price fluctuations and slippage.
XM’s Slippage Compared to Other FX Brokers
This guide clearly summarizes the key points to consider when comparing XM’s slippage (the difference between the order price and the execution price) with other major FX brokers. 👇
📌 Overall Comparison Points
Slippage and execution quality are primarily compared based on the following three factors:
Execution Rate (the percentage of orders that are executed without being rejected)
Execution Speed (the time it takes to execute)
Slippage Frequency and Magnitude (how much the order deviates)
These factors vary depending on the broker’s system (market maker vs. ECN/STP) and the accounts and execution technology provided.
✅ XM’s Features (Slippage Related)
📌 Designed to be Relatively Low in Slippage
XM officially boasts a 100% execution rate and is said to have a high execution rate in an environment where requotes (re-quotes) do not occur.
Its execution speed is also short, and these factors reduce the probability of slippage occurring.
However,
⚠️ Slippage is not eliminated.
Even with XM, slippage can occur during sudden market fluctuations. This is a phenomenon that occurs with any broker.
XM does not have a function for users to adjust the acceptable slippage range; trading is performed under the default conditions of MT4/MT5.
In summary, XM has high execution performance and relatively low slippage among overseas forex brokers, but it can still occur depending on the situation.
🔹 ① ECN-based brokers (e.g., IC Markets, Pepperstone)
Execution Model
IC Markets and Pepperstone employ the ECN/STP model, providing direct interbank pricing.
They are highly regarded for their execution speed, deep liquidity, and tendency to have very small slippage.
Actual Execution Performance
ECN-based brokers offer ultra-low spreads and fast execution, making them suitable for scalping and short-term trading.
👉 IC Markets and Pepperstone generally have a high reputation for being less prone to slippage (especially RAW/ECN types). This is because they have deep liquidity and execution systems that are close to those directly connected to local governments and exchanges.
🔹 ② Other Overseas FX (e.g., AXIORY, TitanFX, etc.)
AXIORY and TitanFX also have high execution rates and relatively low slippage, but the execution environment differs from broker to broker. Some even have more advanced execution speed and order processing optimization than XM.
🔹 ③ Domestic FX Brokers
Domestic FX brokers have a high degree of fairness due to the best execution obligation mandated by law, but slippage can still occur depending on each FX company’s interbank contracts and liquidity provision mechanisms.
Some domestic brokers offer guaranteed stop-losses (guaranteed settlement at a specified price), but this often does not improve slippage (guaranteed stop-losses may incur additional fees).
How to Set Allowable Slippage on XM
The method for setting allowable slippage on XM differs slightly depending on the platform (MT4/MT5) and order type used. We will explain it step by step.
1️⃣ What is Allowable Slippage on MT4/MT5?
Definition: A function that specifies the acceptable range (in pips) of difference between the order price and the actual execution price.
By setting allowable slippage, you can prevent orders from being rejected during sudden market fluctuations.
Since XM does not use requotes, most orders are likely to be executed within the set range.
2️⃣ How to Set Up (For New Orders)
MT4 / MT5 Common Procedure
Open “New Order” in the chart or order panel.
Select the order type (Market Order / Limit Order / Stop Order)
Enter your desired slippage range in the “Slippage” field.
Example: 3 → Allowable slippage up to 3 pips
Submit the order (Buy / Sell)
The order will be executed even if the price deviates within the specified range.
Relationship between Market Orders and Slippage
Market orders are basically executed immediately, but slippage may occur if there are rapid price fluctuations.
Entering a “Slippage Tolerance” will automatically execute the order within the specified range even if the price deviates from the desired price.
3️⃣ Limit Orders, Stop Orders, and Slippage
Limit orders (Buy Limit / Sell Limit) and Stop orders (Buy Stop / Sell) A Stop order is placed when the price reaches a certain condition.
By setting an acceptable slippage, the order will be executed if the difference between the specified price and the execution price is within the set range.
4️⃣ Points to Note
Setting the acceptable slippage too large carries the risk of execution at an unexpected price.
Setting the slippage too small may result in order rejection (requote).
XM generally does not requote, but orders may not be executed during extreme market fluctuations.
This can also be set in EAs (Expert Advisors/automated trading).
When using the OrderSend function in MQL4/5, it can be specified with the slippage parameter.
5️⃣ Recommended Settings Example
| 取引スタイル | 推奨スリッページ幅 |
|---|---|
| スキャルピング | 1〜3 pips |
| デイトレード | 3〜5 pips |
| 長期トレード | 5〜10 pips |
*It is best to adjust the acceptable range according to the volatility of the currency pair and time zone.
Frequently Asked Questions about Slippage at XM
Q1: How often does slippage occur with XM?
Under normal circumstances, slippage is rare, and orders are executed within a few seconds.
Slippage of a few pips may occur during sudden economic indicator announcements or rapid market changes.
Q2: Is XM’s slippage less than other companies?
XM has a high execution rate and no requotes, so it has relatively little slippage compared to other overseas forex brokers.
However, ECN/STP brokers (such as IC Markets and Pepperstone) may have even less slippage.
Q3: Can slippage be avoided?
It cannot be completely avoided.
Measures to take include:
Avoid placing orders before and after economic indicator announcements
Trading during periods of high liquidity
Adjusting order size
Setting a slippage tolerance range when using an EA in MT4/MT5
Q4: Does it affect SL (Stop Loss) and TP (Take Profit)?
Yes. During rapid market changes, orders may not be executed at the specified price and may be settled at a less favorable price than desired.
XM does not offer a Guaranteed Stop Loss (GSLO), so you need to manage the risk of increased losses due to slippage yourself.
Q5: Does slippage vary with lot size?
Yes, it does. Slippage is more likely to occur with large orders or currency pairs with low liquidity.
Slippage tends to be smaller with smaller lots.
Q6: Does XM’s slippage affect scalping?
Even a few pips of slippage can affect profits in short-term trading and scalping.
However, XM is considered suitable for normal scalping due to its fast execution and lack of requotes.
Q7: Is there a notification for slippage?
In MT4/MT5, if an order is executed at a price different from the desired price, the actual execution price will be displayed in the execution history.
There is no prior notification; you check the transaction history.
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