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.
- XMtrading
- XM Overview and Features
- What is a Stop Level?
- Specific Examples of Stop Levels
- XM’s Complete List of Stop Levels for All Instruments
- What are the advantages of XM’s zero stop level?
- Comparing Stop Levels with Other Companies
- Frequently Asked Questions
- Q1. Is XM’s stop level really 0?
- Q2. If the stop level is 0, can I place orders anywhere freely?
- Q3. Why does it feel like I can’t place a stop because it’s “too close” even though the stop level is 0?
- Q4. Is XM’s stop level 0 advantageous for scalping?
- Q5. Does XM’s stop level 0 have advantages for day trading?
- Q6. Does “stop hunting” not occur with a stop level of 0?
- Related
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 FX/CFD broker handling FX, precious metals, crude oil, stock indices, and stock CFDs. It has a Japanese website and support, and is widely used by individual traders in Japan. The official website highlights features such as over 1,400 instruments, MT4/MT5 compatibility, leverage up to 1,000x (for some accounts), and $0 deposit and withdrawal fees.
1) High Leverage Makes Starting with Small Amounts Easy
A major feature of XM is its relatively high leverage setting.
While it varies depending on the account type, Micro/Standard/KIWAMI accounts offer a maximum leverage of 1,000x, and the Zero account offers a maximum leverage of 500x. While this makes it easier to take larger positions with a small margin, it’s important to note that losses can also be larger.
Who is this suitable for?
Those who want to start with a small amount of capital
Those who prioritize short-term trading and capital efficiency
Points to note
The higher the leverage, the more susceptible you are to stop-loss orders and sudden price fluctuations.
2) Multiple account types to suit your style
XM mainly offers the following account types:
Micro Account: Suitable for small-scale practice. Small trading units per lot, making it easy for beginners to try.
Standard Account: A standard, safe, and easy-to-use type.
KIWAMI Account: Features relatively narrow spreads and some swap-free options. A popular configuration for short-term traders.
Zero Account: Features extremely small spreads (0 pips~). However, you should usually consider the transaction fees included.
Rough Guide to Choosing a Fund
Beginner/Small-Amount Practice → Micro
If Unsure, Choose a Safe Choice → Standard
Spread Priority → KIWAMI Extreme / Zero
Scalping-Oriented → Zero or KIWAMI Extreme (However, Compare Based on Total Cost)
3) Compatible with MT4 / MT5 / WebTrader
XM supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which are widely used trading platforms worldwide.
Furthermore, a browser-based WebTrader and environments for smartphones and tablets are also available.
Advantages
Easy to use indicators and EAs (Expert Advisors/automated trading systems)
Many explanatory articles and educational materials available, making it easy to learn
Easy to use on both PCs and smartphones
4) Wide Range of Trading Instruments
XM handles not only FX currency pairs but also the following products:
FX
Precious metals such as gold and silver
Energy such as crude oil
Stock indices
Stock derivatives
Commodities
Thematic indices, etc.
Therefore, it is suitable for people who want to trade not only FX, but also gold and indices.
5) Relatively comprehensive Japanese support
XM has a relatively well-developed Japanese website, Japanese support, and Japanese learning content.
The official website also provides information on market analysis, webinars, tutorials, economic calendars, and calculation tools.
Advantages for beginners
Easy to start even if you are not good at English
Less confusing during account opening and identity verification
Easy to learn basic operations
6) Relatively abundant deposit and withdrawal methods
XM’s official guides describe a system for deposits, withdrawals, and account management, introducing domestic bank transfers, cards, online wallets, and cryptocurrency-based methods.
However, available methods, processing times, fees, and minimum withdrawal amounts may change depending on the time, country of residence, and identity verification status, so it is essential to check the latest official conditions before actually using them.
What is a Stop Level?
A stop level is a minimum distance restriction set by FX companies and brokers that specifies how far from the current price you must place limit orders, stop-loss orders, SL (stop-loss), and TP (take-profit) orders.
To put stop levels in simple terms:
For example, if the current USD/JPY exchange rate is 150.000 yen,
and the broker’s stop level is 3 pips,
you may not be able to place stop-loss orders (SL) for buy orders,
stop-loss orders (SL) for sell orders,
limit orders,
stop-loss orders,
etc., within 3 pips of the current price.
In other words,
When the price is 150.000,
trying to place a stop-loss at 149.990 (1 pip below)
or a take-profit at 150.010 (1 pip above)
these orders may be rejected because they are “too close.”
Why do stop levels exist?
The main reasons are as follows:
1) To prevent a flood of extremely close-range orders
If orders can be placed too close to the price,
a large number of orders targeting only extremely small price movements are likely to be placed.
2) To stabilize server and execution processing
When prices move rapidly,
a large number of orders very close to the current price
can easily lead to unstable order processing.
3) To curb abnormally favorable execution conditions
Because even a momentary market fluctuation can easily lead to situations like “instant execution → instant profit taking,” brokers impose a certain distance limit.
What is affected by stop levels?
Stop levels primarily affect the following:
Stop-loss (SL)
Take-profit (TP)
Buy Limit / Sell Limit
Buy Stop / Sell Stop
Also affects order modifications in some cases
In other words, it can be relevant not only to new orders but also when setting SL/TP later.
Specific Examples of Stop Levels
Stop levels become much easier to understand when you “see them in numbers.”
Below are specific examples that are likely to occur in real-world situations on XM and MT4/MT5.
Example 1: Stop-Loss (SL) on a Buy Position
Situation
USD/JPY
Current Price: 150.000
Stop Level: 5 pips
You hold a Buy position.
Your Thoughts
“I’ll keep my stop-loss shallow.”
→ You try to place your SL at 149.980.
But…
150.000 → 149.980 is only 2 pips apart.
You need at least 5 pips,
This SL is too close and may be rejected.
Examples of acceptable SL levels:
149.950
149.940
149.930
Such as,
SL levels that are 5 pips or more away from the current price are more likely to be accepted.
Specific Example ②: Taking Profit (TP) on a Buy Position
Situation
Current Price: 150.000
Stop Level: 5 pips
Currently holding a buy position
Your Thoughts
“I want to take 1-2 pips.”
→ You try to place the TP at 150.010.
But…
150.000 → 150.010 is 1 pip
This is not enough distance to meet the required level,
so the TP may be too close to be set.
Examples where it can be placed:
150.050
150.060
150.070
etc.
Specific Example 3: Stop-Loss (SL) on a Sell Position
Situation
Current Price: 150.000
Stop Level: 5 pips
You have a Sell position.
Your Thought
“I should place it a little higher.”
→ SL at 150.020
But…
150.000 → 150.020 is 2 pips
This is also too close,
so the stop-loss setting may be rejected.
Examples of acceptable levels:
150.050
150.060
150.070
The stop-loss for a sell position should be placed above the current price.
XM’s Complete List of Stop Levels for All Instruments
In short, you can view XM’s stop level list as “0 for all instruments.”
Multiple XM explanatory articles and XM’s official trading conditions confirmation guide confirm that XM has standardized the stop level (minimum distance for limit and stop orders) for all instruments to 0 since August 2021.
Summary by Account Type
| 口座タイプ | FX | 貴金属 | エネルギー | コモディティ | 株価指数 | 株式CFD | テーマ型指数 |
|---|---|---|---|---|---|---|---|
| Standard口座 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Micro口座 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| KIWAMI極口座 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Zero口座 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
What does “0 for all instruments” mean?
XM generally does not have fixed distance restrictions like those commonly found with other brokers:
“Minimum 2 pips away from the current price”
“Minimum 5 pips away”
Therefore, theoretically, you can place the following orders quite close to the target price:
Stop Loss (SL)
Take Profit (TP)
Buy Limit / Sell Limit
Buy Stop / Sell Stop
1) Spread
For example, in cases where you feel that “the order was executed even though it appeared to have reached the target price on the chart / or conversely, it was executed even though it hadn’t reached the target price,” the cause is very often the Bid/Ask difference (spread), not the stop level.
Examples from MT5 systems on Reddit also show that the appearance of short-range orders is strongly influenced by the spread.
2) Execution during Rapid Fluctuations
During economic indicator announcements or at the start of the week,
being able to place an order and having it executed cleanly at the target price are two different things.
In other words,
Being able to place an order (stop level)
Executing the order correctly at that price (execution quality)
Appearing to be executed at that price (spread)
These are all separate issues.
3) Freeze Level
On the XM specifications confirmation screen, you can check not only the stop level but also the Freeze Level, which is related to order modification and cancellation.
If this is present, it can be difficult to modify an order that has approached a certain price.
What are the advantages of XM’s zero stop level?
The biggest advantage of XM’s zero stop level is the significantly higher degree of freedom in order placement.
1) Easier to place tight stop-loss orders (SL)
This is quite significant.
Normally, in short-term trading,
“If it breaks below this level, I’ll exit.”
“If it goes above this high, I’ll lose.”
There are many situations where you want to place your stop-loss order very close to the target price.
With a stop level, it can be difficult to place your stop-loss order at that ideal location.
But since XM has a zero stop level,
it’s easier to design your SL closer to the “place you want to cut your losses.”
This is a significant advantage.
2) Easier to design precise take-profit orders (TP)
In short-term trading, there are strategies such as:
Taking only 3 pips
Taking up to the nearest small resistance level
Taking up to just one wave and exiting
However, with a wide stop level,
it can be difficult to place your TP at those close-range take-profit points.
With XM’s 0 stop level,
it’s easier to create profit-taking strategies targeting small price fluctuations.
3) Improved accuracy of limit and stop-loss order entries
This is also quite important.
For example, if you want to
buy on dips
enter the market the moment a breakout occurs
or automatically enter when the price reaches a certain line
If you have a stop level, you can’t place the order “there,” and you have to place it slightly off-center.
But with XM’s 0 stop level,
it’s easier to place pending orders at the price that matches your scenario.
4) Good compatibility with scalping
This is a major strength of XM’s 0 stop level.
In scalping,
a difference of a few pips between the entry position
stop-loss position
profit-taking position
directly impacts the result.
If the stop level is wide, the strategy itself may become unfeasible.
Even in XM-related explanations, a 0 stop level is treated as a condition that makes scalping easier.
5) Good compatibility with EAs (automated trading)
This is a significant advantage for those who use EAs.
EAs often have very detailed design for their logic, including:
Entry price
Stop-loss range
Take-profit range
Trailing stop start position
With brokers that have wide stop levels, the following problems are likely to occur:
EA errors
Orders not being executed
Corrections to positions different from expected
Discrepancies between backtesting and actual trading
6) Easy to use with trailing stops
XM’s help and glossary also explain trailing stops as a mechanism that moves the stop-loss order in accordance with the price.
With wide stop levels,
you may encounter constraints such as:
“I want to narrow the SL with trailing stops,”
“I can’t get that close.”
With XM’s 0, it’s easier to:
Protect unrealized profits precisely
Reduce profit loss
Make it easier to track small price fluctuations
Use it to easily follow small price movements
Comparing Stop Levels with Other Companies
When comparing XM’s stop levels with other overseas forex brokers, XM is quite “suitable for scalping.” Its flexibility allows for a high degree of freedom, making it very advantageous for trading Bitcoin and currency pairs (USD, EUR, GBP, JPY, etc.). You can leverage your knowledge by analyzing data when buying and selling in the market.
Quick Reference Table of Conclusions
| 海外FX業者 | ストップレベルの傾向 | 短期売買との相性 | 一言評価 |
|---|---|---|---|
| XM | 全銘柄0 | かなり良い | 近距離SL/TP・予約注文に強い |
| Exness | かなり有利な部類 | かなり良い | 条件面は強いが別要素も要確認 |
| Pepperstone | 総合的に短期向き | かなり良い | 低スプレッド・高速執行寄り |
| IC Markets | 短期勢に人気の部類 | かなり良い | コスト重視派に比較候補 |
| HFM | 口座・銘柄条件を個別確認型 | 中〜良 | 口座選びで差が出やすい |
| FBS | 銘柄別確認が必要 | 中〜良 | 条件差を見ないと判断しづらい |
Regarding XM, XM’s official media clearly states that “Stop levels are 0 pips for all instruments.”
XM’s “Close-Range” Strategy
This is XM’s greatest strength.
It’s easy to place SL, TP, limit orders, and stop-loss orders very close to the current price.
In other words, you’re less likely to encounter the restrictions common with other companies:
“That position is too close to place an order.”
“Please move it at least ○ pips away.”
This alone is a significant advantage for scalping and 1-5 minute chart trading.
How to “view” it when comparing it to other companies
What’s important here is that simply stating “whether the stop level is 0 or not” is insufficient.
Because even if it’s easy to place orders at close range,
the following differences emerge in actual trading:
Wide spreads
Prone to slippage during economic indicators
Prone to order execution skipping
Large cost differences depending on the account type
In other words,
Being able to “place” orders and being able to “win” orders are two different things.
1) XM vs Exness
Exness strongly emphasizes low costs, stable spreads, and high-speed execution on its official website, making it a broker often compared by short-term trading users.
Comparison Image
XM’s Strengths
→ User-friendly Japanese environment and easy-to-understand conditions
Exness’s Strengths
→ Often compared to those who prioritize cost and execution conditions
How to View
For those undecided between XM and Exness,
it’s more meaningful to compare “effective cost” and “slippage” rather than stop levels.
2) XM vs Pepperstone
Pepperstone is a typical short-term trading broker that strongly emphasizes narrow spreads and high-speed execution. Razor accounts offer spreads starting from 0.0, and high execution rates are also advertised.
Comparison Image
XM
→ Ease of use, clarity, and overall balance
Pepperstone
→ A type that aims for extreme cost and execution
Differences in Actual Trading
The real differences in scalping are:
Round-trip cost per trade
Execution speed
Delays during economic indicators
3) XM vs IC Markets
IC Markets is a popular choice for comparison among short-term traders and EA users. Their official website also emphasizes low spreads and pricing conditions.
Comparison Image
XM
→ Easy to use for beginners to intermediate traders
IC Markets
→ Cost-conscious, EA/scalper users’ comparison target
Practical Considerations
When comparing with IC Markets,
what you should look at is total cost and execution rather than stop levels.
4) XM vs HFM
HFM’s official account comparison page displays conditions such as multiple accounts, maximum leverage, and order limits.
Comparison Image
XM
→ Clear and easy to understand with a stop level of 0
HFM
→ Suitability varies depending on the account type
Practical Differences
Since HFM’s evaluation changes easily depending on the account type,
it’s more accurate to compare each account individually rather than comparing the “entire broker.”
5) XM vs FBS
FBS is another broker that’s often considered when comparing overseas forex brokers.
However, it’s best to individually check the differences in account types, instruments, and regional conditions for FBS-affiliated brokers,
and it’s difficult to simply say “which is better, XM or FBS?”
Conclusion: If you’re only comparing stop levels, XM is easier to judge.
Frequently Asked Questions
This section addresses common questions beginners have about XM’s stop levels, providing practical insights for trading. It’s crucial to understand the situation accurately before investing. Official content includes guides and numerous hints on trading costs, stop-loss orders, swaps, and volatility, making it easier to manage trades. Your own market strategy and methods come first. Analyze in real-time and manage your positions carefully.
Q1. Is XM’s stop level really 0?
Yes, you can basically consider it “0”.
XM’s official explanations state that the stop level is 0 pips for all instruments. This means that, according to the rules, it’s easy to place SL/TP/pending orders very close to the current price.
Q2. If the stop level is 0, can I place orders anywhere freely?
No, this is a common misconception.
Even with a stop level of 0, actual trading is affected by the following:
Spread
Slippage during rapid price fluctuations
Bid/Ask difference
Order execution timing
In other words,
“Being able to place a stop” and “having it executed as intended” are two different things.
This is quite important.
Q3. Why does it feel like I can’t place a stop because it’s “too close” even though the stop level is 0?
In many cases, the cause is not the stop level, but how the price is displayed.
Here are three common causes:
① Overlooking the spread
For example, stop-loss on a buy position is usually determined by the Bid price.
However, if the chart only shows one side of the price,
it’s easy to feel like, “It was stopped/didn’t go through even though it hadn’t reached the target price yet.”
② Rapid fluctuations during economic indicator releases or early morning trading
When the market is volatile,
the price at which you can place a order and the price at which it will be executed cleanly can easily be mismatched.
③ Price input errors/misunderstandings of decimal places
Especially with USDJPY / XAUUSD / indices,
it’s easy to misunderstand pips, points, and decimal places.
Q4. Is XM’s stop level 0 advantageous for scalping?
Yes, it’s quite advantageous.
The reason is simple:
It makes it easier to design short-range SL, TP, and pending orders.
The benefits are particularly significant with the following methods:
Scalping with 1-5 pip gains
Breakout strategy
Buy on dips/Sell on rallies
Short-term trading during Tokyo hours
EA (Expert Advisor/Automated Trading)
With brokers that have wide stop levels,
these strategies themselves can become difficult to implement.
Q5. Does XM’s stop level 0 have advantages for day trading?
Yes.
While not as significant as for scalping,
day trading also offers the following advantages:
You don’t need to set stop-losses unnecessarily far away.
It’s easier to design profit-taking positions precisely.
It’s easier to place pending orders near support/resistance lines.
In short,
It’s easier to “design prices according to your own scenario.”
That’s its strength.
Q6. Does “stop hunting” not occur with a stop level of 0?
No, that’s a separate issue.
This is truly important.
Stop Level
→ A rule indicating how close an order can be placed.
Stop Hunting
→ Price movements or sensations that appear to target price ranges where stop-loss orders tend to accumulate.
In other words,
Stop Level 0 does not mean you won’t be “hunted.”
Many cases where you feel you’ve been “hunted” can actually be explained by:
Spread widening
Slippage
Bid/Ask difference
Rapid fluctuations during economic indicator releases
These are often the reasons why you might feel that you’ve been “hunted.”
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