XM Zero is a trading account offered by the forex broker XM. This account is designed specifically for advanced traders who require tight spreads and fast execution speeds. The term “zero” in XM Zero refers to the fact that there are no markups or commissions charged on trades. In this article, we will explore what XM Zero means and how it works in forex trading.
What is XM?
XM is a forex broker that was founded in 2009. The company is regulated by several financial authorities, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). XM offers a range of trading accounts, including the XM Zero account, which is designed for experienced traders who require the fastest execution speeds and tightest spreads.
What is a forex trading account?
A forex trading account is a type of brokerage account that allows traders to access the foreign exchange market. Forex trading accounts are offered by forex brokers who act as intermediaries between traders and the market. Traders use forex trading accounts to buy and sell currencies, with the aim of making a profit from the fluctuations in exchange rates.
What is the difference between a standard trading account and XM Zero?
The main difference between a standard trading account and XM Zero is the pricing structure. With a standard trading account, traders pay a spread, which is the difference between the bid and ask price of a currency pair. This spread is typically marked up by the broker, which means that traders pay a higher spread than the actual market spread.
With XM Zero, there are no markups or commissions charged on trades. Instead, traders pay a fixed commission of $3.5 per 100,000 traded. This means that traders can benefit from tighter spreads and lower trading costs, especially if they trade in high volumes.
How does XM Zero work?
XM Zero works by providing traders with direct access to the forex market through an Electronic Communication Network (ECN). This means that traders can trade directly with liquidity providers, such as banks and other financial institutions, without any interference from the broker.
When a trader places an order on XM Zero, the order is routed to the liquidity providers who offer the best bid and ask prices. The liquidity providers compete with each other to offer the best prices, which means that traders can benefit from tight spreads and fast execution speeds.
What are the benefits of XM Zero?
The main benefits of XM Zero are tight spreads, fast execution speeds, and low trading costs. Because there are no markups or commissions charged on trades, traders can benefit from the actual market spread. This can be particularly beneficial for scalpers and high-frequency traders who require fast execution speeds and low trading costs.
Another benefit of XM Zero is the ability to trade in high volumes without incurring high trading costs. With a fixed commission of $3.5 per 100,000 traded, traders can save money on trading costs, even when trading in large volumes.
Conclusion
In summary, XM Zero is a trading account offered by the forex broker XM. This account is designed for advanced traders who require tight spreads, fast execution speeds, and low trading costs. The term “zero” in XM Zero refers to the fact that there are no markups or commissions charged on trades. Instead, traders pay a fixed commission of $3.5 per 100,000 traded. XM Zero works by providing traders with direct access to the forex market through an ECN, which means that traders can benefit from tight spreads and fast execution speeds.
