XM Standard Account Guide

The Standard account is the default choice for many people who register with XM, partly because it is listed first and partly because its pricing is easy to understand: there is a spread, and that is the main cost of opening a trade. This independent guide from ExemSignup focuses on the practical side: what you are paying, how to calculate it before you trade, and what to check on the account specifications for your region.

How Standard account pricing works

On a spread-only account, the broker earns from the difference between the price at which you can buy (the ask) and the price at which you can sell (the bid). You pay that gap the moment you open a position, which is why a fresh trade usually shows a small loss immediately.

XM has quoted spreads from roughly 1.6 pips on major pairs for the Standard account at the time of writing. "From" is the important word: spreads are variable. They are usually tightest during the most liquid trading hours and can widen sharply around major news releases, at the daily rollover, or on less-traded pairs and exotic instruments.

Pips and lots in plain terms

A pip is the standard unit of price movement in forex. For most pairs it is the fourth decimal place (0.0001); for pairs quoted in Japanese yen it is the second decimal place (0.01). Many platforms show a fifth decimal, called a pipette or fractional pip.

A lot is the size of your position. On a typical standard-size contract:

• 1.00 lot = 100,000 units of the base currency
• 0.10 lot (a "mini" lot) = 10,000 units
• 0.01 lot (a "micro" lot) = 1,000 units

For a pair where the US dollar is the quote currency, such as EUR/USD, one pip on 1.00 lot is worth about USD 10. On 0.10 lot it is about USD 1, and on 0.01 lot about USD 0.10. The minimum and maximum lot sizes for your account are listed in the contract specifications; check them rather than assuming.

Worked example: what one trade costs

The numbers below are hypothetical and chosen to make the arithmetic clear. They are not a quote of current XM pricing.

Suppose EUR/USD shows a bid of 1.08500 and an ask of 1.08518. The spread is 0.00018, which is 1.8 pips.

1. Find the pip value for your size. You plan to buy 0.20 lot. One pip on 1.00 lot is about USD 10, so on 0.20 lot it is about USD 2.
2. Multiply by the spread. 1.8 pips x USD 2 = USD 3.60.
3. Interpret it. That USD 3.60 is the cost of entering and exiting at the quoted prices, paid upfront. The price has to move 1.8 pips in your favour just to break even, before any swap.

Now scale it up. If you place 40 trades of that size in a month, spread cost alone is roughly 40 x USD 3.60 = USD 144. On a small account, that is a meaningful share of the balance, which is why the frequency of your trading matters as much as the headline spread.

Costs beyond the spread

The spread is the main cost, but not the only one:

• Swap (overnight financing). If you hold a position past the daily rollover, a swap is credited or debited based on the interest rate difference between the two currencies. On long-term trades this can be larger than the spread.
• Currency conversion. Depositing in one currency and trading in another can involve conversion at the broker's or your bank's rate.
• Transfer fees. XM has said it covers most transfer fees, but banks and wallets may still charge, and minimums vary by method.
• Inactivity. Check the fee schedule for inactivity fees; we have not confirmed a figure.

Our trading costs guide brings all of these together.

Minimum deposit and leverage

XM has advertised a minimum deposit of about USD 5 on its standard-type accounts. The exact figure depends on your entity, payment method and currency, so confirm it on the registration page. A very small deposit is enough to open the account, but it limits the position sizes you can sensibly trade; a single 0.01 lot trade can still swing a tiny balance by a large percentage.

Maximum leverage depends on the XM entity you register with and your account equity. Offshore entities have advertised up to 1:1000 for smaller balances, with lower tiers as equity grows; regulated EU-style entities cap retail leverage much lower. Choosing a lower leverage than the maximum is allowed and is often the more sensible setting for a new account.

Who the Standard account suits

The Standard account tends to suit:

• Traders who want one simple cost number to compare, without separate commission lines.
• People trading moderately often with small to medium position sizes.
• Anyone who wants access to the broadest set of instruments and promotions available on their entity, which reviews often associate with the Standard type. Confirm this in the current terms.

It is less suited to very high-frequency trading, where every extra pip of spread compounds quickly. In that case, compare it against the Ultra Low account using the same worked example with your own numbers.

Checklist before opening

1. Confirm that Standard appears for your country and which entity you are being placed with.
2. Pick the account currency you will deposit in, to reduce conversion costs.
3. Choose MT4 or MT5; see our platform guide if unsure.
4. Set a leverage level you are comfortable with, not automatically the maximum.
5. Have your identity and address documents ready for verification.