What is the XM Zero Account?

XM's 'Zero Account' is a low-spread specialized account type offering spreads starting from a minimum of 0 pips,
and it is the only account on XM that charges a trading fee, making it a so-called 'paid account'.

To conclude first, if you are opening a new account with XM now, the 'KIWAMI Extreme Account' is overwhelmingly recommended over the Zero Account.

In this article, I will explain the spread list for major currency pairs on the Zero Account,
as well as the merits, demerits, and points to note compared to the KIWAMI Extreme Account to show why the Zero Account is not highly recommended.

XM Zero Account Spread and Commission List

Listed below are only the major currency pairs.

The values in the table are in points. 10 points is equivalent to 1.0 pip.

Cryptocurrencies cannot be traded on the Zero Account.

Features and Traps of XM Zero Account Spreads

Not So Cheap When Including Trading Fees (One-Way $5)

The biggest feature of the Zero Account is that it offers extremely narrow spreads,
such as '0 pips' for USD/JPY.

However, instead of narrow spreads, a trading fee of $10 round trip ($5 one-way) per lot is directly deducted from your account balance.

Since the $10 round trip fee is equivalent to '1.0 pip' when converted to a spread,
even if the displayed spread is 0 pips, the effective trading cost (spread including fees) is still 1.0 pip.

Generally Inferior Compared to the KIWAMI Extreme Account

With the introduction of the 'KIWAMI Extreme Account', which also boasts low spreads,
the position of the Zero Account has become quite tough.

In terms of total trading costs including fees, it is often cheaper to use the KIWAMI Extreme Account, especially for cross-yen pairs.

Particularly for pairs like GBP/JPY, the KIWAMI Extreme Account used to have wider spreads, giving the Zero Account some utility.
However, since KIWAMI's spreads have improved, even that advantage has disappeared.

Specific Disadvantages and Points to Note of the XM Zero Account

Furthermore, the Zero Account has several clear disadvantages besides costs.

1. Maximum Leverage is Limited to 500x

While the maximum leverage for XM's Standard Account and KIWAMI Extreme Account is '1,000x',
the maximum leverage for the Zero Account is limited to '500x'.

If you want to trade highly volatile instruments like Gold (XAUUSD) with high leverage,
having your capital efficiency cut in half is a painful blow.

Moreover, since the spread including fees for Gold is slightly wider on the Zero Account compared to the KIWAMI Extreme Account (average 1.5 to 2.0 pips),
it is safe to say that there is almost no merit in trading Gold on the Zero Account while intentionally lowering your leverage.

Open a KIWAMI Extreme Account with XM

2. Cannot Trade Cryptocurrencies (Bitcoin, etc.)

You cannot trade cryptocurrency CFDs such as Bitcoin (BTCUSD) or Ethereum (ETHUSD) at all on the Zero Account.

If you want to trade cryptocurrencies, which are available even on weekends,
you need to use either the Standard Account or the KIWAMI Extreme Account.

3. Not Eligible for Deposit Bonuses

The Zero Account is not eligible for the 'Deposit Bonus', which is XM's biggest attraction.

Although you can receive the account opening bonus (no-deposit bonus),
depositing funds will not increase your margin with bonuses.

Since the KIWAMI Extreme Account is also not eligible for deposit bonuses, the Standard Account is your only choice if you want to fully utilize bonuses.

Conclusion: Who is the Zero Account Recommended For?

I have listed the disadvantages so far, but the Zero Account is not completely worthless.

It can be useful in the following (few) situations:

• When running a 'special EA (Expert Advisor) that requires the displayed spread to be absolutely 0 pips (or extremely close to 0) to function properly'
• When you want to 'record trading fees as clear expenses' when filing tax returns

However, for the vast majority of discretionary traders who do not have such special circumstances,
it is rational to use the 'KIWAMI Extreme Account', which has zero trading fees, is swap-free, and offers up to 1,000x maximum leverage.

Open a KIWAMI Extreme Account with XM

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How to Open/Add an XM Account

XM Standard Account Spread List