XM Slippage and Requotes: What Traders Need to Understand

XM slippage plays an important role in real market conditions by reflecting the true nature of price movements and execution speed. While slippage can sometimes lead to less favorable prices, it also allows for honest and efficient trade execution—especially during volatile events. XM manages slippage transparently, ensuring that traders receive both positive and negative slippage when applicable. This helps maintain trust and provides a realistic trading environment that prepares traders for real-world market dynamics.

Slippage and requotes are common occurrences in fast-moving markets, and understanding how they work is crucial for managing risk effectively. In this article, XM Slippage and Requotes: What Traders Need to Understand, we’ll explain what slippage and requotes mean, why they happen, and how XM handles these situations to ensure fair and transparent execution for its traders.

Understanding Slippage in Forex Trading

What Is Slippage and Why Does It Occur?

Slippage in Forex refers to the difference between the expected price of a trade and the actual execution price. It typically occurs during periods of high market volatility or low liquidity when price movements are rapid. For example, if you set a market buy order at 1.1050 but it gets filled at 1.1053, the 3-pip difference is slippage.

Causes of Slippage in Live Market Conditions

Slippage can result from various market and technical factors:

• Market volatility: News releases or economic data can trigger sharp price movements.

• Low liquidity: Fewer buyers and sellers mean prices can jump between levels.

• Technology delays: Internet speed, broker-server lag, and platform responsiveness affect execution.

Even reputable brokers like XM are not immune to slippage, especially during key market events. To minimize unexpected execution gaps, traders often use moving averages to gauge trend momentum and avoid placing trades near volatile inflection points.

How Common Is Slippage in Volatile Forex Sessions?

During events such as Non-Farm Payrolls or central bank announcements, slippage is frequent due to sudden order imbalances. Traders often see their orders executed at different levels than expected, even within milliseconds. While XM strives for fast execution, both positive and negative slippage can occur in such conditions.

How XM Handles Slippage and Requotes

Slippage Policy on XM Trading Platforms

XM primarily uses a market execution model on most accounts, especially Ultra Low and Zero accounts. This means:

• Orders are filled at the best available price in real time.
• There is no guaranteed price—slippage is possible.
• Positive slippage may occur in fast reversals.

XM’s MT4 and MT5 platforms offer one-click learn trading, slippage control in Expert Advisors (EAs), and adjustable trade parameters to better manage execution risks.

What Are Requotes and How Do They Differ from Slippage?

A requote is when your trade is rejected due to price changes, and the broker offers a new price for confirmation. It happens mostly on instant execution accounts like XM’s Standard or Micro accounts.

Feature	Slippage	Requote
Execution Type	Market Execution	Instant Execution
Price Behavior	Executed at new price	Requires user confirmation
XM Occurrence	Common on Ultra Low/Zero accounts	Common on Standard accounts

XM has significantly reduced requotes in recent years by transitioning most accounts to market execution.

XM Account Types and Their Execution Models

XM offers several account types with varying execution settings:

• Standard & Micro: Instant execution (higher requote risk).
• Ultra Low & Zero: Market execution (subject to slippage).
• Shares & ECN-style accounts: Direct access to liquidity providers, minimal intervention.

Execution speed and quality also depend on your connection type—using a VPS (Virtual Private Server) or colocated server improves performance and reduces both slippage and requotes.

Comparing XM with Other Forex Brokers on Execution

How Does XM’s Execution Stack Up Against Competitors?

XM provides competitive execution, though some traders report slightly more slippage compared to top-tier ECN brokers like IC Markets or Pepperstone. However, XM compensates with:

• Tighter spreads on Ultra Low accounts.
• No-requote policies on newer account types.
• Published execution statistics for transparency.

XM’s infrastructure is tailored for retail traders who prioritize ease of use over institutional-grade speed.

MT4 vs. MT5 on XM: Which Platform Handles Slippage Better?

Both MT4 and MT5 support market execution on XM, but MT5 includes additional features like Depth of Market (DOM), which helps traders gauge liquidity and reduce unexpected slippage.

• MT4: Popular, lightweight, ideal for retail traders.
• MT5: Advanced tools, better suited for professional users.

Execution on mobile platforms is slightly slower than desktop or VPS-hosted setups, due to variable internet speed and latency.

Real User Reviews: Is XM Reliable During High-Volatility Events?

According to Trustpilot and Forex Peace Army, most XM users find execution fair and slippage within acceptable ranges. Common feedback includes:

• Positive slippage during market reversals.
• Slippage spikes during news, but not out of norm.
• Low requote frequency on Ultra Low/Zero accounts.

Best Practices for Managing Slippage and Requotes with XM

Practical Ways to Minimize Slippage Risk

While slippage is inevitable in fast markets, traders can limit its impact by:

• Avoiding market orders during news releases.
• Using limit orders to set fixed entry points.
• Trading during high-liquidity sessions like London/New York overlap.
  

Using limit orders is particularly effective—they prevent execution at worse prices and eliminate slippage altogether. Additionally, aligning entries with key support resistance zones can help avoid placing trades in areas prone to sharp, unpredictable moves.

Leveraging VPS and Platform Settings for Better Execution

A VPS (Virtual Private Server) allows 24/7 connectivity with minimal latency, especially for EAs or scalpers. XM offers free VPS hosting for qualified accounts, improving order speed and reducing slippage risk.

Additionally, setting slippage tolerance in MT4/MT5 or EAs can help automate protection.

Common Mistakes Traders Make with Slippage on XM

• Placing trades blindly during volatile events.
• Over-reliance on market orders without stop-loss.
• Ignoring account type differences between Standard and Ultra Low accounts.

Understanding XM’s execution model helps traders tailor their strategy accordingly and avoid surprises.

Slippage is a natural part of live Forex trading, especially during high-impact news or thin liquidity periods. While XM does not eliminate slippage, it offers transparent, fair execution with advanced features like market execution, STP-style access, and customizable trading settings.

• Slippage on XM is typically moderate and acceptable.
• Requotes are rare, especially on Ultra Low and Zero accounts.
• Execution infrastructure (MT5, VPS, DOM) supports both beginner and experienced traders.

For retail traders seeking a reliable broker with strong execution performance and reasonable slippage control, XM remains a solid choice.

Slippage is an unavoidable reality in Forex trading, particularly during periods of high volatility or low liquidity. However, how a broker handles slippage can make a significant difference in trade outcomes. XM, with its market execution model, STP-style access, and no-requote policy on most account types, offers a fair and transparent trading environment. While slippage may still occur—especially during major news releases—XM provides tools like one-click trading, customizable order settings, and VPS hosting to help traders minimize its impact. For both beginner and experienced traders, XM delivers reliable execution quality that stands up well compared to many competitors in the industry. Disclaimer: Trading involves risk, and past performance does not guarantee future results.