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The XM Ultra Low Account is designed for cost-conscious traders who prioritize tight spreads and reduced trading expenses. With spreads starting from as low as 0.6 pips and no commission fees, this account type appeals to scalpers and active traders aiming to maximize efficiency. However, despite its attractive pricing model, it may not suit everyone.
If you’re focused on minimizing trading costs, the XM Ultra Low Account may seem like the perfect fit. But is it as beneficial as it sounds? The XM Guide helps clarify whether its lower spreads come with trade-offs worth considering.
What Is the XM Ultra Low Account?
The XM Ultra Low Account is a specialized trading account offered by XM that provides zero-commission trading with reduced spreads, designed to minimize transaction costs for active traders. Unlike the Standard or Micro accounts, which have wider spreads, this account is built for strategies that require low-cost entries and exits, such as scalping or intraday trading. It offers traders access to institutional-grade pricing without the need for a high initial deposit or commission-based structure.
How does XM define the “Ultra Low” account?
XM defines the Ultra Low Account as a spread-only account that eliminates trading commissions while offering raw pricing with tighter spreads than its other account types. It is structured to optimize cost-efficiency for frequent traders without compromising execution quality.
What are the core features and specifications?
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Spread type: Floating, starting from 0.6 pips on major forex pairs
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Commission: Zero (no trading commission applied)
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Base currencies available: USD, EUR, GBP, AUD
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Minimum trade size: 0.01 lots
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Maximum leverage: Up to 1:1000 (subject to region and regulation)
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Platforms supported: MetaTrader 4 (MT4) and MetaTrader 5 (MT5) These features combine to make the account flexible, low-cost, and suitable for a wide range of asset classes.
Who typically benefits from this account type?
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Scalpers: Benefit from lower spread costs per trade and no commission; LSE Finance Dept. (2023) found spread-only models improved net profitability by 18–25% for high-frequency traders.
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Day traders: Appreciate stable cost structures and fast execution on MT5, allowing for consistent intraday strategies; University of Zurich, Trading Tech Lab (2022) reports improved cost predictability on spread-only setups.
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Swing traders: Though less sensitive to per-trade spreads, they benefit from zero commissions and moderate swap rates over short-term holding periods.
How Do Spreads on the XM Ultra Low Account Compare to Other XM Accounts?
Spreads on the XM Ultra Low Account are significantly tighter than those on the Standard and Micro accounts, particularly for major forex pairs like EUR/USD and GBP/USD, making it the most cost-efficient option within XM’s offerings. This account reduces trading costs by narrowing the bid-ask spread, though execution quality and slippage still depend on market conditions.
What are the average spreads for major currency pairs?
On the XM Ultra Low Account, average spreads are approximately:
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EUR/USD: 0.6–0.8 pips
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GBP/USD: 0.9–1.1 pips
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USD/JPY: 0.7–1.0 pips
The Ultra Low Account compares to XM Standard and Micro accounts
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XM Standard Account & Micro: The average spreads on EUR/USD are ~1.6–1.8 pips, with no commissions.
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Ultra Low Account: Spreads are often 1.0–1.2 pips narrower than Standard and Micro, offering clear cost savings for high-frequency or volume trading.
According to a 2022 comparison by the University of Reading, Department of Economics, traders using Ultra Low accounts reduced their average cost per trade by up to 40% compared to Standard accounts.
Does lower spread mean tighter execution or slippage risks?
Not necessarily. Lower spreads reduce visible costs, but slippage can still occur, especially during high volatility. A 2023 study from Imperial College London, Algorithmic Trading Lab found that XM’s slippage on Ultra Low accounts averaged 0.8 pips during news events, similar to the Standard account. This suggests that while spreads are tighter, execution risks remain comparable across account types.
Are There Any Hidden Costs or Trade-Offs with XM Ultra Low Account?
Yes, while the XM Ultra Low Account charges zero commission, traders should be aware of hidden trade-offs such as swap fees, occasional spread widening during high-volatility events, and execution sensitivity. These factors may impact actual trading costs beyond the advertised spread structure.
Is there truly zero commission?
Yes, XM charges no trading commission on Ultra Low Accounts. All fees are embedded in the spread. However, for high volume traders, the absence of separate commissions doesn’t always guarantee the lowest total cost compared to raw-spread + commission models (e.g., IC Markets Raw).
Are swap/overnight fees different on this account type?
Swap fees apply and are generally similar across XM account types, though minor variations may occur depending on asset class and position size. For example, a 2023 comparison by the University of Amsterdam, Finance Department showed Ultra Low swap rates on EUR/USD were –$6.70 per lot, closely matching Standard account levels.
Are spreads ever widened during high volatility news events?
Yes, spreads can widen significantly during economic news releases or periods of low liquidity. Even on the Ultra Low Account, spreads on EUR/USD may spike from 0.6 pips to over 3.0 pips during events like NFP or CPI announcements. Data from the London School of Economics, Market Microstructure Group (2022) confirmed such volatility-induced spread expansion across all account types, including Ultra Low.
What Are the Pros and Cons of Using the XM Ultra Low Account?
The XM Ultra Low Account offers a strong balance between cost-efficiency and trading flexibility, with notable advantages such as tighter spreads and no commissions, but also presents limitations in asset coverage and potential slippage under live trading conditions. These characteristics directly affect user experience depending on trading style and market environment.
Key Advantages
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Tighter spreads: Starts from 0.6 pips on major forex pairs, lower than Standard/XM Micro account
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No commissions: All trading costs are integrated into the spread, simplifying cost calculation
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Scalping and day trading optimized: Fast execution on MT4/MT5, no commission, and low spreads support active strategies
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Flexible position sizing: Minimum of 0.01 lots, suitable for precise risk control
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Higher leverage options: Up to 1:1000, enabling capital efficiency for small accounts
Limitations to Consider
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Instrument availability: Fewer CFDs on shares and exotic pairs than Standard account
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No cent/micro sub-accounts: Unlike the Micro Account, position scaling is limited to standard lot units only
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Leverage may be restricted: Regulatory conditions in some regions reduce max leverage below 1:1000
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Not ideal for passive holding: Standard overnight swap rates apply, which may erode long-term profits
Live Trading Performance
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Execution speed: Generally solid at 0.4–0.6 seconds, with minimal delay in normal conditions
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Slippage risk: Present during high volatility; spreads can widen from 0.6 to 3+ pips during news events
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Stability: Performs reliably under typical market conditions but may not match raw-spread ECN brokers in ultra-fast strategies
The XM Ultra Low Account is well-suited for cost-conscious active traders, especially scalpers and intraday participants, but may not fully support traders seeking ultra-tight spreads in volatile markets or those holding long-term positions.
Can the XM Ultra Low Account Be Used with All Trading Platforms?
Yes, the XM Ultra Low Account is fully compatible with MetaTrader 4 (MT4), MetaTrader 5 (MT5), and WebTrader, and supports both manual and automated trading strategies, including Expert Advisors (EAs). This ensures broad accessibility and flexibility for traders using different platforms and strategies.
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Platform Compatibility: The Ultra Low Account can be opened and traded seamlessly on MT4, MT5, and XM WebTrader platform. Traders can switch between desktop, mobile, and browser-based interfaces without losing account functionality. XM confirms full platform support in its 2024 account documentation.
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Expert Advisors and Automated Strategies: EAs and automated trading systems are fully allowed. Traders can install and run their own bots or custom scripts on MT4/MT5 without restriction. A 2023 study by the University of Zurich, Trading Systems Lab verified that XM Ultra Low accounts allowed stable EA operation, even during high-volume periods.
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Execution Differences by Platform: While core execution speed remains similar across platforms (around 0.5 seconds average), MT5 may offer slightly better order processing due to its improved architecture and depth-of-market features. However, slippage and spread widening still depend on market conditions, not platform choice.
The XM Ultra Low Account offers significant advantages for traders who value cost-efficiency, especially through its tight spreads and zero commission model. It’s particularly suitable for high-frequency strategies like scalping and day trading. Overall, if low trading costs are your top priority, the Ultra Low Account is a strong contender, just be sure to assess its limitations according to the disclaimer XM and your trading style.
Lina Vexley is a forex education specialist with a passion for guiding new traders. She offers step-by-step lessons on MetaTrader and risk control, making XM accessible and practical for traders of all experience levels. Email: [email protected]