XM Micro Trading Account is mainly for beginners or newbies. If you are starting a real trading journey and exploring deeper in forex trading in this case, such an account is ideal for you. As per its name, the main difference is its lot. As you have already known, the lot is a contract size that you need to use while taking any entries.
In general, 1 Standard lot equals 100,000 units. But in Micro, 1 lot equals 1000 units.
If we make it easier and simple, If you take 1 Lot entry in a standard trading account then per pips value is equal to $10. On the other hand, the Micro Trading account’s 1 lot is equal to 10Cents. So, your profit or loss will be significantly lower than the standard lot account.
This feature is mainly beneficial for beginners as they do not often use larger investments and start a test drive in the real market. Here is e quick overview of this trading account.
| Base Currency | EUR, USD, GBP, AUD, ZAR, SGD |
| Contract Size | 1 Lot = 1,000 |
| Leverage | 1:1 to 1:888 |
| Spread on all majors | As Low as 1 Pip |
| Maximum open/pending orders | 300 Positions |
| Minimum trade volume | 0.1 Lots (MT4) 0.1 Lots (MT5) |
| Lot restriction | 100 Lots |
| Minimum Deposit | $5 |
Pros:
- Lower required deposit.
- As lot size is lower so Profit or Loss will be dramatically low.
- Spread is low as starts from 1 pip
- No additional restrictions.
- Traders can easily focus on developing trading strategies rather than thinking of market price movement.
- Stress-free trading, as losses and risks are relatively low in this account.
Cons:
- As lot size is low, in some cases it does not meet traders’ expectation of returns.
- Several Trading instruments are not available for trading.
- Not suitable for Scalping Trading.
- Not suitable for larger investments.
- This trading account does not meet the market standards so, trading calculation often seems too complicated.
Recommendations: This type of trading account is mainly ideal for those traders who are just thinking to start real trading. This trading account is not ideal for professionals or larger investors.
On the other hand, if you are looking for a good and reliable broker and want to switch your existing one then we recommend using XM Standard trading account. Because you will get the most trading facilities that the broker offers with the real market standards.
Account Registration: The process is very easy and simple. Please visit the broker’s official Website – www.xm.com and please follow the onscreen instructions. If you face any difficulties then we have already discussed the detailed account registration process. Please refer to this XM Registration article.
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