New to trading? Start by understanding what it actually means.
Trading with leverage can lose you money faster than you'd expect if you don't understand the mechanics first. This page exists to explain those mechanics clearly — what a broker actually does, what the numbers mean, and what to try on a demo account before risking real money.
Every broker site uses these words assuming you already know them. Here's what they actually mean.
The smallest price move in a currency pair. Think of it like a "tick" on a price meter. If EUR/USD moves from 1.0850 to 1.0851, that's one pip.
The gap between the buy and sell price. When you see "spread from 0.6 pips," that's the built-in cost of placing a trade.
Trading with more than your deposit — and more risk. "1:500 leverage" means you can open a position 500 times bigger than your deposit.
The software you actually trade on. MetaTrader 4 and 5 are just apps — like a banking app, but for placing trades.
A contract on a price, not ownership of the asset. You're betting on whether a price goes up or down — you never actually own the currency.
The warning before you lose your position. If a leveraged trade moves against you enough, the broker will ask you to add more funds.
Not the marketing version — the mechanical one.
Into a trading account, separate from your bank account.
Betting a price will rise or fall, optionally using leverage.
Every pip of movement changes your position's value.
Locking in a gain or a loss based on where the price ended up.
See how leverage changes your position size — this is arithmetic, not a prediction of profit.
A bigger position size means bigger swings in your account balance from the same price move — in both directions.
A higher leverage number isn't automatically "better" — it just means small price moves have a bigger effect on your balance. Most experienced traders use far less leverage than the maximum on offer.
This is exactly why brokers offer demo accounts — practice with this math using fake money before any of it is real.
Most people who lose money quickly in trading do so because they used leverage they didn't fully understand. Before depositing real funds, open a free demo account and place practice trades until the mechanics above feel familiar. No broker's education page will tell you this as directly, so we're telling you now.
Once the concepts above make sense, here's what's actually on offer.
| Feature | Micro | Standard | Zero |
|---|---|---|---|
| Minimum deposit | $5 | $5 | $5 |
| Cost per trade (spread) | From 1.0 pip | From 1.0 pip | From 0.0 pip + $3.50/lot |
| Max leverage | Up to 1:1000* | Up to 1:1000* | Up to 1:1000* |
| Tradeable markets | 1,000+ | 1,000+ | 1,000+ |
| Trading app | MT4 / MT5 | MT4 / MT5 | MT4 / MT5 |
| Can't lose more than your balance | Yes | Yes | Yes |
*Leverage caps depend on your account's regulatory entity and may be lower under certain jurisdictions. Higher leverage is not automatically the right choice — see the calculator above.
Practice everything above with fake money — no deposit required, no risk.
Complete the form and verify your identity with a government-issued ID.
Deposit only what you can afford to lose, and use lower leverage until the mechanics feel familiar.
The best next step for a beginner is usually a demo account, not a deposit.
Visit XM Official SiteCurrent terms, leverage limits, and eligibility for your country are confirmed directly on the official site.