Concerned terms and prohibitions when trading at XM
At Forex Brokers’ XM, 1 customer can own up to 8 accounts but be careful not to violate the terms and conditions used when trading.
The policy terms are written in English, as a specific example in the trading below, you have violated the terms and could face consequences such as account suspension, nullification of any profit generated, or limiting leverage level
- 1. Client’s agreement
- 2. Some examples for violations of XM policy
- 2.1. Two-way transactions between multiple accounts are prohibited (two-way transactions in the same account are OK)”
- 2.2. Two-way transactions are prohibited with other brokers (up to 2 brokers)
- 2.3. Two-way transactions and profit taking from price difference in a group are prohibited
- 2.4. Arbitrage is strictly prohibited”
- 2.5. Transaction using delaying connection or transaction error is also prohibited
- 2.6. Strictly prohibit the overuse of bonuses or XMP
- 2.7. Trading economic indicators with high leverage (Limitting Leverage)
- 2.8. Trading using the spread width between the opening and closing prices at the beginning of the week
- 3. Disclaimers
After logging in you can see the client’s agreement
Some examples for violations of XM policy
Two-way transactions between multiple accounts are prohibited (two-way transactions in the same account are OK)”
In many accounts you are not allowed to trade like this “Sell USD/JPY from Account A, Buy USD/JPY from Account B”.
At the market price fluctuates a lot on one side as in the economic indicators, this method can limit losses in one account and maximize profits in another account.
Two-way transactions are prohibited with other brokers (up to 2 brokers)
In the accounts of other brokers you are not allowed to trade like this “Sell USD /JPY at broker A, Buy USD/JPY at broker B”.
By using Zero Cut method without additional deposits, you can limit losses to one account and maximize profit in another.
Two-way transactions and profit taking from price difference in a group are prohibited
In groups such as groups of friends or any kind of groups, transactions such as “Group A sells USD /JPY, Group B buys USD/JPY” will be subject to heavy penalties. . In the past there was a certain Forex group that violated this policy and was nullified all profits and blocked their accounts.
Arbitrage is strictly prohibited”
Any arbitrage trading is prohibited. In addition to the difference in the price of the automatic purchase and sale such as EA, transactions using shown price differences among other brokers are also prohibited.
Transaction using delaying connection or transaction error is also prohibited
Sometimes slow connection occurs due to high traffic when accessing the economic indicators, … Do not take advantage of the rates that do not reflect market situation.
If it is suspected that you are arbitraging, you will be blocked from your account, … (Article 49.3).
Strictly prohibit the overuse of bonuses or XMP
Transactions that such as monetize bonuses or XMP are strictly prohibited. Two-way transactions in the same account on the rule are OK but you are not allowed to trade two-way traffic for the purpose of getting only the XMP added in each trading session.
Also systematic abuse of these things has the potential to freeze accounts or foreclose profits, …
Trading economic indicators with high leverage (Limitting Leverage)
Is a measure to keep an order with a maximum leverage level, aimed at maximizing profit and limit loss, used in a market with large fluctuation on one side.
This is not strictly prohibited, but XM staff can judge it as leverage level is limited.
Trading using the spread width between the opening and closing prices at the beginning of the week
When the market is open on Monday, there is a case where the opening price will be much higher than the closing price on last Friday.
This market price fluctuation is called a “window,” but you are not allowed to trade the “rising market price” that has used zero cut without additional XM deposit. This method limits losses and widens the profits.
To be able to trade properly you need to be aware of the above. XM can effectively use Forex trading by maximizing XM’s advantages with maximum leverage of 888:1, Zero cut with no additional deposits.
In addition, being able to open multiple accounts at other Forex companies can not be another interest of XM.
Related articles: How to make a profit with Forex trading using 3 accounts at XM