XM Bonus & Loyalty Program Description
XM is the broker that offers the most amazing bonus program in the world.
There are a variety of bonuses available, so it may be difficult to understand at first. However, there are significant benefits if you use it well.
Overview of XM bonus
XM offers several types of bonuses as follows.
■ Account opening bonus
①30USD when opening account
②+ 100% against deposit $ 500 (+2 times)
③+ 20% against deposit $ 500 to $ 23,500(+1.2 times)
■XMP (points) exchange bonus
④Acquired according to transaction days and volume
※* XM Zero account can be used only for “① Account opening bonus”. ②③④ are not available for XM Zero accounts.
And this bonus cannot be withdrawn!
Some people may think this way.
The bonus you get doesn’t mean you can use it freely.
The bonus can only be used as equity in trading.
(It is actually expressed as credit. Detailed functions of credit will be explained in detail later.)
In fact, the benefits of increasing equity in trading are enormous.
For traders, it is not possible to withdraw money, but it has the same effect as increasing money.
However, please be aware that if you withdraw money from your account, the bonus will also disappear depending on the balance / withdrawal ratio.
Benefits of increasing equity are huge
In Forex trading, it is possible to trade more than your own funds by using leverage.
If equity is doubled by bonus, there are the following advantages.
Earn twice as much profit
For example, suppose you have adopted the following transaction logic:
-Take Profit when equity increases by 5%
-Stop loss when equity goes down 2%
-Expected win rate is 60%
If the equity doubles, you can naturally trade with twice the lot size.
Assuming you have traded 100 times, the difference is as follows:
(This is a very simplified calculation)
When starting at 500 USD …
|Once P/L||Times||Total P/L|
When starting at 1000 USD …
|Once P/L||Times||Total P/L|
Delay Stop Out
If the price moves contrary to the direction of the position, the position will be forcibly closed if the margin level falls below the specified value.
This is called “stop out”.
The margin level for stopout varies from broker to broker and is around 20% to 100%.
（XM has 20% stopout level and wide tolerance.）
Margin level calculation formula
Margin level＝ Equity ÷ Margin Requirement
（Equity : Amount that reflects trade profits and losses in the account balance）
（Margin Requirement ＝ Transaction currency amount × current rate ÷ leverage）
The margin level formula is a little confusing.
The important thing is that as the equity increases with the bonus, the margin level can be kept high and the timing of the stopout can be delayed.
■When there is little Equity
■When there is large equity
In the case of trade styles that aims for profit while enduring certain amount of equity drawdown, larger equity will definitely be advantageous.。
However, trade styles that wait for market reversals while allowing large equity losses will naturally increase the chances of winning, but you must be prepared to risk losing all at once.
What is “XMP”? Exchangeable for bonus!
XMP means XMTrading Points. The more you trade with XM, the more points you accumulate.
What can be done with XMP?
Earned XMP can be exchanged for credit bonuses that serve as equity for trading accounts.
Works the same as account opening bonus and deposit bonus.
(Withdrawal is not possible)
Exchange rate is “credit bonus (USD) = XMP ÷ 3”
As already explained, there are various benefits to increasing equity.
Previously, it was possible to exchange for cash that can be withdrawn at a ratio of “XMP ÷ 40”. However, it is currently not possible to exchange for cash.
Also, even if you can exchange it for cash, the exchange rate is very low at 1/40, so it is better to choose to exchange for credit bonus.
How much can we get XMP?
The amount of XMP earned varies depending on the status.
The higher your status, the bigger your XMP gain.
There are four levels of status: “EXECUTIVE”, “GOLD”, “DIAMOND”, and “ELITE”.
The condition for high status is determined only by the number of days of trade.
(Per 1 lot)
|EXECUTIVE||Initial status||10 XMP/1 lot|
|GOLD||30+ days trade||13 XMP/1 lot|
|DIAMOND||60+ days trade||16 XMP/1 lot|
|ELITE||100+ days trade||20 XMP/1 lot|
If you have been trading for XM for more than 100 days, you can earn 20XMP per lot.
When 20XMP is converted into a credit bonus, 20XMP ÷ 3 = 6.6 USD.
This means that you can earn 6.6 USD for every 1 lot of transactions.
Some people may think this way.
I think it’s easier to understand if you think that the spread that is the trade cost will decrease.
In the currency pair EURUSD, a gain of 6.6USD per lot requires a 0.66pips price movement.
(In the following, rounded off and expressed as 0.7pips.)
In other words, the fact that 6.6USD can be earned in one lot trading can be regarded as narrowing the spread by about 0.7pips.
The spread of the EURUSD pair of the XM standard account is about 1.6pips at normal time, so you can think that the spread has narrowed to 0.9pips.
This is a huge advantage. The EURUSD spread is 0.9pips without commission. This is a transaction cost comparable to other brokers’ ECN accounts.
Of course, it doesn’t really mean the spread will be narrowed.
To make it easier to get a numerical feeling, I just replace it with “Bonus Get” → “Cost is reduced”.
To make it easier to get a numerical feeling
I just replace it with “Bonus Get” → “Cost is reduced”.
Increasing the amount that serves as equity is as good as narrow spreads.
Representation of “Bonus(=credit)”
I have explained that the bonus works the same as the equity.
I will explain how it is actually written and how it works.
Bonuses are represented as “credits” on your account.
It is expressed as “credit” on both MX member pages and MT4 terminals.
⇒Amount that reflects the profit and loss of trades in deposits and withdrawals. If you do not have a position, “Balance = amount available for withdrawal”.
⇒Amount get as bonus (no withdrawal)
⇒Balance ± Profit / Loss of held position + Credit
Bonus (= credit) is not added to the balance.
On the other hand, it is added to equity.
If a loss occurs due to the closing of the position, the balance will decrease.
In addition, credits will decrease if losses exceed the balance.
If your credit goes to zero, the game is over.
Notes Summary of XM bonus & XMP
The XM bonus program has great benefits and should be used.
Here are some notes regarding the use of bonuses as reference information.
Notes on opening account 30USD bonus
- Available for all account types: “Micro”, “Standard” and “Zero”.
- Can only be used once per person. In other words, even if you open an additional account, you will not be able to receive 30 USD again.
- The application can only be made after the account registration has been completed and the account has been activated (after registration and approval by submitting an ID and address verification document).
- It is necessary to apply from the member page within 30 days after opening an account. Please note that the account opening date (after registering personal information and receiving account information from XM) will be the starting date.
Account activation (after document submission / approval) is not the starting date.
Notes on deposit bonus
- Deposit bonuses cannot be used with Zero Accounts. It can be used with “Micro Account” and “Standard Account”.
- The maximum deposit bonus per person is 5000USD. Since it is not the upper limit per account, opening a new account does not mean that you can earn bonuses again.
Notes on XMP
- Positions settled within 10 minutes will not be counted as lots.
- XMP that can be earned for CFD trading is different from normal.
General bonus notes
- If you select “No, I do not want to receive bonuses” when opening an account, the account will be excluded from the bonus program.
- When you withdraw money, the credit (= bonus) will also disappear depending on the ratio between the balance and the withdrawal amount.
Example: With a balance of 300USD and a credit of 600USD, if you withdraw 200USD from the balance, 400USD will disappear from the credit.
If you transfer funds to a “Zero Account” that is not eligible for the bonus program, the bonus will disappear.。
Summary of XM bonus program
XM offers the best bonus program in the world.
Withdrawing money is not possible, but it is a great advantage that equity is up to twice as much as the deposit amount. Of course, the profits gained from the trade can be withdrawn.
With XM, you can get the chance to make a big profit with the least amount of money.
And you can get 30USD bonus just by opening an account.
XM’s standard account has a maximum leverage of 888 times. (Maximum leverage varies by region)
Even with no deposit, you can trade for free with trading bonus of 30USD for small lot sizes.
Some people have the impression that XM’s standard account has wide spread.
However, considering the excellent execution and low hidden costs, and the XMP you can get each time you trade, the costs are not high.
You should take advantage of the XM bonus once.
Even if you use a different broker for the main account, you can consider using it as a sub-account because the benefits of trading with the bonus of XM are great.