XM’s new Copy Trading service allows strategy managers to set up specialized accounts to facilitate the copying of their trading strategies by followers. These strategy accounts come with specified features such as a variety of leverage options, minimum balance requirements, and the ability to manage multiple active strategies. Managers can create strategies that include detailed descriptions and set success fees, while followers need to open an investor account to start copying strategies. Compensation for managers is based on the High Water Mark Value, which calculates success fees only on new profits that exceed previous benchmarks. The service aims to align the interests of managers and followers by providing a robust platform that enhances potential profitability.

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XM Copy Trading Service Guide: Maximize Your Trading Potential

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The cornerstone of XM’s Copy Trading service is the creation of a strategy account. To participate, strategy managers must set up this specialized account, which is designed to facilitate the copying of trading strategies by followers. This account is characterized by specific features designed to optimize trading efficiency and success:

Account Type

Standard Account

Account Currency

USD

Trading Platforms

Choice of MT4 or MT5

Leverage Options

Ranging from 300:1 to 500:1, with a specific 20:1 leverage for cryptocurrency CFDs.

Minimum Balance Requirement

A total balance of at least $100 is required.

Strategy Visibility

Strategies may be set to private if the effective margin (balance + bonuses) drops below $50.

Maximum Active Strategies

Up to 10 strategies can be held simultaneously.

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Crafting and Managing Strategies

Strategy creation is a pivotal aspect of XM’s Copy Trading service. Here, managers can define their trading strategies, which are crucial in attracting followers:

Strategy Name

Can be multilingual, accommodating global users.

Description

A concise and appealing description to attract followers.

Success Fee

Receivable through the XMTD Wallet or directly into the strategy account, with rates adjustable from 0% to 50%.

Minimum Investment

Defined by the manager, this is the least amount followers can invest to start copying a strategy.

Strategy Type

Discretionary, EA (Expert Advisor), or a combination of both.

Account History Import

Optional feature allowing the import of trading history from existing accounts to the manager’s account.

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Follower’s Investment Account

To follow a strategy, traders need to open an investor account, which mirrors the conditions of a standard trading account:

Spread

Identical to the standard account.

Account Currency

USD

Minimum Trade Size

Varies by asset, starting from 0.001 lots for FX and gold.

Leverage

Fixed at 500:1 for all offerings except stocks derivatives.

Platform Type

Exclusively MT5.

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Rewarding Success: The Compensation Model

XM’s Copy Trading rewards are calculated based on the High Water Mark Value (HWM), ensuring that managers are compensated for new profits exceeding previous benchmarks. This system motivates managers to consistently aim for higher profitability, aligning their interests with their followers:

XM’s Copy Trading service offers a structured yet flexible platform for traders to either manage their strategies or invest by copying established ones. This service not only simplifies the trading process but also expands the potential for profitability through a strategic partnership between all parties involved. Whether you are an experienced trader or a newcomer to the financial markets, XM’s Copy Trading service offers a robust toolset for enhancing your trading strategy and potentially increasing your financial returns.

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Opening of Strategy Accounts

Strategy Managers must open a strategy account.

Entering a partner code will generate commissions for affiliates.

• Account Type: Standard Account
• Account Currency: USD
• Platform: MT4 or MT5
• Leverage: 300:1, 400:1, 500:1
Note: Leverage for cryptocurrency CFDs is 20:1.
• Minimum Balance: Total balance of the account must be over $100
Note: If the effective margin (balance + bonus) falls below $50, the strategy will be made private.
• Maximum Number of Active Strategies: 10

A strategy account is opened for each strategy. If a strategy is closed, the associated strategy account must also be closed.

It is also possible to enter a partner code when opening a strategy account.

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Creation of Strategies

• Strategy Name (required): Possible in multiple languages.
• Strategy Description (required): Briefly describe the strategy to appeal to followers (traders).
• Receiving Performance Fees: Can be received in the XMTD Wallet or strategy account. Changes in the recipient are possible and apply to performance fees earned after the change.
• Performance Fee Rate: Can be set from 0% to 50%.
• Minimum Investment Amount: Minimum investment required to follow the strategy
• Strategy Type: Discretionary, EA, Discretionary & EA
• Account History Import (optional): Trading history can be imported from existing trading accounts to manager accounts.
Note: The strategy will be available for use one hour after creation. Strategies can be set to public or private.

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Strategy Card

The strategy card displays the strategy name, user name (useful when traders are checking other strategies by the same user), performance fee rate, win rate, number of followers, total investment, manager’s current effective margin, and monthly profit.

About Investor Accounts

In copy trading, followers (traders) need to open an investor account.

• Spread: Same as a standard account
• Account Currency: USD
• Minimum Trade Volume: 0.001 lots for FX and gold, 0.01 lots for futures, cryptocurrency CFDs, and stock indices, etc.
Note: Stock derivatives are not available.
• Leverage: Only 500:1
• Platform Type: Only MT5

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About Performance Fees

Performance fees are calculated based on the High Water Mark Value (HWM) and apply to profits of both settled and unsettled positions.

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FAQs

What is XM’s Copy Trading service?

XM’s Copy Trading service allows users to copy the trading strategies of experienced managers through a strategy account.

How do you set up a strategy account?

Strategy accounts require registration with specific features like leverage options, a minimum balance of $100, and the capacity to manage up to 10 strategies.

What are the requirements for followers in the Copy Trading service?

Followers must open an investor account, which uses the same spreads as standard accounts and requires a minimum trade size depending on the asset.

How is the success fee calculated for strategy managers?

The success fee is based on the High Water Mark Value, where managers earn fees only on profits that exceed the highest previously recorded profit.

Can strategies be private?

Yes, strategies can be set to private if the effective margin drops below $50, preventing them from being copied by new followers.

What leverage options are available in strategy accounts?

Leverage options range from 300:1 to 500:1 for most trades, with a specific 20:1 leverage for cryptocurrency CFDs.

What platform types are supported by XM’s Copy Trading service?

The service supports both MT4 and MT5 trading platforms.

What is the minimum investment required to follow a strategy?

The minimum investment amount is set by the strategy manager and varies based on the strategy’s settings.

What happens if the strategy’s profits fall below the High Water Mark?

If profits fall below the High Water Mark, no success fees are paid out until new profits exceed the previous High Water Mark.

How can a follower access an investor account?

Follower investor accounts are unique to each trader and are accessed through the trading account member’s page or social platform.