XM Copy Trading. How to Follow Expert Strategies and Maximize Profits. Table of Contents

XM Copy Trading allows traders to mirror professional strategies, creating an accessible investment option for beginners. The system relies on strategy managers who set up specialized accounts, while followers can invest and track their earnings transparently. A unique High Water Mark Value model ensures fair compensation, applying success fees only to new profit highs. Strategy managers can create public or private trading strategies with customizable success fees and trading styles. Investors benefit from a structured, user-friendly approach to automated trading through MT4 and MT5 platforms.

Start Copy Trading with XM

Feature Description
Trading Platforms MT4, MT5
Leverage Up to 500:1
Minimum Balance $100
Compensation Model High Water Mark Value
Investment Type Copy Trading
Follower Account Requires an investor account

Open an account with XM

Understanding XM Copy Trading

XM has introduced a Copy Trading service that enables traders to replicate the strategies of experienced professionals. This service is designed to create a streamlined trading experience, allowing followers to benefit from the expertise of skilled traders. Strategy managers can establish specialized accounts to facilitate this process, while followers can invest in these strategies by opening an investor account. The system ensures transparency and fair compensation through the High Water Mark Value model, which only applies success fees to new profits exceeding previous highs.

Start Copy Trading with XM

Features of XM Copy Trading Service

Key Components

Feature Description
Account Types Standard, with leverage up to 500:1
Platforms MT4 or MT5
Strategy Management Ability to create and manage multiple strategies
Follower Investment Requires an investor account to copy strategies
Compensation Model Based on High Water Mark Value for new profits

Open an account with XM

How Strategy Managers Operate

Setting Up a Strategy Account

Strategy managers must open a dedicated strategy account, designed specifically for handling the copy trading process. This account comes with the following attributes:

  • Account Type: Standard
  • Account Currency: USD
  • Trading Platforms: MT4 or MT5
  • Leverage: 300:1 to 500:1 (20:1 for cryptocurrency CFDs)
  • Minimum Balance: $100
  • Strategy Visibility: Becomes private if the effective margin falls below $50
  • Maximum Strategies: Up to 10 active strategies

Managers can also enter a partner code during setup, ensuring proper distribution of affiliate rewards.

Start Copy Trading with XM

Developing a Trading Strategy

Once a strategy account is set up, managers can craft trading strategies with specific details to attract followers. These details include:

  • Strategy Name: Can be presented in multiple languages.
  • Description: A clear explanation of the trading approach.
  • Success Fee: Set between 0% and 50%, with payments directed to either the XMTD Wallet or the strategy account.
  • Minimum Investment: Determined by the manager.
  • Strategy Type: Discretionary, automated (EA), or a combination of both.
  • Importing Trading History: Managers can import their trading records from existing accounts.

Open an account with XM

Making Strategies Public or Private

Newly created strategies become available for followers one hour after setup. Strategies can be set to public for visibility or private if the manager chooses to limit access. Each strategy is displayed on a strategy card, which includes essential information such as:

  • Strategy Name
  • Win Rate
  • Number of Followers
  • Total Investment Amount
  • Effective Margin
  • Monthly Profit

Start Copy Trading with XM

Follower’s Perspective: Opening an Investor Account

Follower Account Details

  • Spread: Same as the standard trading account
  • Currency: USD
  • Minimum Trade Size: Starts at 0.001 lots for forex and gold
  • Leverage: Fixed at 500:1 (except for stocks derivatives)
  • Trading Platform: MT5

Open an account with XM

High Water Mark Model: How Managers Earn Success Fees

The High Water Mark Value (HWM) model ensures that strategy managers are rewarded fairly. This structure guarantees that success fees are only charged on profits exceeding the previous high point.

Day Investor Profit High Water Mark Success Fee (20%)
1 $50 New HWM Formed $10
2 $35 Below HWM No Fee
3 $55 Above HWM New HWM Formed
4 $50 Meets HWM No Fee
5 $75 Above HWM $4

Start Copy Trading with XM

Opening Strategy Accounts: Step-by-Step Process

Steps for Managers

Step 1:
Register a strategy account through the XM platform.
Step 2:
Enter a partner code (if applicable) to connect with affiliates.
Step 3:
Choose the account type and leverage settings.
Step 4:
Ensure a minimum balance of $100 to keep the strategy active.
Step 5:
Set strategy visibility preferences.

XM’s Copy Trading service provides a structured and transparent way for traders to participate in financial markets without requiring extensive knowledge or experience. By offering a clear compensation structure, various strategy options, and an intuitive investment process, this service facilitates profitable interactions between strategy managers and followers.

Open an account with XM

FAQs

What is XM Copy Trading?
XM Copy Trading allows investors to replicate the trading strategies of expert traders automatically.
How do I become a strategy manager?
To become a strategy manager, you must open a strategy account, set up your strategy, and attract followers.
What platforms support XM Copy Trading?
XM Copy Trading is available on MT4 and MT5 platforms.
What is the High Water Mark Value model?
It ensures that success fees are charged only when new profits exceed the previous high.
What is the minimum investment required?
The minimum balance required for a strategy account is $100.
Can I set my success fee as a strategy manager?
Yes, strategy managers can set a success fee between 0% and 50%.
Are strategies public or private?
Strategies can be made public for all investors or private for selected ones.
What leverage options are available?
Leverage ranges from 300:1 to 500:1, with lower leverage for cryptocurrency CFDs.
How can investors track their earnings?
Investors can monitor their profits through the XM platform’s strategy card and account dashboard.
How long does it take for a new strategy to become active?
New strategies become available for followers one hour after setup.

Start Copy Trading with XM