Spreads with XM may vary based on:
- The trading account you choose
- The asset you trade
In this review we will look at XM spreads in its variants, so as to give you a complete picture of the situation.
72,82% of retail CFD accounts lose money
What spread types does XM offer?
As you would expect with XM there are a number of ways in which the spread can be applied. Let’s take a closer look at these ways in more detail:
Variable and Fixed Spread
As an XM trader, you can look forward to a variable spread throughout your time with the broker. As a market maker, they do not offer fixed spread options at all.
This variable spread you will receive is very competitive though, and in most cases this also means that you can escape without any commission on most trades depending on the XM account type you are operating.
Spread on instruments
In total, XM offers a very wide range of instruments for trading. This includes a range of 55 currency pairs of all type, and CFDs trading in shares, commodities, metals, and indices.
These spreads are all without requotes and generally very competitive across the board. The spread on forex pairs typically starts between 0-1 pips. The spreads on other assets as we will look at is also competitive.
The only commission which you will have to account for when trading with XM occurs if you are trading forex through the XM Zero Account. Even then, it is a well-priced $3.50 per lot traded.
Spread on accounts
Delving deeper, let’s take a look at how the spread impacts each individual type of XM account you may be interested in.
Standard Account
Taking the most commonly selected XM account type first, the XM Standard Account is available under every regulatory body. The spread you can expect here as a trader begins at 1 pip on major forex pairs.
As with many of the account types, there is no commission here.
Micro Account
The XM micro account is available under every regulatory jurisdiction and is the perfect starting point if you wish to trade with just a little less.
Here, as with the XM standard account spread, it starts from just 1 pip on major forex pairs and with no commission applied.
XM Zero Account
Here with the XM Zero Account spread, we start to deviate from the regular model of XM just a little. This account type starts from 0 pips on the same major forex pairs, although it is only available under the regulation of CySEC, the FCA, and most countries (except Australia), which fall under the XM Global Markets umbrella.
Commission is charged here, and this is levied at $3.50 per lot at opening and closing, so $7 total on a round trade of one lot. Again, not bad for a major Forex broker.
Ultra Low account
The XM Ultra Low Account is available in Australia and offshore, which is effectively their version of the XM Zero Account.
Traders under CySEC can open respectively an Ultra Low Standard account and an Ultra Low Micro account.
Here the spreads start from a slightly higher 0.6 pips, and there is no commission to worry about.
Shares account
In order to open an XM shares account, you must be based in the XM global market area. This account type is currently unavailable to those based within the EU or Australia.
The shares account type is also only available through the MT5 trading platform on XM. Here you will encounter a commission charge which will depend on the exact shares that you are trading, and you should note that no hedging is allowed in this particular market.
Islamic
Every top broker works to facilitate Islamic trading nowadays, and XM is no different.
The XM Islamic account is accessible to everyone who requires it with contact to the XM support team. The spreads and conditions you can expect are precisely those of a standard account.
72,82% of retail CFD accounts lose money
How does XM’ trading spread vary per asset?
Moving forward, let’s take a closer look at how the XM spread applies to each individual asset traded through the broker.
Forex
As an XM trader, you will have access to more than 55 currency pairs, major, minor, and exotic. Within this you can expect there to be no hidden fees at all with XM. Everything is very clear and transparent when it comes to their operations.
If you are an XM zero account holder, you can expect to encounter a $7 commission per round turn on trading per lot.
| XM Forex Spread | Standard Account | Micro Account | Zero Account | Ultra Low Account |
|---|---|---|---|---|
| EURUSD | 1.7 | 1.7 | 0.1 + $3.5 per $100,000 traded | 0.8 |
| USDJPY | 1.6 | 1.6 | 0.1 + $3.5 per $100,000 traded | 0.8 |
| GBPUSD | 2.4 | 2.4 | 0.3 + $3.5 per $100,000 traded | 1.1 |
| EURGBP | 2.0 | 2.0 | 0.3 + $3.5 per $100,000 traded | 1.1 |
Commodities
XM commodities trading facilitates the trading of 8 commodities markets. These again display only the minimum spread through the brokers website though it can vary depending on the market.
There is also no difference in this spread based on your account type or which regulatory body you are operating under, and once again, you need not worry about any commission on these trades.
Trading in 4 metal markets is available with XM. Palladium and platinum markets are both traded as CFDs in this respect.
Again you can look forward to commission-free trading is this is your market of choice. The spread will vary slightly if you are trading under ASIC regulation. For all other bodies, it should remain consistent.
XM energies trading is available in 5 markets at present. These markets can be highly volatile and subject to regular pricing and spread changes. Again however, there are no commissions charged within trading on these assets. There is also no rollover charged on oil.
Once again, the XM website displays only the minimum spread. These are subject to change depending on the market, and there is no difference is spread based on your account or regulation type.
| XM Commodities Spread | Standard Account | Micro Account | Zero Account | Ultra Low Account |
|---|---|---|---|---|
| GOLD | 0.35 | 0.35 | 0.21 + $3.5 per $100,000 traded | 0.25 |
| US OIL | 0.04 | 0.04 | 0.04 | 0.04 |
| UK OIL | 0.05 | 0.05 | 0.05 | 0.05 |
Indices
CFDs trading at XM on indices is available on more than 15 global index markets. No commission is charged on these trades and again it does not vary depending on account type or regulatory body, simply on the individual market itself.
| XM Forex Spread | Standard Account | Micro Account | Zero Account | Ultra Low Account |
|---|---|---|---|---|
| US500 | 0.7 | 0.7 | 0.7 | 0.7 |
| NASDAQ | 2.0 | 2.0 | 2.0 | 2.0 |
| FTSE100 | 1.5 | 1.5 | 1.5 | 1.5 |
Shares
Looking back at the trading of shares as CFDs on XM, we can see that the list of companies available does span the globe. In order to engage in shares trading, you will need to have an XM shares account. This account is only available with the MT5 trading platform to facilitate these markets.
Furthermore, this account type is only available if regulated under the global markets umbrella of the FSC.
This is one of the only XM commission-based accounts, with a minimum commission in place depending on your country as follows:
- USA – 1.0 USD, 4.0%
- UK – 9.0 USD, 0.1%
- Germany – 5.0 USD, 0.1%
As you can note from the table below, this still keeps trading within a very competitive range at XM.
| XM Shares Spread | Shares Account |
|---|---|
| US STOCKS | $0.04 commission per share, with a minimum of $1 commission per transaction |
| UK STOCKS | 0.10% commission per transaction, with a minimum of $9 commission per transaction |
| EU STOCKS | all German shares is 0.10% commission per transaction, with a minimum of $5 commission per transaction |
Comparison with other major brokers
Looking at the overall picture of XM spreads, we can note that they are very competitive particularly when it comes to commission-free trading. This is available on almost all XM accounts. The XM Zero account is an exception but the spreads are again proportionately lower.
Thanks to the size and nature of the broker, the spread can be kept very low and without requotes on all markets. Slippage, an issue within some brokers, is also a very rare occurrence at XM.
Another couple of bonuses for you as a trader are that hedging and scalping are both permitted if this is something you are interested in, and to add an additional layer of safety, negative balance protection is operated by XM to stop you going into the red.
72,82% of retail CFD accounts lose money