Understanding XM Trading Costs: Spreads and Commissions

Trading costs directly impact your profitability. This comprehensive guide explains XM spreads, commissions, and how to minimize your trading expenses.

What Are Spreads?

The spread is the difference between the buy (ask) and sell (bid) price. It's XM's primary way of generating revenue on most trades.

XM Spreads by Account Type

Standard Account Spreads

EUR/USD: From 1.6 pips
GBP/USD: From 2.0 pips
USD/JPY: From 1.6 pips
Gold: From 2.5 pips
No commissions on any trades

Ultra Low Account Spreads

EUR/USD: From 0.6 pips
GBP/USD: From 0.9 pips
USD/JPY: From 0.7 pips
Gold: From 1.2 pips
No commissions on forex and gold

Shares Account Costs

Commission-based pricing
Varies by market and stock
Transparent fee structure

Factors Affecting XM Spreads

1. Market Volatility

Spreads widen during high volatility periods like major news announcements or market openings.

2. Trading Session

Spreads are tightest during peak liquidity hours (London-New York overlap) and wider during Asian sessions.

3. Currency Pair Liquidity

Major pairs (EUR/USD, GBP/USD) have tighter spreads than exotic pairs due to higher liquidity.

4. Account Type

Ultra Low accounts offer significantly tighter spreads compared to Standard accounts.

Additional XM Trading Costs

Overnight Swap Rates

Holding positions overnight incurs swap fees (or earn swap credits). Rates vary by instrument and are clearly displayed in the platform.

Inactivity Fees

XM charges $15 monthly after 90 days of account inactivity. Easily avoided by logging in or placing a trade.

Withdrawal Fees

XM doesn't charge withdrawal fees for most methods, but your payment provider may charge fees.

How to Minimize Your Trading Costs on XM

1. Choose the Right Account Type

If you're an active trader, the Ultra Low account's tighter spreads can save significant money despite any volume requirements.

2. Trade During Peak Hours

Trade major pairs during London-New York overlap (8am-12pm EST) for the tightest spreads.

3. Avoid Trading During News

Spreads widen dramatically during major economic announcements. Unless you're news trading, wait for spreads to normalize.

4. Focus on Major Pairs

EUR/USD, GBP/USD, and USD/JPY offer the tightest spreads and highest liquidity.

5. Use Limit Orders

Limit orders allow you to specify your entry price, potentially getting better execution than market orders.

XM Spreads Comparison with Competitors

XM's spreads are competitive with industry leaders. The Ultra Low account particularly stands out with spreads from 0.6 pips and no commissions on forex pairs.

Calculating Your Trading Costs

Example: Trading 1 standard lot (100,000 units) of EUR/USD

Standard Account: 1.6 pips = $16
Ultra Low Account: 0.6 pips = $6
Savings: $10 per lot

For active traders doing 100 lots per month, that's $1,000 in monthly savings with Ultra Low!

Ready to trade with competitive spreads? Open your XM account today and choose the account type that fits your trading volume.

XM Spreads and Commissions Explained: Understanding Trading Costs