XM Spreads

Details about the spreads offered by XM and how their spreads are calculated

73.03% of retail CFD accounts lose money

9.4

Total Score

9.9

Minimum Deposit

9.8

Platforms

9.8

Payment Methods

9.9

Withdrawal Processing Time

9.6

Spreads

9.3

Customer Support

9.8

Education

8.9

Tradable Assets

No matter what account type or trade size a client has, XM offers tight spreads. As with the interbank forex market, XM offers variable spreads. Fixed spreads are usually more expensive than variable spreads, so an insurance premium will be required if you trade fixed spreads. Forex brokers who offer fixed spreads often apply trading restrictions around news announcements - which can render your insurance useless. XM doesn't apply such restrictions. Spreads can be a very complex or confusing topic, so here’s a brief article explaining everything you need to know about XM spreads.

Open an account with XM and see what we're talking about. Click on this blue button to get started.

What is the Spread Offered by XM?

Typically, a spread in the XM trading platform begins at 0 pips. This will vary depending on the type of account selected by the user.

What is a Spread?

Spread is part of your transaction cost. It is the difference between the Ask price and Bid price. It is paid to your brokers or banks. The unit of spread is pip. The larger the spread, the higher your cost. Most traders prefer to trade with low spread brokers because of this.

Types of XM Spreads

Spreads are applied in different ways or types in XM. Here are those:

  1. Variable and Fixed Spread: This is a highly competitive spread but in certain instances, users escape from paying commissions on trades depending on the operating XM account
  2. Spread on Instruments: This type of spread comes with no requotes and is considered competitive. Spreads on currency pairs instruments for example, begins normally at around 0-1 pips.
  3. Spread on Accounts: Spreads offered by XM on accounts depends on the type of account you have from these: Standard account, Micro Account, XM Zero Account, Ultra Low Account, Professional Account, Islamic Account and Shares Account.

XM Spread by XM Account types

Since XM trading fees vary accordingly because it follows the account selected by the trader, here is a guide on spreads applied on the different XM account types.

Does XM Offer Spread Betting?

No. XM does not provide spread betting for traders.

Benefits of XM Spreads

Here is a list of all the pros of XM's spreads:

How High XM Spreads Happen?

Here's the deal: All brokers experience high spreads.

When a high spread occurs, it means a huge difference between the bid and the ask price emerges. Typically, evolving market forex pairs usually have a higher spread compared to major currency pairs. A higher than average spread normally specifies one of two things, either a high volatility in the market has happened or low liquidity caused by after-market hours trading.

XM Spreads in a Nutshell

Calculating XM Spread

XM shows two prices for EUR/USD when you open a buy position:

Ask = 1.12355 and Bid = 1.12369

The spread is therefore:

Ask - Bid = 0.00014 = 1.4 pip

In simple terms, this means that you have to pay 1.4 pip to XM when you want to buy EUR/USD. So, in order to buy 1 lot of EUR/USD, the spread would be 100,000 x 1.4 x 0.00014 = 19.6 USD.

That's how you calculate it.

Now that you know more about XM's spreads, you're most likely interested to open an account. Click this button to get started!
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Check XM’s website at www.xm.com for the percentage (%) of retail investor accounts losing money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.