XM Trading Spreads and Fees: What Costs to Check
Understand XM Trading costs, including spreads, commissions, swaps, account conditions and trading risk.
Table of Contents
Cost Structure by Account Type
Three account tiers exist. Each has a different pricing model.
| Account Type | Typical EUR/USD Spread | Commission (Round Turn) | Best For |
|---|---|---|---|
| Micro / Standard | 0.7-1.2 pips | $0 | Beginners, low volume |
| Ultra Low | 0.6-0.8 pips | $0 | Active traders, no commission |
| XM Zero | ~0.2 pips | $7 per standard lot | Scalpers, high-volume traders |
All spreads are floating. They tighten during liquid sessions and widen around news events.
Standard and Micro Accounts
No commission charged. All broker cost sits inside the spread. EUR/USD typically runs 0.7-1.2 pips under normal conditions. Simple pricing – one number to track.
Ultra Low Account
Tighter spreads than Standard. Still zero commission. EUR/USD can reach as low as 0.6-0.8 pips. GBP/USD typically 0.7-1.4 pips. USD/JPY around 0.3-1.0 pips. Suited to intraday traders who want lower cost without per-lot fees.
XM Zero Account
Raw-type pricing. Spreads start from 0.0 pips on major pairs. Commission is $3.50 per lot per side ($7 round turn). For EUR/USD at 0.2 pips, total round-turn cost on one standard lot: spread ($2) plus commission ($7) equals $9-$11. That beats Standard at $14-$24 per lot.
Calculating Real Trade Cost
One pip on a standard lot (100,000 units) equals approximately $10.
| Account | EUR/USD Spread | Spread Cost (1 lot) | Commission | Total Round Turn |
|---|---|---|---|---|
| Standard | 1.0 pip | $20 | $0 | $20 |
| Ultra Low | 0.8 pip | $16 | $0 | $16 |
| XM Zero | 0.2 pip | $4 | $7 | $11 |
For micro lots (0.01 lot), divide by 100:
- Standard: ~$0.20 per round turn
- Ultra Low: ~$0.16 per round turn
- XM Zero: ~$0.11 per round turn
Small size traders pay fractions of a peso per trade. Cost becomes significant only at higher volumes.
Overnight Swap Fees
Holding past rollover (approximately 22:00 GMT, which is 06:00 Philippine Standard Time) triggers swap charges or credits.
Swap direction depends on:
- Whether the position is long or short
- The interest rate differential between the two currencies
- The specific instrument (forex, commodity, index CFD)
Typical swap rates on CFD positions run 0.1-0.5% per day of leveraged exposure. On exotic pairs and stock CFDs, swaps are materially higher. Triple swap applies mid-week (Wednesday rollover covers the weekend).
Islamic Swap-Free Accounts
XM offers swap-free (Islamic) accounts. No swap is charged or credited on overnight positions. No explicit admin fee is listed, but XM reserves the right to remove swap-free status if the account is used in ways that conflict with its terms. Traders who hold positions for extended periods under this account type must read the current terms carefully.
CFD Fees: Indices, Commodities, and Stocks
Index CFDs carry no separate commission at XM. Cost is built into the spread plus any overnight financing.
| Instrument | Typical Spread | Overnight Financing (indicative) |
|---|---|---|
| S&P 500 (US500) | ~0.6 points | Charged daily on leveraged exposure |
| Euro Stoxx 50 | ~1.9 points | Charged daily on leveraged exposure |
| Gold (XAU/USD) | ~0.35 points | Charged daily on leveraged exposure |
| Crude Oil | ~0.03 points | Charged daily on leveraged exposure |
| Apple CFD | Spread markup | Higher financing cost vs indices |
For a $2,000 position at 20:1 leverage held one week, estimated total cost runs approximately $3.00 on S&P 500, $3.10 on Euro Stoxx 50, and $9.20 on Apple stock CFD.
Stock CFDs carry higher costs. Vodafone CFD under the same scenario runs approximately $27.00 total – primarily from overnight financing.
Non-Trading Fees
Deposits and Withdrawals
XM does not charge deposit or withdrawal fees on most methods. Bank wire withdrawals below approximately $200 may attract third-party bank charges – this is a bank fee, not an XM fee. Local e-wallets and cards used by traders in the Philippines typically clear without XM-side charges. The payment provider may still apply its own conversion or processing fee.
Inactivity Fee
Accounts inactive for 90 days or more may be subject to a maintenance charge. Reported figures across sources range from $10-$15 per month once dormancy begins. Log in periodically – at minimum every two to three months – to avoid any deduction.
VPS Hosting
MT4 VPS costs $28 per month. Free if the account holds at least $5,000 and executes five or more standard-lot round-turn trades per month. Relevant for traders running Expert Advisors (EAs) on MT4 or MT5.
XM Trading Spreads and Fees Versus Strategy Type
Matching account type to trading style directly reduces cost per trade.
| Trading Style | Recommended Account | Key Cost Driver |
|---|---|---|
| Scalping (1-5 min charts) | XM Zero | Spread per entry; commission is fixed and predictable |
| Intraday day trading | XM Zero or Ultra Low | Total round-turn cost vs average profit target |
| Swing trading (days to weeks) | Ultra Low or Standard | Swap accumulation outweighs spread cost |
| Low-frequency / learning | Standard or Micro | Simplicity; no commission math required |
For scalpers: spread should not exceed 20-25% of the profit target. On a 10-pip target, that means a spread at or below 2 pips – XM Zero qualifies on all major pairs.
For swing traders: XM Trading spreads and fees matter less per trade. Swap cost over multiple nights becomes the primary expense. Check swap values in MetaTrader under symbol specifications before entering any multi-day position.
Practical Notes for Traders in the Philippines
XM accepts clients from the Philippines. The broker is not regulated by the Philippine Securities and Exchange Commission. Regulatory oversight falls under CySEC (Cyprus), ASIC (Australia), and IFSC (Belize), depending on which entity the account is registered under.
Funding in Philippine peso (PHP) and converting to a USD-denominated account incurs a currency conversion cost at the payment provider’s rate. Opening a USD base account and funding directly in USD – where the payment method supports it – reduces conversion friction.
Philippine Standard Time is UTC+8. The most liquid trading window for EUR/USD and GBP/USD falls between 15:00-00:00 PST (London and New York overlap from roughly 20:00-00:00 PST). XM Trading spreads and fees are at their tightest during this window. Avoid opening positions during the Asian pre-market or immediately before major news releases (US NFP, FOMC decisions, Bangko Sentral ng Pilipinas rate announcements).
The minimum deposit is $5 on Micro, Standard, and Ultra Low accounts. XM Zero may require a higher initial deposit depending on the entity. Confirm current requirements on the official XM platform before funding.
Account selection, position sizing, and awareness of swap costs determine whether XM’s fee structure works in a trader’s favor. Start on a demo account to observe live spreads during Philippine trading hours before committing capital.
FAQ
What is the cheapest account type in terms of total trading cost at XM?
For high-volume or frequent traders, the XM Zero account typically produces the lowest total cost per round turn. At 0.2 pips spread plus $7 commission on EUR/USD, the round-turn cost on a standard lot is approximately $11 – compared to $20 on a Standard account. For low-volume traders, Standard or Ultra Low accounts are simpler and avoid commission math.
Does XM charge a fee for deposits made from the Philippines?
XM does not charge its own deposit fee on most payment methods. However, the bank, e-wallet, or card provider used by the trader may apply conversion or processing fees. Traders funding in PHP into a USD account should check the provider’s conversion rate before sending funds.
How does the inactivity fee work and how can it be avoided?
An inactivity fee applies after an account has been dormant for a defined period – sources indicate 90 days or longer depending on the entity. The charge ranges from $10-$15 per month once triggered. Logging into the account and placing at least one trade every two to three months is sufficient to reset the inactivity timer.
Are XM Trading spreads and fees different during Philippine trading hours?
Yes. Spreads are variable and tightest during the London-New York overlap, which runs approximately 20:00-00:00 Philippine Standard Time. During the Asian session (early morning PST), spreads on EUR/USD and GBP/USD are typically wider. Spreads also widen sharply around major economic releases regardless of session.
What swap fees apply if a position is held overnight on XM?
Swap is charged or credited at rollover, approximately 22:00 GMT (06:00 PST). The rate depends on the currency pair, direction (long or short), and prevailing interbank rates. A triple swap applies on Wednesday rollover to cover the weekend. Exact swap values for each instrument are visible in MetaTrader under symbol specifications.
Is the XM Zero account suitable for beginners in the Philippines?
The XM Zero account is technically available but better suited to experienced traders who trade frequently. The $3.50 per side commission adds a layer of cost calculation that beginners may find confusing. Standard or Ultra Low accounts offer simpler, spread-only pricing more appropriate for traders learning the market.
How do CFD overnight financing costs compare to forex swap fees at XM?
Stock CFD overnight financing tends to be significantly higher than forex swap fees. A $2,000 position in a stock CFD like Vodafone held for one week can cost approximately $27 in total fees, while a similar position in an index CFD like S&P 500 costs around $3. Forex swaps on major pairs are generally lower than stock CFD financing rates.
