To get a full idea of the overall trading experience at XM, we suggest paying close attention to the trading costs, as they will help you decide whether the broker is the right choice for you. Spreads, commissions, and other fees are significant enough to allow a proper assessment of one’s trading budget, which is why our team of experts has covered all surcharges linked to trading with XM.
Due to different regulatory restrictions and region-specific offers, XM account types may differ across different entities of the broker. That said, we have made sure to test all account options available to traders, covering the trading cost with each one of them. To get a better understanding of the pricing models adopted by XM, we suggest you continue reading.
XM Trading Costs
At XM, different traders may resort to various account types that will fit their trading styles. The European and Australian entities of the broker will grant access to two main account types – Ultra Low and Zero. The FSC-regulated entity also adds the Standard account to the available trading options for XM clients. Additionally, beginners who wish to engage in smaller-sized trading, may open Standard Micro and Ultra Low Micro accounts that enable trades of a minimum contract size of 0.01 lots.
If we compare the Standard, Ultra Low, and Zero accounts at XM, we will notice that the first option offers wider spreads, while the Ultra Low and Zero accounts reduce the cost of trading via tighter spreads. In fact, spreads on the Zero account start from 0.0 pips on a vast variety of Forex pairs. While the Standard and Ultra Low accounts include zero commission rates, the Zero account does charge a small commission fee of $3.50, which is applied on each side of a standard lot trade.
| XM Roundtrip Commission Rates Based on Account Types | |||
|---|---|---|---|
| Account Type | Per Standard Lot | Per Mini Lot | Per Micro Lot |
| Micro Accounts | $0 | $0 | $0 |
| Standard Account | $0 | $0 | $0 |
| Ultra Low Account | $0 | $0 | $0 |
| Zero Account | $7 | $0.7 | $0.07 |
Even though there is no commission involved in trading with the Standard or Ultra Low Account version at XM, the tighter spreads on the Zero account are low enough to significantly reduce the total cost of trading, even when there is a commission charge. To demonstrate the difference in the overall trading price with each account type, we would like to compare a single-lot trade of EUR/USD with the three account types at XM.
For our example, we will consider that the trade opens and closes at the price, and we will trade a single lot (100,000 units), with a pip movement equal to $10. At the moment of writing this review, the average spread on the EUR/USD pair is 2 pips, 1.2 pips, and 0.2 pips on the Standard, Ultra Low, and Zero accounts, respectively.
In that case, the trade of the pair would look something like that:
Standard Account:
Spread: 2 pips
Commission per side: $0
Total Cost: 2 x $10 = $20 per side and $40 for a roundtrip trade
Ultra Low Account:
Spread: 1.2 pips
Commission per side: $0
Total Cost: 1.2 x $10 = $12 per side and $24 for a roundtrip trade
Zero Account:
Spread: 0.2 pips
Spread Cost: 0.2 x $10 = $2
Commission per side: $3.50
Total Cost: ($2)x2 + ($3.50)x2 = $4 + $7 = $11 for a roundtrip trade
As you can see, the Zero account offers the lowest trading cost, even when charging a commission on both sides of a trade.
Below, we have provided the minimum spread values on all three account types that XM offers to its clients. That way, one can estimate the final trading cost per lot traded on popular Forex pairs. Keep in mind that the average trading cost on each pair can be slightly higher, as XM offers floating spreads that can be somewhat wider than the minimum values provided below.
| Minimum Spread Costs with Standard Accounts | ||||
|---|---|---|---|---|
| Currency Pair | Spread as low as (in pips) | Commission per side | Cost per Micro Lot | Cost per Standard Lot |
| EUR/USD | 1.6 | $0 | $0.16 | $16 |
| USD/JPY | 2 | $0 | $0.1319 | $13.19 |
| EUR/GBP | 1.8 | $0 | $0.2236 | $22.36 |
| GBP/USD | 1.8 | $0 | $0.18 | $18 |
| AUD/USD | 2.3 | $0 | $0.23 | $23 |
| USD/CAD | 2.3 | $0 | $0.1606 | $16.06 |
| USD/CHF | 1.9 | $0 | $0.2096 | $20.96 |
| USD/CNH | 3.6 | $0 | $0.0494 | $4.94 |
| NZD/USD | 2.8 | $0 | $0.28 | $28 |
*All pairs’ trading costs are expressed in USD
| Minimum Spread Costs with Ultra Low Standard Accounts | ||||
|---|---|---|---|---|
| Currency Pair | Spread as low as (in pips) | Commission per side | Cost per Micro Lot | Cost per Standard Lot |
| EUR/USD | 0.8 | $0 | $0.08 | $8 |
| USD/JPY | 0.9 | $0 | $0.0594 | $5.94 |
| EUR/GBP | 1.5 | $0 | $0.1864 | $18.64 |
| GBP/USD | 0.8 | $0 | $0.08 | $8 |
| AUD/USD | 1.8 | $0 | $0.18 | $18 |
| USD/CAD | 1.5 | $0 | $0.1047 | $10.47 |
| USD/CHF | 1.1 | $0 | $0.1214 | $12.14 |
| USD/CNH | 3.1 | $0 | $0.042 | $4.25 |
| NZD/USD | 2 | $0 | $0.20 | $20 |
*All pairs’ trading costs are expressed in USD
| Minimum Spread Costs with Zero Accounts | ||||
|---|---|---|---|---|
| Currency Pair | Spread as low as (in pips) | Commission per side | Cost per Micro Lot | Cost per Standard Lot |
| EUR/USD | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
| USD/JPY | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
| EUR/GBP | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
| GBP/USD | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
| AUD/USD | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
| USD/CAD | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
| USD/CHF | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
| USD/CNH | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
| NZD/USD | 0.0 | $3.50/$0.035 | $0.035 | $3.50 |
*All pairs’ trading costs are expressed in USD
XM Overnight Funding Costs
While intraday trading is a popular strategy one can easily utilize with any account type offered by XM, traders can also keep their positions open overnight and earn interest, depending on the way the respective market is moving. The so-called interest is also known as a swap, and traders can either receive or pay swaps, depending on the difference between the currencies they are trading.
For Forex and Metals trades, XM calculates swap rates based on tom-next rate plus a small mark-up value. Tom-next rates can be either negative or positive, depending on the interest rate differential between the currencies in the respective cross.
While there is a Calculator tool that traders can use to see the current swap rates applicable to multiple instruments, it is worth noting that XM applies the following formula to calculate swaps on Forex and Metals:
Trade Size x (+/- Tom-next rate + Mark-Up)
| Swap Rates on Popular Forex Pairs (standard lot size) | ||||
|---|---|---|---|---|
| Symbol | Base Currency | Volume in Lots | Pair Swap Long | Pair Swap Short |
| EUR/USD | USD | 1 | -6.84 | 1.06 |
| USD/JPY | USD | 1 | 4.31 | -21.91 |
| EUR/GBP | USD | 1 | -7.98 | 2.24 |
| GBP/USD | USD | 1 | -1.99 | -4.79 |
| AUD/USD | USD | 1 | -1.98 | -1.48 |
| USD/CAD | USD | 1 | 0.43 | -7.32 |
| USD/CHF | USD | 1 | 5.01 | -17.07 |
| USD/CNH | USD | 1 | -14.47 | -28.19 |
| NZD/USD | USD | 1 | -2.44 | -1.84 |
Swap-Free Trading Costs at XM
Since XM is dedicated to inclusivity, the broker offers Muslim traders the chance to open an Islamic account which will eliminate any swap charges to or from their account. That means any positions left open overnight will not generate interest, so Islamic accounts will not be charged any overnight funding fees, nor will they receive swaps on their overnight positions.
The broker does not mention any administrative fees for keeping overnight positions running for multiple nights with an Islamic account. However, according to the Terms & Conditions of XM, if the broker considers traders to be abusing the privileges of an Islamic account, XM has the right to revoke the swap-free status of said accounts and start charging swap rates on overnight positions.
XM Non-Trading Costs
In addition to trading costs at XM, one should also consider other fees that may apply to their trading account with the broker. You can create a demo and live account for free, granting you access to the full range of tradable instruments and trading software solutions. Whenever you are ready to trade for real money, you can make a deposit, choosing from several convenient options, with no fees applied to the payment. Withdrawals are also free of charge, allowing traders to manage all payments to and from XM, without paying any extra costs.
If your account happens to be inactive for more than 90 days, you will be charged an inactivity fee of $15. If your account continues to be inactive, there will be charges of $10 per month. If your balance reaches $0 while your account has been dormant, the broker may close your account.
For traders who wish to improve their trading experience using a VPS hosting service, XM offers an MT4 VPS service, which can be accessed by traders who have opted-in for a paid subscription of $28 per month. Alternatively, traders who maintain a trading balance of at least $5,000 in all of their trading accounts with the broker and make at least 5 roundtrip standard-lot trades per month can access the MT4 VPS service for free.
| XM Non-Trading Costs | |
|---|---|
| Deposit Fees | Free |
| Withdrawal Fees | Free |
| Account Opening Fee | Free |
| Inactivity Fee | $15 after 90 days of no activity and then $10 per month |
| VPS Hosting Subscription | $28 per month |
Closing Thoughts on XM Fees
The overall trading cost at XM is more than affordable, allowing traders to choose from several account options that either eliminate the commission charge or reduce the trading price by offering tighter spreads. Additionally, the broker does not impose any fees on deposits and withdrawals, allowing traders to manage their funds in a cost-effective way. It should be noted that after three months of no activity in your account, you will be charged an inactivity fee, so you might want to check up on your XM accounts regularly. While VPS hosting is available to traders who subscribe to the service for a fee of $28 per month, high-volume traders may qualify for a free use of MT4 VPS hosting.
