XM Fees and Spread Explained - Is It Cheap Broker?

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77.74% of retail investor accounts lose money when trading CFDs with this provider.
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XM Broker is one of the largest forex brokerage companies with numerous accolades to show for more than one decade in business. XM is a reliable and safe broker and has experienced considerable success and growth since its inception in 2009.

We have prepared a review of the costs associated with XM and compared this with top competitors. The commissions paid to XM are among the lowest in the market. The following is an overview of XM fees:

Assets Fee Level Fee Terms

EURUSD

Low

The fees are built into the spread with Standard, Micro, and Ultra-Low accounts. The average spread cost for the Standard account is 1.7 pips during peak trading hours. There is a small spread cost and a $3.5 commission per lot per trade with XM Zero accounts.

US Stock Fee

Average

0.04% with a $1 minimum. Only available for clients onboarded under IFSC.

Inactivity Fee

Low

The broker charges a $15 one-off maintenance fee after one year of inactivity. If the account remains inactive you will have to pay a $5 per month fee.

Europe 50 CFD

Low

During peak trading hours 2.6 points are the average spread cost, the fees are built into the spread, however.

S&P 500 CFD

Low

The fees are built into the spread, 0.7 is the average spread cost during peak trading hours.

Is XM Cheap?

Open an account
Your capital is at risk.
77.74% of retail investor accounts lose money when trading CFDs with this provider.

The affordability of a broker is one of the factors that traders consider before opening accounts.

So, what are some of the factors that you need to consider when determining whether XM is cheap or not? There are trading fees, financing rates, conversion fees, spreads, and commissions that need to be factored in. You will also need to include the non-trading fees when deliberating on the affordability of XM.

XM fees are generally low, meaning that they are an affordable broker. They have low trading fees for CFDs, low inactivity fees, and no withdrawal charges. The broker charges average fees for forex and stock index. This means that you can use XM even if you trade frequently, such as several times daily or weekly.

There are 4 different accounts available on XM depending on your preference. The table below summarizes the different account types:

Account Type Minimum Spread Value Withdrawal Commission

Micro

From $0.1

No

Standard

From $10

No

XM Ultra Low

From $6

No

XM Zero

From $3.5

No

The broker offers attractive trading conditions for rookie traders who are just learning the ropes. The commitment by the team at XM to provide the best quality service to their traders has earned them the Best Broker for Beginners award from Traders Union. The broker also has technical advantages that distinguish them from competitors.

XM is definitely an affordable option for beginner and seasoned traders alike.

XM – Forex Fees and Spread

The fees charged by XM are relatively low-average when compared to other brokers. The MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms utilized by the broker have low commissions which allow them to keep a low-cost profile. The broker charges an average of 1.7 pips on the spread on the XM Standard, Micro, and Ultra-Low accounts. On the other hand, XM Zero account owners pay a flat commission of $3.5 per lot per trade plus a small spread cost.

XM Spread Compared

Currency Pairs XM Exness IC Markets

EURUSD

1.7

1.0

0.62

GBPUSD

2.1

1.1

0.83

USDJPY

1.6

1.3

0.74

XM CFD Fees and Spread

When it comes to commissions and fees XM is a very transparent broker. There are no hidden trading fees or commissions charged by the broker. There are no commissions for replenishment and withdrawal of money. The average commission charged by XM is rated as medium in comparison to other competitors.

Broker Average Commission Level

XM Group

$6

Medium

FxPro

$13.2

High

Admiral Markets UK

$5

Low

When compared to the quality of service, the rates charged by XM are fairly affordable. XM sends client orders directly to the ECN network or liquidity providers.

XM Non-Trading Fees

Apart from the trading fees charged by XM, there are a couple of non-trading fees that you need to know about.

Does XM Charge Inactivity Fee?

Yes, the broker charges inactivity fees in the form of a $15 one-off maintenance fee after one year of inactivity. This is usually followed by a $5 per month charge if the account remains inactive. This charge will continue until you start actively using your account again or if you decide to cancel and close the account.

Does XM Charge Withdrawal Fee?

XM does not charge any withdrawal fees. This means that the same amount that you transfer from your XM brokerage account is what you will receive in your bank account. Keep in mind that the payment processor, whether a bank or electronic wallet might charge their own fees for processing the payment.

Does XM Charge Other Fees?

Apart from the above-mentioned, XM charges a currency conversion fee for all trades involving instruments that are denominated in a different currency from the native currency in your XM account. The currency conversion fee usually comprises the exchange rate received from liquidity providers plus a mark-up.

XM Financing Rates

The financing rates offered by XM are fairly low. The yearly financing rates on this platform are quite affordable in the short term. However, if you want to trade on margin and prefer to hold your position for long, the financing costs can be quite significant.

XM FxPro FXTM

EURUSD Financing Rate

1.6%

1.5%

1.6%

EURGBP Financing Rate

1.6%

1.5%

1.6%

Apple CFD Financing Rate

3.2%

2.9%

3.9%

Vodafone CFD Financing Rate

3.1%

2.8%

-

XM Swap (Pips)

As far as swaps go, XM offers relatively high swap levels. It is important to note that swaps are usually changing constantly, so it would be advisable that traders check up on them time and again. The table below compares the swap rates for XM against competitors.

XM IC Markets Exness

GBPUSD Short

-3.82

-0.1

-0.459

GBPUSD Long

-3.02

-0.41

-0.493

EURUSD Short

1.31

0.19

-0.085

EURUSD Long

-7.09

-0.76

-0.765

USDJPY Short

-6.99

-0.8077

-0.748

USDJPY Long

-0.09

0.0214

-0.272

FAQs

How many instruments can I trade with XM?

There are over 1,000 trading instruments available on XM, with more than 55 currency pairs. You can trade in Forex, Stock CFDs, Commodities, Crypto, Equity Indices, Precious Metals, Energies, and Shares among others.

Is XM good for beginners?

XM offers a friendly platform for novice traders. They have invested in research and training sections that allow new traders to get acquainted with the basic functions of the broker's platform. There are also frequent webinars and seminars conducted on the site. Traders can use these tools to build up their own views and experience in trading.

Is XM regulated?

Yes, XM is regulated and licensed by three leading global regulators: CySEC in Cyprus, ASIC in Australia, and FCS in Belize. The CySEC license means that the broker operates in the European legal field regulated by MiFID directives I and II. Moreover, all customer accounts are segregated from brokerage accounts. XM also provides negative balance protection for clients.

Can you delete your XM account?

Yes, it is possible to deactivate and delete your XM account. This can be done on the XM profile management screen on the website or app.

Team that worked on the article

Chinmay Soni
Contributor

Chinmay is a certified Investment Analyst and Portfolio Manager by the National Stock Exchange (NSE) Academy. He is currently associated with a $75 million VC fund and assists them in identifying and researching investable sectors and start-ups. He has completed his Bachelors of Business Administration from the Institute of Management, Nirma University and is currently pursuing MBA majoring in Finance from the same. He has 4 years of hands-on investment experience in a variety of asset classes and his professional qualifications include being a CFA Level 2 candidate and NSE Certified Market Professional Level 2.

He finds writing as a way to express his thoughts and share his knowledge with people eager to learn. He himself happens to be an avid reader of personal finance books and on top of his recommendation list are the international bestsellers ‘The Psychology of Money’ and ‘Think and Grow Rich’

He has this one strong belief as his motto: Life is what you make of it.

Olga Shendetskaya
Author and editor at Traders Union

Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.

Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.

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Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.