XM Trading Conditions: Spreads, Leverage & Account Types

XM is an internationally recognised Forex broker offering highly competitive trading conditions. This guide provides a comprehensive breakdown of XM’s trading conditions — helping traders of all levels, from beginners to professionals, build more effective trading strategies.

We’ll analyse key trading conditions in detail — including spreads, swap rates, leverage, and required margin — all of which directly impact your profitability. Each feature is explained clearly so you can identify the conditions that best match your trading style.

The following comparison table covers the trading conditions for XM’s Standard, Ultra Low, and Shares accounts. The Micro account type is not included in this table, as it differs only in lot size (1/100th of a standard lot) and maximum trade volume.

When selecting an XM account type, it’s important to consider your trading style, financial situation, and investment goals. Choosing the right account type can significantly reduce your trading costs, improve risk management, and maximise your profit potential.

For example, beginners with limited capital will benefit most from the Standard Micro account, which gives full access to all bonuses. Active short-term traders focused on cost efficiency will find the Ultra Low account ideal. For automated trading system (EA) testing, the Ultra Low Micro account is recommended. For medium- to long-term position trading, the Standard account works best. And for direct stock investing, the Shares account is the only option.

Ultra Low account spreads are approximately 50% tighter than those on the Standard account (which qualifies for deposit bonuses). For example, the spread difference on GOLD between the two account types is around 2.0 pips — a cost difference of approximately $20 USD per 1-lot trade.

For day traders and scalpers who trade frequently, this spread difference can have a significant impact on annual profitability. For instance, trading GOLD 10 times per day using the Ultra Low account could save you approximately $200 USD in costs daily. That said, for certain instruments such as stock indices and energies, there is no spread difference between the Standard and Ultra Low accounts. In those cases, the Standard account — with its deposit bonus benefits — may actually offer better overall value.

For more detailed information on XM spreads, including the latest average spreads for all available instruments, how spreads are calculated, and stock trading commissions, refer to the dedicated guide below.

You can also check XM’s average spreads directly in the XM Members Area or via the symbol information in MT4/MT5. You can also easily calculate the pip value in USD for each instrument using XM’s Forex Calculator.

Each country’s central bank sets its own policy interest rate, which forms the basis for each currency’s rate. For example, if Japan’s interest rate is 1.0% and the US rate is 3.75%, there is theoretically a 2.75% interest rate differential.

From this calculation, we can see that holding a 1-lot buy position on EURUSD overnight incurs a swap cost of approximately $9.93 USD. Similarly, if the swap rate for a sell position on EURUSD is +3.47, you would earn approximately $3.47 USD per lot per day.

At XM, Ultra Low and Ultra Low Micro accounts can trade the 28 major currency pairs listed below — plus GOLD and SILVER — completely swap-free. The swap-free feature eliminates overnight swap charges when holding positions, reducing trading costs for medium- to long-term strategies. This is an exclusive trading condition unique to XM.

These swap-free instruments are ideal for medium- to long-term strategies focused on capturing exchange rate gains, as no swap charges accumulate over time. For example, when holding a long GOLD position over the medium to long term using an Ultra Low account with swap-free status, you won’t incur negative swap losses — allowing you to focus purely on price movement profits.

If you plan to hold positions over the medium to long term, always check swap rates in advance to avoid unexpected costs. Swap rates can significantly impact profitability — especially when trading instruments with high-interest-rate currencies. In those cases, swaps can become a meaningful part of your trading strategy. We recommend monitoring swap rates on a regular basis.

You can also check swap rates — which change frequently — directly in the XM Members Area or in the symbol information within MT4/MT5. You can also easily calculate the USD equivalent of any swap charge using XM’s Forex Calculator.

You can set your leverage when opening an account or adjust it at any time through the XM Members Area. However, please note that XM applies leverage restrictions based on your available equity (usable margin). Available equity refers to the total funds available for trading, calculated as follows:

“Available Equity” = “Account Balance” + “Unrealised P&L” + “Bonus”

XM’s leverage restrictions are designed to encourage greater caution as your equity grows — progressively reducing the maximum leverage available as your capital increases. This acts as a built-in safety mechanism, helping to prevent excessively risky trading for those with larger account balances.

Required Margin = Current Price × Trade Volume (currency units) ÷ Leverage

Required Margin = Current Price × Number of Lots × Contract Size ÷ Leverage

“Contract size” refers to the standard unit of a single trade for a given instrument. For example, GOLD is 100 troy ounces per lot, and Bitcoin is 1 BTC per lot. Each instrument has a fixed, predefined contract size.

The Margin Level represents the ratio of available equity (cash balance + bonus + unrealised P&L) to required margin. For example, if a trade requires $5 USD in margin and your available equity is $10 USD, your Margin Level is 200%.

Margin Level (%) = Available Equity ÷ Required Margin × 100

At XM, when the Margin Level drops below 50%, a “Margin Call” is triggered — a warning to deposit additional funds, close some positions, or reduce your position size. If the Margin Level then falls below 20%, a “Stop Out (automatic liquidation)” occurs — the system will automatically close the most losing position first, in sequence.

Importantly, XM has implemented a “Zero Cut” system in compliance with investor protection standards. This ensures your account balance can never go negative under any circumstances. If losses cause your balance to turn negative, you are not required to top it up — the balance is automatically reset to zero upon your next deposit. Thanks to the Zero Cut mechanism, traders can hold leveraged, higher-risk positions with greater peace of mind.

You can also check trading hours, dividend schedules, and expiry dates for XM financial instruments directly in the XM Members Area. And you can easily calculate the required margin in USD using XM’s Forex Calculator. We recommend using both tools together for the most efficient trading experience.

At XM, Standard and Ultra Low accounts use standard lots, whilst Standard Micro and Ultra Low Micro accounts use micro lots. This allows traders to adjust their lot size to match their trading style and capital size.

The Micro account has a minimum trade size of 0.1 lots. However, for sizes above 0.1 lots, you can adjust in increments of 0.01 lots — enabling precise position sizing such as 0.11 lots, 0.12 lots, 0.25 lots, and so on.

You can also check trading hours, dividend schedules, and expiry dates for XM financial instruments directly in the XM Members Area. And you can easily calculate the pip value in USD using XM’s Forex Calculator — no manual contract size calculations needed. We recommend using both resources together for maximum efficiency.

Can I change my leverage at XM?

Yes. You can change your leverage by logging into the XM Members Area, navigating to “Home” → “Account Overview,” clicking “…” next to the relevant account, and selecting “Change Leverage.” Note that leverage cannot be changed whilst you have open positions. The change takes effect immediately.

What is a Pip at XM?

A pip is the unit of measurement for price movement in the Forex market. For most currency pairs, 1 pip equals a change at the 4th decimal place (0.0001) — for example, EUR/USD moving from 1.0833 to 1.0834. For Gold (XAUUSD), 1 pip equals a change at the 1st decimal place (0.1).

What type of spread does XM use?

XM uses floating spreads and a Market Making model for price formation. Since XM does not operate on an ECN/STP model, there are no separate trading commissions — all costs are built into the spread. Spread width varies depending on market liquidity and the time of day.

How do bonuses differ across XM account types?

All Standard account types are eligible for all promotions — including the $30 Trading Bonus, Deposit Bonus, and the XM Loyalty Programme. Ultra Low accounts are not eligible for the Deposit Bonus only. The Shares account is not eligible for any bonuses.

What is the XM Micro Account?

The XM Micro Account is an account type where 1 lot equals 1,000 currency units. On the MT4 platform, the minimum trade size starts at 0.01 lots (10 currency units), and on MT5 it starts at 0.1 lots (100 currency units). XM offers both Standard Micro and Ultra Low Micro account variants.

Can I hold positions over the weekend at XM?

Yes, you can hold positions over the weekend at XM. However, when the market reopens on Monday, large price gaps may occur due to news or events that unfolded over the weekend. Exercise extra caution when holding positions over weekends with significant scheduled events.

What is the XM Shares Account?

The XM Shares Account is a dedicated account for trading real stocks from the US, UK, and Germany. It features 1× leverage, a $10,000 USD minimum deposit, and applicable trading commissions — but includes shareholder rights and dividend entitlements. It supports USD as the base currency only.

What are XM’s trading hours?

XM’s Forex trading hours run from Monday 00:05 to Friday 23:50 (UTC+2 server time). During summer time (DST), the server operates at UTC+3. Trading hours vary depending on the instrument type.