Every trade costs something before the market moves an inch. Understanding those costs is one of the most practical things a new trader can learn, because they decide how far a trade must move just to break even. This ExemSignup guide, independent of XM, explains the main costs on an XM account, how to find the live figures yourself, and how to calculate them with a worked example.
The main costs at a glance
| Cost | When it applies | Where to check |
|---|---|---|
| Spread | Every trade, paid on entry | Bid and ask prices in Market Watch |
| Commission | Some account types only | Account type description and contract terms |
| Swap (overnight financing) | Positions held past the daily rollover | Contract specification for each symbol |
| Currency conversion | Profit, loss or costs in a currency other than your account currency | Your account currency and the instrument's quote currency |
| Non-trading fees | Some deposits, withdrawals, or inactivity | XM's fee schedule in the Members Area |
Spreads
The spread is the difference between the bid price, at which you can sell, and the ask price, at which you can buy. Open a buy and close it immediately at an unchanged market, and you lose roughly the spread. At XM, spreads are variable; XM has quoted figures from roughly 1.6 pips (Standard) and 0.8 pips (Ultra Low) on majors at the time of writing. "From" means the lowest typical level, not a guarantee. Spreads can widen sharply around major news releases, at the daily rollover and when liquidity is thin, such as late on Friday or during holidays.
Which account you choose has the biggest effect on spreads. Compare the options on XM account types, and note that the Micro account is offered in some regions and entities and not in others.
Commissions
Some brokers charge a separate commission per lot on certain account types in exchange for tighter spreads, while standard-style accounts usually include the broker's charge in the spread. Whether a commission applies to a given XM account type, and how much, should be checked in that account's description and terms, because conditions differ by account type and entity. When comparing accounts, always add spread cost and commission together rather than looking at either alone.
Swaps (overnight financing)
If you keep a position open past the broker's daily rollover time, a swap is applied. It reflects the interest rate difference between the two currencies in a pair, plus the broker's markup, or the financing cost of a CFD. Swaps can be negative (you pay) or occasionally positive (you receive), and they differ for long and short positions on the same instrument. Many brokers apply a larger swap on one day of the week, often Wednesday, to cover the weekend; check the contract specification to see which day applies.
To find the swap rate in MetaTrader, right-click the symbol in Market Watch, choose Specification, and look for the swap long and swap short values and their unit, which may be points, money or a percentage. Some regions may offer swap-free arrangements under specific conditions; ask XM support if that is relevant to you.
Worked example with hypothetical numbers
Assume a USD-denominated account and a trade on EUR/USD, where one standard lot is 100,000 units and one pip (0.0001) is worth about USD 10 per standard lot.
Step 1: spread cost
- Position size: 0.10 lots, so one pip is worth about USD 1.
- Hypothetical spread at entry: 1.8 pips.
- Spread cost: 1.8 pips multiplied by USD 1 equals about USD 1.80.
Step 2: overnight swap
- Hypothetical swap for a buy position: minus 7.00 points per standard lot per night. On a five-digit quote, 10 points equal 1 pip, so this is minus 0.7 pips per lot.
- At 0.10 lots, one night costs about 0.7 pips multiplied by USD 1, which is roughly USD 0.70.
- Held for four nights, one of which is a hypothetical triple-swap night, that is six swap charges: about USD 4.20.
Step 3: total and break-even
- Total cost: USD 1.80 spread plus USD 4.20 swap equals about USD 6.00, with no commission in this example.
- At USD 1 per pip, the trade needs to move about 6 pips in your favour just to break even.
The lesson is that for short trades the spread dominates, while for positions held for days or weeks the swap can become the larger cost. If you hold positions overnight regularly, swap rates deserve as much attention as spreads.
XM's calculators page can help with pip values and margin for other instruments and account currencies.
Non-trading fees
XM has said it covers most transfer fees, but banks and wallets may still charge, and minimums vary by method. See our deposit and withdrawal guides. For inactivity fees, check the fee schedule in the Members Area; ExemSignup has not verified a figure and does not quote one.
Practical ways to keep costs down
- Avoid opening trades in the minutes around major news, when spreads often widen.
- Check the swap before holding a position over several nights, especially across the triple-swap day.
- Match your account currency to your deposit currency to avoid repeated conversion.
- Compare total cost, spread plus commission plus expected swap, when choosing an account type.
- Trade fewer, better-planned positions. Frequent trading multiplies spread cost.
Frequently asked questions
What are XM spreads?
Spreads at XM are variable. At the time of writing XM has quoted figures from roughly 1.6 pips on Standard and 0.8 pips on Ultra Low for major pairs. They can widen during news and low liquidity.
What is a swap?
A swap is an overnight financing charge or credit applied to positions held past the daily rollover. It differs for buy and sell positions and is listed in each symbol's contract specification.
Where can I see the swap rate in MT5?
Right-click the symbol in Market Watch, choose Specification, and look for the swap long and swap short values and their unit.
Does XM charge commission?
It depends on the account type and entity. Check the description and terms of the account type you are considering, and compare spread plus any commission together.
Does XM have an inactivity fee?
ExemSignup has not verified a figure. Check XM's fee schedule in the Members Area for any inactivity fee that applies to your account.
How we checked this guide: XM changes its products, entities and forms over time, and conditions differ by country. We describe the process in general terms and say so when a detail could not be confirmed. Always treat the information on XM's own registration pages and client agreement as final. Read our fact-checking policy.