FXTM real shares vs stock CFDs.

FXTM real shares vs stock CFDs.

FXTM gives you two routes into the stock market. Advantage Stocks is a dedicated MT5 account where you buy real US shares outright, with no leverage, no commission and no swaps. Stock CFDs, on FXTM's leveraged accounts, track share prices without ownership, so you can go short and use leverage up to 1:25. FXTM says US stock trades are commission-free on any account.

Advantage Stocks350+ US shares, real ownership, 1:1
Minimum deposit$200 for Advantage Stocks
Stock CFDsLong or short, leverage up to 1:25
US session16:30 to 23:00 server time
CommissionNone on US stocks
DemoNo stock CFDs on demo

Real shares versus stock CFDs

FeatureAdvantage Stocks (cash)Stock CFDs
OwnershipYou own the sharesPrice exposure only
Leverage1:1Up to 1:25
Short sellingNoYes
SwapsNoneCharged, after a 3-day swap-free period if enabled
Margin call and stop outNoneAccount levels apply
PlatformOnly MT5MT5 on Rewards Plus, Rewards and Advantage

Advantage Stocks: buying real shares

FXTM's Advantage Stocks account opens from $200 in US dollars. You trade more than 350 US shares, including Tesla, Apple, Microsoft and Amazon; a Help Centre overview puts the number at 397. Spreads start from 4 cents, there is no commission and no swaps, and because there is no leverage there are no margin calls or stop outs. Trades start at 0.01 lot.

The limits follow from owning the shares. You can't go short, and Sell Stop and Sell Limit pending orders aren't available. FXTM also notes a 30% US dividend withholding tax applies. Hedging isn't allowed, and there is no demo for this account.

Stock CFDs: leverage and short selling

Stock CFDs let you speculate on price moves in either direction. FXTM's Help Centre says they offer leverage up to 1:25, with spreads and swaps, and a swap-free period of 3 days when swap-free is enabled. You can trade fractional sizes such as 0.3 lot. Before your first stock CFD trade, FXTM asks you to complete a short questionnaire and declaration under Profile > Accounts, after which more than 600 stock CFDs open up.

On Advantage, stock CFDs cost $0.02 per side per lot, where one share equals one lot. Index and stock CFD holders also see dividend adjustments on ex-dividend dates: long positions are credited and short positions debited. Our FXTM fees guide has FXTM's example.

FXTM's pages disagree on which accounts carry stock CFDs. The accounts table lists US, Hong Kong and UAE stock CFDs on MT5 for Rewards Plus, Rewards and Advantage; the stocks page names Advantage and Rewards Plus. Check your account's symbol list in MT5.

Trading hours

US stocks trade from 16:30 to 23:00 server time (GMT+2, or GMT+3 in daylight saving). FXTM also offers extended hours on seven large US stock CFDs: Apple, Amazon, Alphabet A, Meta Platforms, Microsoft, Nvidia and Tesla.

SessionServer time
Early post-market00:15 to 03:00, Tuesday to Friday
Pre-market11:00 to 16:29, Monday to Friday
Regular16:30 to 23:00
Post-market23:01 to 23:59

FXTM also lists more than 60 UAE stock CFDs from the Abu Dhabi and Dubai exchanges, traded from 09:00 to 13:45 server time on MT5. Some are available in sell mode only.

Earnings and big news often break outside regular hours. A share can open far from the previous close, jumping past a stop loss on a CFD position.

Which route suits you?

GoalBetter fit
Hold US shares for months or yearsAdvantage Stocks
Short a share you think will fallStock CFDs
Trade earnings moves with leverageStock CFDs
Avoid margin calls and swapsAdvantage Stocks

The closer match to traditional investing is Advantage Stocks, though it holds US shares only and is a separate account from your forex trading. Stock CFDs suit short-term traders who want to go both ways. Compare all accounts in FXTM account types.

Placing a stock trade on MT5

  1. Open MT5 and log in to your Advantage Stocks account or an MT5 account with stock CFDs.
  2. Find the share in Market Watch; right-click and choose Show All if it is hidden.
  3. Check the session times and spread in the symbol specification.
  4. Enter the volume; on Advantage Stocks one lot is one share and the minimum is 0.01 lot.
  5. Place a buy order, or a sell order on a stock CFD, and add a stop loss where relevant.

Costs in practice

On Advantage Stocks your cost is the spread, from 4 cents a share, with no commission or swaps. With an Advantage stock CFD, buying and later selling 100 shares costs 100 x $0.02 on each side, $4 in commission, plus the spread. Holding a CFD overnight adds swaps after any swap-free days, so stock CFDs suit shorter holds while Advantage Stocks suits longer ones.

Taxes and dividends

FXTM says a 30% dividend withholding tax applies on US stocks. Stock and index CFDs don't pay dividends as such; instead, FXTM adjusts your balance on ex-dividend dates, crediting long positions and debiting short ones. Tax on your trading profits depends on where you live, so check your own country's rules or ask a tax adviser.

FXTM is one of the few forex brokers offering real US shares without leverage alongside CFDs. If you want to own the stock, use Advantage Stocks; if you want to trade the move, CFDs give you the short side and leverage, with the risk that brings.
Jowel RanaFact-Checker & QC, FX Recap
Illustrative case: Maria, 26, Manila

Maria opened an Advantage Stocks account with $200 and bought small positions in two US tech shares to hold long term. Separately, on her Rewards Plus MT5 account, she completed the stock CFD questionnaire so she could short a share around its earnings report.

Frequently asked

Can I buy real stocks with FXTM?

Yes. The Advantage Stocks account buys more than 350 US shares outright at 1:1, from $200.

Does FXTM charge commission on stocks?

FXTM says US stock trades are commission-free on any account. On Advantage, stock CFDs cost $0.02 per side per lot.

Can I short stocks on FXTM?

Not on Advantage Stocks. You can go short with stock CFDs on FXTM's leveraged accounts.

What leverage does FXTM offer on stock CFDs?

Up to 1:25, according to FXTM's Help Centre.

What are FXTM's US stock trading hours?

16:30 to 23:00 server time, with extended hours on Apple, Amazon, Alphabet A, Meta, Microsoft, Nvidia and Tesla.

Does FXTM's Advantage Stocks account pay dividends?

FXTM says a 30% US dividend withholding tax applies on US stocks.

Can I trade stocks on an FXTM demo?

No. Stock CFDs aren't on FXTM's demo, and Advantage Stocks has no demo.

Does FXTM offer UAE stocks?

Yes. FXTM offers more than 60 UAE stock CFDs on MT5, traded from 09:00 to 13:45 server time.

What is the minimum stock trade on FXTM?

0.01 lot on Advantage Stocks, where one lot equals one share.

Do I need to do anything before trading FXTM stock CFDs?

Yes. FXTM asks you to complete a short questionnaire and declaration under Profile > Accounts.

How do dividends work on FXTM stock CFDs?

On the ex-dividend date, FXTM makes an adjustment: long positions are credited and short positions debited.

Can I hedge on FXTM's Advantage Stocks account?

No. FXTM lists hedging as not allowed on the Advantage Stocks account, and short positions aren't available.