XM Indices: US30, NASDAQ, DAX and Thematic Index CFDs

XM offers index CFDs on the world's major stock markets, in cash and futures versions, and a set of thematic indices built around trends such as artificial intelligence and electric vehicles. XM's published table shows the US500 (S&P 500) with an average spread of 0.80, the US30 (Dow Jones) at 6.01 and the US100 (NASDAQ) at 2.90, with maximum leverage of 500:1 on most major indices. There is no commission; you pay the spread and swaps on overnight positions.

Indices spread risk across many companies, but they still move sharply on central bank decisions, inflation data and big earnings.

XM's main index CFDs

Spreads are in index points and are XM's published averages; they widen outside each market's main hours and around news.

Cash indices vs futures indices

XM offers indices in two forms. Cash indices track the current index level and can be held indefinitely, paying or earning swaps overnight. Futures indices track a futures contract with a set expiry date: XM charges no swaps on futures, doesn't roll them over, and closes positions on the expiry date, so you open the next contract yourself to keep the view.

Dividend adjustments

When shares inside an index pay dividends, the index level falls by roughly that amount. Open positions are adjusted: buy positions are credited and sell positions debited, using the formula declared index dividend × position size in lots. XM says the adjustment applies to cash indices, but not to futures indices or the GER40Cash.

US tax on index CFDs

Section 871(m) of the US tax code taxes non-US residents on dividend equivalents from US equity derivatives. XM says it doesn't apply to short positions or to qualified indices, which it lists as the Dow Jones, S&P 500, NASDAQ 100 and Russell 2000. Non-qualified indices that include US equities can be affected on long positions.

Thematic indices

XM's thematic indices bundle a trend into one instrument. XM says the only costs are the spread and swaps, and that they are total return indices, assuming distributions are reinvested.

Leverage and risk on indices

At 500:1, a position worth $50,000 needs about $100 of margin, so a 0.2% move against you equals that margin. XM's stable leverage policy keeps leverage unchanged through major news, when index moves are largest. Our XM stop out guide explains the 20% stop-out level and negative balance protection.

Tips for trading indices at XM

• Trade each index in its home market's hours for the tightest spreads.
• Check the economic calendar for rate decisions and inflation data.
• Use futures indices for short views without swaps, but watch the expiry date.
• Remember US30 and US100 usually move together; don't double your risk by trading both.
• Check dividend dates if you hold short positions.

Cash or futures index: which to use?

• Short-term trades: cash indices, with tighter spreads and no expiry.
• Holding a view for weeks without swaps: futures indices, closing before expiry.
• Short positions around dividend season: consider futures, which XM doesn't adjust for dividends.

Hedging and point values

Hedged index positions at XM need 50% margin on the hedged side, unlike forex and gold. Profit and loss on an index CFD is the points moved times the value per point per lot, which depends on the contract size shown in each index's specifications after you log in. Check it before your first trade: a 100-point move on the US30 means very different money depending on your size.

When index spreads are tightest

Each index CFD is tightest when its home exchange is open and busy: US indices in the New York session, European ones in the London and Frankfurt session, and the Nikkei and Hang Seng in Asian hours. Outside those hours prices still move, but on thinner liquidity and wider spreads. Each index's exact trading hours appear once you log in, which is worth checking before holidays.

Thematic indices and dividends

XM describes its thematic indices as total return indices, which measure performance as if all cash distributions were reinvested. That means dividends are already built into the index level rather than paid out as separate adjustments, which keeps short thematic positions free of the dividend debits you see on cash indices. The trade-off is width: thematic spreads such as 20.1 points on the AI index are much wider than the 0.80 on the S&P 500.

Futures indices come with one extra job: tracking expiry dates. XM doesn't roll them over, so a position still open at expiry closes at that point, whatever the price.

Frequently asked

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