Three ways to trade companies at XM.

Three ways to trade companies at XM.

XM gives you three different ways to trade companies such as Apple, Nvidia and Tesla. Stock CFDs (XM calls them stock derivatives) track the share price with leverage of up to 20:1 and no commission. The Shares account lets you buy real shares with no leverage, from a $10,000 minimum. Turbo Stocks are intraday CFDs with 200:1 leverage that close automatically at the end of each session. All of them run on MetaTrader 5 or the XM App, not MT4.

They suit very different traders, and choosing the wrong one is an expensive mistake: a long-term investor on Turbo Stocks, or a day trader tying up $10,000 in the Shares account.

Stock CFDs0 commission, fractional sizes, up to 20:1 (10:1 on some)
Real sharesShares account, $10,000 minimum, 1:1, commission
Turbo Stocks200:1, intraday only, Standard account, spread only
PlatformMT5 and the XM App (not MT4)
DividendsAdjusted on stock CFDs; none on Turbo Stocks
US dividend taxSection 871(m) may apply; W-8BEN lowers it

Three ways to trade stocks at XM

Stock CFDsShares accountTurbo Stocks
What you holdA CFD on the priceReal sharesAn intraday CFD
LeverageUp to 20:1 (10:1 on some)1:1200:1
Minimum deposit$5 (Standard or Ultra Low)$10,000$5 (Standard only)
CommissionNoneYesNone (spread only)
Held overnight?Yes, with swapsYesNo, closed at session end
DividendsCash adjustmentYes, as a shareholderNo
Go short?YesNoYes

Stock CFDs (stock derivatives)

XM's stock derivatives let you trade well-known companies with no commission and in fractional sizes. The table below shows XM's published figures for some of the most popular names, with the average spread in the share's price units.

CompanyAverage spreadMax leverage
Apple (AAPL)1.7920:1
Microsoft (MSFT)2.6220:1
Amazon (AMZN)1.4720:1
Nvidia (NVDA)1.3310:1
Tesla (TSLA)2.7110:1
Meta (META)4.3110:1

Stock CFDs are only on MT5. XM's Help Center confirms MT4 accounts can't trade them, but existing clients can open an MT5 account alongside. Our XM platforms guide explains.

The Shares account: real stocks

The Shares account is for buying the shares themselves, from the US, Europe and the UK. XM lists a $10,000 minimum deposit, no leverage (1:1), a 0% stop-out level and commission on trades. Spreads are tight: XM shows Apple at 0.03 and Nvidia at 0.02. You can hold one Shares account alongside up to 10 trading accounts.

Without leverage, you can't lose more than you put in, and there's no overnight financing. It is the closest XM offers to a traditional share-dealing account.

Turbo Stocks: intraday leverage

Turbo Stocks are XM's intraday product. XM's Help Center sets the rules: maximum leverage of 200:1, available only on MT5 and only on the Standard account, spread as the only fee with no swaps or commission, and every position closed automatically at the end of the trading session at the last available price. Because positions never stay open overnight, there are no dividends.

At 200:1, a 0.5% move in a share equals your entire margin. Turbo Stocks are for experienced day traders with tight stops.

Dividends and US tax

On stock CFDs held over an ex-dividend date, XM credits buy positions and debits sell positions by the dividend amount. US shares add a tax rule: under section 871(m), non-US residents holding long positions on US stock CFDs pay 30% withholding on dividend equivalents, reduced to the treaty rate if you complete the W-8BEN form under Profile, then Notifications. Short positions aren't affected.

Swaps on stock CFDs

Holding a stock CFD overnight costs a swap calculated from the value of the position and the local interbank rate, minus a mark-up. XM's example uses a UK stock and an interbank rate of 1.5% a year. Over weeks and months these charges add up, which is why stock CFDs suit shorter holding periods. Our XM fees guide covers swaps.

Which should you choose?

  • Long-term investor with $10,000 or more: the Shares account; no leverage, no swaps.
  • Swing trader holding for days or weeks: stock CFDs with modest leverage.
  • Experienced day trader: Turbo Stocks, with strict stops.
  • Small account, want exposure: stock CFDs in fractional sizes.

Hedging and copy trading with stocks

Hedging a stock CFD position within one account needs 50% margin on the hedged side, according to XM's rules for instruments other than forex, gold and silver. XM Copy Trading doesn't copy stock CFDs to investors, so copied strategies won't reflect a manager's share trades. Check each stock's trading session and specifications after logging in; stock CFDs only trade while their exchange is open, apart from the 24-hour-style products XM labels separately.

Earnings season

Company results are the biggest single risk on a share trade. A stock can open far from its previous close after earnings, straight through a stop loss, and leveraged positions feel that gap in full. Check the results date before holding any stock CFD or Turbo Stock overnight, and cut size or close before the announcement if you can't afford the gap.

Before your first stock trade, open the instrument's specifications after logging in. They show the session times, contract size and swap for that share, which is everything you need to size a position and know when it can trade.

Match the product to the holding period. Real shares for years, CFDs for weeks, Turbo Stocks for hours. Most losses we see come from using a leveraged product to hold a long-term view.
Abir KhanWriter, FX Recap
Illustrative case: Mariana, 38, Cali

Mariana wanted to hold Microsoft for several years and started on an XM stock CFD at 20:1. After six months of swaps and a sharp dip that nearly stopped her out, she moved her long-term holdings to the Shares account without leverage. She now uses stock CFDs only for short trades around earnings.

Frequently asked

Can I hedge stock CFDs at XM?

Yes, within one account. XM's rules require 50% margin on hedged positions for instruments other than forex, gold and silver.

Are stock CFDs included in XM Copy Trading?

No. Stock CFDs aren't currently available on Investor Accounts, so managers' stock trades aren't copied.

Can I trade stocks on XM?

Yes, in three ways: stock CFDs (commission-free, up to 20:1), real shares on the Shares account ($10,000 minimum, no leverage) and intraday Turbo Stocks (200:1). All require MT5 or the XM App.

Can I trade stocks on XM MT4?

No. XM's Help Center says stock CFDs are only on MT5. You can open an MT5 account alongside your MT4 account.

What is the XM Shares account?

An account for buying real shares, with a $10,000 minimum deposit, no leverage, a 0% stop-out level and commission on trades.

What are XM Turbo Stocks?

Intraday stock CFDs with 200:1 leverage, only on MT5 and the Standard account. Positions close automatically at the end of each session, and the spread is the only cost.

Does XM charge commission on stock CFDs?

No. XM advertises stock derivatives with zero commission; you pay the spread and swaps on overnight positions.

Do I pay US tax on XM stock trades?

Possibly on long US stock CFDs, under section 871(m), at 30% on dividend equivalents unless a treaty rate applies through the W-8BEN form.