Table of Contents
XM Spread Overview for Indian Traders
Spreads are the primary trading cost for most Indian traders using XM. The spread is the difference between the bid and ask price of a currency pair or instrument. XM offers variable spreads that fluctuate based on market conditions, liquidity, and the time of day. Understanding these spreads is crucial because they directly affect your profitability on every trade.
XM operates a market maker and STP hybrid execution model. This means spreads can tighten significantly during high-liquidity periods and widen during news events or low-volume sessions. For Indian traders, this has practical implications since the Asian session typically sees wider spreads than the London or New York sessions.
We tested XM spreads over a two-week period using live accounts across all four main account types. The data below reflects actual trading conditions, not the minimums advertised on the XM website. Advertised minimums are rarely the spreads you will actually trade at.
Spreads by Account Type
XM offers four primary account types available to Indian traders, each with a different spread structure. Here is what we recorded during normal market conditions.
| Pair | Micro | Standard | Ultra Low | Zero + Commission |
|---|---|---|---|---|
| EUR/USD | 1.6 pips | 1.6 pips | 0.8 pips | 0.1 + $7/lot |
| GBP/USD | 2.1 pips | 2.1 pips | 1.2 pips | 0.3 + $7/lot |
| USD/JPY | 1.8 pips | 1.8 pips | 0.9 pips | 0.2 + $7/lot |
| USD/INR | 3.5 pips | 3.5 pips | 2.8 pips | 1.5 + $7/lot |
| AUD/USD | 1.9 pips | 1.9 pips | 1.0 pips | 0.4 + $7/lot |
| XAUUSD | 3.5 pips | 3.5 pips | 2.2 pips | 1.5 + $7/lot |
The Micro and Standard accounts have identical spreads. The only difference between them is lot sizing. Micro accounts trade in micro lots (1,000 units) while Standard accounts trade in standard lots (100,000 units). For traders starting with small capital under Rs 50,000, the Micro account is more suitable.
The Ultra Low account provides a meaningful improvement with spreads roughly 40-50% tighter than the standard offering. Since there is no commission, the Ultra Low account is generally the best choice for Indian traders who want simple, transparent pricing without calculating commission costs on every trade.
Spreads During Different Trading Sessions
Trading session timing matters enormously for Indian traders. IST (Indian Standard Time) is UTC+5:30, which means the major forex sessions fall at specific times that affect your spread costs.
Asian Session (5:30 AM - 2:30 PM IST)
The early Asian session sees the widest spreads of the day. EUR/USD on the Ultra Low account can reach 1.2 to 1.5 pips during the opening hours. However, once the Tokyo session gains momentum around 6:30 AM IST, spreads begin to tighten. JPY pairs offer the tightest spreads during this window.
London Session (1:30 PM - 10:30 PM IST)
London session brings the highest liquidity for most forex pairs. EUR/USD spreads on Ultra Low drop to 0.6 to 0.8 pips consistently. This is the optimal window for Indian traders who trade after office hours. The London-New York overlap from 6:30 PM to 10:30 PM IST delivers the tightest spreads of the day.
New York Session (6:30 PM - 3:30 AM IST)
USD pairs see excellent spreads during the New York session. USD/INR spreads tighten noticeably during the overlap with Indian market hours. After 11:00 PM IST, liquidity decreases and spreads begin widening for the overnight period.
| Session (IST) | EUR/USD Ultra Low | GBP/USD Ultra Low | XAUUSD Ultra Low |
|---|---|---|---|
| Asian Open (5:30-9:00) | 1.2-1.5 pips | 1.8-2.4 pips | 3.0-4.0 pips |
| Asian Active (9:00-14:30) | 0.9-1.2 pips | 1.4-1.8 pips | 2.5-3.2 pips |
| London (14:30-18:30) | 0.7-0.9 pips | 1.1-1.4 pips | 2.0-2.8 pips |
| London-NY Overlap (18:30-22:30) | 0.6-0.8 pips | 1.0-1.3 pips | 1.8-2.5 pips |
| Late NY (22:30-3:30) | 0.8-1.1 pips | 1.3-1.6 pips | 2.2-3.0 pips |
Popular Pairs for Indian Traders
Indian traders tend to focus on specific pairs that correlate with the Indian economy or offer the most favorable trading conditions during IST hours. Here is the spread breakdown for the most traded pairs among Indian XM users.
USD/INR: This is the most popular pair for Indian traders who want direct exposure to the rupee. XM offers USD/INR with spreads ranging from 2.8 pips on Ultra Low to 3.5 pips on Standard accounts. The spread tightens during NSE trading hours (9:15 AM to 3:30 PM IST) and widens significantly after Indian market close.
EUR/USD: The world's most liquid pair offers the tightest spreads on XM. Indian traders who trade during evening hours (6:30 PM to 10:30 PM IST) get excellent execution on this pair. Average spreads of 0.7 pips on Ultra Low make it a cost-effective choice.
GBP/JPY: A popular cross for Indian swing traders due to its volatility. Spreads average 2.5 pips on Ultra Low, which is higher than the majors but justified by the 100-200 pip daily range that this pair frequently delivers.
AUD/JPY: This pair correlates with risk sentiment across Asia-Pacific markets. Spreads of 1.5 pips on Ultra Low are competitive. Indian traders use this pair as a proxy for Asian economic activity.
Gold and Oil Spread Data
Gold (XAUUSD) and crude oil are extremely popular among Indian traders. Gold has cultural significance in India and MCX gold traders often compare spreads between domestic and international platforms. XM's gold spreads are competitive for an international broker.
XAUUSD spreads on the Ultra Low account average 2.2 pips, equivalent to approximately $0.22 per 0.01 lot. During high-volatility gold sessions (when US economic data is released), spreads can widen to 3.5 to 5.0 pips temporarily. For comparison, the MCX gold contract has an implicit spread built into the bid-ask that is comparable in percentage terms.
Crude oil (USOIL) spreads on XM average 0.04 points on the Ultra Low account during active hours. This is competitive with most international brokers and significantly tighter than MCX crude oil spreads when converted to equivalent pip values.
How to Reduce Your Spread Costs
Choose the right account type. If you trade frequently, the Ultra Low account saves you 40-50% on spread costs compared to the Standard account with no additional commission. For high-volume traders doing more than 10 lots per month, the Zero account with its raw spreads plus commission may work out cheaper.
Trade during optimal hours. Schedule your trading during the London-New York overlap (6:30 PM to 10:30 PM IST) when spreads are tightest. Avoid trading during low-liquidity periods like early morning Asian session or during major holiday periods.
Avoid trading during news events. Spreads on XM can widen dramatically during RBI monetary policy announcements, US NFP reports, and other high-impact events. If you are a scalper, close positions before these announcements or use limit orders instead of market orders.
Use the XM Loyalty Program. XM offers loyalty points that can be converted to trading credits. While this does not reduce spreads directly, it offsets some trading costs. Active traders earn points faster, making this a meaningful benefit over time.
XM Spreads vs Competitors
We compared XM's Ultra Low account spreads against other brokers popular with Indian traders. The comparison uses average spreads during the London-New York overlap.
| Pair | XM Ultra Low | Exness Standard | FBS Standard | OctaFX |
|---|---|---|---|---|
| EUR/USD | 0.8 pips | 1.0 pips | 1.1 pips | 0.9 pips |
| GBP/USD | 1.2 pips | 1.2 pips | 1.5 pips | 1.3 pips |
| XAUUSD | 2.2 pips | 2.0 pips | 3.0 pips | 2.5 pips |
| USD/INR | 2.8 pips | 3.0 pips | N/A | 3.2 pips |
XM is competitive on most major pairs, particularly EUR/USD and GBP/USD. For gold trading, Exness edges ahead slightly with tighter spreads on XAUUSD. For USD/INR, XM offers the best spreads among the international brokers we tested. Indian traders who primarily trade INR pairs will find XM's offering particularly attractive.
The key differentiator for XM is the Ultra Low account, which combines competitive spreads with zero commissions. Most competitors either offer tight spreads with commissions or commission-free accounts with wider spreads. XM's Ultra Low sits in a sweet spot that benefits the average Indian retail trader.
Frequently Asked Questions
What is the typical EUR/USD spread on XM in India?
The typical EUR/USD spread on XM ranges from 0.0 pips on the Zero account to 1.6 pips on the Micro/Standard accounts. During the London-New York overlap (6:30 PM to 10:30 PM IST), spreads are tightest across all account types.
Does XM charge commission on spreads in India?
XM charges no commission on Micro, Standard, and Ultra Low accounts. The XM Zero account charges $3.50 per lot per side ($7 round trip) but offers spreads from 0.0 pips. For most Indian traders, the Ultra Low account offers the best balance of low spreads and zero commissions.
Are XM spreads wider during Asian session?
Yes, XM spreads tend to be wider during the early Asian session (5:30 AM to 9:00 AM IST) when liquidity is lower. The tightest spreads occur during the London-New York overlap. For USD/INR pairs, spreads are best during Indian market hours.
Which XM account has the lowest spread for Indian traders?
The XM Zero account has the lowest raw spreads starting from 0.0 pips but charges a $3.50 per lot per side commission. For commission-free trading, the Ultra Low account offers spreads from 0.6 pips, making it the best choice for most Indian traders.