Benefits and Downsides of Gold Trading with XM: Leverage, Swap-Free, and More

Advantages and Disadvantages of Trading Gold with XM – High Leverage 1,000 Times & Swap-Free.

Trading gold with XM provides significant advantages like high leverage of up to 1,000 times, no margin calls, swap-free options, and the ability to start trading from just one ounce. These features enable substantial trading flexibility and risk management. However, the main drawbacks are that it’s not physical trading, and traders can’t rely solely on swap points for income. XM also offers comprehensive customer support and the ability to trade without initial capital through an account opening bonus. The trading conditions make XM suitable for both beginners and experienced traders looking for aggressive leverage options.

Aspect	Details
High Leverage	XM offers up to 1,000x leverage for gold trading, allowing traders to control large positions with minimal capital.
No Margin Calls	XM does not impose margin calls, reducing the risk of forced liquidations and debt.
Swap-Free Option	Traders can choose swap-free accounts, making it ideal for swing trading without overnight interest charges.
Minimum Trading Size	Trading starts from just one ounce of gold, making it accessible to all traders.
Short Selling	Traders can profit from both rising and falling gold prices through short selling.
Low Trading Costs	XM offers a minimum spread of $0.15 and no trading fees for gold transactions.
Trade During Economic Announcements	Unlike other brokers, XM does not impose leverage limits during high-volatility events.
Negative Balance Protection	Traders are protected from incurring negative balances, ensuring no financial debt.
Disadvantages	Gold trading at XM is purely speculative (no physical gold ownership) and does not rely on swap points for income.
Account Opening Bonus	New traders receive an account opening bonus, allowing them to start trading without initial capital.

Advantages of Trading Gold (Gold) CFD with XM

Below are the advantages of trading gold CFDs with XM (XMTrading).

High Leverage 1,000 Times
No Margin Calls, Thus No Debt Concerns
No Leverage Limit During Economic Announcements
Swap-Free, Ideal for Swing Trading
Can Trade from 1 Ounce
Short Selling Possible
Minimum Spread of $0.15
No Trading Fees

XM is a multilingual online brokerage (FX broker).

If you have any questions, you can contact customer support staff anytime during weekdays 24 hours.

What is XM (XMTrading)?

Advantage 1. XM’s Gold (Gold) CFD Offers High Leverage of 1,000 Times

With FX broker XM, gold (gold) can be traded with a leverage of more than 20 times.

Securities Company Offering Gold CFD	Maximum Leverage
XM	1,000 times
Europe Securities Company	30 times

For example, a trader with an initial capital of 100 USD can trade up to 100,000 USD worth of gold at XM.

XM: Initial Capital 100 USD × Leverage 1,000 times = 100,000 USD

Europe Securities Company: Initial Capital 100 USD × Leverage 20 times = 2,000 USD

When comparing profit amounts, XM potentially offers 50 times the profit of a European securities company.

Click Here for Profit Calculation Method

The “Learn FX” menu includes aFX Calculation Tool that makes it easy to simulate your own capital and profit.

Advantage 2. XM’s Gold (Gold) CFD Has No Margin Calls (NBP Compatible), So No Worries About Debt

With FX broker XM, traders who trade gold (gold) do not incur debt.

Securities Company Offering Gold CFD	Presence of Margin Calls
XM	No margin calls
General Securities Company	Margin calls present

In Europe, trading with high leverage is considered dangerous because of the risk of incurring debt.

XM: Initial Capital 100 USD → Potential to lose all 100 USD

General Securities Company: Initial Capital 100 USD → Potential to lose all 100 USD plus the possibility of incurring debt

Since XM supports NBP (Negative Balance Protection) and has no margin calls, there is no worry about incurring debt even with high leverage.

What is XM’s NBP Support?

The risk a trader can lose in trading gold (gold) with XM is limited to the self-capital deposited at most. XM traders do not incur debt from trading.

Advantage 3. XM’s Gold (Gold) CFD Has No Leverage Limit During Economic Announcements

With FX broker XM, gold (gold) can be traded with high leverage of 1,000 times even during important economic announcements.

XM’s Gold CFD	Leverage Limit
Before and after important economic announcements	No limit
After market opening and before market closing	No limit
Increase in effective margin	Leverage limitation occurs

The only leverage limitation that affects gold trading with XM is the leverage limitation that occurs as the effective margin increases.

As the effective margin increases while trading gold, XM will send emails about leverage limitations.

XM may temporarily impose leverage restrictions on some stocks for risk management when volatility is high. The occurrence of leverage limitations can be checked on XM’s news page or on the page for the stock being handled.

Advantage 4. XM’s Gold (Gold) CFD is Swap-Free, Making it Ideal for Swing Trading

FX broker XM’s gold (gold) CFD is swap-free, meaning there is no delivery of swap points.

Securities Company Offering Gold CFD	Swap Points
XM KIWAMI Extreme Account	Swap-free

Account Type	Buy Order Swap Points	Sell Order Swap Points
KIWAMI Extreme Account	Swap-free	Swap-free
Standard Account	Negative	Positive
Micro Account	Negative	Positive
XM Zero Account	Negative	Positive

Even if you place a buy order for gold CFD at XM hoping for a price increase, the basic swap points (swap interest) are negative, so you cannot live solely off swap points.

Check the Latest Swap for Gold Here

XM’s Gold (Gold) CFD Trading Environment and Conditions

Below are the trading environment and conditions for gold (gold) CFDs at XM (XMTrading).

With XM, gold can be traded on both MT4 (MetaTrader) and MT5 (MetaTrader 5).

Open an Account (Free) Here

How to Start Trading Gold (Gold) CFD with XM

Below are the steps to start trading gold CFD (leverage trading of gold) with XM.

Open an Account with XM
Complete Personal Verification
Receive Account Opening Bonus
Start Trading Gold with 0 USD Initial Capital

Gold (Gold) CFD can be traded on all XM trading accounts.

The recommended account type by XM (XMTrading) for trading gold is the KIWAMI Extreme account, which allows trading swap-free and without transaction fees.

Open an Account (Free) Here

XM’s Gold (Gold) CFD Can Be Started Today

With FX broker XM, all trading, including gold (gold), can start on the day you open an account.

The account opening process at XM is completed entirely online.

You can start an XM account immediately with just an email address.

Account Opening Page Here

While you can open an XM account on weekends, Saturday or Sunday, you must wait until the next business day to complete personal verification.

Is My Number Registration Required?

To start trading gold (gold) with FX broker XM, registering your My Number is not required.

XM may periodically ask for My Number registration, but it is not required at this moment.

If XM asks for My Number registration, please use the “Inform Later” button to skip it.

Is a CFD Trading Account Necessary?

With FX broker XM, gold (gold) can be traded on all trading accounts.

There is no need to open a specific CFD trading account just for gold.

XM’s trading accounts are not divided like FX accounts for FX, CFD accounts for CFDs, or securities accounts for stocks. All instruments can be traded in one all-in-one trading account.

Once you have opened an account with XM, that one trading account can be used to trade everything from USD/JPY, gold, crude oil, Nikkei stock averages, US stocks, to Bitcoin.

First, Open an Account (Free)

Start Trading with No Initial Capital with Account Opening Bonus

FX broker XM (XMTrading) is currently offering an account opening bonus that allows you to start trading gold without any initial capital!

With XM, you receive a 100 USD account opening bonus (no deposit bonus) just for opening an account, which you can use to start trading gold.

Securities Company Offering Gold CFD	Initial Capital Required
XM	No initial capital required
Europe Securities Company	50 USD or more, etc.

If you use up the account opening bonus in gold trading, consider depositing your own funds into XM.

XM allows deposits starting from as little as 5 USD.

Get 100 USD Account Opening Bonus Here

How Much Can You Earn with XM’s Gold (Gold) CFD?

For example, let’s say you traded gold with XM (XMTrading) on October 13, 2023, when gold prices moved the most recently.

Below is the gold price on October 13, 2023, for XM’s KIWAMI Extreme account.

	Gold Price on October 13, 2023
Opening Price	1868.94 USD
Closing Price	1931.20 USD
High Price	1932.61 USD
Low Price	1868.99 USD

Let’s assume you used the 100 USD account opening bonus provided by XM without any self-capital to place a buy order for gold.

Order Type	Buy Order
Order Price at Time of Order	1868.94 USD/Troy Ounce
USD/JPY Exchange Rate at Time of Order	149.795 JPY/USD
Trading Unit per Lot	100 Troy Ounces/Lot
Number of Trading Lots	0.25 Lots
Leverage	1,000 times
Necessary Margin	6,998.95 JPY
Margin Maintenance Rate at Time of Order	53.84%
Gold Price at Time of Settlement	1931.20 USD/Troy Ounce
USD/JPY Exchange Rate at Time of Settlement	149.447 JPY/USD
Profit	232,614.256 JPY

If you placed an order at the opening price and settled at the closing price on October 13, 2023, you could have made a profit of about 2000 USD from a 50 USD margin.

In the above example, the trading lot size was set considering the risk of forced settlement, aiming to keep the margin maintenance rate around 50%. In reality, it is not possible to predict future gold prices accurately. Therefore, traders may decide to settle midway when the gold price rises or falls during the trading period. It’s just a simulation, and not all traders received the full profit mentioned above.

What is XM? What is an FX Broker?

The reason FX brokers (FX broker/FX company) are considered dangerous is because of scams perpetrated under the guise of FX.

XM has over 100 customer support staff, making it one of the largest in the FX industry.

Hercules Finance regularly meets with people inside XM to discuss updates.

What is XM (XMTrading)?

Usable by Traders at Europe Securities Companies

Traders who are already trading FX, stocks, or CFDs with other securities companies can also trade gold (gold) CFDs with XM.

XM’s trading accounts are called accounts.

XM’s trading accounts can be opened by any trader over the age of 18 who has the necessary KYC (Know Your Customer) documents.

Start with XM Here

FAQs to summarize the article

What are the advantages of trading gold with XM?: XM offers high leverage up to 1,000 times, the ability to trade from one ounce, swap-free trading, no margin calls, and low spreads starting at $0.15.
Can I trade gold with XM without incurring debt?: Yes, XM offers no margin calls and supports Negative Balance Protection, ensuring traders do not incur debt.
Is there a minimum amount of gold I can trade with XM?: Yes, you can start trading gold with as little as one ounce at XM.
Are there any trading fees for gold with XM?: No, XM does not charge trading fees for gold transactions.
What is the minimum spread for gold trading at XM?: The minimum spread for trading gold at XM is $0.15.
Can I trade gold during economic announcements with XM?: Yes, XM allows gold trading with high leverage even during economic announcements without any leverage limit.
What are the disadvantages of trading gold with XM?: The disadvantages include the lack of physical trading and the inability to live off swap points.
Do I need to register my My Number with XM to trade gold?: No, registering your My Number is not required to trade gold with XM.
Can I start trading gold with no initial capital at XM?: Yes, XM offers an account opening bonus that lets you start trading gold without any initial capital.
How much can I potentially earn by trading gold with XM?: Earnings can vary greatly, but with XM’s high leverage, there’s potential for significant profits from small initial investments.