XM’s brokerage allows trading US stocks with 20x leverage, no margin calls, and the ability to start trading with minimal initial capital due to bonuses. It offers a diverse portfolio of over 1,300 stocks globally, with features like short selling and no transaction fees. The disadvantages include the inability to trade Japanese stocks and potentially negative swap points for long positions. Dividend adjustment payments and the use of a single account for trading stocks, Forex, and gold add to its flexibility. Negative balance protection ensures that traders do not owe money beyond their account balance.

Advantages and Disadvantages of Trading Stocks through XM’s Brokerage Account

Foreign stocks, such as U.S. stocks, can now be traded using the standard trading account of FX broker XM (XMTrading).

At XM, foreign stocks such as U.S. stocks can be traded with a high leverage of 20x without additional margin calls.

Advantages of Trading Stocks at XM

Below are the advantages (pros) of trading stocks at XM.

1. No additional margin calls (NBP compatible)
2. Up to 20x high leverage
3. Handles over 1,300 individual stocks
4. U.S. stocks can be traded from as little as 0.01 shares
5. Short selling is possible
6. No commission on stock trades
7. Daily swap points transfer
8. Dividend adjustment payments received (eligible for dividend adjustments)
9. Bonus available to start trading without initial capital
10. The same account can be used to trade FX and gold, etc.

Traders who want to trade stocks with up to 20x high leverage can start without their own capital thanks to XM’s account opening bonus (no deposit bonus).

Open an Account for Free Here

Disadvantages of Trading Stocks at XM

Below are the disadvantages (cons) of trading stocks at XM.

1. Cannot trade companies listed on the Tokyo Stock Exchange (Japanese stocks)
2. Buy orders (long positions) generally have negative swap points
3. Sell orders (short positions) have dividend adjustments deducted

Traders who want to swing trade expecting a stock price increase are not suited as their profits can be reduced by swap points.

Start with XM Here

Advantage 1. No Margin Calls at XM. No Worries About Debt

Even if you trade stocks with FX broker XM (XMTrading), traders will not incur any debt.

Below is a comparison of margin call (additional margin) demands between XM and a European securities company.

What Does NBP Compatible Mean at XM?

Below is the content related to no margin calls posted on XM’s page.

At XMTrading, we prioritize your funds. Meanwhile, a negative balance reset is applied to all our customers, so no losses will occur beyond the account balance.

Conversely, here is an example of typical securities company’s documentation on investment risks and margin calls.

In Europe’s credit transactions, because the transactional amount available is much larger compared to the margin deposited, losses may occur due to price or index fluctuations, or the deterioration of the issuer’s credit situation, and those losses may exceed the deposited margin.

Even if losses exceed your own funds at XM, your account balance is automatically reset to 0 USD.

XM with No Margin Calls Here

Advantage 2. XM Allows Trading Stocks at 20x High Leverage

At FX broker XM (XMTrading), stocks can be traded at high leverage.

Below is a comparison of the leverage differences between XM and a European securities company.

The higher the leverage, the less capital is needed to start trading.

A few hundred USD, which used to be necessary for stock trading, can now be started with just a few USD.

List of Stocks Tradable at XM and Their Leverage Ratios

Below is a list of stocks tradable at XM and their leverage ratios.

For example, when buying 10 shares of Apple stock, if you were using a European securities company, you’d need about $300 with a stock price of $150/share × 10 shares ÷ 5x leverage.

With XM, you’d need about $75 to start trading with $150/share × 10 shares ÷ 20x leverage.

Check the leverage for each stock here

Advantage 3. Over 1,000 Global Companies Tradable at XM

At FX broker XM (XMTrading), 1,300 companies’ stocks can be traded.

Below is a list of the countries (stock exchanges) of the stocks tradable at XM.

• United States
• United Kingdom
• France
• Germany
• Italy
• Sweden
• Canada
• Spain
• Switzerland
• Netherlands
• Norway
• Belgium
• Finland
• Austria
• Greece
• Portugal
• Brazil

You can trade companies listed on NASDAQ, such as GAFAM, as well as those on the New York Stock Exchange (NYSE), if they are U.S. stocks.

Number of Individual Stocks Tradable at XM by Country

Below is the number of individual stocks tradable at XM by country.

The stocks tradable at XM mainly include U.S. stocks and European stocks such as UK stocks.

See the latest list of tradable stocks here

Advantage 4. You Can Buy Less Than One Share, Starting from 0.01 Shares at XM

At FX broker XM (XMTrading), stocks can be traded from as little as 0.1 shares.

Below is a comparison of the minimum number of shares you can buy at XM and a European securities company.

For example, if a share is priced at 100 USD, you can start buying from 10 USD worth of shares (0.1 shares).

Moreover, with XM, you can start trading with even less of your own funds thanks to the maximum 20x high leverage.

How to Calculate the Margin Required for Trading Stocks at XM

Below is how to calculate the margin required for trading stocks at XM (formula).

Price per share × Value per lot × Number of lots determined at order ÷ Leverage = Required Margin

The value per lot at XM, for example, for Microsoft shares, is set at 10 shares.

If you buy 0.5 lots of Microsoft shares when one share is priced at 300 USD, you need 300 USD/share × 10 shares/lot × 0.5 lots ÷ 20x = 75 USD of required margin (own funds).

Check the value per lot for each stock here

Advantage 5. You Can Short Sell at XM

At FX broker XM (XMTrading), profits can be made even from individual stocks of companies that are expected to see a decrease in share prices.

Short selling is the method of placing a sell order on stocks expected to decrease in price and then settling after the price drops to make a profit.

Advantages and Disadvantages of Short Selling Stocks at XM

Below are the advantages and disadvantages of short selling stocks at XM.

• Profit can be made even when stock prices drop
• Potential to receive additional swap points from short selling
• Potential deductions of dividend adjustments from short selling

When stock prices are rising, placing a buy order at XM can make a profit.

Conversely, when stock prices are falling, placing a sell order at XM can make a profit.

Open an Account That Allows Short Selling Here

Advantage 6. No Transaction Fees for Stocks at XM (No Commission on Trades)

At FX broker XM (XMTrading), stocks can be traded without any fees.

Below is a comparison of trading fees (transaction fees) between XM and a European securities company.

Whether it’s XM’s Micro, Standard, or KIWAMI extreme accounts, all can trade stocks completely free of fees.

XM with No Transaction Fees Here

Advantage 7. Daily Swap Point Transfers at XM

At FX broker XM, there are daily transfers of swap points.

For example, if a sell order for Netflix shares has a positive swap, after placing the order, if you carry it over to the next day without settling, you automatically gain a profit.

Conversely, if a buy order for Netflix shares has a positive swap, after placing the order, if you carry it over to the next day without settling, you automatically incur a loss.

About XM’s Positive and Negative Swap Points and Triple Swap Days for Stocks

There are two types of swap points for stocks at FX broker XM.

• Positive Swap
• Negative Swap

Below is a comparison of the differences between positive and negative swaps.

Most stock brands at XM have negative swaps for buy orders and positive swaps for sell orders.

Moreover, every Friday is a Triple Swap Day.

If you hold an order when the market closes on Friday, triple the usual swap points transfer occurs.

Check the swap for each brand here

Advantage 8. Receiving Dividend Adjustments When Ordering Stocks at XM

In trading stocks at FX broker XM (XMTrading), money called dividend adjustment occurs.

Below is a comparison of the reception and payment differences of dividend adjustments based on the type of order at XM.

The transfer of dividend adjustments occurs on the dividend day of each company, which can be checked in the XM Corporate Events item.

Check the dividend schedule here

Three Points Where Profit and Loss Occur When Trading Stocks at XM

Below are the points where profit and loss occur when trading stocks at XM.

1. Rise and fall in stock prices
2. Daily swap points
3. Dividend day’s dividend adjustments

When you place an order for stocks at XM, not only does the stock price rise or fall, but also check if swap points are receivable or deducted? and if it’s a time to receive money from dividend adjustments or if a payment occurs?.

Check the tradable stocks here

Advantage 9. Start Trading Stocks at XM with No Initial Capital with Account Opening Bonus

Stock trading at FX broker XM (XMTrading) requires no initial capital.

When you receive an account opening bonus (no deposit bonus) at XM, you can start trading stocks without your own funds.

At Hercules Finance, just by opening an account at XM, a 100 USD bonus is receivable.

XM Offers Bonuses Both at the Time of Deposit and During Stock Trading

The bonuses receivable from FX broker XM are not just the account opening bonus.

At XM, the more you continue trading, the more bonuses you receive.

Advantage 10. XM’s Brokerage Account Can Also Trade FX and Gold CFDs

Stock trading at FX broker XM (XMTrading) does not require a special brokerage account.

XM’s one trading account can also be used for trading FX pairs like USD/JPY, gold, and other commodities, CFDs like the Nikkei Stock Average, and even cryptocurrency leveraged trading like Bitcoin.

Below are the financial products tradable at XM.

• FX currency pairs like USD/JPY
• Precious metals like gold
• Energy sources like crude oil
• Commodities like wheat
• Stock indices like the Nikkei Stock Average
• Cryptocurrencies like Bitcoin
• U.S. stocks and other securities

U.S. stocks and other securities can be traded on MT5 (MetaTrader 5).

XM’s Trading Account Here

Can You Trade Japanese Stocks at XM? Are There Stocks from Companies Listed on the Tokyo Stock Exchange?

At FX broker XM, Japanese stocks are not yet tradable.

At XM, you can leverage trade foreign stocks, mainly U.S. stocks.

See XM’s Stock List Here

Try Trading U.S. Stocks at 20x High Leverage at XM

Let’s try trading U.S. stocks at 20x high leverage with FX broker XM (XMTrading).

1. Opened an account
2. Deposited 300 USD
3. Purchased 1 lot (10 shares) of Apple stock
4. Handled tax processing as per XM’s email instructions
5. Closed the position for a profit

Here, you can check the actual deposit and stock trading screens in XM’s MT5 (MetaTrader 5).

1. Opened an Account

At FX broker XM, an account that can trade U.S. stocks was opened.

This time, a KIWAMI extreme account of MT5 was opened, which allows trading not only U.S. stocks but also USD/JPY and Bitcoin swap-free.

Start with XM Here

Types of XM Accounts and Trading Platforms That Can Trade U.S. Stocks

Below are the types of accounts and trading platforms at XM that can trade U.S. stocks.

The account type that cannot trade U.S. stocks is the XM Zero account.

Also, U.S. stocks cannot be traded on XM’s MT4 (MetaTrader 4).

Open an Account for Free Here

2. Deposited 300 USD

The minimum deposit amount at FX broker XM (XMTrading) is equivalent to 5 USD.

This time, 300 USD was deposited as personal capital.

XM’s deposit methods include options such as credit cards, debit cards, and bank transfers.

Go to the Deposit Page Here

3. Traded 1 Lot (10 Shares) of Apple Stock at 20x Leverage

Below is how to search for Apple stock and add it to the trading instruments in XM (XMTrading)’s MT5.

Once the trading hours for U.S. stocks arrived, trading commenced.

When you long-press the Apple stock in the list of brands, the chart is displayed, and you can proceed to the chart.

How to Calculate the Necessary Margin When Trading U.S. Stocks

Below is how to calculate the necessary margin when purchasing U.S. stocks at XM.

The latest stock price (buy price) × value per lot 10 shares/lot × number of lots ÷ 20x [USD]

The latest stock price can be checked on the MT5 chart.

The value per lot can be checked on XM’s stock list page in detail.

The leverage ratio (required margin rate) can also be checked on XM’s stock list page in detail.

Below is the relationship between the required margin rate and leverage.

If you are unsure about the trading environment and conditions for stock trading, please contact XM’s customer support via live chat, etc.

XM’s stock page is here

Actual Required Margin Amount When Purchasing a Total of 1 Lot (10 Shares)

Below is the required margin amount this time when a total of 1 lot of Apple stock was purchased (a total buy order of 1 lot was placed) at XM.

Order of 0.01 lot: 177.33 USD/share × 10 shares/lot × 0.04 lots ÷ 20x = 3.5466 USD

Order of 0.96 lots: 177.43 USD/share × 10 shares/lot × 0.96 lots ÷ 20x = 85.1664 USD

Total: 0.88665 USD + 85.1664 USD = 88.713 USD

4. Received an Email from XM ‘Tax Action Required for U.S. Stocks’

When you start trading U.S. stocks at FX broker XM (XMTrading), you will receive an email saying ‘Tax Action Required for U.S. Stocks’.

According to the regulations issued under Section 871(m) of the Internal Revenue Code by the U.S. Internal Revenue Service (IRS), all non-residents holding U.S. stock derivatives (including CFD products) are required to be taxed on dividend adjustments.
This regulation applies to long (buy) positions in relevant products established after January 1, 2017. These products include U.S. listed stocks.

Under U.S. regulations, a 30% withholding tax is imposed on all individuals. However, the U.S. has tax treaties with certain countries, and a reduced withholding tax rate may apply if applicable.

We are obligated to obtain the necessary documents from you through the W-8BEN form to apply the applicable tax rate based on the relevant treaty.

Therefore, if you wish to start or continue trading products referencing U.S. stocks, you need to fill out the above form within 15 days. This form will be displayed on the member page if you are already trading the relevant products or are about to start.

If you do not submit the required form within the above deadline, your open positions in the relevant products will be forcibly settled, and future trading of those products will be restricted. Also, if withholding tax occurs, the tax rate will be 30%.

Filling out the form takes about 1-2 minutes. The information you provide is securely stored in accordance with our privacy policy and shared only when necessary for regulatory purposes, so please rest assured.

If you have any questions, please feel free to contact our customer support department at support@xmtrading.com.

To fill out the W-8BEN form, please click here.

Please fill out the W-8BEN form within the deadline.

If you do not fill out the W-8BEN form within the deadline, your position will be automatically settled, and a 30% tax rate will be charged.

Fill out the W-8BEN form here

5. Closed the Position for a Profit

After purchasing Apple stock at FX broker XM’s MT5 and the stock price increased by 1 USD, the position was settled.

Below are the results of this transaction.

When buying 10 shares of Apple stock at 20x high leverage at XM (placing a buy order for 1 lot), a 1 USD increase in stock price resulted in a 10 USD profit.

Since the trading was completed within a day’s trading hours this time, there were no swap or dividend adjustments fees to receive or pay.

Start U.S. Stock Debut with 0 USD Capital Here

Frequently Asked Questions About Stock Trading at XM

Below are frequently asked questions about stock trading at XM.

1. Are XM’s stocks spot trading or margin trading?
2. Why can’t I trade stocks at XM?
3. Can I hedge stock orders?

If you have questions about stock trading, you can inquire with XM’s customer support via live chat, etc.

Contact XM Support Here

Question 1. Are XM’s Stocks Spot Trading or Margin Trading?

Stock trading at FX broker XM (XMTrading) is done through CFDs.

It is neither spot trading nor margin trading.

Even if you trade U.S. stocks at XM, you do not own the physical stock.

Can I Receive Shareholder Benefits or Dividends at XM?

Since stock trading at FX broker XM is done through CFDs, you cannot receive shareholder benefits.

You cannot receive dividends, but at XM, you can receive dividend adjustments on the dividend payment day.

Question 2. Why Can’t I Trade Stocks at XM?

If you cannot trade stocks at XM (XMTrading), check if you meet the following conditions.

• Have you opened an XM Zero account that does not allow stock trading?
• Are you logged into MT4 where you cannot trade stocks?
• Do you have insufficient own funds showing ‘Insufficient Margin’?
• Are you trading during the trading hours?

It’s okay if you have minimal own funds, but in case it’s just enough, your trade may end immediately if the stock price moves unexpectedly.

Guidelines for Trading Hours of Stocks by Country

Below are the guidelines for trading hours for stocks tradable at XM by country.

You can check the most accurate and latest trading hours for stocks tradable at XM on XM’s stock page.

Check the stock trading hours here

Question 3. Can I Hedge Stock Orders?

At FX broker XM (XMTrading), you can hedge stock trades.

If you hedge, the required margin is only for one side of the order (one order).

In the case of stock trading at XM, hedging does not reduce the required margin to 0 USD.

Official Site (xmtrading.com)

What leverage does XM offer for stock trading?

XM offers up to 20x leverage for trading stocks.

Are there any transaction fees for stock trades at XM?

No, XM does not charge transaction fees for stock trades.

Can I trade Japanese stocks at XM?

No, currently XM does not offer trading for Japanese stocks.

What is Negative Balance Protection at XM?

This protection ensures traders do not lose more than their account balance.

Can I start trading at XM without initial capital?

Yes, XM offers bonuses that allow you to start trading without initial capital.

Does XM allow short selling of stocks?

Yes, short selling is available, allowing profits from drops in stock prices.

How many stocks can I trade at XM?

XM provides over 1,300 stocks for trading globally.

What are the swap charges at XM?

Swap charges may be positive or negative, depending on the position and stock.

Are dividend adjustments available at XM?

Yes, dividend adjustments are applied on the dividend payout day.

Can I use the same XM account for trading Forex and gold?

Yes, one XM account can be used to trade stocks, Forex, and gold.