The Forex and CFD broker XM has created a trading account specializing in stocks from various stock markets, called the Shares Account, in which traders can invest in more than 100 individual stocks from the United States, Germany, and the United Kingdom, including shares of the most important companies listed on the stock exchanges.
For example, through this account, we can trade with shares of Apple, Google, Boeing, Amazon, Alibaba, Adidas, Daimler Benz, BMW, Bayer, Vodafone, Unilever, HSBC, and others.
The Shares account is designed specifically for stock traders and unlike traditional XM trading accounts for Forex and CFDs it does not offer leverage, so the minimum deposit to open such an account and start trading in stocks is much bigger. This is because the client is trading directly with unleveraged stocks for opening and maintaining positions. In other words, the trader has to put all the margin to open new stock trades.
Therefore, if your trading capital is more limited and you have an interest in trading stocks, you can trade with CFDs on shares in XM that are leveraged derivatives in which the margin requirements are much lower since the transactions are leveraged. Although in CFD operations we do not buy or sell the underlying shares directly (as we already indicated are derivatives), they are ideal instruments to speculate on the changes in prices in those markets. Currently, this broker offers CFDs based on more than 1000 shares.
You can get more information about the company XM and its brokerage services in the following guide about this broker: Review of XM broker
Below we will show the main characteristics of this service and Shares accounts:
XM Shares Account Service Features
-100 shares of the largest stock markets for trading: Through the Shares account the client can trade 100 of the most important shares in the market.
- United States Stock Market: 62 stocks like Amazon, Google, Apple, and NetFlix.
- Germany Stock Market: 17 shares such as Adidas, BMW, Bayer, and Daimler Benz.
- UK Stock Market: 21 stocks including Vodafone, Rolls Royce, HSBC, and BAE Systems.
-XM charges a minimum commission of USD 1.00 to 9.00 per transaction – Commissions depending on the market are as follows:
- United States Shares: 0.1% transaction fee with a minimum fee of $1.00.
- Germany Shares: 0.1% transaction fee with a minimum commission of $5.00 USD.
- UK Shares: 0.1% transaction fee with a minimum fee of $9.00.
–Trades are not leveraged (1: 1 leverage).
-Adjustments for shares dividends: The shares are subject to adjustments for dividends. When the shares pay dividends to shareholders, XM will make a dividend adjustment in the accounts of traders who hold positions in those shares on the ex-dividend date. In buy positions, the trader receives an amount that is calculated using the following formula: Dividend adjustment = declared share dividend x (1 – tax rate) x position size in lots
XM Share Accounts – Main Features
The transactions with shares described above are carried out in the Shares accounts, specifically designed for this purpose. These accounts have the following characteristics:
|Account name||Cuenta Share|
|Trading instruments||100 shares of the stock markets of the United States, United Kingdom and Germany|
|Leverage||1:1 (No leverage)|
|Contract Size||1 share|
|Spread||According to the underlying stock|
|Maximum number of orders per customer||50|
|Minimum transaction volume||1 lot|
|Negative balance protection||Yes|
XM is an online Forex and CFD broker regulated by organizations such as CySEC, ASIC, and IFSC. It offers a variety of services, including various types of trading accounts (including accounts with 0 spreads), access to multiple markets (including Forex and CFDs of more than 1000 shares) through the Metatrader 4 and Metatrader 5 platforms, promotions for clients, and educational resources for the trader.
You can obtain more information about Shares accounts and other services of the XM broker by accessing their website through the following link: