With XM, traders can multiply their investment capital. XM leverage is flexible, from 1:1 to 1:888, increasing traders’ buying power and letting them trade much larger positions. What’s more, this service is completely free. Find out about the leverage offered by XM.
XM Leverage by Account Type
XM offers one of the highest leverage ratios in the industry, ranging from 1:1 up to 888:1. Thanks to these broker leverage levels, users can also trade flexibly. They can also use the same margin requirements. Read our XM review.
*This leverage does not apply to all XM Group entities. The maximum leverage for clients registered under the Group’s EU-regulated entity is 30:1.
Margin requirements also remain unchanged during the week. They do not increase over weekends or overnight either.
On related topics, our articles “How to Calculate Leverage” and “Warren Buffett and Leverage” complement this guide well.
Leverage by Asset Traded
Leverage can vary from one instrument to another and from one regulator to another.
XM Leverage by Regulator
CySEC – Cyprus
For retail clients who choose European regulation, leverage is capped as follows under ESMA rules:
- 1:30 for major currency pairs,
- 1:20 for other currency pairs,
- 1:20 for gold,
- 1:20 for major stock indices,
- 1:10 for other stock indices,
- 1:10 for commodities other than gold,
- 1:5 for other instruments such as stocks.
Traders with professional status can benefit from higher leverage.
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Under the limits set by ASIC, the Australian regulator, leverage for this market is as follows:
- 1:30 for major currency pairs,
- 1:20 for gold and minor currency pairs,
- 1:15 for stock indices,
- 1:10 for commodities other than gold,
- 1:5 for other instruments such as stocks.
IFSC – Belize
Under the regulations of the IFSC, Belize’s regulator, the broker is allowed to raise its leverage to 1:888.
*Leverage depends on the financial instrument traded and the amount of the client’s deposit.
DFSA – Dubai
For the market under the authority of the DFSA, leverage for retail traders is capped at 30:1.
XM Leverage Compared With Other Brokers
We compared XM’s maximum leverage ratio with that of other brokers.
Broker | Maximum Leverage | Broker Rating |
 | 1:500 | ★★★★☆ 4/5 |
 | 1:888 | ★★★★☆ 4/5 |
 | 1:500 | ★★★★★ 5/5 |
 |
| ★★★★☆ 4.5/5 |
 | 1:500 | ★★★★☆ 4/5 |
 | 1:500 | ★★★★☆ 4/5 |
 | 1:30 | ★★★★☆ 4.5/5 |
The Risks of Leverage
A trader who uses leverage can make large profits. However, they can also face significant losses, especially without proper risk management. That is why the broker offers a range of leverage options so its clients can choose the level of risk they want. At the same time, the broker does not recommend using the maximum leverage of 888:1 given the high risk involved.
Changing Your Leverage Level
Both the broker and traders are entitled to change the leverage.
Changes Made by the Trader
XM trading account holders choose their leverage when they sign up. The broker’s default leverage is 1:50, but clients can choose from the ratios available.
Traders can then change their leverage at any time, either lowering or raising it. To do so, they need to follow these steps from their Members Area:
- Click the “My Account” tab,
- Select the “Change Leverage” tab.
The leverage change takes effect instantly.
Changes Made by the Broker
XM, for its part, can carry out checks at any time. If it considers it necessary, it then has the right to change the leverage the trader has applied to their account, normally by lowering the ratio. XM exercises this right at its discretion and is not obliged to notify the account holder. If it deems it necessary, it can also apply the change to all of the client’s accounts or only some of them. XM’s trading leverage is higher than Fortuneo’s leverage, for example.
Have you already used leverage in your trading? Share your experience with the community in the comments!
Also read: What Is the Best Crypto Leverage?