When looking at gold spreads on XM, don't just ask "how much is the gold spread?"I usually look at two things first:What account are you using, and what gold code are you viewing?
XM's gold is listed under precious metals.The Standard account corresponds to GOLD, and the Ultra Low Standard account corresponds to GOLD#.They all look like gold, but the spreads are different.
Data published on the XM official website:
| Account Type | Golden Code | Average spread | Spreads as low as | Maximum leverage |
|---|---|---|---|---|
| Standard | GOLD | 4.5 points | 3.0 points | 1:1000 |
| Ultra Low Standard | GOLD# | 2.6 points | 2.0 points | 1:1000 |
If you trade gold occasionally, the Standard option is fine. But if you frequently trade gold in the short term, you should choose the Ultra Low Standard option.Gold prices are inherently volatile, and with frequent entries and exits, the spread becomes the cost. Looking at a single trade, the difference between 4.5 and 2.6 isn't significant; however, the difference becomes apparent when trading multiple trades.
How do I check the spreads on the official website?
XM's official website precious metals page mainly provides two numbers:Average spread and spread as low as [missing information].
Average spreads are more suitable for estimating daily transaction costs.The spread is so low that it can only be used as a reference and should not be taken as the price you will get every time you place an order.
Ultra Low Standard Gold, with spreads as low as 2.0, averaging 2.6.I will estimate costs based on 2.6, not on 2.0 hoping to consistently get the lowest spread. The same applies to Standard.It's 4.5, not 3.0.
Before placing an order, check the real-time spreads on MT4/MT5.
The official website spreads are suitable for choosing an account.What truly determines the cost of this transaction is the real-time spread in MT4/MT5.
PC version:Open MT4/MT5, press Ctrl + M to bring up the "Market Quotes", find GOLD or GOLD#, right-click and select "Spreads", and the real-time spreads will be displayed next to it.
Mobile version:In the quote list, click on gold to enter the details, or long-press on the product to view detailed information, and you can see the current spread.
I always check the real-time spread before placing an order, especially when trading gold.Gold prices fluctuate rapidly, and spreads change accordingly. Relying solely on official website averages without considering current prices can easily lead to underestimating entry costs.
How is the cost of the gold spread calculated?
The spread is the difference between the buying price and the selling price.When you first open a position, your account will usually incur these costs.
Formula: Spread Cost = Spread × Value per Point × Number of Lots
Roughly calculated based on 1 lot of gold:Ultra Low Standard averages 2.6 points, about $26; Standard averages 4.5 points, about $45.A difference of a dozen or so dollars per transaction may not seem like much, but if you do this several times a day for several months, this cost will keep accumulating.
Therefore, short-term traders should not only focus on "minimum deposit" and "maximum leverage".When trading gold, it's even more important to consider the average spread, real-time spread, slippage, and entry time.
When should we pay special attention to the spread?
Around the time the US market opens, gold price volatility increases, and spreads may widen accordingly.In market data releases like CPI, non-farm payrolls, and FOMC reports, prices fluctuate rapidly, so you need to keep a close eye on spreads and slippage. When the market suddenly surges or plunges, don't just look at the direction.First, check if the spread has widened.When the spread widens significantly, chasing the market can easily lead to losses as soon as you open a position.
Before and after the data came out, I wasn't in a hurry to click.First, observe price fluctuations, spread changes, and candlestick speed. Wait until the spread returns to normal before considering entering the market.
Therefore, when looking at XM's golden spreads, don't get the order wrong: first select an account using the official website's average spread, then use MT4/MT5's real-time spreads to determine whether the trade is worth entering.
