XM safety

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Is XM safe?

 

Yes, XM is safe in our assessment as the broker is regulated by three financial authorities globally through its parent company, including the top-tier Australian Securities and Investments Commission (ASIC). It is a well-established brand even though it is not listed on any stock exchange and does not disclose its financial information.

Pros

Cons

• Negative balance protection

• Does not hold a banking license

• Regulated by the top-tier ASIC

• Not listed on a stock exchange

 

• Financial information is not publicly available

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75.59% of retail CFD accounts lose money

Is XM regulated?

 

Yes, XM is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), and the International Financial Services Commission of Belize (IFSC).

There is another XM legal entity called Trading Point MENA Limited, which is regulated by the Dubai Financial Services Authority (DFSA).

 

How you are protected

 

XM operates several subsidiaries. Which one of these will serve you depends on your residency. This is important because the investor protection amount and the regulator differ depending on the entity.

Legal entities and countries served by XM
Country of clients Protection amount Regulator Legal entity
EEA countries €20,000 Cyprus Securities and Exchange Commission (CySEC) Trading Point of Financial Instruments Ltd.
Australia No protection Australian Securities and Investments Commission (ASIC) Trading Point of Financial Instruments Pty Ltd.
Middle-East No protection Dubai Financial Services Authority (DFSA) Trading Point MENA Limited
Rest of the world No protection International Financial Services Commission of Belize (IFSC)  

 

Negative balance protection

 

XM provides negative balance protection for both EU and non-EU customers. Negative balance protection means that you can't lose more money than what is on your account, i.e. you won't owe any money to your broker.

 

Is XM legit?

 

Yes, XM is legit. The private company behind the XM brand is Trading Point Holdings, which was established in 2009. The longer the track record of a broker, the more proof we have that it has successfully weathered previous financial crises.

On the other hand, the company doesn't disclose its financial information and isn't listed on any exchanges, factors that would increase transparency.

 

Is XM a scam?

 

No, XM is not a scam. It is a strictly regulated, real, for-profit company. Financial markets, however, especially forex and CFD trading, pose significant risks over which no company has total control, so invest only what you can afford to lose in case the market goes haywire.

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75.59% of retail CFD accounts lose money

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Further reading:

 

Author of this article

Márton Oláh

Author of this article

Márton Oláh, MSc has been a macro and value investor of stocks for 10 years on his own account. Since 2020 he has been trading options and volatility as well. Márton has founded a venture capital backed company and led it for 8 years before professionally turning to finance therefore is an expert in interpreting company reports.

Márton Oláh

Strategic Advisor

Márton Oláh, MSc has been a macro and value investor of stocks for 10 years on his own account. Since 2020 he has been trading options and volatility as well. Márton has founded a venture capital backed company and led it for 8 years before professionally turning to finance therefore is an expert in interpreting company reports.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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