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.
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Pros |
Cons |
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• Negative balance protection |
• Does not hold a banking license |
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• Regulated by the top-tier ASIC |
• Not listed on a stock exchange |
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• 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.
| 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:
- About XM the company
- XM fees
- XM deposit guide
- XM withdrawal guide
- XM accounts
- Stock trading and trading platforms at XM
- XM competitors
