XM regulation

Trying to find out whether XM is regulated? Not sure which authorities are overseeing XM and why this matters?

Rest assured, the lack of regulation at XM is not a reason for worry. Our brokerage experts have determined that XM is a fully regulated broker, overseen in Cyprus, Australia, Belize, United Arab Emirates. We gathered all the information on the regulatory profile of XM and will explain why this matters.

Why XM is trustworthy

Why [Broker name] is trustworthy

Adam Nasli

Financial Wizard | Forex • Algo Trading • Market Analysis

I am a seasoned forex trading expert, with nearly a decade of experience in both manual and algorithmic trading. I have personally tested more than 40 different forex brokers, developing an in-depth understanding of the most common platforms, products and fee structures offered by forex brokers.

Learn about our methodology

Adam Nasli

Financial Wizard | Forex • Algo Trading • Market Analysis

I have personally tested several brokers globally and I am familiar with the regulatory and licensing procedures of at least a dozen financial authorities globally. Here are my key insights into the regulatory status of XM as of April 2024:

• XM operates under at least one very strict regulator, which is vital for safeguarding your money.
• XM must separate client funds/assets from its own operations; this makes all the difference for the safety of your investments.
• As XM is regulated by several authorities, it is super important that you open an account with an entity that has top-tier regulation.
• Explore the services of XM in our comprehensive XM review for 2024 and browse other top-tier regulated brokers with our unique Find My Broker tool.

Think of a broker with strict regulatory oversight like a lifeguard at the beach. Just as the lifeguard keeps you safe in the water, offering immediate help when you need it, brokers operating with top-tier regulation protect your investments. They make sure your investments are secure and handled with integrity and transparency.

XM operates in several countries and is supervised by the following financial authorities (country of clients - regulatory body):

• EEA countries - Cyprus Securities and Exchange Commission (CySEC)
• Australia - Australian Securities and Investments Commission (ASIC)
• Rest of the world + EEA customers - Financial Services Commission of Belize (IFSC)
• Trading.com brand: EEA countries except Belgium, Switzerland, Greece, and Cyprus - Financial Conduct Authority (FCA)
• Middle-East - Dubai Financial Servies Authority (DFSA)

Why does all this matter? We are contacted by an alarming number of people who ended up working with unregulated brokers and they share with us some sad and frightening stories. Here’s an example.

Marco invested a substantial amount using what appeared to be a credible online trading platform. Initially, his investments showed gains, and he was able to make several withdrawals without issues. Encouraged, he increased his investments, but when he tried to withdraw some profits after a successful trade, his requests went unanswered, and customer service became unreachable. Further investigation revealed the broker was not regulated by any financial authority. Eventually, the platform vanished overnight, taking John's investments with it, leaving him with no recourse to recover his funds.

Choosing a broker with top-tier regulation means you're in safe hands. This level of strict oversight ensures that your investments are protected, you're getting fair pricing, and trading conditions are transparent and favorable.

As a broker with top-tier regulation, XM is legally required to keep the funds and assets of its clients separate from its own money. This is a game changer in terms of the safety of your investments.

Client fund segregation is like having your money in a separate safe from XM’s own cash. Thus, if your broker ever runs into financial trouble, your funds won't be touched to settle their debts - they're entirely off-limits. It’s a crucial setup because it protects your money, ensuring that what you’ve invested stays secure and accessible only to you. This segregation is a requirement imposed by top-tier regulators and not something you can request your broker to do. You will only have access to this safety net if your broker has the appropriate regulation.

In the highly unlikely event that XM commits fraud and uses client assets for its own purposes, you can still recover your money if you have access to investor protection.

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

XM provides negative balance protection for both EU and non-EU customers.

Since XM is regulated by multiple authorities, it's crucial to open an account with an entity that has top-tier regulation. This ensures your investments are always protected under the highest standards.

Whenever possible, avoid signing up with entities that are regulated in off-shore countries such as the Seychelles, the Bahamas, St. Vincent and Grenadine, etc. While you may have access to a much higher level of leverage for your trades, this is extremely risky and you run a much higher risk of losing all your invested money.

In addition, rules and regulations imposed by regulators in these countries are typically less severe, potentially damaging the safety of your investments. If you are offered the option to choose which entity you open an account with, go with the one that operates under a stricter regulator.

For detailed insights into trading conditions, costs, and service quality at XM, check out BrokerChooser's XM review for 2024. All our broker reviews are based on the analysis of nearly 600 data points and direct experience. When we review a broker, we go hands-on by opening a real-money account and trading on its platforms, giving us a complete view of what it offers and how it performs.

The BrokerChooser team has personally tested and reviewed more than 100 brokers globally, all of which have top-tier regulation. All our experience and expertise is included in the Find My Broker tool. Simply answer a few questions and get a personalized broker list.