XM regulation & licences
Our take
XM is the main brand of the Trading Point group, founded in Cyprus in 2009. Its EU entity is licensed by CySEC, with further licences from ASIC, the DFSA, the FSCA, CMA Kenya and the Belize FSC for international clients. In Japan the group markets as XMTrading through a Seychelles entity.
Best suited to: Beginners who want low minimum deposits and MetaTrader
Licences on record 7
1 Tier 1 — top-tier regulation
2 Tier 2 — strong regulation
3 Tier 3 — moderate regulation
4 Tier 4 — light / offshore
Licences are matched from public sources and regulator registers, and entities change over time. A licence held by one company in a group does not cover clients of another. Always confirm on the official register.
Regulatory profile
XM is a forex & CFD broker founded in 2009 and headquartered in Cyprus. It is part of Trading Point Group.
In our database XM is matched to 7 licences from ASIC, CySEC, DFSA, FSCA, CMA (Kenya), FSA (Seychelles) and FSC (Belize). The strongest of these, the ASIC (Australia) is among the regulators we classify as tier 1 — bodies with strict capital, client-money and conduct rules.
Be aware that a single XM website can front several legal entities. Its ASIC and CySEC-regulated companies serve local residents, while international clients are frequently handled by entities supervised by CMA (Kenya) and FSA (Seychelles), which offer much weaker safeguards.
Depending on the entity, eligible clients may be covered by Investor Compensation Fund (ICF) (CySEC). Negative balance protection is mandatory for retail clients under ASIC and CySEC rules. Retail leverage caps apply at the ASIC, CySEC and CMA (Kenya)-regulated entities (for example 30:1 on major FX pairs at ASIC).
XM offers MT4 and MT5. The advertised minimum deposit starts from about US$5 — minimums often vary by account type and entity.
Regulatory strengths
- CySEC, ASIC and DFSA licences
- Very low minimum deposit
Points to check
- International clients served via Belize/Seychelles
- Product set varies by entity
Protection by entity
| Regulator | Compensation | Retail leverage | Negative balance protection | Disputes |
|---|---|---|---|---|
| 1 ASIC | No statutory compensation fund for OTC derivatives; complaints go to AFCA | 30:1 on major FX pairs for retail clients since March 2021 | Required for retail clients | Australian Financial Complaints Authority (AFCA) |
| 2 CySEC | Investor Compensation Fund (ICF) — up to €20,000 | 30:1 on major FX pairs (ESMA rules) | Required for retail clients | Financial Ombudsman of Cyprus |
| 2 DFSA | No compensation scheme | Set under DFSA conduct rules for retail clients; check the firm's disclosures | Not confirmed — check with the broker | DFSA complaints / DIFC Courts |
| 2 FSCA | No compensation scheme; FAIS Ombud handles complaints | No statutory retail leverage cap | Not a regulatory requirement | FAIS Ombud |
| 3 CMA (Kenya) | No dedicated compensation scheme for online forex clients confirmed | Maximum 400:1 | Not confirmed — check with the broker | CMA complaints |
| 4 FSA (Seychelles) | No compensation scheme | No statutory cap | Not a regulatory requirement | FSA Seychelles |
| 4 FSC (Belize) | No compensation scheme | No statutory cap | Not a regulatory requirement | FSC Belize |
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XM regulation FAQ
Is XM regulated?
Yes — in our database XM is matched to 7 licences: ASIC (Australia), CySEC (Cyprus), DFSA (United Arab Emirates), FSCA (South Africa), CMA (Kenya) (Kenya), FSA (Seychelles) (Seychelles) and FSC (Belize) (Belize). Which of these protects you depends on the legal entity you open an account with. Always confirm the licence on the regulator's official register.
Is XM a tier-1 regulated broker?
XM holds 1 licence from regulators we classify as tier 1: ASIC.
Does XM accept US clients?
XM is not matched to a CFTC/NFA registration in our database. Only CFTC-registered, NFA-member firms may offer retail forex to US residents, so XM generally cannot accept US retail forex clients.
Is my money protected with XM?
Clients of XM's CySEC-regulated entity may be eligible for statutory compensation (Investor Compensation Fund (ICF) — up to €20,000). Clients of other entities rely on segregation of funds and the firm's financial strength.
What is the minimum deposit at XM?
XM's advertised minimum deposit starts from about US$5. It can differ by account type, payment method and the entity you are onboarded to.
How can I verify XM's licence?
Find the company name and licence number in XM's client agreement or website footer, then search it on the regulator's official register (linked from each licence on this page). Confirm that the website domain you use is listed on the register, and check the regulator's warning list for clones.