Is XM Legit?

Page Summary

Selecting a secure online broker is fundamental to a top trading experience. XM is a leading provider of beginner-friendly services, and it has licenses from the ASIC, FCA, CySEC, and IFSC. It offers secure authentication methods and platforms. 

Broker Comparison

XM FxPro FXTM
Banking background No No No
Broker listed on stock exchange No No No
Annual financial statements on website No No No
Mobile two-step authentication No Yes No
Broker ownership transparency No No No
Broker management transparency Yes Yes Yes
Broker is audited by the Big Four No Yes No

Each brokerage firm has strengths and weaknesses. This article answers the question, “Is XM legit?” 

Regulation & Investor Protection 

A broker’s trustworthiness is revealed about its top-tier regulations and investor protection programs. XM is regulated in the UK, Germany, and Australia. It has top-tier licenses from the ASIC, FCA, CySEC, and IFSC. 

The FCA in the UK provides the Financial Services Compensation Scheme (FSCS) with protection for £85,000 for each covered account. The investor protection amount for non-UK residents is €20,000. 

Other aspects that support the safety of a broker are the banking background, stock exchange presence, transparent financial statements, secure authentication, ownership transparency, and auditors. 

Regulation

XM
Country of regulation: Cyprus, Australia, Belize, United Arab Emirates
Investor protection amount: €20,000 for EEA residents, no protection for others

Banking Background 

A banking background contributes to a broker’s trustworthiness. XM doesn’t have a banking history. 

Stock Exchange Presence 

An online broker listed on a stock exchange is safe and versatile. Presence on a stock exchange tells investors that an online broker follows strict reporting requirements. No stock exchange lists XM. 

Transparent Financial Statements 

Financial statements show insights into a brokerage firm’s practices. XM doesn’t publish annual financial statements. 

Two-Step Authentication 

A brokerage account must benefit from the best safety measures. XM doesn’t have two-step authentication on all its platforms. 

Ownership & Management Transparency 

XM doesn’t display the basics of its management structure on its official website. This broker doesn’t publicly share details about its ownership structure. 

Big Four Auditors 

The Big Four audit safe online brokers. These auditors are PWC, Deloitte, KPMG, and EY. The Big Four do not audit XM. 

Final Verdict 

XM is a leading beginner-friendly online broker with excellent trading experience. It is a safe broker with top-tier licenses. Read our in-depth reviews to learn more about brokerage firms and safety features. 

XM compared to other brokers:
XM review

Disclaimer

eToro is a multi-asset investment platform. The value of your investments may go up or down. Leveraged and speculative product. Not suitable for all investors. You should consider whether you can afford to take the high risk of losing your money. Capital is at risk. Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. Crypto assets are unregulated& highly speculative. No consumer protection. Capital at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site is registered on wpml.org as a development site.