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
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Braden Chase is an investor, trading specialist, and former research specialist for Forex.com who helps aspiring investors develop the confidence and habits they need to make an income from the market. Braden has served as a registered commodity futures representative for domestic and internationally-regulated brokerages and has also spoken & moderated numerous forex and finance industry panels across the globe.