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.
| 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.
| 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 an 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:
Methodology
The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online providers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a providers’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.
Providers were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online providers we reviewed.
Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.
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Disclosure
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.
