Reviews

Home / Reviews / XM / Regulation

XM regulation

Across a hundred brokers, the licence is what separates the field fastest. Here is XM's regulatory record in full.

Facts last checked . Read the full XM review.

Regulation and safety

Regulated by
Belize FSC (8557558); CySEC (120/10); ASIC (AFSL 443670); DFSA (F003484); FSCA (49976)
Regulator tier
Tier 1
Register entry
Belize FSC Register
Client money segregated
Yes
Held at
Top-tier global banks
Negative balance protection
Yes
Compensation scheme
ICF up to €20,000 for eligible CySEC clients
Audited by
Independent external auditors
Not available to
United States, Canada, Israel, Iran and other sanctioned/restricted jurisdictions

Check the licence yourself: the CySEC register of investment firms, ASIC Connect, the DFSA public register, the FSCA search of financial services providers.

What this means

Across a hundred brokers, the licence is what separates the field fastest.

XM holds tier-one authorisations from ASIC and CySEC. That matters more than any headline spread: it determines your leverage cap, whether losses can exceed your deposit, and what happens to your money if the firm fails.

It also operates an offshore entity (FSC). Which one you are onboarded to depends on where you live, and the two carry very different protections - worth confirming before you deposit.

ASIC caps retail leverage at 1:30, requires negative balance protection, and obliges the broker to hold client money in a separate trust account.

CySEC licences passport across the EU and follow the 1:30 retail leverage cap, with the Investor Compensation Fund covering eligible claims.

The FSCA licenses derivative providers in South Africa without a fixed retail leverage cap, so headline leverage is often higher than an FCA or ASIC entity may offer.

Client money is held separately from the firm's own money, at Top-tier global banks. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

Negative balance protection applies, so a losing position cannot take the account below zero and leave you owing the broker money.

Covered by ICF up to €20,000 for eligible CySEC clients, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about XM regulation

Who regulates XM?

XM is regulated by Belize FSC (8557558); CySEC (120/10); ASIC (AFSL 443670); DFSA (F003484); FSCA (49976).

Is client money segregated at XM?

Yes. XM holds client money separately from its own funds, at Top-tier global banks.

Does XM offer negative balance protection?

Yes. XM offers negative balance protection, so a losing position cannot leave you owing the broker more than your account held.

Regulation at brokers under the same regulator

More about XM