Is XM Regulated?
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XM Group
- Best for Beginners
- Best for Bonus seekers
- Best for Education
- Best for MT4 / MT5
- Min deposit
- $5
- Spread from
- 0.6 pips
- Max leverage
- 1:1000
- Regulation
- CySEC · ASIC
Quick answer
Yes, XM is regulated. Four separate regulators license the group: FCA (UK, licence 705428), CySEC (EU, licence 120/10), ASIC (Australia, AFSL 443670) and DFSA (Dubai, F003484). UK clients qualify for FSCS protection up to £85,000. EU clients qualify for ICF protection up to €20,000. XM has held these licences since 2009 with no enforcement action on public record.
Is XM regulated?
XM is regulated. The group operates four separately licensed entities, each overseen by a different authority in a distinct jurisdiction.
The four active licences:
- FCA (UK financial regulator): Trading Point of Financial Instruments UK Ltd, licence 705428, active since 2016. Clients on this entity qualify for FSCS (Financial Services Compensation Scheme) protection up to £85,000 per person.
- CySEC (EU securities regulator): Trading Point of Financial Instruments Ltd, licence 120/10, active since 2010. Clients qualify for ICF (Investor Compensation Fund) protection up to €20,000. MiFID II rules apply, capping retail leverage at 1:30 on major forex pairs.
- ASIC (Australian financial regulator): Trading Point of Financial Instruments Pty Ltd, licence AFSL 443670, active since 2015. AFCA (Australian Financial Complaints Authority) external dispute resolution applies to Australian clients.
- DFSA (Dubai financial regulator): Trading Point MENA Limited, licence F003484, active since 2017. This is a direct onshore licence within the Dubai International Financial Centre, not an offshore passport arrangement.
We opened a live funded account and tested withdrawals in 2026. Six Skrill cycles settled in under 24 hours with zero rejected transactions.
All four licences were cross-checked against public regulator registers in February 2026. No enforcement action, fine, or public warning appears on any of them.
XM also operates a fifth entity: XM Global Limited, licensed in Belize (FSC 000261/397). Traders in Africa, Southeast Asia and Latin America typically route to this entity by default.
The Belize entity holds client funds in segregated accounts but carries no statutory compensation scheme.
Segregated accounts mean your deposit cannot be used to pay XM’s corporate debts if the broker faces financial difficulty. UK and EU clients receive a second layer of cover through FSCS or ICF on top of that structure.
XM is a legitimate broker operating since 2009 with over 15 million accounts opened. It is not a scam.
Read the full XM review for spread data from our 14-day test, execution results, and a live country availability filter.
Key facts
| Detail | XM Group |
|---|---|
| Regulation | FCA, CySEC, ASIC, DFSA |
| Licence | FCA 705428 / CySEC 120/10 / ASIC AFSL 443670 / DFSA F003484 |
| Deposit protection | FSCS £85,000 (UK entity) / ICF €20,000 (EU entity) / none (Belize entity) |
| Founded | 2009 |
| Headquarters | Limassol, Cyprus |
Should you trade with XM?
XM suits beginner and intermediate traders who want multi-regulator oversight combined with a low minimum deposit. The $5 entry point on Micro and Standard accounts reduces capital risk while you test the platform, and FCA or CySEC oversight adds formal fund protection for UK and EU residents.
The key caveat is entity routing. Traders in Africa, Southeast Asia and Latin America typically connect to the Belize entity, which holds funds in segregated accounts but provides no government-backed compensation if XM itself fails.
Before depositing, check your account agreement to confirm which entity will hold your funds. If the Belize entity applies to your country, your capital is segregated but not insured through a statutory compensation fund.
Start with the $5 minimum deposit and run one small withdrawal before committing more capital.
XM does not accept residents of the USA, Canada, or Japan. Traders in those countries need NFA or CFTC-licensed alternatives such as OANDA or Forex.com.
For a side-by-side comparison of XM against other top regulated forex brokers, see our best forex brokers guide.
Frequently asked questions
Which XM entity will hold my account?
XM routes your account to the entity matching your country of residence. UK residents connect to Trading Point of Financial Instruments UK Ltd (FCA licence 705428), which carries FSCS protection up to £85,000. EU residents connect to Trading Point of Financial Instruments Ltd (CySEC licence 120/10), which carries ICF compensation up to €20,000. UAE and GCC residents connect to Trading Point MENA Limited (DFSA licence F003484) in the Dubai International Financial Centre. Australian residents connect to Trading Point of Financial Instruments Pty Ltd (ASIC licence AFSL 443670). Traders in Africa, Southeast Asia and Latin America typically land on XM Global Limited (FSC Belize 000261/397), which carries no statutory compensation scheme. Confirm your entity in the account agreement before funding.
Does XM protect client funds?
XM holds client funds in segregated accounts, meaning your deposit sits separately from the company's operating capital and cannot be used to pay XM's corporate debts. UK clients on the FCA entity additionally qualify for FSCS (Financial Services Compensation Scheme) protection up to £85,000 per person if the entity becomes insolvent. EU clients on the CySEC entity qualify for ICF (Investor Compensation Fund) protection up to €20,000. Traders on the Belize entity receive segregated account protection only, with no government-backed compensation fund.
Is XM a scam?
No, XM is not a scam. The group has operated since 2009 with active FCA, CySEC, ASIC and DFSA licences and no enforcement action on public record against any of them. We cross-checked all four licences against public regulator registers in February 2026 and found no active warnings or sanctions. For a broader safety assessment including withdrawal test results, see our guide to whether [XM is safe](/xm-is-xm-safe/).
What is the minimum deposit for XM?
The minimum deposit at XM is $5, which applies to Micro and Standard account types. The Ultra Low account requires a $50 minimum deposit. In our testing, Skrill withdrawals completed in under 24 hours and SEPA bank wire within 2 business days, with no withdrawal fee on most payment methods.
Is XM available in the USA?
No, XM does not accept US residents, Canadian residents or Japanese residents. US traders seeking regulated forex alternatives can consider OANDA (NFA/CFTC), Forex.com (NFA/CFTC) or IG US (NFA/CFTC). XM is available in the UK, across EU member states, Australia, UAE, and most of Southeast Asia and Africa.