XM (XMTrading): A thorough explanation of the latest recommended version on XM’s safety, reliability, reviews, and reputation。XM Trading is a popular Forex company with the highest number of users in the world. Founded in 2012, XM Trading is a long-established company, as evidenced by its long operating history. On the Internet, you may see articles and writings such as “XM is a fraudulent company”, “Illegal activities”, “XM is a suspicious FX trader”, etc. Find out the truth.
- XMtrading
- What is XM’s Safety? A Thorough Explanation of Why It’s Trustworthy
- Reliable Financial Licenses
- Separate Management of Customer Assets
- Trading Transparency and Execution Power
- 🚀 Why XM’s Execution Rate is High
- Zero-Cut System
- XM Reputation and Reviews
- Pros and Cons of XM
- Points to Note When Using XM
- Frequently Asked Questions About XM’s Safety
- 🔹 1. Is XM a trustworthy broker?
- 🔹 2. Are my deposited funds safe?
- 🔹 3. Will I be required to make margin calls (debt)?
- 🔹 4. Are they licensed or authorized by the Japanese Financial Services Agency?
- 🔹 5. Are rumors of fraudulent price manipulation true?
- 🔹 6. What should I do if my account is hacked?
- 🔹 7. Is support available in Japanese?
- Related
XMtrading
| Operating company | Tradexfin Limited Fintrade Limited |
| Head office location | Unit E, F28, Eden Plaza, Eden Island, Republic of Seychelles |
| Founding year | 2009 |
| Financial License | （FSA）SD010：Tradexfin Mauritius Financial Services Commission (FSC：)：Fintrade Limited Cyprus Securities and Exchange Commission (CySEC)：Trading Point of Financial Instruments Ltd |
| Language support | English、日本語、Malay、Thai |
| Platform | MetaTrader 4 (MT4)／MetaTrader 5 (MT5) |
| Service Countries | Over 190 countries |
| Number of users | Over 1 million accounts |
| Max Leverage | 1000x |
| Eligible products | Forex、Metal、Stocks、Equity Indices / Index CFD、Energy CFD、Commodities、Cryptocurrency |
What is XM’s Safety? A Thorough Explanation of Why It’s Trustworthy
We’ll provide a comprehensive explanation of XM’s (XMTrading) safety and reliability, easy to understand even for beginners. Since the most important point when using overseas FX is “Can I deposit my funds with confidence?”, we’ve summarized the reasons for this in detail. A wide range of product campaigns and events are held, so please take a look at the details before participating.
✅ 1. Holds Multiple Financial Regulations and Licenses
XM is licensed and supervised by financial authorities around the world, which is the most important “basis of safety.”
Main regulatory examples:
| Regulatory bodies | Country/Region | meaning |
|---|---|---|
| CySEC | EU (Cyprus) | EU regulations mandating investor protection regimes and capital requirements |
| FSA | Seychelles | Permission to operate overseas for Japanese customers |
| FSC | Mauritius | Supervision in international financial centres |
| (Other country regulations may apply for applicable customers) |
*Some sites also provide information on regulations such as those of the FCA (UK) and ASIC (Australia), but accounts for Japanese users are mainly regulated by the Seychelles and Mauritius.
These regulations set strict standards for fund management, information disclosure, audits, capital requirements, and more, making them a safer option than unlicensed or unregistered brokers.
✅ 2. Strict Segregation of Client Funds
XM strictly separates client funds from the operating company’s funds (segregation).
📌 Key Points of Segregation:
Manages company operating funds and client funds so they do not mix in the same account.
Even in the unlikely event of a company’s bankruptcy, client funds are protected from being used to pay creditors.
Bank management is also monitored, ensuring a high level of reliability.
✅ 3. Investor Compensation and Other Protections
Especially under European regulations, the Investor Compensation Fund (ICF) may protect up to a certain amount (e.g., CySEC provides compensation up to €20,000).
✅ 4. Long-standing Operating Experience
XM was founded in 2009 and has over 15 years of operating experience. One of the reasons for its reliability is that there have been few reported cases of major fraud or reversals over its long history.
💡 Points to Note, However
While there are evidence of safety, actual users have expressed dissatisfaction and concerns about the process, such as the following (review examples):
✅ User Testimonials (Good)
Multiple deposits and withdrawals were completed without any issues.
The trading platform is stable.
❗ User Testimonials (Concerns)
Some users have reported delayed withdrawals.
Some users have reported time-consuming account verification and support responses.
Some reviews could be easily confused with complaints about overseas FX in general.
While these are not scams, they are feedback suggesting that there is room for improvement in the process and customer service.。
Reliable Financial Licenses
We’ll explain in an easy-to-understand manner the financial licenses held by XM and their reliability (i.e., the basis for safety).
When evaluating an overseas FX broker, the most important factor is which regulatory authority’s licenses they hold. Since overseas FX is outside the jurisdiction of Japan’s Financial Services Agency, checking the reliability of each country’s regulations serves as a guide to safety.
🟡 Major Licenses (Relatively Reliable)
CySEC (Cyprus Securities and Exchange Commission) – EU Regulation
License Number: 120/10
One of the strictest financial regulations in Europe. Requires customer capital protection, regular audits, and highly transparent operations.
The Investor Compensation Scheme (ICF) may provide protection up to €20,000.
ASIC (Australian Securities and Investments Commission) – Australia
License Number: 443670
A globally trusted financial regulator.
However, this ASIC license does not apply to all XM accounts, and its scope may vary by region.
🟢 Other Licenses (Examples of Licenses Used for Accounts in Japan)
FSA (Seychelles Financial Services Authority)
Held by Tradexfin Limited
This is a formal license issued by a financial authority, and requires capital, internal controls, and reporting requirements.
FSC (Mauritius Financial Services Commission)
Held by Fintrade Limited
This is a formal license to provide investment services, and is also subject to accounting and AML (anti-money laundering) supervision.
FSC (Belize Financial Services Commission)
Obtained by an overseas group company
This is also recognized as a formal regulatory license, but the regulations may be somewhat less stringent than those of CySEC or ASIC.
📌 Why do “multiple licenses” lead to trust?
✅ Transparency is guaranteed
Financial authorities in each country conduct regular audits, internal controls, and customer fund management reviews. This ensures a certain level of operational transparency.
✅ Mandatory Segregation of Customer Funds
Segregation, which involves keeping customer funds and company funds in separate accounts, is mandatory. This system provides greater protection in the event of company bankruptcy.
✅ Enabling Legal Operation in Multiple Overseas Regions
Having multiple licenses allows for legal service provision to users in each region.
🔎 Note: Differences from Japan’s Financial Services Agency License
XM is not registered or licensed by the Financial Services Agency (FSA). Overseas FX brokers do not have a license to operate in Japan and are therefore not subject to Japanese financial regulations.
→ However, this does not mean they are “illegal” or “dangerous”; rather, they are legally operated as an overseas FX brokerage.
Separate Management of Customer Assets
Segregated management of customer assets is
👉 a system in which funds deposited by traders (customers) and the FX company’s operating funds are managed in completely separate accounts.
This is, along with financial licenses, one of the most important factors in determining the safety of overseas FX. Currently, services such as Kiwami are thriving. Log in and try them out. You can view the above benefits from each of the homepages.
🔐 Why Segregated Management is Important
If segregated management is not implemented, there are risks, such as:
Customer funds being used to cover the company’s deficit
Customer funds not being returned in the event of bankruptcy
Withdrawal refusals and delays are likely
👉 Segregated management = customer funds are more likely to be protected even if the company goes bankrupt
✅ XM’s Customer Asset Management System
XM requires segregated management in accordance with its financial license requirements.
📌 Specific Management Methods
Customer Deposits
→ Managed in a “Customer-Only Account” at a Reliable Financial Institution
XM’s Operating Funds
→ Managed in a Separate Corporate Account
These two accounts are completely separate in both accounting and operational terms.
For this reason, even if XM experiences operational issues,
👉 the risk of direct loss of customer funds is considered low.
🛡 Relationship between Regulatory Licenses and Segregated Management
The following financial licenses held by XM require the segregation of customer funds:
CySEC (EU)
ASIC (Australia)
FSA (Seychelles)
FSC (Mauritius)
📌 These regulatory authorities regularly monitor
fund management systems
accounting audits
anti-fraud (AML)
👉 We do not engage in transactions with unregistered or unregulated brokers.
Trading Transparency and Execution Power
When evaluating overseas FX, **”Are prices fair?” and “Do orders execute as intended?” are extremely important.
Here, we will provide an easy-to-understand overview of XM’s trading transparency and execution power, based on its system. Let’s take a look at the details in terms of lots and strategies. This is a chance to earn profits with minimal investment. It’s top-class service.
✅ 1. NDD (Non-Dealing Desk) Method
XM uses the NDD method.
Dealers do not manipulate customer orders at their discretion.
Orders are passed directly to external liquidity providers.
There is little room for brokers to intentionally manipulate prices.
👉 A system that minimizes conflicts of interest between customers and brokers.
✅ 2. Requotes are generally not permitted.
Requotes, which are when a customer places an order and is told, “The price has changed, please reorder.”
Market orders are processed at the best price available at the time.
👉 This is particularly important for scalping and index trading.
✅ 3. Trading terms are clearly stated in advance.
XM officially discloses the following:
Spreads (by account type)
Execution method
Maximum leverage
Possibility of slippage
👉 Low risk of being subject to unfavorable terms after the fact
🚀 Why XM’s Execution Rate is High
The reasons for XM’s high execution rate per exchange rate are as follows: You can trade effectively in real time 24 hours a day. You can start trading Bitcoin, gold, foreign exchange, and more with professional-level speed. In addition, its excellent features make it an ideal service for individuals. You can continue trading while carefully monitoring opportunities and timing.
✅ 1. High-speed trading servers
Data centers provide an optimal environment for financial trading
Connected to numerous liquidity providers
Order processing is done in milliseconds
👉 Easy execution even during sudden market fluctuations
✅ 2. Published execution rate of over 99%
XM publishes a very high execution rate,
low order rejections
smooth market orders
✅ 3. Slippage is “bidirectional”
XM’s slippage occurs not only in the unfavorable direction but also in the favorable direction.
👉 It is considered evidence of no intentional manipulation.
✅ 4. The majority of all orders are processed immediately.
Few rejections or pending orders are processed.
Especially stable during normal market conditions.
*During extreme market conditions such as employment statistics and policy interest rate announcements,
Zero-Cut System
The zero-cut system is a mechanism that automatically resets (compensates) your FX account balance to zero when it goes negative.
This system ensures that you never incur losses greater than your deposit (known as margin calls), eliminating your debt risk. This is a major feature unique to overseas FX trading and is at the core of XM’s safety and user benefits.
📌 Basic Mechanism of the Zero-Cut System
✔ No margin calls (no debt) even if your account balance goes negative
→ XM covers the negative amount and resets your balance to zero.
📍 This is also known as the zero-margin service, and is automatically applied when your losses exceed your margin due to a stop-loss trigger that is too late
When sudden fluctuations or slippage cause a negative balance
💡 Example of the Specific Process
Sudden market fluctuations prevent stop losses from being applied in time, resulting in a post-trade account balance of -¥10,000.
XM’s zero-cut is applied.
→ The account balance is reset to ¥0.
👉 At this point, the trader is not in debt.
🧠 Why Zero-Cut is Possible (XM’s Structure)
XM’s business model and trading method as an FX broker allow it.
🔹 Adoption of the NDD (Non-Dealing Desk) Method
→ Customer orders flow directly to multiple financial institutions (liquidity providers) without going through a dealer.
→ In-house risk is limited, reducing the likelihood of price misalignment or intentional manipulation.
🔹 Revenues are primarily derived from spreads and commissions.
→ The more trading volume increases, the more profits are generated. Zero-cut costs can be recorded as a “marketing investment.”
📌 Applicable Items and Scope
✨ Applies to all instruments and account types
→ Zero cut applies not only to FX currency pairs, but also to precious metals, crude oil, stock indices, etc.
⚠ However, the following cases are exceptions and points to note:
If you are holding a position, the zero cut may not be applied immediately even if you are in the red (there may be an internal processing time lag of several minutes to several hours).
Unnatural trading behavior (abuse) that assumes zero cut is a violation of the terms of service and may result in account restrictions (e.g., targeting extreme gaps, etc.).
XM Reputation and Reviews
Below is a balanced summary of XM (XMTrading) reviews, including both positive and negative ones. This provides practical reference when considering overseas FX trading.
⭐ XM’s Positive Reviews and Reviews (Positive)
✅ Reviews from Many Users Highly Evaluate Their Reliability
A popular broker with over millions of users in 190 countries worldwide. Widely used by Japanese users.
Reviews indicate that even beginners can use the broker without any withdrawal issues (e.g., funds arrived within 2-3 business days).
Reviews also indicate that account opening is easy and smooth, and that Japanese support is available for peace of mind.
Multiple reviews also mention the stable platform (MT4/MT5) and attentive support.
High leverage and bonus campaigns are attractive, making it easy for beginners to use.
Even on overseas review sites, many reviews describe it as a “trustworthy” and “overall stable broker.”
⚠ XM’s Bad Reputation and Reviews (Negative)
❗ Withdrawal and Deposit Issues
Some users have reported slow withdrawals or failure to receive funds (several days to weeks in some cases).
Some have complained that “even if a transaction is marked as processed, it sometimes never actually reaches the bank.”
❗ Usability and Platform
A number of reviews have pointed out the difficulty and slowness of the app and website.
Some have also stated that the new version has become more difficult to use.
❗ Cost Issues
Criticisms have also been raised about relatively wide spreads and high fees.
🧠 Opinions on Overseas Forums (English – Comments from Overseas Traders)
❗ Examples of Concerns
Some traders have expressed dissatisfaction with execution and price fluctuation processing, and have concerns about account management.
(However, these comments have not necessarily been verified.)
✅ Positive Reviews
One trader posted a positive review, saying, “The spreads are not bad” and “The withdrawal process was smooth.”
Some traders also commented that deposits and withdrawals are particularly stable depending on the region, so reviews vary from person to person.
Pros and Cons of XM
The following is an easy-to-understand summary of the pros and cons of XM (XMTrading), taking into account the characteristics of overseas FX as a whole and user reviews and ratings. This information will be useful when choosing an overseas FX broker.
✅ XM’s Advantages
- Start with a Small Amount (Low Threshold)
✔ Very Low Minimum Deposit (Starting from Approximately $5)
→ Account opening is possible with a small investment, making it easy for beginners to get started.
- Wide Range of Financial Products
✔ Trade not only FX currency pairs, but also stock indices, precious metals, energy, stock CFDs, and more.
→ Over 1,000 instruments available, providing a wide range of trading options.
- Regulatory Compliance and Operational Experience
✔ Multiple Financial Licenses (CySEC, ASIC, FSC, etc.)
→ Operates in a relatively reliable environment for an overseas FX broker.
- Stable Execution
✔ High Execution Rate of Over 99% and No Requotes
→ Orders are easily executed and the transparent trading environment is highly rated.
- Zero Cut and Capital Protection
✔ Zero Cut System (No Margin Calls)
→ Account balances are automatically reset even if they go negative, eliminating debt risk.
- Comprehensive Education and Support
✔ Japanese-language support (24/5) available
→ With support, FAQs, and educational content in Japanese, even beginners can use the service with confidence.
- Diverse Account Types
✔ Multiple account types, including standard, micro, and zero accounts, are available, allowing you to choose the best fit for your trading style.
⚠ XM Disadvantages (Cons)
- Relatively Wide Spreads
❗ Many users feel that spreads are wider than those of competitors.
→ Some say this is particularly unfavorable for scalping, which involves accumulating small profits.
- Not Complete Trust Protection
❗ Client funds are segregated, but there is no guarantee of trust protection.
→ This system is not 100% guaranteed in the event of bankruptcy (the risk is considered low, but not complete).
- Withdrawal Rules and Fees
❗ When sending funds overseas via bank transfer, there may be restrictions and fees on profit withdrawals.
→ There may be conditions for withdrawing profits in excess of the deposit amount, and the withdrawal process may take some time.
- Customer support available 24/7 (weekends unavailable)
❗ No support available on weekends and holidays
→ The foreign exchange market is closed on weekends, which can be inconvenient for those with inquiries that need to be addressed the following week.
- Service Restrictions
❗ Support for cryptocurrencies and other cryptocurrencies may be limited or unavailable.
Points to Note When Using XM
The following is a clear summary of important points to note when using XM (XMTrading), based on actual user experiences, general risks, and service specifications. There are many important points to note that are unique to overseas FX trading, so be sure to understand them thoroughly before using.
🔎 1. Spreads and Trading Costs May Be Wide
✔ It has been pointed out that XM’s spreads are not necessarily the tightest compared to other overseas FX brokers or domestic FX brokers.
→ In particular, with a standard account, costs may feel heavy when aiming for profits through short-term trading (scalping).
💡 Solution:
Choose a “Zero Account” with narrow spreads.
Optimize trading hours.
You can reduce costs by doing these things.
🔎 2. Delays and Restrictions on Withdrawal and Deposit Processing
✔ User reviews have reported cases of slow or unprocessed withdrawals.
→ Some users have reported that withdrawals took anywhere from several days to over 10 days.
🔹 Identity verification (KYC) is required, especially for your first withdrawal, and it may take some time to review your documents.
💡 Solution:
Prepare your identity verification documents before your first withdrawal.
Make a small test withdrawal to understand the process.
🔎 3. User Reviews Divided
✔ Some message boards contain complaints and negative comments about the platform’s order processing and app behavior.
→ Posts include comments such as “My order disappeared automatically” and “The limit price doesn’t match.”
👉 While these should be distinguished from official specifications and general FX market factors, they can leave a negative impression on some users.
⚠ 4. Understand the Risks of Leverage
✔ XM’s high leverage is attractive, but
→ High leverage also means greater risk of losses.
High leverage allows you to move large amounts with a small amount, but it also increases the potential for large losses.
💡 Countermeasures:
Understand margin maintenance ratios and stop-loss rules.
Set stop-loss levels for risk management.
⚠ 5. Tax and Filing Considerations Unique to Overseas FX Trading
✔ Profits earned with XM are treated as overseas FX trading under the Japanese tax system and are subject to progressive taxation as miscellaneous income.
→ Unlike domestic FX trading, profits are not subject to separate taxation; instead, they may be combined with other income, such as salary, resulting in a higher tax rate.
💡 Countermeasures:
If you make a profit, research how to file your tax return in advance.
Consult a tax accountant.
⚠ 6. Understand Trading Rules and Prohibited Activities
✔ XM Trading has its own unique restrictions, such as rules for hedging.
→ For example, holding multiple accounts or hedging across other companies is prohibited. Violation of these rules may result in withdrawals being suspended or your account being frozen.
💡 Countermeasures:
Read the terms of use carefully and understand the prohibited activities.
Frequently Asked Questions About XM’s Safety
Below are answers to frequently asked questions (FAQs) about the safety of XM (XMTrading). We’ve compiled a list of key points that potential investors want to know.
🔹 1. Is XM a trustworthy broker?
➡ Yes, XM is a globally popular FX broker with multiple financial licenses, making it a trusted broker. However, it is not licensed by the Japanese Financial Services Agency (it operates as an overseas FX broker).
🔹 2. Are my deposited funds safe?
➡ Deposited funds are segregated as customer assets and managed separately from operating funds. Therefore, even if the company were to go bankrupt, customer funds will generally not be used for operating purposes. However, please be aware that since the funds are not fully secured by a trust, there is a non-zero chance that they may not be returned.
🔹 3. Will I be required to make margin calls (debt)?
➡ XM does not require margin calls (zero-cut system). Even if your account balance goes negative, it’s automatically reset to zero, eliminating the risk of incurring debt.
🔹 4. Are they licensed or authorized by the Japanese Financial Services Agency?
➡ No. XM is not registered or authorized by the Japanese Financial Services Agency. However, this is common practice for overseas FX and does not necessarily mean it’s “dangerous.”
🔹 5. Are rumors of fraudulent price manipulation true?
➡ There are rumors and past online stories that XM manipulates prices, but XM has denied these as unfounded. Additionally, since they use the NDD method (order execution without a middleman), intentional price manipulation is less likely to occur.
🔹 6. What should I do if my account is hacked?
➡ If you suspect unauthorized access, the basic rule is to immediately contact support and request that your account be suspended and your password reset. Strengthening the security of your email address is also recommended.
🔹 7. Is support available in Japanese?
➡ Yes, XM provides support in Japanese. Japanese support is available via email and live chat.
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