This article explains the prohibited matters in XMTraidng transactions, account freezing, withdrawal refusal, and penalties due to violation of terms and conditions. There are some trading methods on XMTraidng that are prohibited by the Terms of Service. Not everything is OK with XMTraidng. If you trade on XM without knowing the prohibitions, you will be subject to penalties such as account freezing and withdrawal refusal. We will explain the trading rules of XM that you must know to avoid violating the terms of service.
- XMtrading
- What are the prohibitions at XM?
- XM’s Penalties for Prohibited Activities
- Trading allowed at XM
- Frequently asked questions about prohibited activities
- Q1: Is it allowed to open multiple accounts?
- Q2: What happens if I open an account with false information?
- Q3: Is it okay to use bonuses for gambling-like transactions?
- Q4：自動売買（EA）は使えますか？
- Q5: Is hedging possible?
- Q6: What happens to my bonus when I withdraw it?
- Q7: What are the penalties for violating the terms and conditions?
- Q8: What are the key points to avoiding prohibited activities?
- 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 are the prohibitions at XM?
Understanding prohibited activities is extremely important to avoid risks such as account freezing and bonus confiscation. Placing a load on the server or misusing margin is also likely to result in a denial. You can also check the official website’s homepage. The types of transactions that are permitted are limited. You can also ask questions to the management regarding the content.
Fraudulent conduct and violation of terms and conditions
| act | Content | risk |
|---|---|---|
| Opening multiple accounts | Opening multiple accounts under the same name | Account frozen, bonus confiscated |
| Reporting false information | Falsifying personal information or address | Account freezing/withdrawal refusal |
| Fraudulent use of ID (using family or friends’ ID) | Registered under someone else’s name | Account frozen/withdrawals not possible |
| Trading that puts a strain on the server | Place multiple orders in a short period of time for groups, organizations, or multiple people | Account frozen/withdrawals not possible |
Bonus Credit Fraud
| act | Content | risk |
|---|---|---|
| Excessive trading for bonus purposes | Continuously perform high leverage trades only when indicators are announced | Confiscation of profits, freezing of accounts |
| Gambling transactions with bonuses only | Trading with unreasonable lots without capital management | Bonus lapse, account frozen |
| Fraudulent bonus acquisition | Duplicate acquisition using multiple accounts | Freezing of all accounts and confiscation of profits |
Unauthorized trading and market manipulation
| act | Content | risk |
|---|---|---|
| Excessive use of arbitrage (arbitrage trading) | Trading between multiple accounts for profit both inside and outside XM | Account freeze |
| Hedge trading (holding both buy and sell positions in the same account) | May be prohibited for some account types | Account suspension |
| Spread and price manipulation (trading targeting employment statistics, etc.) | Attempts to make profits illegally through automated trading | Accounts frozen, profits confiscated |
Violation of laws, regulations, and local regulations
| act | Content | risk |
|---|---|---|
| Residents of Japan using services not supported by XM Japan | XM complies with regulations in Japan | Account frozen, withdrawal refused |
| Money laundering and criminal proceeds | Deposits with illegal funds | Account freezing and legal action |
Other notes
- As a general rule, once an account has been frozen or suspended, it cannot be restored.
- Withdrawals of profits and use of bonuses and campaigns must be carried out properly in accordance with XM’s terms and conditions.
- Automated trading (EA) may also include prohibited activities, so please check the terms and conditions before using it.
- Fraudulent acquisition of commissions through self-affiliation is also prohibited.
- Account management by third parties is also prohibited.
- Trading that takes advantage of connection delays or rate errors is also prohibited.
- Intentionally targeting gaps or openings at the start of the week is also prohibited.
XM’s Penalties for Prohibited Activities
For reference, we have compiled a detailed list of penalties for prohibited activities at XM.
Please be aware that violating the terms of service will not only result in the confiscation of bonuses, but also serious consequences such as account freezing and confiscation of profits. Looking at reputation and reviews, some people have been blocked.
Please do not abuse the system as strict judgment will be applied. New users should be careful about how they use the market. On the other hand, even if you are able to make an extremely large profit on your own, if you are found out and discovered, you may be permanently banned from investing later. If your account is blocked, you will not be able to receive any profits, and there will be no compensation.
Penalty characteristics
Bonus Confiscation
Bonuses are “subsidies,” so violations of the terms and conditions will result in partial or complete closure.
Profits earned from bonuses may also be confiscated.
Profit Confiscation
Profits earned through violations of the terms and conditions may be confiscated without warning.
This applies especially to excessive trading for the purpose of bonuses or profits from fraudulent EAs.
Account Freezing/Suspension
Once frozen, an account cannot be reactivated.
This may apply to all XM accounts.
Withdrawal Denial
In the event of false information or fraudulent activity, withdrawals of profits and balances will be denied.
Legal Action
In the event of violations of laws and regulations, such as money laundering or the use of criminal funds, legal action may be taken not only by XM but also by other parties.
💡 Key Points
XM takes strict action against violations of the terms and conditions without warning.
High-leverage trading for the purpose of bonuses
Arbitrage and fraudulent EAs
Providing false information
These are particularly important to be aware of.
Avoiding violations of the terms and conditions will allow you to safely utilize your bonuses and trading profits.
Trading allowed at XM
Below is an overview of the transactions permitted at XM.
By understanding what types of transactions are permitted while avoiding prohibited activities, you can use your bonus and funds with peace of mind. Trading methods such as hedging and scalping are permitted within the program, so we recommend it. The range of tolerance is wider than other similar services.
Regular trading of spot currency pairs
- Examples: USD/JPY, EUR/USD, GBP/USD, etc.
- Content: Trading as spot FX.
- Features: Leverage up to 1:888 (limit varies by account type).
- Conditions: No issues with standard trading in accordance with XM’s terms and conditions.
Trading precious metals, energy and stock indexes
- Precious Metals: XAU/USD (Gold), XAG/USD (Silver)
- Energy: Crude Oil (WTI, BRENT)
- Stock Indices: US30, US100, GER30, etc.
- Features: Trading is possible even when indexes are announced. However, beware of widening spreads and sudden fluctuations.
Long (buy) and short (sell) positions
- XM allows both long and short trading of currency pairs and CFDs.
- Limit orders, stop orders, and market orders are also freely available. Target large price movements.
Use of automated trading (EA)
- Automated trading using MT4/MT5 EAs is permitted.
- However, fraudulent EAs that violate the terms of service and prohibited activities (such as excessive arbitrage) are prohibited.
Hedging (holding both buy and sell positions in the same account)
- It is often permitted for MT5 accounts.
- Restrictions apply depending on the account type, so be sure to check in advance.
Index releases and news trading
XM does not prohibit trading economic indicators.
Caution:
Wide spreads and slippage are possible.
It is dangerous to jump on the initial momentum.
Always set stop losses.
Lot adjustment and small transactions
- Small-amount trades (starting from 0.01 lots) are also possible.
- Bonus trading is also possible.
- Suitable for risk management. High leverage allows for fast trading from opening price to closing price.
Frequently asked questions about prohibited activities
Below is a summary of frequently asked questions (FAQs) regarding prohibited activities at XM.
Prohibited activities have serious consequences, such as account freezing and bonus confiscation, so it is important to understand them before entering or trading, no matter how many times you do.
For this reason, partners should understand how the platform and swap points work. Once prepared, they should aim for times when large price differences occur and make their trades accordingly. There is also an official guide on the above, so please take a look at it carefully.
Q1: Is it allowed to open multiple accounts?
A: Generally, it is prohibited to fraudulently open multiple accounts under the same name.
As an exception, you may apply for additional accounts in accordance with XM’s terms and conditions, but creating multiple accounts for the purpose of receiving bonuses is prohibited.
If you violate these rules, your account may be frozen, and your bonuses and profits may be confiscated.
Q2: What happens if I open an account with false information?
A: If you register with false information such as your name, address, or ID, you run the risk of having your account frozen and being unable to withdraw funds.
Your information may be verified before withdrawals can be made, so it is essential that you register with accurate information.
Q3: Is it okay to use bonuses for gambling-like transactions?
A: No, it may be considered prohibited activity.
In particular, activities such as repeatedly engaging in high-leverage trades only when indicators are announced may result in bonus confiscation and account suspension.
Q4：自動売買（EA）は使えますか？
A: Yes, as long as you follow the rules.
MT4/MT5 EAs are generally permitted.
However, fraudulent EAs and EAs used for excessive arbitrage are in violation of the terms of use.
Q5: Is hedging possible?
A: There are restrictions depending on your account type.
Hedging is generally possible with MT5 accounts.
However, hedging may be prohibited depending on your account type and conditions, so please check in advance.
Q6: What happens to my bonus when I withdraw it?
A: When you withdraw money, the bonus will be reduced proportionally to the amount withdrawn.
Repeated withdrawals for the purpose of receiving bonuses may also be prohibited.
Q7: What are the penalties for violating the terms and conditions?
- Bonus confiscation: Bonuses and associated profits are lost.
- Profit confiscation: Profits obtained through fraudulent activity are confiscated.
- Account freeze/suspension: Account cannot be reinstated.
- Withdrawal refusal: In the case of false information or fraudulent activity.
- Legal action: In the case of criminal activity such as money laundering.
Q8: What are the key points to avoiding prohibited activities?
- Keep personal and account information accurate.
- Avoid high-leverage trading solely for bonus purposes.
- Avoid fraudulent EAs and automated trading for arbitrage purposes.
- Do not violate domestic regulations.
- Follow bonus, withdrawal, and deposit rules.
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