[XMTrading: For FX Beginners] Thorough explanation of prohibited matters and violation of terms of use in trading

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.

Prohibited items/Trade rules that violate the terms of use
Possibility of XM penalties and risks
If you receive a penalty
1. Related

Prohibited items/Trade rules that violate the terms of use

XMTraidng is recommended among overseas Forex companies. According to the official XMTraidng, 9 points are prohibited. Please rest assured that automatic trading (EA) and scalping are permitted. Regarding other exploited methods, the following points are important: Trading aimed at server delays is also dangerous. There may be restrictions, so please refer to the summary page on the official website for negative risks. This will be clearly stated regarding the problematic order. Make your decision and trade.

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Hedging transactions between multiple accounts (between different accounts)

Hedging transactions between multiple accounts (between different accounts). XM can open up to 8 accounts per account, but if you use multiple accounts to build both accounts, it will be a violation of the terms of use.

If you have opposite positions in Accounts A and B, such as holding a buy position in USD/JPY in Account A and a sell position in USD/JPY in Account B, it will fall under the terms of a cross-deal transaction in violation of the rules.

Hedging is an act that is only allowed for the same account and same currency pair.

Hedging transactions using other companies’ accounts

There are many FX companies other than XM, but XM’s information only prohibits double-denomination using funds from multiple companies. Double-denominated trading is prohibited by XM’s terms of service, so if you plan to use multiple FX brokers, be careful by checking their reputation and reviews. Although it is prohibited depending on the type, it is OK to have both currencies in the same account.

Hedge trades conducted by a group of people

A hedging transaction performed by a group of multiple people. This applies to trading methods in which a friend or family member other than the account holder cooperates with the account holder to build both accounts.

Be aware that if you build both, you will be suspected from your transaction history and will be subject to penalties.

Transactions aimed at window filling only

In the exchange market, there may be a “window” at the beginning of the week, which is a divergence in price from the previous week. The window tends to be filled after the beginning of the week, but trading that attempts to gain profit only by filling the window is prohibited and violates the terms of use.

Note that doing this too many times will result in some kind of penalty.

High leverage trade aimed only at the time of economic indicator announcement

XM uses a zero-cut system, so traders do not have to pay additional charges, but the trader will compensate for this through their services. Announcements of employment statistics and policy interest rates are particularly volatile. Management does not recommend trading during this time period, and slippage is likely to occur.

When economic indicators are announced, the price fluctuates greatly, so if you trade at high leverage, you have a chance to make a big profit, but you also risk a big loss.

Arbitrage

Arbitrage is a transaction that attempts to make a profit by taking advantage of a temporary price difference between currencies of the same price.

Recently, more and more people are using AI for arbitrage, but be aware that it will soon be exposed and subject to heavy penalties.

Trading on Connection/Server/Rate Errors

Some people try to trade when the rate moves unnaturally due to a server error, but please be aware that this is prohibited. If you do this, the zero cut system will not be adopted. Some are listed on the official page. Generally these trades are also prohibited by other brokers (gemforex, titanfx, axiory, exness, fxgt, etc.).

Illegal acquisition and use of bonuses

At XM, you can receive 3,000 yen as a new account opening bonus, but it is prohibited to use false personal information to receive duplicates. Even if each profit/loss is positive, there is a very high possibility that the customer’s account will be frozen. Obtaining information for this purpose is a violation of the terms and conditions and is not permitted.

If you try to get it illegally, the bonus will be confiscated, and other penalties will be imposed, so be careful as the cost performance is quite bad.

Self-affiliate trading

Self-affiliate means that you can get an affiliate reward of $ 3 to $ 10 per lot by opening an account + trading from the referral link of the affiliate of XM that you manage.

At XM, it is clearly stated that self-affiliation is prohibited, saying, “Courses that are considered to be under your own account or under your control will not be considered as commissions.”

Possibility of XM penalties and risks

We will explain the penalties for touching prohibited matters or violating the Terms of Use. If a violation of the rules is found, the following penalties will be given: Once the conditions are deemed sufficient, trades will no longer be possible. If you are banned, you will not be able to access the official website and will not receive XMP. Normally, it becomes impossible to buy or sell on the market. I have listed important points for each.

forfeiture of profits

This is the forfeiture of profits generated from the transaction. Since profits obtained through violation of the terms and conditions are illegal profits, it is natural that the profits should be confiscated. If you fraudulently obtain a bonus offer, it can also be confiscated. If you are caught intentionally repeating different fraud, your account may be suspended. Please ensure safe operation.

Withdrawal refusal/bonus confiscation

As with forfeiture of profits, it is natural that you will not be able to withdraw illegal profits due to violation of terms and conditions. Please be aware that if you violate the terms, you will be blacklisted and will not be able to open a new account. There are also cases where a contract is rejected. If you know the cause, please contact our support center. Depending on the operating company, you may not be able to trade again or withdraw money, but XM is relatively gentle.

Permanent freeze/account suspension

Permanent freezing of trading account/account suspension. This is the heaviest penalty. When trading, be sure to follow the rules. Such cases are also mentioned in the FAQ and Terms of Use. Please avoid cheating as it will be checked and found out. There have been no cases yet, but if you do this intentionally even once, you may be unable to use it for 24 hours.

If your account is frozen, you will need to reopen your account. The maximum leverage is 1000x, so there are many people who make money with this broker, which is a great place to start. The platform is also compatible with MT4 and MT5, and a zero cut system is also adopted. Be careful how you use it. However, if the same user creates an account again, it may be blocked. You can open one without any fees.