Is XM a Scam or Legit?
XM holds a valid CySEC licence. The number is public and verifiable.
XM is regulated under CySEC licence 120/10, issued to Trading Point of Financial Instruments Ltd. This licence appears in the CySEC public register. XM has been operating since 2009 — 17 years. Scam operations do not maintain long-term regulated status.
The CySEC registration
| Regulator | CySEC |
| Licence number | 120/10 ✓ |
| Registered entity | Trading Point of Financial Instruments Ltd |
| Status | Authorised |
| Register | www.cysec.gov.cy |
| Years regulated | 17+ |
What CySEC regulation means for you
CySEC-regulated brokers must keep client funds segregated, provide negative balance protection under ESMA rules, and contribute to the Investor Compensation Fund (ICF), which covers up to €20,000 per client.
All regulatory licences
XM holds 4 regulatory licences across different jurisdictions. The entity that applies to your account depends on your country of residence.
| Regulator | Licence | Entity | Max leverage |
|---|---|---|---|
| CySEC | 120/10 | Trading Point of Financial Instruments Ltd | 1:30 max |
| ASIC | 443670 | Trading Point of Financial Instruments Pty Ltd | 1:30 max |
| IFSC | 000261/158 | XM Global Ltd | 1:1000 max |
| DFSA | F003484 | XM Dubai Ltd | 1:30 max |
How to verify XM yourself
Go to www.cysec.gov.cy. Enter the licence number 120/10 or search by entity name Trading Point of Financial Instruments Ltd. The result should show the entity name, authorisation status, and the specific regulated activities it is permitted to conduct.
This takes under a minute. If a broker cannot be found on the relevant regulator's register, that is a serious warning sign. All legitimate regulated brokers appear there.
Common complaints and what they mean
Most XM complaints relate to bonus terms that restrict withdrawals until trading volumes are met. This is disclosed in the bonus terms. Withdrawal processing of 3 to 5 days is slower than instant-withdrawal brokers. Account closures for professional-pattern trading occur occasionally.
None of these patterns indicate fraud. They are the normal complaints of a commercial brokerage enforcing its terms. Real forex scams operate without any regulatory licence, refuse all withdrawals, and disappear with client funds. That is not the profile of XM.
Red flags that would indicate a real scam
When researching any broker, watch for these genuine warning signs:
- No licence number listed, or a licence that cannot be found on the official register
- Pressure to deposit more money to unlock withdrawals
- Promises of guaranteed returns or "risk-free" trading
- Platform that only shows profits, never losses
- No physical address or contact information
- Licence from a regulator you have never heard of that has no official website
None of these apply to XM. Its CySEC licence 120/10 is publicly verifiable, it has disclosed offices in Limassol, Cyprus, and it has operated continuously since 2009.
Frequently asked questions
Is XM safe to deposit money with?
XM is CySEC-regulated and client funds are held in segregated accounts. EU clients are covered by the ICF up to €20,000. This does not eliminate trading risk, but it protects funds from broker insolvency.
Why do people ask if XM is a scam?
Most forex scam searches come from traders who lost money trading. CFD trading is high-risk — 74% of XM retail clients lose money. Losing money on a legitimate platform does not make it a scam. Scams refuse all withdrawals and disappear. XM has processed billions in withdrawals over 17 years of operation.
Is XM regulated in my country?
XM holds licences covering 55 countries across 4 regulatory jurisdictions. The entity serving your account depends on your country. Check the full licence table above to find which entity applies to your region.
What happens to my money if XM goes bankrupt?
CySEC-regulated brokers must hold client funds in segregated bank accounts entirely separate from company operating funds. EU clients have ICF compensation up to €20,000.