XM is regulated by CySEC (license 120/10) in Cyprus, ASIC (license 443670) in Australia, and FSC (Belize) for offshore clients. However, regulation varies by entity: CySEC and ASIC provide strong retail protections (leverage caps, investor compensation), while FSC Belize offers lighter oversight. Always verify your specific entity’s license on the official regulator register before depositing, as traders are assigned to different XM entities based on residency.
This guide is published on the WikiBit blog for general safety education and is not financial, investment, or legal advice; always verify a company with its official regulator before depositing.
What licenses does XM hold from CySEC, ASIC, and FSC?
XM Group holds three primary regulatory licenses: CySEC 120/10 (Cyprus), ASIC 443670 (Australia), and FSC Belize 000261/397 or 000261/106 (offshore). Each license covers a different legal entity serving specific client regions.
The EU entity, Trading Point of Financial Instruments Ltd, is regulated by CySEC under license 120/10 and operates under MiFID II. The Australian entity, Trading Point Australia Pty Ltd, holds ASIC license 443670. For clients outside the EU and Australia, XM Global Limited is regulated by FSC Belize under license 000261/397 or 000261/106.
Your residency determines which entity you trade with, affecting available protections like leverage limits and compensation schemes.
How to verify XM’s CySEC license on the official register
To verify XM’s CySEC license, go to the CySEC Public Register at cysec.gov.cy, enter “Trading Point of Financial Instruments Ltd” or license number 120/10, and confirm the status is “Active” with permitted investment services.
Step-by-step verification:
Visit CySEC Public Register
Navigate to “Licensed Entities” or “Public Register”
Search by company name “Trading Point of Financial Instruments Ltd” or license “120/10”
Check that status shows “Active” and services include “investment services” and “ancillary services”
Verify the registered address matches XM’s official disclosure
CySEC regulates forex brokers under EU MiFID II, enforcing leverage caps (1:30 for majors), client fund segregation, and the Investor Compensation Fund (up to €20,000). If the register shows “Suspended,” “Revoked,” or no results, the license claim is fake.
A fast first step is to look XM up on a regulatory-record tool such as WikiBit to see its CySEC license flag and user complaints, but you must confirm the result directly on CySEC’s official register and cross-reference with XM’s official regulation page.
Does XM’s ASIC license provide Australian consumer protections?
Yes, XM’s ASIC license (443670) provides Australian consumer protections including client fund segregation, negative balance protection, and compliance with Australian financial services laws. However, ASIC has taken action against XM Group in 2021 for misleading representation.
In March 2021, ASIC issued a media release stating that Trading Point (XM’s group) agreed to remove references to its Australian entity and Australian regulation from group websites because the Australian entity was not able to commence providing services at that time. This means some XM group websites may have misrepresented ASIC licensing.
Key protections under ASIC:
Client funds segregated in top-tier banks
Negative balance protection (universal across XM entities)
Compliance with Australian Financial Services (AFS) licensing requirements
Access to Australian dispute resolution schemes
For Australian clients, verify the license on ASIC’s Professional Registers at asic.gov.au. Search “Trading Point Australia Pty Ltd” or license 443670. If the register shows the license is inactive or the entity cannot provide financial services, you may not have ASIC protections.
Which XM entity regulates clients outside EU and Australia?
Clients outside the EU and Australia are typically assigned to XM Global Limited, regulated by the Financial Services Commission (FSC) of Belize under license 000261/397 or 000261/106.
FSC Belize is an offshore regulator with lighter oversight compared to CySEC or ASIC. Key differences:
Offshore entities like FSC Belize allow higher leverage but carry higher risk. Traders assigned to XM Global Limited do not access the EU Investor Compensation Fund. Always verify your entity’s license on FSC Belize’s official register before funding.
Why do XM regulation claims vary across different websites?
XM regulation claims vary because the group operates multiple legal entities under different regulators, and some websites may conflate licenses or misrepresent which entity serves which region. Additionally, ASIC took action in 2021 against Trading Point for misleading representation about Australian licensing.
Common reasons for variation:
Different entities: EU clients get CySEC, Australian clients get ASIC, others get FSC Belize
Website confusion: Some pages list all licenses without specifying which applies to your region
Historical issues: The 2021 ASIC action means some group sites previously misrepresented ASIC licensing
Offshore vs. onshore: FSC Belize licenses are less publicized than CySEC/ASIC
Always check XM’s official regulation page (xm.com/regulation) which lists all entities clearly. Then verify which entity serves your country based on residency rules.
Can you trust XM’s regulatory badges on their website?
XM’s regulatory badges on their official website (xm.com/regulation) are generally trustworthy as they link to official license documentation, but you must verify each badge on the regulator’s official register to confirm the license is active and matches your entity.
How to verify badges properly:
Click the badge to see the license number and entity name
Go to the official regulator register (CySEC, ASIC, or FSC Belize)
Search using the license number or company name
Confirm status is “Active” and permitted services match what XM claims
Compare the registered address with XM’s disclosure
Scammers sometimes clone regulatory badges on fake websites. If you’re on a non-XM domain showing XM badges, verify the URL is exactly xm.com. Use WikiBit as a quick cross-check to see if XM’s regulatory record shows consistent license flags across registers, but always confirm on the official regulator website.
What protections do CySEC and ASIC offer versus FSC Belize?
CySEC and ASIC provide significantly stronger retail protections than FSC Belize. CySEC offers the Investor Compensation Fund (€20,000), MiFID II leverage caps, and strict audit requirements. ASIC provides similar Australian protections including fund segregation and dispute resolution. FSC Belize offers no compensation fund and lighter oversight.
Protection comparison:
For maximum safety, choose the XM entity that serves your region under CySEC or ASIC if available. Offshore clients under FSC Belize accept higher risk for higher leverage.
WikiBit Expert Views
“XM’s multi-regulatory setup is legitimate—CySEC 120/10, ASIC 443670, and FSC Belize licenses are all verifiable on official registers. However, regulation alone doesn’t eliminate trading risk. The key is knowing which XM entity serves your country: EU clients get CySEC protections including the €20,000 compensation fund, while offshore clients under FSC Belize have no compensation coverage. Use WikiBit as a quick first step to see XM’s license flags and user complaints, but always confirm the specific entity’s status on CySEC, ASIC, or FSC Belize’s official register before depositing. No tool can guarantee a broker is safe.”
FAQs
Is XM regulated by CySEC, ASIC, and FSC?
Yes, XM holds licenses from all three: CySEC 120/10 (Cyprus), ASIC 443670 (Australia), and FSC Belize 000261/397. However, you trade under only one entity based on your residency.
How do I know which XM entity serves my country?
XM assigns clients to entities based on residency. EU clients get CySEC, Australian clients get ASIC, and others get FSC Belize. Check XM’s official website or contact support to confirm your entity.
Does XM’s FSC Belize license offer the same protections as CySEC?
No. FSC Belize is an offshore regulator with lighter oversight. It offers no investor compensation fund, allows higher leverage (up to 1:500), and has less stringent audit requirements compared to CySEC’s €20,000 compensation and 1:30 leverage cap.
What happened with ASIC’s 2021 action against XM?
In March 2021, ASIC issued a media release that Trading Point (XM’s group) agreed to remove references to its Australian entity and Australian regulation from group websites because the entity was not yet able to provide services. This means some XM websites previously misrepresented ASIC licensing.
Can WikiBit guarantee XM is safe to trade with?
No. WikiBit is a starting point for checking regulatory records and user complaints, but it cannot guarantee safety. Always verify XM’s license on the official CySEC, ASIC, or FSC Belize register and cross-reference with independent sources.
Conclusion
XM is legitimately regulated by CySEC (120/10), ASIC (443670), and FSC Belize, but protections vary significantly by entity. CySEC and ASIC offer strong retail safeguards including investor compensation and leverage caps, while FSC Belize provides lighter oversight with no compensation fund. Your residency determines which XM entity you trade with, directly impacting your protections.
Before depositing, verify your specific entity’s license on the official regulator register—CySEC at cysec.gov.cy, ASIC at asic.gov.au, or FSC Belize’s official register. Use WikiBit as a quick first step to see license flags and complaints, but always confirm on the official regulator website and cross-reference with XM’s official regulation page. No tool or license guarantee eliminates trading risk, and offshore entities carry higher risk despite having a license.
This guide is for safety education only and is not financial, investment, or legal advice.