This article explains whether affiliate marketing is illegal because xm does not have a registration license from the Financial Services Agency. XMTrading has a partner program where you can become an affiliate. In Japan, XM affiliate marketing is said to be a gray area, but what is the reality? I would like to mention the opinion of the Japanese Financial Services Agency and the possibility of arrest.
- XMtrading
- Is XM affiliate marketing illegal? Or legal?
- What are illegal activities in XM affiliate marketing?
- Important Points to Keep in Mind for Maintaining the Legitimacy of XM Affiliate Marketing
- Guarantees of commissions or earnings are also a no-no.
- XM Affiliate Success and Failure Cases
- Frequently Asked Questions About XM Affiliates
- Is XM Affiliate Marketing Legal in Japan?
- How much will I receive?
- Can anyone participate?
- How can I advertise safely?
- Can I guarantee profits?
- Can beginners make money?
- Can you promote it as a set with educational materials or automated trading tools?
- What are the common causes of failure in XM affiliate marketing?
- XM Affiliate Commission Structure and Withdrawal Methods
- Steps to Getting Started with XM Affiliate Marketing
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 |
Is XM affiliate marketing illegal? Or legal?
To put it simply, XM affiliate marketing itself is “not illegal, but legal under certain conditions.”
However, there are some points that tend to be gray areas in Japan, so it’s important to understand and be aware of them.
① Affiliate marketing itself is legal.
Affiliate marketing falls under the category of “advertising” and is generally legal in Japan.
XM (XMTrading) is a foreign FX broker,
but the act of advertising for foreign brokers is not illegal.
Japanese people are not “prohibited” from using foreign FX brokers.
This is the current situation.
Important Points to Note: Gray Areas
① XM is “Not Registered with the Financial Services Agency of Japan.”
Since XM is not registered with the Financial Services Agency of Japan, false or misleading statements such as:
❌ “A legal FX broker in Japan”
❌ “Approved by the Financial Services Agency”
are illegal (violating the Financial Instruments and Exchange Act).
👉 The correct statement should be: “We are an overseas FX broker, not registered with the Financial Services Agency of Japan.”
② Exaggerated advertising and definitive language are not allowed.
The following statements pose a high risk of being illegal:
“You’re guaranteed to make money.”
“You’ll never lose.”
“100% monthly interest guaranteed.”
“Even beginners can win.”
This may violate the Financial Instruments and Exchange Act.
The Act Against Unjustifiable Premiums and Misleading Representations.
③ IB commissions are not passive income.
“Earn money forever, even if you leave it alone.”
“Earn income without doing anything.”
Statements like these are also likely to be considered misleading advertising.
④ Issues with the Specified Commercial Transactions Act (when bundled with information products)
Even if XM affiliate marketing itself is OK,
If you are promoting it as a set with expensive FX educational materials,
Salons,
What are illegal activities in XM affiliate marketing?
The activities that are likely to be deemed “illegal” in XM affiliate marketing are not the affiliate marketing itself, but rather problems with the method and expression used. They may violate Japanese laws (primarily the Financial Instruments and Exchange Act, the Act against Unjustifiable Premiums and Misleading Representations, and the Act on Specified Commercial Transactions). The details are summarized below.
False or Exaggerated Advertising
Examples:
“You’ll be guaranteed to make money.”
“You’ll never lose money.”
“100% monthly interest guaranteed.”
“Even beginners can win.”
📌 Issues:
Violation of the Financial Instruments and Exchange Act (prohibition of profit guarantees)
Violation of the Act against Unjustifiable Premiums and Misleading Representations (misleading representations)
Key Points: It is not acceptable to make definitive statements about profits or win rates.
Misleading advertising by unregistered financial institutions
XM is an overseas FX broker that is not registered with the Japanese Financial Services Agency.
Expressions that are likely to be illegal:
“Approved by the Japanese Financial Services Agency, so it’s safe”
“Equally safe to use with domestic FX”
📌 Issues:
Possibility of violation of the Financial Instruments and Exchange Act due to false representations
Excessive emphasis on “safety and security” also poses risks
Key point: Always clearly state “overseas FX” and “not registered with the Financial Services Agency.”
Excessive promotional and aggressive solicitations
Example:
Persistent solicitations via LINE or phone
“Open an account now or you’ll be missing out”
Soliciting using a sense of exclusivity on closed social media
📌 Issues:
Specified Commercial Transactions Act (unauthorized solicitations via door-to-door sales and mail order)
Act against Unjustifiable Premiums and Misleading Representations (misleading and misleading representations)
Bundled sales with information products or tools
XM affiliate marketing itself is legal, but caution is required when selling bundled products with FX educational materials, EAs, automated trading tools, etc.
Illegal Risks:
Violation of disclosure obligations under the Specified Commercial Transactions Act (e.g., seller information, return policy)
Possible criminal liability for fraudulent profit guarantees
Misrepresentation of IB and affiliate commissions
Illegal Examples:
“Commissions are guaranteed every month”
“Completely passive income”
📌 Issues:
Misleading representations violate the Act against Unjustifiable Premiums and Misleading Representations
Revenues cannot be guaranteed because they depend on individual trading results.
Important Points to Keep in Mind for Maintaining the Legitimacy of XM Affiliate Marketing
There are five key points to keep in mind when operating XM Affiliate Marketing legally. Following these points will significantly reduce your legal exposure in Japan.
Clearly state that it is an overseas FX broker.
XM is an overseas FX broker and is not registered with the Financial Services Agency of Japan.
When introducing XM in articles or on social media, be sure to clearly state this.
✅ Example:
“XMTrading is an overseas FX broker and is not registered with the Financial Services Agency of Japan.”
❌ Example of a Bad Response:
“The same safety and security as Japanese FX”
→ Misleading statements pose a risk of illegality.
Avoid definitive statements about profits and win rates.
Statements such as “guaranteed profits,” “no losses,” and “even beginners can win” pose a significant risk of illegality.
FX is a financial product at your own risk, and results cannot be guaranteed.
✅ Examples of safe phrases:
“You may make a profit, but you may also incur a loss.”
“Please trade only after understanding the risks.”
Always explain the risks.
FX is a financial product that can result in capital losses or losses.
Affiliate articles and introductory pages must include a risk explanation.
✅ Example:
“Leveraged trading may result in losses greater than the principal. Use at your own risk.”
Avoid exaggerated advertising and promotional language.
Promotional language that emphasizes urgency, such as “Open an account now or you’ll lose out,” is a no-no.
Pressful solicitations via LINE or over the phone also pose a risk of illegality.
✅ Safe phrases:
“If you’re interested, please check the official website for details.”
“Opening an account is at your own discretion.”
Do not bundle with information products or tools.
Although XM affiliate marketing is legal, selling it bundled with educational materials or automated trading tools poses the risk of violating the Specified Commercial Transactions Act and being fraudulent.
Guarantees of commissions or earnings are also a no-no.
✅ Key Points:
Introduce affiliate marketing alone.
If linking educational materials or tools, clearly explain the risks and include a notice regarding the Specified Commercial Transactions Act.
Advantages and Disadvantages of XM Affiliate Marketing
By summarizing the advantages and disadvantages of XM Affiliate Marketing, the unique characteristics of overseas FX affiliate marketing become clear. We will also explain the risks associated with Japanese law and practice.
Advantages of XM Affiliate Marketing
- High Commission Structure
IB (Introducing Broker) commissions are paid based on new account holders and deposit amounts.
Performance-based commissions allow even beginners to get started with no initial costs.
- The popularity of overseas FX makes it easy to attract customers.
XM is well-known in Japan and has a wealth of information for beginners.
Appealing points such as “overseas FX” and “up to 1000x leverage” easily attract interest.
- Comprehensive Advertising Materials and Support
Banner ads and landing page materials are provided.
A dedicated affiliate management screen makes it easy to check commissions and create links.
- Zero Initial Costs
Anyone with a website or social media accounts can get started right away.
There is low risk because there is no inventory or product shipping.
Disadvantages of XM Affiliate Marketing
- Legal Risks
Be aware of regulations under Japan’s Financial Instruments and Exchange Act and the Act against Unjustifiable Premiums and Misleading Representations.
Exaggerated statements such as “guaranteed profits” and “safety” risk being illegal.
Pressive solicitations (via LINE or phone) are also not allowed.
- Commissions Depend on Account Opener’s Trading
Affiliate commissions depend on account opening and trading, so they are not guaranteed to be stable.
Beginners who only open an account may not receive commissions.
- Risks of Overseas FX Reliability
XM is an overseas FX broker and is not registered with the Financial Services Agency of Japan.
Misrepresenting its reliability to users poses legal and credibility risks.
- Intense Competition for SEO and Social Media Marketing
Due to the popularity of XM Affiliate Marketing, there is a lot of competition on blogs, YouTube, etc.
If you rely solely on advertising to attract customers, click-through rates and success rates may be low.
- Selling a product bundled with educational materials or EAs poses risks.
Bundling a product bundled with FX educational materials or automated trading tools poses the risk of violating the Specified Commercial Transactions Act and fraudulent advertising.
XM Affiliate Success and Failure Cases
By reviewing the success and failure cases of XM affiliate marketing, it becomes clear that earnings can vary greatly depending on the approach. Since Japanese regulations are also involved, we will also explain this perspective. Make money by utilizing promotions in a large platform environment.
Success Cases
- Information-based Affiliate Marketing on FX Blogs
Method: Write explanatory articles on overseas FX and beginner-friendly strategies, and introduce XM within the articles.
Key Success Points:
Use keywords that are easy to search for in SEO, such as “overseas FX” and “high leverage.”
Carefully explain the account opening process and risks.
Results:
Earn stable affiliate commissions of around ¥50,000 to ¥200,000 per month.
Gain reader trust and attract customers on a continuous basis.
- YouTube Video Promotion
Method: Produce videos explaining how to open an XM account and trading.
Key Points for Success:
Carefully explain the interface and deposit/withdrawal procedures for beginners.
Avoid any profit guarantees and explain the risks within the video.
Results:
Account openings increase with the number of views.
Earn thousands to tens of thousands of yen per video.
- Information dissemination via social media (Twitter, XM, etc.)
Method: Operate an account for FX beginners and introduce XM.
Key Points for Success:
Share useful information and success/failure stories with followers.
Honestly state “overseas FX” and “risks involved.”
Results:
Increased account opening rates among followers, resulting in consistent commissions.
Failures:
- Exaggerated advertising/profit guarantees.
Method: Use definitive statements on blogs and social media, such as “XM is guaranteed to be profitable” and “Earn 100,000 yen per month.”
Failures:
Risk of violating the Financial Instruments and Exchange Act and the Act against Unjustifiable Premiums and Misleading Representations.
Misleading readers and loss of trust.
Results:
Temporary increase in account openings, but risk of government guidance and affiliate suspension.
Failure to generate long-term profits.
- Aggressive Sales/LINE Sales
How it works: Persistently soliciting via direct mail or LINE, saying, “Open an account now or you’ll lose out!”
Failure Points:
Possible violation of the Specified Commercial Transactions Act and the Anti-nuisance Ordinance
Increased complaints and blocks from readers
Results:
Account freezing and loss of credibility
No commission, no continuation
- Selling as a set with educational materials or tools
How it works: Presenting XM affiliate marketing, automated trading tools, and expensive educational materials as a set
Failure Points:
Misleading claims that suggest “you can make money with this set”
Risk of violating the Specified Commercial Transactions Act and fraudulent representations
Results:
Risk of complaints and administrative guidance
Suspension of commissions and loss of credibility
Frequently Asked Questions About XM Affiliates
We have compiled answers to frequently asked questions about XM Affiliates in Japan. We have focused on key questions beginners are likely to have.
Is XM Affiliate Marketing Legal in Japan?
Answer: XM Affiliate Marketing itself is legal.
However, profit guarantees, exaggerated advertising, and aggressive solicitations pose a risk of violating the Financial Instruments and Exchange Act, the Act Against Unjustifiable Premiums and Misleading Representations, and the Specified Commercial Transactions Act.
To ensure safe trading, it is essential to clearly state that it is an overseas FX transaction and explain the risk of loss.
How much will I receive?
XM offers two main types of IB commissions:
CPA (Account Opening Commission): A fixed amount is paid for each new account opened.
Royalty (Trading Volume-Based Commission): Commission is based on the number of lots traded by the introducer.
Commission amounts are not fixed and can range from tens of thousands of yen to hundreds of thousands of yen per month depending on performance and trading volume.
Can anyone participate?
Yes, anyone can register.
Register as an IB (affiliate) on the official website and promote the service using dedicated links and banners.
However, advertising in Japan must comply with local laws.
How can I advertise safely?
Examples of safe advertising methods:
Blogs/websites: Articles explaining overseas FX and XM, with explanations of risks.
YouTube: Videos explaining account opening procedures and deposits/withdrawals, without guarantees of profits.
SNS: Posting FX information for beginners and explaining the risks.
❌ Behaviors to avoid:
Declaring “guaranteed profitability”
Aggressive solicitations via LINE or direct mail
Introducing the service bundled with expensive educational materials or automated trading tools
Can I guarantee profits?
Absolutely not.
FX trading is at your own risk and there is a risk of losses. Providing profit or win rate guarantees carries the risk of violating the Financial Instruments and Exchange Act.
Can beginners make money?
It is possible, but proper management and customer acquisition are required.
Many success stories involve “trusted, information-driven affiliates,” and it’s not a quick way to make money.
Can you promote it as a set with educational materials or automated trading tools?
This should generally be avoided.
Selling it as a set may violate the Specified Commercial Transactions Act or pose a risk of fraud.
What are the common causes of failure in XM affiliate marketing?
Exaggerated advertising and profit guarantees
Aggressive solicitations and incitement
Ignorance of laws and regulations
Operations that prioritize short-term profits over reliability
XM Affiliate Commission Structure and Withdrawal Methods
The following is a summary of the XM Affiliate (Partner Program/IB Rewards) commission structure and withdrawal methods, including easy-to-understand information (which is also common for overseas FX). My advice is that anyone looking to do business online should always check the terms and conditions.
📌 1. Commission Structure (Mechanism)
✅ (A) IB Rewards (Trader Referral)
When a new trader opens an account via your affiliate link, you receive commissions for each actual trade.
This system pays a fixed commission for each lot traded.
→ Commissions per lot vary depending on the level and circumstances (up to $15/lot).
📌 Points
Positions that have been traded and settled are eligible.
Positions held for at least 5 minutes may not be eligible for rewards. (Conditions apply.)
✅ (B) Sub-Affiliate (Partner Referral)
By introducing another affiliate (partner), you are entitled to receive 10% of the commissions earned by that affiliate.
→ While it’s not easier to earn, it can help support your “recurring income.”
📌 2. Commission Generation and Payment Timing
Affiliate commissions are settled and paid periodically, such as weekly.
You can check the “next payment date” on the partner management screen.
📌 3. How to Withdraw (Receive) Commissions
Affiliate commissions earned are paid as part-time commissions.
Steps to Getting Started with XM Affiliate Marketing
We’ve outlined the steps to safely get started with XM Affiliate Marketing in an easy-to-understand manner for beginners. This is the process for monetizing while avoiding legal risks. Please refer to the above when selecting directly from the homepage. In addition to investing, there are other ways to earn money directly through commissions.
Step 1: Register as an Affiliate (Partner)
Access the “Affiliate (Partner) Registration Page” on the XM official website.
Enter the required information (name, email address, bank account information, etc.)
You will be issued an IB (Introducing Broker) ID.
Get affiliate links and banner ads.
📌 Key Points:
Identification documents are required for registration.
Self-affiliation is prohibited.
Step 2: Decide on a Customer Acquisition Method
To safely and efficiently earn commissions, it is essential to provide reliable information.
Blog/Website: Explaining overseas FX, account opening procedures, and risk explanations
YouTube: Videos explaining how to open an account and deposits and withdrawals
SNS (Twitter/X, Instagram): Providing FX information for beginners
📌 Tips:
Avoid exaggerated claims such as “guaranteed profits”
Clearly state that it is an overseas FX and is not registered with the Financial Services Agency
Step 3: Creating Content
① For blogs/websites
“How to open an XM account”
“Differences between overseas and domestic FX”
“Explanation of leverage and spreads”
② For YouTube
Video explanations of screen operation and deposit/withdrawal procedures
Include beginner-friendly precautions and risk explanations
③ For SNS
Share simple explanations and news
Direct to official links
📌 Tips:
Avoid misleading language
Always include a risk explanation
Step 4: Installing affiliate links
Add affiliate links to your content
Use banner ads to visually guide your audience
📌 Key Points:
Make sure the link is working properly.
Step 5: Check your commissions and set up withdrawals.
Check your commissions on the Partner Management screen.
Set your withdrawal method.
Transfer funds to your trading account (bonus available).
Domestic bank transfer.
Withdraw via bitwallet.
📌 Key Points:
Withdrawals are only accepted to accounts in your own name.
For bank transfers, check fees and arrival times.
Step 6: Operation and Improvement.
Continue to attract customers through SEO and social media.
Respond to reader questions and comments to increase credibility.
Regularly check for misunderstandings and exaggerations.
📌 Key Points:
Complying with the law and credibility are the keys to success.
Aim for sustainable profitability rather than short-term gains.
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