XMTrading: Is the relationship between the Japanese Financial Services Agency and XM illegal? Thorough explanation of reasons for no registration

XMTrading

XM Trading is a world-famous FX company, but it is not registered with the Japanese Financial Services Agency. Therefore, some Japanese say that XM is a dangerous and illegal Forex company. On the contrary, it is true that there are traders who can only use XM in excellent companies. So I investigated the relationship between XM and the Financial Services Agency, so I wrote an article.

Financial Services Agency and XM

The Financial Services Agency (FSA) is an organization that conducts general operations related to finance, establishes systems, and supervises them. Since XM also falls under the financial trading market, I feel that it is necessary to register with the Financial Services Agency as long as Japanese traders use it, but that is not the case, that is, it is unregistered. However, XM is not a Japanese company and is not a company operated exclusively for Japanese people. Since customers are all over the world, it is outside the jurisdiction of the Japanese Financial Services Agency, and even if it is not registered, it is not illegal and there is no application of law. In the FSA, it is listed in the warning list of unregistered traders as a FX company that is not registered with the Japanese FSA. However, there is no need to worry about it because it is not because you have done something wrong with the trader or because there is an illegal operation.

XM is not a Japanese Forex company

Even though XM is a major FX company and is famous worldwide, there is a reason why it is not registered with the Financial Services Agency in Japan. This is because of the following reasons. Because we provide financial and investment services overseas, we do not comply with Japan’s Financial Instruments and Exchange Act. Therefore, direct sales or solicitation of such services in Japan is prohibited by the authorities. However, residents can use it at their own risk. The operating company also offers asset management and automatic trading services for Japanese people.

Location is foreign

The location of the XM group is foreign (Mauritius). In fact, the company that has the FSA and FSC financial license numbers and manages it is tradexfin limited in principle. This can be confirmed from the homepage. Depending on the type of account, the spread and leverage in the market will vary overall. Customers can access the homepage on the Internet to check the details of the company’s overview and functions. Please refer to the environment described.

Trading with high leverage

Foreign Forex companies such as XM have no upper limit on leverage, and there are companies with 3000 times higher leverage, making high leverage trading with a small amount of money attractive. XM’s maximum leverage is 888 times, but if you register with the Japanese Financial Services Agency, there is a law that will reduce the maximum leverage to 25 times. In that case, dynamic trading with a small amount of money becomes impossible, and there is no reason to use XM.

Zero cut becomes unusable

XM has a zero cut system that will bear the excess loss when there is a loss that exceeds the account balance. There is no additional proof, so you will not be in debt. The zero cut system is prohibited in Japan, so it cannot be used. Therefore, from a trader’s perspective, if XM is registered with the Japanese Financial Services Agency, it will be at risk.

bonus regulation

XM currently has 3 types of bonuses and has a reputation for being more luxurious than other companies. Just by opening an account, 3000 yen is added according to the deposit amount, and all bonuses such as point reduction according to the status can be used as funds for trading. However, Japanese Forex companies are in a conflicting relationship that does not benefit the company unless the trader loses. For this reason, trading with a Japanese Forex company has no merit for traders.

Is XM a safe company?

Although XM is not registered with the Financial Services Agency, committees, or organizations in Japan, it is reliable and recommended as it has obtained licenses in multiple countries that are difficult to obtain and maintain. Users can also receive compensation if their balance becomes negative due to new trades in financial products. It is an FX broker with high execution power and a high possibility of earning money. Transaction fees apply, but many financial products are handled. Some features are summarized below for your reference.

financial license

XM is a company that started in Cyprus and continues to open branch offices in Australia, Belize, England, Dubai, Seychelles, etc. In other words, the results are quite good. Furthermore, all licenses have been added by the Securities and Exchange Commission and are firmly in place. It’s a standard company and has oversight and regulation. This company ranks high in the popularity rankings because of its solid support.

  • CySEC (Cyprus Securities and Exchange Commission)
  • FCA (British Financial Conduct Authority)
  • ASIC (Australian Securities and Investments Commission)
  • Seychelles Financial License

Separated management/Trust maintenance

At its core, XM is a broker that segregates client funds. Separate management is a method of managing funds outside of XM. Furthermore, the separate management method is trust preservation. Trust preservation means that the separate management destination is a bank trust account. If the trust bank trust is maintained, even if the FX company goes bankrupt, the above items will not be subject to seizure, so the company has a high reputation. Even if you encounter any major troubles when you start, there is no problem as it is guaranteed.

ample funds

XM overwhelms other FX companies with its capital strength. XM’s capital is said to be over 40 billion yen in Japanese yen, and there is no other FX company that can match it. Proof of this ample amount of funds is the appointment of Usain Bolt as an official sponsor. If you don’t have a lot of money, you won’t be able to hire that famous person as a sponsor. The terms of service are also strict, so trading operations, buying and selling, and orders are strictly controlled.

Withdrawal refusal

XM has been operating for over 10 years, and so far there have been no malicious problems such as withdrawal refusals. Therefore, there are no major complaints from users, so there is nothing to worry about. Management is applied to strict standards in the industry, and of course we provide better service than other companies (iforex, tradeview, axiory, exness, titanfx, etc.).

Over 10 years of operating experience

XM was founded in 2009 and has been in operation for over 10 years, making it a very famous and experienced FX company, so it is not a malicious company that steals funds and runs away. As a result, we have achieved truly stable management, and there are no concerns about the future. It is always safer to use XM than a new company.

No warning from FSA

So far, XM has not received any warnings or penalties from the Financial Services Agency. You can rest assured that it is not registered because you want to maintain zero cuts and high leverage, and the FSA does not see it as a problem.

コメント

Copied title and URL