XM is one of the leading online brokers for trading forex and CFDs on various assets, such as stocks, indices, commodities, metals and energies. XM has been operating since 2009 and has over 5 million clients from 196 countries. XM offers its clients access to the full MetaTrader platform suite by MetaQuotes Software Corporation, which is widely regarded as one of the best trading platforms in the industry.
But what makes XM stand out from other brokers is not only its trading services and features, but also its security measures that ensure the safety of its clients’ funds and data. XM takes security very seriously and implements multiple layers of protection to prevent any unauthorized access, fraud or misuse of its clients’ information.
In this article, we will explore how XM protects your funds and data with top-notch security measures that cover four main aspects: regulation, segregation, encryption and verification.
Regulation
One of the most important factors that determine how safe a broker is to trade with is its regulation status. Regulation means that a broker has to comply with certain rules and standards set by an official financial authority that oversees its activities.
Regulation also means that a broker has to undergo regular audits and inspections to ensure its compliance and transparency.
XM is regulated by three top-tier financial authorities globally: the Cyprus Securities and Exchange Commission (CySEC) (XM on CySEC), the Australian Securities and Investments Commission (ASIC) and the International Financial Services Commission (IFSC) of Belize (XM on IFSC). These regulators are well-respected in the industry for their strict requirements and high standards of supervision.
By being regulated by these authorities, XM demonstrates that it operates in a fair and ethical manner:
- Follows best practices for risk management and client protection
- Keeps accurate records of its transactions and financial statements
- Maintains adequate capital reserves to cover its liabilities
- Adheres to anti-money laundering (AML) policies and procedures
- Participates in investor compensation schemes (only for Trading Point of Financial Instruments Ltd.)
- Respects client privacy rights.
Segregation
Another key aspect of how XM protects your funds is segregation. Segregation means that a broker keeps its clients funds separate from its own funds in different bank accounts. This way, if a broker faces any financial difficulties or goes bankrupt, its clients’ funds will not be affected or used to pay off its debts.
XM follows this principle of segregation rigorously by keeping its clients’ funds in segregated client bank accounts at reputable banking institutions such as Barclays Bank PLC., Deutsche Bank AG., National Australia Bank Limited., etc. These banks are carefully selected based on their creditworthiness, reliability and reputation.
By keeping your funds segregated from XM’s own funds , you can rest assured that your money is safe and secure with XM and that you can withdraw it at any time without any delays or restrictions.
Encryption
A third aspect of how XM protects your data is encryption . Encryption means that a broker uses advanced technology to encode or scramble any information that you send or receive through its website or platform . This way , no one can intercept , read or modify your data without having the proper key or password .
XM uses SSL (Secure Sockets Layer) encryption , which is one of the most widely used and trusted methods for securing online transactions . SSL encryption creates a secure connection between your browser and XM’s server , ensuring that your personal details , login credentials, payment information ,trading history, etc . are protected from hackers, identity thieves, phishing attacks, etc .
By using SSL encryption, you can be confident that your data is safe with XM and that you can trade online without any worries.
Verification
A fourth aspect of how XM protects your identity is verification. Verification means that a broker requires you to provide some proof of who you are before allowing you to open an account , deposit or withdraw funds, change your settings ,etc. This way, no one can impersonate you or use your account without your permission.
XM follows a strict verification process for all new and existing clients.
To verify your identity, you have to provide a copy of a valid government-issued ID document (such as passport, driver’s license, national ID card, etc.
To verify your address, you have to provide a copy of a recent utility bill or bank statement (not older than 6 months) showing your name and address
To verify your payment method, you have to provide a copy of your credit/debit card (showing only the last 4 digits) or a screenshot of your e-wallet account (showing your name and account number). XM may also ask you to provide additional documents or information if necessary.
By following this verification process, XM ensures that it complies with the AML policies and procedures of its regulators, that it prevents any fraudulent activities on its platform, that it protects your account from unauthorized access or misuse, and that it respects your privacy rights as you can read here.
Conclusion
As you can see, XM protects your funds and data with top-notch security measures that cover four main aspects: regulation, segregation, encryption and verification. These security measures demonstrate XM’s commitment to providing a safe and secure trading environment for its clients. XM is a broker that you can trust with your money and information.
If you are looking for a reliable and reputable broker to trade forex and CFDs online, XM is a great choice. XM offers competitive trading conditions, such as low spreads and commissions, fast execution speeds, flexible leverage options, multiple account types and platforms, a wide range of trading instruments, free educational resources, excellent customer support, and more you can read on XM review.
To start trading with XM today , visit their website and open an account .
