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Is XM Regulated by CFTC? U.S. Trading Laws & XM Compliance (2025)
When looking for a reliable forex broker, U.S. residents often ask, “Is XM regulated by CFTC?” The short answer is no, and in this article, we’ll explain why, what that means for you, and how XM is still a globally trusted platform.
👉 Live outside the U.S.? Open your XM account here to start trading under top-tier regulation.
Introduction to XM Broker
XM is a globally respected forex and CFD broker with more than 5 million clients in 190+ countries. It offers a wide range of instruments, including:
Forex
Stocks
Commodities
Indices
Cryptocurrencies
Despite its global reach, XM is not authorized to operate in the U.S. due to CFTC restrictions.
What Is the CFTC?
The Commodity Futures Trading Commission (CFTC) is the U.S. government body that regulates derivatives markets, including futures and retail forex. It ensures:
Market integrity
Broker compliance
Consumer protection
CFTC works alongside the National Futures Association (NFA) to license U.S.-based brokers.
Is XM Regulated by CFTC?
No, XM is not regulated by the CFTC, and therefore cannot accept U.S. clients. The broker does not appear in the NFA’s registry or hold a CFTC license, which are mandatory for legally offering forex services in the United States.
👉 For global clients outside the U.S., XM remains a top choice. Visit the official XM website to learn more about its international regulation.
Why XM Is Not Regulated by the CFTC
1. U.S. Regulatory Barriers
The U.S. imposes very strict conditions on brokers, such as:
$20 million minimum capital requirement
FIFO rule enforcement
No hedging allowed
These rules make it less practical for many international brokers, including XM, to enter the U.S. market.
2. XM’s Focus on International Markets
XM has chosen to focus on regions where it holds licenses, such as:
Europe
Australia
Asia
MENA
This allows them to offer competitive leverage and bonuses—something not allowed under U.S. regulations.
Can U.S. Residents Trade with XM?
No, U.S. citizens and residents are not allowed to open accounts with XM. Attempting to do so using a VPN or fake address is a violation of their terms of service and may lead to account closure.
XM’s Global Regulation Framework
While not CFTC-regulated, XM is fully licensed by respected international bodies:
RegulatorCountryLicense NumberCySECCyprus (EU)120/10ASICAustralia443670DFSADubai (UAE)F003484FSCBelize000261/158
Each regulator enforces strict compliance rules to protect traders.
👉 For peace of mind, register with a regulated XM entity based on your country.
Does CFTC Regulation Affect Global Traders?
Not necessarily. CFTC rules are primarily for U.S. residents. Traders in Europe, Asia, Africa, and the Middle East are not required to use CFTC-licensed brokers. In many cases, brokers like XM offer better features and lower costs outside U.S. jurisdictions.
How XM Ensures Trader Safety Without CFTC
Even without CFTC oversight, XM provides:
Segregated client funds
Negative balance protection
Financial reporting audits
Transparent trading conditions
These features are enforced by XM’s current regulators.
Trusted Alternatives for U.S.-Based Traders
If you're in the U.S., consider these CFTC-licensed brokers:
BrokerRegulatorNotesIG U.S.CFTC, NFALow leverage, high safetyForex.comCFTC, NFAStrong education toolsOANDACFTC, NFAPopular for beginners
Note: These brokers follow strict U.S. rules, such as no hedging and leverage caps at 1:50.
How to Open a Non-U.S. XM Account
Visit XM’s secure registration page
Choose your country of residence (must not be U.S.)
Submit ID and proof of address
Fund your account
Start trading under a regulated global entity
Final Verdict – Is XM Regulated by CFTC?
No, XM is not regulated by the CFTC and does not accept U.S. residents. However, XM is still a globally licensed and highly trusted broker with top-tier regulation in Australia, the EU, Dubai, and Belize.
👉 If you're outside the U.S. and want a secure trading experience, open your XM account today.
FAQs About XM and CFTC Regulation
Why isn’t XM available in the U.S.?
XM doesn’t hold a CFTC or NFA license, which is legally required to serve U.S. traders.
Can I register with XM using a VPN?
This violates XM’s terms of service and can result in account termination.
Is CFTC regulation better than ASIC or CySEC?
CFTC is strict, but ASIC and CySEC are also considered top-tier regulators with robust trader protections.
Are non-CFTC brokers safe?
Yes, many non-CFTC brokers like XM are highly reputable and globally regulated.
What if I move abroad—can I then use XM?
Yes. Once you change your residency, you can register with XM as a non-U.S. client.
Where is XM licensed instead of the U.S.?
XM is licensed in Cyprus (CySEC), Australia (ASIC), Belize (FSC), and Dubai (DFSA).
