Featured On
A trader-filed complaint referenced FSC Ref: A7IGOC is currently under active investigation by the Belize Financial Services Commission — the regulator overseeing one of XM's operating entities. The complaint concerns an unresolved fund dispute the trader escalated after XM's support did not address it internally. As of this review, the case remains open with no published resolution.
XM Group was founded in 2009 and has grown into a global forex and CFD broker, primarily regulated by CySEC in Cyprus, with additional offshore entities under the FSC in Belize and Mauritius. It offers trading on MT4 and MT5 platforms. While its European arm operates under MiFID rules, clients from certain non-EU countries are often routed to the offshore entities, which have lighter oversight.
Croatian traders are typically assigned to XM's offshore entity because Croatia, as an EU member, falls under CySEC's jurisdiction only for clients within the EEA. However, many Croatian clients are still onboarded to the Belize or Mauritius entities due to internal group policies or because they access XM through international websites. This routing means they forgo the stronger protections of EU regulation.
The regulatory score remains comparatively high at 4.0/5 because CySEC is genuinely active and XM holds a top-tier license. However, the score is marked down due to the active Belize FSC complaint (Ref A7IGOC). Complaint and resolution scores are low (1.3 and 2.0) because 61% of withdrawal complaints remain unresolved after 30+ days and there is a documented pattern of account lockouts. This contrast highlights that while the license is real, the practical handling of client issues is weak.
The most significant entry in the ledger is the regulatory escalation: a formal complaint under active investigation by the Belize FSC. This is more serious than typical delay-only complaints because it indicates a fund dispute that could not be resolved internally. Account lockout and deletion are also more severe, as they leave traders with no access to their funds or trading history. Withdrawal delays and a disputed USDT deposit add to the pattern of poor resolution reliability.
Independent fraud-monitoring reports have flagged "XM Saham Investment" as a separate, fraudulent operation suspected of misusing XM's name and branding to promote fake investment schemes on Facebook, Instagram, and Telegram. This is not XM Group — it is a clone impersonation scam that trades on a legitimate broker's reputation to mislead investors.
If you were contacted via social media with guaranteed-return promises using XM's name, this is very likely the clone scam, not the real broker. Always verify you're on XM's official domain and never send funds based on a social-media investment pitch.
| Entity | Regulator | Tier | Protection |
|---|---|---|---|
| XM Group (EU) Ltd | CySEC | Top-tier | ICF up to €20,000 |
| Trading Point of Financial Instruments Ltd | FSC Belize | Offshore | No compensation scheme — site of the active complaint |
| XM Global Limited | FSC Mauritius | Offshore | No compensation scheme |
Croatian traders are most commonly assigned to XM's offshore entity under the FSC Belize, rather than the CySEC-regulated European entity. This is because XM routes clients from outside the EEA to its Belize or Mauritius subsidiaries. While Croatia is an EU member, many Croatian clients still end up with the offshore entity due to the group's onboarding practices or because they sign up via international portals.
The protection differences are stark: CySEC regulation provides investor compensation schemes, negative balance protection, and strict segregation of client funds. The Belize FSC offers none of these safeguards. Traders under the offshore entity have limited recourse if disputes arise, as the FSC's complaint process is slow and its enforcement powers are weaker than those of EU regulators like HANFA.
The 2FA and account lockout pattern is a serious concern. Complaints describe traders being locked out after 2FA or email issues, with no recovery path — a 'one strike and you're out' approach. This leaves clients unable to access funds or close positions, often during volatile markets. At least one reported full account deletion after a dispute further compounds the risk.
Traders should take precautions: keep independent records of account balances, transaction histories, and communication with support. Use a dedicated email for trading accounts and enable all available security features. If locked out, immediately contact XM support and, if unresolved, file a complaint with the relevant regulator (CySEC for EU entities, FSC for offshore). Do not rely solely on XM's internal recovery process.
Not every independent source frames XM this negatively. BrokerChooser, a professional broker-review site that states it tracks 40,000+ brokers, currently assesses XM as "a legit broker" with "a clean track record" and "no major incidents," based on its regulatory tier and testing. We're including this for balance: reasonable, independent assessors can reach a more favorable overall conclusion than this file does — our file weights the active regulatory complaint and account-lockout pattern more heavily than a general safety assessment would.
| Broker | Regulatory | Complaint Severity | Resolution |
|---|---|---|---|
| XM Group | 4 | 1.3 | 2 |
| Pepperstone | 4.9 | 4.5 | 4.6 |
| IC Markets | 4.6 | 4.1 | 4.3 |
For Croatian traders, XM Group presents a mixed picture. The broker is not a scam — it is genuinely regulated by CySEC and has a long operating history. However, the active Belize FSC complaint (Ref A7IGOC) and the pattern of account lockouts with no recovery path are red flags. The low resolution reliability score (2.0/5) and 61% unresolved withdrawal complaints indicate that getting help when things go wrong is difficult. Croatian clients routed to the offshore entity face even weaker protections.
Practical recommendations: Croatian traders should verify which entity they are signing up with and prefer the CySEC-regulated one if possible. Be aware that HANFA, the local regulator, does not oversee XM's offshore operations. Keep detailed records, avoid large deposits, and test withdrawals early. If issues arise, escalate to CySEC or the Belize FSC. Consider brokers with stronger local or EU regulation for larger sums.