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 broker offering forex and CFDs on MT4 and MT5. Its main regulated entity operates under CySEC in Cyprus, but it also runs offshore arms under the Belize FSC and Mauritius FSC. This multi-entity structure lets XM serve different regions under varying rules. For Portuguese clients, the entity assigned often depends on onboarding flow and product type, which can affect the level of protection available.
Portuguese traders are frequently routed to XM's offshore entities because the group can offer higher leverage and more flexible onboarding outside the EU. While CMVM regulates domestic investment firms, it does not directly supervise offshore brokers like XM's Belize or Mauritius arms. This means Portuguese clients may trade under weaker protections than they would with a CMVM-licensed firm, even though XM's CySEC entity remains an option for some EU residents.
The regulatory score stays relatively high at 4.0/5 because XM's CySEC license is genuine and actively supervised. That anchors the overall risk score at 1.8/5, which is not alarming. However, the active Belize FSC complaint (Ref A7IGOC) directly drags down the complaint and resolution scores to 1.3/5 and 2.0/5. The index reflects a broker with solid regulatory foundations but a live, unresolved dispute that raises questions about how quickly and fairly client issues are handled.
The regulatory escalation tied to FSC Ref A7IGOC is the most significant entry in the ledger. It shows a fund dispute has moved beyond internal complaints to a formal investigation by Belize's regulator. Account lockout and full deletion reports are more severe than simple withdrawal delays because they cut off a trader's ability to access funds entirely. The 61% unresolved withdrawal complaints after 30+ days add weight to the pattern. These entries collectively justify the low complaint and resolution scores.
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 |
Portuguese traders are often assigned to XM's offshore entity under the Belize FSC, particularly if they seek higher leverage or specific account types. While XM's CySEC entity is available to EU residents, the onboarding process may steer some Portuguese clients to the offshore arm. This assignment matters because the Belize FSC offers far less investor protection than CySEC or CMVM. The active complaint under that regulator directly involves this offshore entity, highlighting the risks of offshore routing.
Protection differences are stark. CySEC-regulated accounts benefit from EU rules like negative balance protection and segregated funds under strict oversight. Belize FSC accounts have weaker safeguards, and CMVM cannot intervene in disputes with offshore entities. Portuguese traders should confirm which entity their account falls under before depositing, as the level of recourse and regulatory backup varies significantly between the two.
The documented pattern of account lockouts after 2FA or email issues is concerning because it leaves traders with no clear recovery path. Described as 'one strike and you're out,' this approach can freeze access to funds without a transparent appeals process. At least one report involves full account deletion after a dispute. For Portuguese traders, who may rely on email and 2FA for daily access, this creates a real operational risk if something goes wrong with those channels.
If you lose access, act quickly: gather all account statements, correspondence, and proof of identity. Contact XM support through multiple channels and keep records. If the issue involves an offshore entity, you can file a complaint with the Belize FSC, but enforcement is limited. Portuguese traders should also consider whether CMVM can offer any assistance, though its jurisdiction over offshore brokers is minimal. Preventative steps like using a dedicated email and backing up 2FA codes are wise.
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 Portuguese traders, XM Group presents a mixed picture. The broker is not a scam—CySEC regulation is real, and BrokerChooser rates it as legit with a clean track record. However, the active Belize FSC complaint (Ref A7IGOC) and the pattern of account lockouts, withdrawal delays, and unresolved complaints are serious red flags. The 61% unresolved withdrawal rate after 30+ days is particularly troubling. Portuguese clients routed to the offshore entity face weaker protections and limited local recourse via CMVM. The risk score of 1.8/5 reflects these tensions: a solid regulatory base undermined by poor complaint handling.
Portuguese traders should verify which entity their account is with before depositing. If possible, choose the CySEC-regulated entity for stronger protections. Be aware that CMVM cannot help with offshore disputes. Use secure, backed-up 2FA methods and keep thorough records of all transactions. Start with a small deposit to test withdrawal reliability. If you encounter access issues, escalate promptly to both XM and the relevant regulator. Consider brokers with full CMVM or EU regulation if local recourse is a priority.