- XM is a member of ICF
- Safety of funds for all XM traders
- What is ICF protection?
- Contact XM Multilingual Support team
XM is a member of ICF
XM is a member of ICF(Investor Compensation Fund).
The ICF is the compensation fund for customers of authorized financial services firms.
If the Company for any reason ceases to operate, it is able to pay compensation to its customers.
The actual level of compensation you receive will depend on the basis of your claim however the maximum amount is 20k.
XM traders’ funds are also deposited in segregated accounts and the broker won’t use the fund for its own operation but only for traders’ margin.
Safety of funds for all XM traders
There is a comprehensive model in place that ensures the safety of XM client’s funds.
Safety on the level of servicing client accounts. All money of XM’s clients are kept on separate, so-called segregated accounts.
It is a regulatory requirement we must control and obey, and it means that all of our clients’ funds are stored on segregated accounts and never get mixed up with the brokerage firm’s capital.
Safety on the level of legislative regulation and control from a direct regulator
XM is registered as a Cyprus Investment Firm and possesses the license from Cyprus Securities and Exchange Commission.
XM is regulated by Cyprus Investment Services and Activities and Regulated Markets Law dated 2007 (Law №144(I) / 2007) and by MiFID (EU Markets in Financial Instruments Directive).
Besides, XM is a member of Investor Compensation Fund (ICF).
ICF ensures safety of interests of those clients, who file claims against CIF, by paying them compensations, in case if CIF, due to any financial circumstances and if there are no actual prospective for situation to improve in the near future, can not:
- Return to their ICF-protected clients the funds owed to them, or such funds that belong to clients, but are being held by CIF due to provision of investment services to these clients;
- Transfer to the ICF-protected clients of the financial instruments owned by them, which are managed by such Cyprus investment firm or held on its accounts;
What is ICF protection?
ICF protection does not cover professional clients or their eligible counterparties, but only retail clients.
Total amount of compensation paid to the client of ICF member firm, eligible for ICF protection, may not exceed EUR 20 000, regardless of number of accounts, currency of deposit and location of investment services provision.
According to the Law, ICF doesn’t pay compensations to the following categories of investors:
- Institutional and professional investors;
- Investment firms;
- Legal entities affiliated with ICF members or those that belong to the same group of companies;
- Cooperative credit institutions;
- Insurance companies;
- Organizations that offer collective investments into publicly traded securities, and their managerial companies;
- Social security funds and institutions;
- Professional investors, under their request in accordance with sections 14 and 15 of the Code of Professional Conduct of investment firms;
- Countries and international organizations;
- Central, federal, confederal, regional and local administrative authorities;
- Enterprises affiliated with ICF members in accordance with Schedule 5 to the Law 144(I);
- Executive and administrative personnel of ICF member;
- Shareholders of one of the ICF member firms, whose capital is no less than 5% of the firm’s charter capital, or partners that bear personal responsibility for liabilities of such firm, as well as those individuals who are responsible for execution of financial audit of said company under the Law, i.e. authorized auditors;
- Investors that participate in enterprises, affiliated with ICF member firms and overall affiliated with the group of companies, to which ICF member firms belong, whose roles and responsibilities are similar to those listed in paragraphs 5 and 6.
- Second tier relatives and spouses of individuals listed in paragraphs 5, 6 and 7, as well as third parties acting on behalf of such individuals.*
- Investors of companies that can’t draw up a balance sheet as set forth in the Company Law or in any relevant law of the European Union Member State due to their size.
- In case of events listed in paragraphs 2.1 [(5), (6), (7) and (8)], ICF holds up payments to the interested parties with their prior notification until a final decision is made regarding such an event actually taking place.
Contact XM Multilingual Support team
Being a brokerage company with European regulation (learn more in ABOUT COMPANY section), XM offers weighted and professional services of the highest quality.
First of all, XM is ready to patiently work, teach and consult XM’s clients about all specific issues related to investments and active trading.
XM understands that each client has his or her own value system and risk assessment, unique vision and understanding of purposes and opportunities of financial instruments.
Therefore XM has made the widest possible list of offerings for all types of clients, from traders with little capital and experience to professional investors with big sums available and long-term investment plans.
XM’s service model is designed so that to give XM clients an opportunity to work with different instruments on the basis of portfolio management, thus allowing for maximum diversification of inevitable risks.
That being said, XM provides a high quality access based on professional platforms.