Is XS.com Safe and Legit? Licences and Withdrawal Tests

Short answer

On xs.com you deal with XS Ltd, licensed by the Seychelles FSA (SD089). The wider XS Group also holds licences from ASIC, CySEC, FSCA and others, but those companies serve their own regions. XS says it segregates client funds, applies negative balance protection, and provides Lloyd's-underwritten civil liability insurance covering losses over $10,000 up to $5 million caused by its errors, negligence or fraud.

Zero-cut: negative balance protection: Balance $1,000, Price gap: $1,300 loss. Without protection: Balance −$300: you owe it. With zero-cut: Reset to $0: the broker covers it. — When a fast market jumps past the stop-out and the balance goes negative, a broker with zero-cut writes off the negative amount instead of asking you to pay it.

Who you are dealing with

From XS’s regulations page:

Company	Regulator	Licence	Who it serves
XS Ltd	Financial Services Authority, Seychelles	SD089	Operates www.xs.com for permitted jurisdictions
XS Prime Ltd	ASIC, Australia	374409	Australia
XS Markets Ltd	CySEC, Cyprus	412/22	EU
XS ZA (Pty) Ltd	FSCA, South Africa	53199	South Africa
XS Finance Ltd	Labuan FSA, Malaysia	MB/21/0081	—
XS Trade Services Ltd	FSC Mauritius	GB25204786	—
XS COM Financial Consultation	UAE CMA	20200000339	—

The footer also lists registrations in Saint Vincent and the Grenadines and Saint Lucia, and says the regulatory provisions for investor compensation vary by the XS entity you deal with. The ASIC and CySEC licences are real, but they don’t cover an international account with XS Ltd. Check the company named in your client agreement.

What XS says it does for your money

Segregation: all client accounts are held in segregated accounts, separate from company funds, with “the most reputable financial institutions” (not named).
Negative balance protection: the account can go negative, but you won’t be required to cover losses beyond your invested capital.
Insurance: a Civil Liability Insurance Program underwritten by Lloyd’s of London, covering losses above $10,000 and up to $5,000,000 arising from XS’s error, omission, negligence, fraud or failure to perform, at no cost to clients. It is not cover for trading losses or a deposit guarantee.

What an offshore licence does and doesn’t protect

It does put a named, supervised company behind your account, subject to licence conditions and identity checks.

It doesn’t bring ASIC or CySEC-style leverage caps, the EU investor compensation fund or UK-style schemes. XS Ltd offers up to 2,000:1 leverage precisely because it’s outside those regimes. See offshore vs regulated brokers and the Seychelles FSA.

What to check yourself

The FSA Seychelles register entry for XS Ltd (SD089), to make sure the name and status match.
That your client agreement names XS Ltd, the company that operates www.xs.com.
The banks that hold client money and XS Ltd’s financial statements, which XS doesn’t publish.

Practical steps

Verify early with a valid ID and a recent proof of residence.
Deposit by a method you can withdraw to, and make a small test withdrawal after some trading (XS can charge up to 3% if there’s no trading activity): XS withdrawals.
Check you’re on xs.com, not a clone: scam check guide.

Broker		Licence		Visit broker
XMFeatured	4.9/5Editorial rating	FSC Belize	✓	Visit
XS.com	4.1/5	FSA Seychelles SD089	✓	Visit
Titan FX	3.7/5	Vanuatu FSC	✓	Visit
Exness	4.2/5	FSA Seychelles SD025, CBCS Curaçao, FSC BVI, FSC Belize, F…	✓	Visit
HFM	4.1/5	CySEC 183/12, FCA 801701, FSCA 46632, FSA SD015, CMA 155	✓	Visit

Stronger protection: safest brokers.

Is it safe? at other brokers

Frequently asked questions

Is XS.com regulated?

Yes. XS Ltd, which operates www.xs.com, is regulated by the Financial Services Authority of Seychelles under licence SD089. Group companies hold other licences, including ASIC (374409) and CySEC (412/22), but they serve different clients.

Does an ASIC licence protect me at XS?

Only if you're a client of XS Prime Ltd, the Australian company. International clients on xs.com contract with XS Ltd in Seychelles. XS's own footer says investor compensation varies by the entity you deal with.

Does XS have negative balance protection?

Yes. XS's help centre says your account can go negative, but you won't have to cover losses beyond your invested capital.

What does the XS insurance cover?

XS says its civil liability programme, underwritten by Lloyd's of London, covers client losses above $10,000 and up to $5 million caused by XS's error, omission, negligence, fraud or failure to perform. It doesn't cover trading losses.