XS.com — where it wins, where it loses

On the record

• XS.com's regulations page names seven group entities, including XS Prime Ltd under ASIC licence 374409 and XS Markets Ltd under CySEC licence 412/22.
• XS Ltd, the Seychelles entity operating www.xs.com, holds FSA Seychelles securities dealer licence SD089 under company number 8428765-1.
• The group also lists FSCA South Africa FSP 53199, Labuan FSA licence MB/21/0081, FSC Mauritius licence GB25204786, UAE SCA licence 20200000339 and a Kuwait authorisation numbered 513918.
• XS states its website is not directed at residents of the United States, the European Union, Australia, Japan and other restricted jurisdictions.
• XS notes that investor compensation scheme coverage varies depending on which group entity a client contracts with.
• XS.com's story page states the XS Group was 'Established in Australia in 2010' and its safety page repeats 'Since 2010, the XS Group has been providing traders, institutional investors, and brokers worldwide with access to deep institutional liquidity' (https://www.xs.com/en/company/story/).
• XS Ltd's Client Services Agreement (the Seychelles entity operating www.xs.com) states client money is promptly placed in accounts 'which are segregated from the Company's own accounts' (clause 17.3) and that 'The Client will not be required to cover losses exceeding his invested capital as the Company applies a negative balance protection policy', subject to a 'Negative Balance Protection Abuse' carve-out in paragraph 31 (https://www.xs.com/docs/Client_Services_Agreement_XS_Ltd.pdf?v=1.4).
• XS's preferred-account index publishes an 'Average spread (EURUSD)' of 1.1 pips for the Standard, Cent and Micro accounts, all with no minimum deposit, and the Standard account spec table lists 'Maximum Leverage: 1:2000' (https://www.xs.com/en/accounts/account-types/).
• XS.com's own press release states the group acquired Ubutyebi Financial Services, a licensed Financial Service Provider regulated by the FSCA, establishing XS ZA (Pty) Ltd under FSP licence 53199 to offer FX and CFD products in South Africa and other African nations (https://www.xs.com/en/media/xs-press-releases/xscom-strengthens-african-presence-with-south-african-license-acquisition).