XM Trading: Is Affiliate Marketing Illegal in Japan? Financial Services Agency’s view and possibility of arrest


This article explains whether affiliate marketing is illegal because xm does not have a registration license from the Financial Services Agency. XMTrading has a partner program where you can become an affiliate. In Japan, XM affiliate marketing is said to be a gray area, but what is the reality? I would like to mention the opinion of the Japanese Financial Services Agency and the possibility of arrest.

XM affiliate

If you want to become an affiliate with XM now, please refer to the information in the article below. If you follow the rules, you can make a profit. In conclusion, there is nothing illegal, and it is possible to earn money if there is no wrongdoing. There is also an explanation of the service on the official website. You can get cash back and use it as funds, or you can return it to cash as an asset. It’s legal, so there are no downsides.

Is Affiliate Marketing Illegal in Japan?

XM affiliate marketing is not illegal. The following are the grounds: Since affiliate advertising is performance-based advertising, there is currently no law that punishes it. Therefore, it is not legally illegal to advertise for an unregistered company like XM. However, if you do it incorrectly, you may receive a warning. If you commit a prohibited act without knowing it, in the worst case scenario, you may be arrested. This is also the case with other companies (axiory, titanfx, exness, fxgt, etc.).

no arrests

There have been no cases of XM affiliates getting caught up in foreign exchange margin trading, losing money, and being arrested. There have been no arrests in the past for violating the Financial Instruments and Exchange Act due to FX affiliates, not just XM. There have been cases where people have been arrested for returning money and goods when registering in violation of the law, but this has nothing to do with XM Affiliates. If you have any concerns, please contact support.

View of the Financial Services Agency

The reality is that the Financial Services Agency has not declared that XM affiliate marketing is illegal in its jurisdiction. When determining whether XM affiliate marketing is illegal, you should check the opinion of the Japanese Financial Services Agency. Affiliate marketing is performance-based advertising, and as of 2024, there are no laws that would subject it to penalties. Currently, there are no warnings to investors on the homepage, and there are people who are allowed to do so and are making money. There are no risks such as debt when it comes to affiliate marketing.

Is it illegal to trade on XM?

Isn’t it illegal not only to be an affiliate of the operating company but also to trade on XM? Some say that. However, trading XM is not illegal either. I can’t find anything like that in the reviews and reviews. However, if your profits are determined, you will need to file a tax return individually.

Traders are not illegal even if the forex company is illegal

Even if Forex companies are illegal, traders are not illegal. There have been no cases of traders being arrested for using FX correctly in the past, so please use it with confidence. Users in Japan are now able to conduct transactions without any problems from the official website. There is a fee, but there is no risk to the user. If you engage in malicious activity, your account may be frozen. Scalping and automated trading tools (EA) are permitted.

Traders are responsible for using FX companies

It is the trader’s responsibility to use FX. Since the judgment is the trader’s self-judgment, it will not be illegal. However, XM does not have a license to provide financial services to Japanese residents. Keep in mind that the Financial Services Agency is watching closely whether you are soliciting Japanese people.

Important notes for XM affiliates in Japan

XM affiliates may be doing illegal activities without knowing anything. Please note the following points.

Direct solicitation to Japanese residents

Direct solicitation to Japanese residents (uninvited solicitation) is illegal. Soliciting by phone or LINE message is illegal. In addition, it is not illegal to introduce using a blog or SNS. This is an indirect solicitation.

give investment advice

It is illegal to give investment advice on sites, salons, and private chats. A license is required to give investment advice. Please be careful not to give investment advice carelessly. Providing investment advice without a license is a violation of the Financial Instruments and Exchange Act.

give a gift

It is illegal to give freebies or money to affiliates for account opening or registration. We understand that you want people to sign up from your own site, but avoid doing anything illegal.

loss compensation

It is illegal to compensate the loss of the person who opened the account. Article 39 of the Financial Instruments and Exchange Act stipulates that “loss compensation to customers is prohibited”.

guarantee you that you will earn

It is illegal to say that you can definitely make a profit, such as 100% winning. Investing is risky and there are no guarantees of return. Don’t recommend opening an account to a new investor with little knowledge by saying that you can win 100%.

Sales of information products

When selling EA, there are cases where a warning is received from the Financial Services Agency. There is no problem if it is provided for free, but please be careful if you sell it for a fee.

Trouble and alert

The Financial Services Agency is calling attention to foreign FX companies.

Warning overseas Forex company

Japan’s Financial Services Agency is tightening regulations on overseas Forex companies to protect the public. In fact, many overseas Forex companies including XM have been warned. This is because there are cases where companies other than XM commit fraud. Some people have actually suffered.

Not licensed in Japan

A financial license in Japan refers to a type 1 financial instruments business registration. If you do not have a license, sales and solicitation to Japanese residents are prohibited. Many overseas Forex companies do not have licenses. This is because there are conditions such as leverage within 25 times and zero cut system prohibition. XM has not obtained a license because if you try to obtain a license, you will lose the advantages of overseas Forex that are not available in domestic Forex.

Frequent trouble

There seems to be a lot of trouble between Japanese traders and foreign Forex companies. Problems often occur, such as withdrawals being refused, or offering extremely high-risk transactions.


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