XM has a partner program and you can become an affiliate. XM affiliate is said to be a gray area in Japan, but what is the actual situation? I would like to mention the view of the Japanese Financial Services Agency and the possibility of arrest.
XM affiliate
If you want to affiliate with XM, please refer to the following article.
Is Affiliate Marketing Illegal in Japan?
XM affiliates are not illegal. The reasons are as follows. Affiliates are performance-based advertising, so there are currently no laws to punish them. Therefore, even if you advertise an unregistered company like XM, it is not legally out. However, you may get a warning if you do it wrong. If you unknowingly commit a prohibited act, in the worst case, you may be arrested.
no arrests
There have been no arrests for XM affiliates. There have been no cases in the past of being arrested for reasons related to FX affiliates, not just XM. There are cases of being arrested for returning money and goods at the time of registration, which is a violation of the law, but it has nothing to do with XM affiliates.
View of the Financial Services Agency
The fact is that the Financial Services Agency has not asserted that XM affiliates are illegal. The view of the Japanese Financial Services Agency should be checked when judging whether XM affiliates are illegal. Affiliates are performance-based advertising, and as of 2023, there are no laws that will penalize them.
Is it illegal to trade on XM?
Isn’t it illegal to trade on XM, not just affiliates? Some say. But XM trading is not illegal either.
Traders are not illegal even if the forex company is illegal
Even if the forex company is illegal, it doesn’t make the trader illegal. In the past, there have been no cases where traders who used FX correctly were arrested, so please use it with confidence.
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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