Yes, XM does allow scalping and Tradings during News Time.

As a NDD broker, XM does not restrict any trading methods on both of the trading platform, MT4 and MT5.

Although, if you have joined certain bonus promotions which restrict scalping within 5 minutes, then you may not be able to benefit from the promotions. So you are recommended to read through Terms & Conditions of each promotion before joining.

XM offers MT4 and MT5 symbols with “Market Execution” where no re-quotes exist and the broker never interrupts trades of investors.

There has been no reviews or complains mentioning “Profit Cancellation” by XM before in 8 years of service.

XM Official Website