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What is XTB?
XTB started its journey in Poland in 2002 as X Trade Brokers. It has expanded from a regional broker to a giant international trading platform in over 20 years. It currently has more than 1.6 million customers globally and has approximately 7.2 billion euros of customer assets. It is listed on the Warsaw Stock Exchange. Listed on the public markets, it provides a much-needed layer of transparency in its operations. As a public company, XTB is subject to heavy financial checks and balances and frequent financial statements.| XTB | General Information |
|---|---|
| Support for your country | |
| Rating | |
| Regulations | FCA (GB), CySEC (CY), DFSA (AE), FSC (BZ) |
| Established Year | 2002 |
| Headquarters | Warsaw, Poland |
| Trading Options | |
| Trading Instruments | 4,992 |
| Trading Platforms | MetaTrader 4 |
| Account Information | |
| Deposit Fees | |
| Min Deposit | $0 |
| Min Trade Size | 0.01 lot |
| Avg. Spread EUR/USD | 0.9 pips |
| Max. Leverage | 1:500 |
| Open Account |
- Long-term investors who want to buy real stocks and Exchange Traded Funds (ETFs) with zero commission.
- Short-term traders who want to speculate on price movements using Contracts for Difference (CFDs) across forex, commodities, and indices.
Is XTB Safe and Regulated?
The number one criterion you should choose a broker for is safety. When it comes to this, XTB has an excellent score and marches on the top tier in terms of trust. Several reputable financial authorities around the world license the broker.Regulatory Licenses
XTB has various legal entities across various jurisdictions:- UK: Authorized and regulated by the Financial Conduct Authority (FCA), under license number 522157.
- European Union: XTB has a license from the Polish Financial Supervision Authority (KNF) and the Cyprus Securities and Exchange Commission (CySEC) under license number 169/12.
- International Market: The broker offers its services to clients outside Europe through the Internet via XTB International, which is regulated by financial authorities in Belize.
Asset Protection
If you are a retail investor in the European Union, your assets are part of a typical European investor protection scheme. In the extremely unlikely event that the broker fails, up to 20,000 Euros of your financial instruments will be protected. Cash deposits are kept in separate bank accounts. This is because at XTB your funds are fully isolated from the company’s operating capital. However, as XTB is a broker rather than a casino, you are not guaranteed your uninvested cash with a regular bank deposit guarantee scheme like in a traditional bank. Rather, it is similarly covered by the 20,000 Euros investor compensation cover.Regulatory Record
Today, XTB is a very well-trusted broker but has undergone several regulatory challenges in the past for complete transparency. In 2018, the Polish regulator examined how XTB took orders for CFDs between 2014 and 2016. The authority found the broker used an unfair practice called asymmetric slippage. This practice caused clients not to benefit from positive price development on trades but, at the same time, they were subject to negative price changes. The regulator fined XTB roughly 2.2 million Euros. XTB updated its practices after this event. The French financial services regulator also slapped XTB’s French office with a 300,000 Euros fine in 2021 for failing to follow obligations for client categorization and transparency. Keep in mind that these previous problems mainly involved the CFD trading arm of the company. They did not impact investors who were buying real stocks or ETFs.Range of Investment Markets
XTB provides a huge number of assets for trading. It is a great option for those looking to assemble a diversified portfolio in one account. The broker provides access to over 10,900 tradeable symbols in various asset classes.Real Stocks and ETFs
For long-term wealth building, you have the opportunity to purchase over 6662 real cash equities and over 1831 real ETFs. Invest in large companies listed in the United States, the UK, and Europe. They are real assets, as you are the owner of the share and will get dividends if the company pays them.Forex and CFDs
XTB offers over 70 different currency pairs to trade short-term. The major pairs, minor pairs, and exotic currencies all come into consideration. In addition, you have the opportunity to trade stock indexes and commodities like gold, silver, natural gas and oil with CFDs.Cryptocurrency CFDs
XTB offers a range of 40 cryptocurrencies to trade via CFDs. This means one can trade on the worth of Bitcoin or Ethereum without a wallet. But you don’t own the asset represented by the cryptocurrency itself. There are strict regional restrictions here. Retail traders who register through XTB’s UK entity are unable to access any form of crypto CFDs, nor are any other UK users.Regional Account Restrictions
It is important to be mindful about your area when opening a merchant’s account. Through the Cyprus branch of XTB, clients are not offered real cash shares and real ETFs. If you open an account through the Cyprus entity, you can only trade CFDs. Furthermore, XTB does refuse people who are from the Belgian region, because of the strict local guidelines in this country.Detailed Fee Structure
It is important to know how much it is going to cost you to trade, as this will make a difference over time in terms of your investment returns. XTB describes itself as a zero commission broker, but let’s take a closer look.Account Opening and Maintenance
You can open an XTB account for free. There are no setup fees and no monthly custody fees. However, there is an inactivity fee. XTB will charge a maintenance fee of 10 British Pounds or 10 Euros per month if you do not make any purchase or sale operation in the last 365 days. Your account is completely free if you make at least one trade a year.Commission Rates
It’s where XTB generates lots of earnings from stock traders. If you buy an asset that is listed in a currency different from your account’s base currency, XTB charges a 0.5% currency conversion fee. For instance, when you purchase a stock in the USA in USD in your account in Euros, you will be charged a currency conversion fee of 0.5%. These conversion fees can quickly add up, especially if you’re flipping foreign stocks on a regular basis. To avoid this fee, many European investors stick to ETFs and stocks that are denominated in Euros.Currency Conversion Fee
It’s where XTB generates lots of earnings from stock traders. If you buy an asset that is listed in a currency different from your account’s base currency, XTB charges a 0.5% currency conversion fee. For instance, when you purchase a stock in the USA in USD in your account in Euros, you will be charged a currency conversion fee of 0.5%. These conversion fees can quickly add up, especially if you’re flipping foreign stocks on a regular basis. To avoid this fee, many European investors stick to ETFs and stocks that are denominated in Euros.CFD Spreads
XTB does not apply a fixed fee for forex and CFD trading. Rather, it incorporates its fees in the spread, which is the variation between the buy price and the sell price. XTB operates with floating spreads. The EUR/USD major currency pair has an average spread of 0.92 to 1.0 pip. It’s on par with the industry standard but costs a bit less than brokers dedicated solely to low-cost institutional forex trading.Deposit and Withdrawal Fees
Funding your account is quick and simple. XTB accepts some payment methods such as bank transfers, credit cards, debit cards, and e-wallets like PayPal and Skrill. Withdrawals are equally free, but only provided that you adhere to the minimum amount of the broker for withdrawals.- UK Accounts: Free for withdrawals above 50 British Pounds. There are processing fees for withdrawals under 50 BRT, at 5 BRT.
- Euro Accounts: No withdrawal cost if the amount is 100 Euros or more. Withdrawals under 100 Euros are charged 10 Euros.
The xStation 5 Trading Platform
XTB does not allow the use of third-party software like MetaTrader 4, MetaTrader 5 or TradingView. Rather, the broker is concentrated on its own proprietary trading platform, xStation 5. The one-platform approach is a strong aspect of the project. xStation 5 is highly reliable, incredibly fast, and features a clean, professional design.Web Platform Features
The xStation 5 web version is available in the browser and does not require any downloads. It’s built in a modular pattern that you are able to customize according to your visuals. The web platform includes the following key tools:- Trading Analysis: 39 technical indicators and 30 drawing tools that can be used to interpret market trends.
- Candlestick Countdown: Charts include a convenient built-in visual timer to help you find out how much time is left before a particular candlestick closes.
- Market Sentiment Data: Market sentiment data provides a live breakdown of the percentage of XTB clients who are currently long or short on a particular monetary symbol.
- Stock Screener: A built-in tool to screen out thousands of companies worldwide according to the specific criteria of financial metrics, price-to-earnings ratios, dividend yields, and more.
- One Click Execution: Buy and sell instantly from your personalized market watch list or directly from a live chart.
Mobile Trading App
The xStation 5 mobile app is available for iOS and Android. It is among the best-designed mobile trading apps today. There’s a very creative feature in the cell site for energetic merchants: you can shut down all profitable or all dropping positions with the click of a single button. A very useful one, particularly if the market is shifting rapidly and you need to close a bunch of trades at once to preserve capital or make a profit. The mobile app will perfectly sync your basic account status; however, watch lists are not automatically synced from the web version to the mobile version. You have to configure your watch lists on each device separately. It’s worth noting that the charting has been reduced on the mobile version, with just 13 technical indicators available versus 39 in the desktop version.Features for Long Term and Passive Investors
XTB aggressively promotes its active trading tools, but it has also created two great features for passive, long-term investors.1. Investment Plans
XTB’s built-in feature is comparable to an automated ETF savings plan, called Investment Plans. This feature allows you to build a customized investment portfolio using up to nine different ETFs. You set a % allocation to each ETF in your Strategy. If you’ve developed your plan, it can be financed in as little as 15 Euros or British Pounds. XTB will divide your funds automatically between the ETFs you select and set your target percentage. You can develop 10 separate investment plans at once. It lets investors easily implement a regular savings strategy, investing on a fixed schedule to take advantage of compounding.2. Fractional Shares
XTB allows trading on fractional shares for both real stocks and real ETFs. If one share of a company (or one ETF) sells at 100 Euros and you can only afford 20 Euros worth, you can buy a 0.2 share. This is a very user-friendly platform for beginners who want to have a portfolio with minimal funds since the minimum value for a trade is approximately 10 Euros. But fractional shares create a large structural lock-in. It is impossible to transfer XTB fractions to another broker. In the event that someone chooses to exit XTB, the fractional position must be sold back to the broker for cash. XTB supports outbound portfolio transfers to other brokers for whole shares, but they charge a high rate of 25 Euros or 25 British Pounds per position. This fee is charged on all individual asset lines, so shifting a big profile can get very expensive. When it comes to exiting XTB, the vast majority of users opt to sell everything to cash, withdraw the funds, and open a new trade account with their new broker.Market Research and Educational Content
For beginners and intermediate market players, XTB is a great option due to the excellent educational ecosystem they offer. In fact, the broker routinely wins industry awards for its training materials.Educational Knowledge Base
XTB provides a live Market News stream in the xStation 5 platform. This stream is focused on providing fundamental compliance, technical setups, and a chart of the day by in-house analysts. XTB supplies its trading system directly in these research headlines. As you are reading a platform article about a given asset such as natural gas or the EUR/USD currency pair, live buttons to buy and sell surface directly in the text window. You can trade it immediately with a market order, place an SL or set a TP without having to leave the research report.Platform Integrated Research
XTB provides a live Market News stream in the xStation 5 platform. This stream is focused on providing fundamental compliance, technical setups, and a chart of the day by in-house analysts. XTB supplies its trading system directly in these research headlines. As you are reading a platform article about a given asset such as natural gas or the EUR/USD currency pair, live buttons to buy and sell surface directly in the text window. You can trade it immediately with a market order, place an SL, or set a TP without having to leave the research report.Understanding the True Risks of CFDs
It’s crucial to recognize the profound functional distinction that exists between buying real stocks and trading CFDs when you choose to use XTB. Real stocks and ETFs have the advantage of only risking what was put into that stock or ETF. With a falling market, a trader can simply hold the share and await a market bounce back. CFDs are entirely different products. Once you register with XTB, you enter into a contract in the form of a CFD that indicates the difference between the price of assets at the time of opening and closing a trade. You do not actually own the individual share, currency, or commodity. CFDs are highly leveraged products. Leverage is the ability to trade a large amount of money, even though you only put up a small part of the actual transaction as collateral. For instance, with a 1:30 leverage ratio, you can invest 100 Dollars in a 3,000-dollar trade. Leverage can also exacerbate profit if you are predicting the market’s direction correctly. But on the flip side, it can also exacerbate your losses if the market does move in the other direction. With a single movement in the wrong direction, you can lose every dollar that you’ve deposited in a few seconds. Additionally, maintaining CFD open positions overnight can incur financing charges, potentially depleting your trading account. XTB clearly and prominently warns across its website. As per official data, 70% to 75% of retail investor accounts lose money while trading CFDs with this provider. When trading with a CFD tab, you should not trade the tab at all as a beginner or if you are thinking about investing for your wealth in the long run.User Convenience and Tax Responsibilities
XTB’s customer support is top-notch on its digital platform. They offer 24/7 live web chat, e-mail, and direct phone support from their team on Mondays to Fridays. They have offices across Europe, enabling their support in many languages such as English, Polish, Italian, Spanish and French. With that being said, the greatest administrative problem with XTB is that there is no tax automation in any way, at all. XTB is a tax-transparent broker in Europe with a “declaratory” tax regime. This means that the broker is not a withholding tax agent for you. The significance for you is dependent on your area:- Italy: XTB is not a tax substitute. They will NOT automatically withhold or pay the 26% capital gains tax or dividend tax. Each trade must be monitored and performed manually when filing tax returns every year. In addition, under Polish or Cypriot law, the account belongs to the residents of this country, so the Italian residents are liable to an annual wealth tax of 0.2 per cent on their foreign financial assets.
- General European Union: You are responsible for calculating, declaring, and paying your local capital gains taxes, dividend taxes, and account registration declarations with your domestic revenue authority alone.
Final Thoughts
XTB is a well-established, transparent, and very versatile multi-asset broker. It offers a modern trading environment that centers around its proprietary and fast platform xStation 5. However, if you’re looking to purchase domestic stocks or Euro-denominated ETFs specifically, XTB is a very cheap option with its zero commission. The site is secure, reliable, and provides great quality education resources, so that you can learn the ropes. But for those who want to trade U.S. stocks regularly, the currency conversion charge of 0.5% will erode profits. Also, you’ll need to feel at ease filing your own capital gains tax forms at the end of the year. Last but not least, if you use the platform, avoid high-risk leveraged CFDs unless you know the risks and can afford to lose your money.Frequently asked questions
Yes. Thanks to its user-friendly platform, comprehensive educational resources, and customer support, XTB is an excellent fit for beginners. It also provides a totally free demo banking account that has virtual funds. This allows you to get used to the different trading screens and tools without risking your capital.
To open a standard retail account with XTB, there’s no set minimum amount needed. An account can be opened and deposited with whatever amount one wants to initially deposit. However, if you wish to make a real acquisition, that is to say, if you wish to buy a portion of a stock or fund your Investment Plan through an automation, there is a minimum threshold that lies around 10-15 Euros or British Pounds.
No. XTB doesn’t offer algorithmic trading, third-party APIs, or trading signals on the standard platform. Moreover, it has no facilities for copy trading. It is a platform designed exclusively for manual investors who prefer to invest for themselves and those who are involved in short-term trading.
XTB is fast when it comes to handling withdrawals. Usually, if you withdraw before 1:00 PM on a typical business day, the solicitor will endeavour to complete it on the same day. After 1:00 PM, the request will be processed the next business day if valid. Funds will appear in your personal banking account within your bank’s clearing time.
