It all started in Poland back in 2004. XTB has grown from strength to strength since its start as an online broker. By 2008 the growing brokerage firm had already increased its presence to the Czech Republic, Slovakia, Romania, Spain, and Germany. In 2010 the company also opened in the United Kingdom. But today, we ask: What is XTB, and is it good for trading?
XTB has been offering 0% commission for investing in stocks and ETFs since 2020. However, it only really started to gain in popularity in the UK in 2023. More importantly, XTB is now working with over 1,000,000 customers. In comparison, XTB’s competitor eToro has approximately 30 million users. Canary Wharf has not been immune to this new player. Since the new year, advertisements for the XTB trading platform have been numerous and highly visible across London’s business sectors.
So what is it about this Polish trading company that has got retail, and some institutional, investors so excited? One of the reasons is because of the slick marketing the company has put in place. It was one of the first trading firms to sponsor the McLaren Mercedes team in 2010. Today it has taken the branding strategy a step forward. But what is it like to trade with XTB?
Who are XTB’s Ambassadors?
First it was Hollywood actor Mads Mikkelsen. Then, in 2020, legendary football coach Jose Mourinho became a brand ambassador. This strategy then expanded with Conor McGregor, Iker Casillas, and Jiří Procházka joining as ambassadors.
Today, legendary footballer Zlatan Ibrahimovic is the latest ambassador. He follows a long list of footballers who have helped trading platforms. Just think Cristiano Ronaldo and Binance, or Robert Lewandowski and OANDA.
“Zlatan’s charisma, discipline, and energy perfectly align with XTB’s essence, and I am thrilled to have him join XTB as our new global brand ambassador,” said Omar Arnaout, CEO of XTB. “Zlatan has grown to be one of the best players in the world through hard work and devotion, and it is a similar journey that we have gone through during the last 20 years. We are truly excited about this partnership and we are sure that it will help us elevate our brand to a different level.”
What About the XTB Platform?
What is it like to trade with XTB? According to Trustpilot, XTB scores a solid 3.7 out of 5. There are some areas of concern listed by users. We highlighted some of them for you.
Payment terms for withdrawing funds can take longer than in the case of eToro where payments are often instant. XTB can only make same day payments if these are made before 1pm.
Some users have complained about an overly long activation process. But this is not a problem in most cases. Experienced traders shouldn’t find this too challenging.
There are a few select users that have raised concerns about the frequency of the app being updated and how this has affected the user experience.
Additionally, there is no options available on XTB for OCO (one-cancels the other) orders, social trading or copy trading. Copy trading is one of eToro’s strongest unique selling points. Many other exchanges and trading platforms have developed this service for their users.
Is the XTB Platform Good for UK Users?
The main appeal of XTB is its convenience. It is free to open an account, with almost no charges on withdrawals and deposits, and no commission on investments under 100,000 euros of monthly volume and interest. There is no minimum deposit required, and the platform is useful for those looking to begin investing in small amounts.
Consumers are also well protected, as XTB is strictly regulated by both the Polish Supervisory Authority (KNF) and by the UK’s Financial Conduct Authority,
XTB offers a volume rebate for high frequency traders, but for long-term trader’s commission charged by XTB is slightly higher than others on the market.
Additionally, trading with XTB can be higher risk compared to other platforms. XTB’s primary focus has been on CFD (contract for difference) trading, which involves speculating on the price of an asset rather than direct ownership. For traders interested in CFD, XTB offers a comparably broad variety, but for those looking for direct asset ownership, other platforms may have better options.
XTB provides educational resources on CFD trading, but these are likely insufficient for traders with minimal or no prior experience in the market.
Bottom Line
XTB is a reliable platform for experienced traders, particularly those interested in CFD trading, but there are some drawbacks. It is comparatively cost-effective overall and offers competitive commission fees, though some platforms offer greater value in the long-term. Additionally, it can be a complicated interface for users with less knowledge of CFD trading.
For undecided traders, XTB offers a 30-day trial with virtual funds of £85,000 to explore whether it’s suitable for real investment.
There have been some cases of ‘clone firms’ like XTB Global masquerading as XTB. Please exercise caution when checking the details of the app. This has happened in the UK as well as in Germany. In France XTB have also been held up to scrutiny by the Autorité des Marchés Financiers. It was fined in November 2021 for breaches of its professional obligations.
XTB might not yet be the size of eToro, however, it provides traders another choice. And choice can only be good for investors. As to whether XTB is good or not, the jury remains out for the moment. At first glance XTB seems to be a real option, however on further perusal of the company’s blog and other materials, it is clearly still in ‘build’ mode. It’s great to see them flexing their muscles, but UK investors have enough ISA options available to them already. XTB needs to do more to prove that it’s ‘different’.
#XTB #CFD #TradingPlatform #OnlineBroker #CFDs #Investing #StockTrading #ETFs #InvestingInStocks
Author: Andy Samu
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
CFD Providers Implement New FCA Guidelines | Disruption Banking
The Rise of the Retail Investor with Mosaic Alpha | Disruption Banking
