XTB Review 2024

Trust

In our trust category, we place the most importance on how a broker is regulated. Let’s look at how the different entities of XTB are regulated and how this impacts you as a trader. We rate regulators on a scale of 1 to 3, with 1 reflecting the highest level of trust.

XTB is a trademark of XTB Group. The various entities of XTB are regulated as follows:

• XTB Limited (UK) is authorized and regulated by The UK Financial Financial Conduct Authority (FCA), firm reference number: 522157. The FCA covers clients in the United Kingdom. We rate the UK FCA as a Tier-1 regulator.
• XTB Limited (CY) is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), license Number 169/12. CySEC covers clients in the European Economic Area (EEA). We rate CySEC as a Tier-1 regulator.
• XTB S.A. is authorized and regulated by Comisión Nacional del Mercado de Valores, (CNMV), official registration number 40. We rate CNMV as a Tier-2 regulator.
• X-Trade Brokers DM SA is authorized and regulated by the Polish Komisja Nadzoru Finansowego (KNF). We rate KNF as a Tier-2 regulator.
• XTB International Limited is authorized and regulated by the International Financial Services Commission (IFSC) in Belize, License number 000302/185. We rate IFSC as a Tier-3 regulator.

Why is it important to know where your broker subsidiary (entity) is regulated?

Different regulators provide different levels of protection. For example, XTB clients in the United Kingdom benefit from the oversight of the FCA. The FCA requires that clients have negative balance protection, which means that they cannot lose more than their deposit. Client funds must be held in segregated accounts, which are protected in the event of a broker going bankrupt.

In addition, when trading with a broker authorized by the FCA, client funds are also protected by the Financial Services Compensation Scheme (FSCS). The FSCS protects investments of up to £85,000 if a firm becomes insolvent. By contrast, a trader working with a broker entity regulated offshore would not have these benefits guaranteed to them.

In the table below we break down the mandated protections and benefits by entity, regulator, and region.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and transparency. Here, we focused on how long the broker has been in business, how big the company is, and how transparent it is in terms of readily available information.

Founded in 2002, XTB has a substantial operating history and is one of the world’s oldest Forex and CFD brokers. According to the company’s LinkedIn page, it is among the larger CFD brokers with 201 to 500 employees. The company has offices in over 13 countries, including the UK, Poland, Germany, France, and Chile.

XTB is a publicly-traded company listed on the Warsaw Stock Exchange. As a publicly traded company, XTB must disclose financial reports, allowing for greater insight into the company’s stability.

In our research, XTB showed adequate transparency in regulatory status, fees, and general background information. Most information and materials were easy to find on the website. Regulatory status is covered on the About Us page. Clients can reference fees on the Account Information page. The User Agreement (Terms of Business) document is in the website’s footer.

To conclude, we rate XTB as trustworthy and stable due to the following factors:

• Being regulated by multiple top-tier agencies.
• Having a lengthy operating history.
• Being a publicly traded company.
• Being generally transparent in their practices.

Fees

XTB earns money mainly from spreads (the gap between the bid and offer prices of an asset), swap fees, and miscellaneous account-related fees.

Trading Fees

Spreads at XTB are variable, meaning that they fluctuate slightly. The spread’s size depends on the market’s level of liquidity. Traders typically see tighter spreads when there is greater liquidity in the market.

Spreads at XTB

We tested the spreads at XTB on 24 January 2023 across different asset classes in a live account using the xStation 5 platform. We conducted the test at two different times to allow for greater perspective – at 8:00 a.m. GMT (the London open when the market is highly liquid) and 3:00 p.m. GMT (a quieter time, shortly before the opening of the New York stock exchange).

Spreads at XTB were generally competitive in our tests, beating industry averages in assets from forex to index CFDs.

Swap Fees

Swap fees (the cost of holding a leveraged position overnight) were average at XTB. In the table below, you can see the Swap Long (the cost/credit of holding a buy position overnight) and the Swap Short (the cost/credit of holding a sell position overnight) for one full-sized contract. A full-sized contract is 100,000 units of the base currency (the first currency quoted in the pair).

We recorded the swap fees on 23 January 2023.

Non-Trading Fees

XTB does not charge any deposit, withdrawal, or account closing fees. There is an inactivity fee of 10 units of your local currency per month after a year without making a trade or if no deposit is made within three months. This fee is relatively standard for the industry.

Are Fees at XTB Competitive?

Overall we were impressed by the fees at XTB and especially with the tight spreads, which are highly important to traders. The costs of entering and exiting trades are reflected in the spread. For an active trader, this cost can often make the difference between being profitable or suffering losses at the end of the day.

Platforms and Tools

Web and Desktop Platform

The flagship xStation 5 platform has advanced features and an easy-to-navigate interface.

We tested XTB’s xStation 5 platform, which is available via the web, desktop app, and mobile. The desktop app has the same functionality as the web version.

The xStation 5 platform has a clean look and feel and is beginner friendly. The layout is customizable, with various options to suit your trading style.

Key Features

xStation 5 has popular features such as watchlists, alerts, 1-click trading, and trading from the chart.

• Alerts. Price alerts on xStation 5 can automatically inform you when significant price levels are reached without having to spend all day in front of the monitor.
• Watchlists. Traders can set up a list of their favorite instruments and follow live quotes in a market watch panel.
• One-click trading. This feature allows traders to execute orders with a single click and no secondary confirmation. Placing a trade with a single click saves time and is especially useful for short-term traders.
• Trading from the chart. xStation also allows users the convenience of trading directly from the chart.
• Trading statistics. The platform has a dedicated area providing live statistics on your trading performance.

Order Types

The xStation 5 platform delivers a strong range of order types. Available order types include market, limit, stop loss, and trailing stop.

• Market Order: an order to buy or sell an instrument at the best available price.
• Limit Order: an order to buy or sell an instrument at a specified price or better.
• Stop Loss Order: an order to buy or sell an instrument triggered when the market price reaches a specified level.
• Trailing Stop Order: a stop loss order set at a defined percentage or dollar amount away from an instrument’s current market price. Traders use this order type to secure profits when they are in a winning trade while not having to exit the position.

It is also possible to set an expiry date and time for your pending orders.

Charting

The xStation platform also has robust charting capabilities.

• 5 Chart Types: Candlestick, Line, OHLC, HLC and Heiken Ashi.
• 9 Time Frames: from 1 Minute to 1 Month.
• 47 Indicators: from Alligator to ZigZag.
• 20 Drawing Tools: including classics such as Fibonacci, Gann, and Pitchfork tools.

Trading Statistics

xStation 5 provides live statistics on your trading performance, updated in real-time. The statistics tool can serve as a trading journal where you can identify your strengths and weaknesses.

The platform records the following statistics to help you better understand and improve your trading performance:

• Your profit generated for the chosen period.
• Your average result per trade.
• The total number of placed trades.
• The maximum drawdown (drop in equity).
• Your profitable and losing trades.
• Your profitable and losing trade sequence.
• The success rate of all your trades.

We concluded that xStation is a solid and user-friendly platform. It can cover the needs of most traders, from beginners to advanced.

xStation Mobile App

The xStation mobile app offers trading in 2,100 CFD instruments in the palm of your hand.

XTB’s xStation mobile trading app is available for Android, Windows, and iOs devices in the same languages the web platform offers. The app allows for complete order entry and trade management for CFD instruments spanning forex, indices, commodities, and shares.

The app is also available in tablet form with even more features, including a customizable interface, order history, market commentary, and economic calendar.

The same order types as the web platform are available via mobile: market orders, limit orders, stop loss orders, and trailing stop orders. You can set an expiration date and time for pending orders. 1-click trading is available. However, it is not possible to set up alerts on the mobile app.

For enhanced security, traders can set up a four-digit passcode and fingerprint authentication for accessing the app. We judged that the xStation 5 mobile app is well-designed and has impressive features.

Order Execution

XTB Limited sends all trades automatically to its parent company X-Trade Brokers DM, their liquidity provider. Trades are executed automatically without any manual intervention from any dealing desk.

Tradable Instruments

XTB has a strong product offering across various asset classes. The range of tradable instruments at XTB spans forex, commodities, indices, shares from multiple exchanges, and exchange-traded funds (ETFs).

CFDs (Contracts for Differences) are financial derivative products that allow traders to speculate in various markets without owning the underlying assets. Tradable instruments at the XTB Limited UK entity include the following assets:

• 54 Currency Pairs. A currency pair combines two different currencies, with the value of one currency quoted against the other. For example, EUR/USD, which reflects the value of the euro measured in dollars.
• 27 Index CFDs. An index is a basket of trading instruments used to gauge a market sector, stocks within an exchange, or a country’s economy.
• 23 Commodity CFDs. Commodities are raw products, such as gold and oil.
• 1,800+ Global Stock CFDs. A stock is a security that represents partial ownership of a corporation. Keep in mind that when trading stock CFDs, you are speculating on the price of a stock without actually taking ownership of the underlying company.
• 100+ ETFs CFDs. Exchange-traded funds (ETFs) are financial instruments that track an index or sector and trade like a stock on an exchange.
• 3,000+ Real Shares and ETFs. In July 2023, XTB introduced real shares and ETFs, from 16 major exchanges all over the world including the US, UK and EU.

Below is a sampling of instruments across the various asset classes.

To conclude, the breadth of the product offering is strong at XTB and above average for the industry.

Customer Support

European clients of XTB have access to 24/5 support and help is available in 20 languages. An important bonus to mention is that XTB clients are assigned a dedicated account manager who provides a personalized level of service.

When using the chat feature, a bot answers you first, but you are passed on to a live operator if its answer is insufficient. In our tests, we experienced several-minute wait times to reach a live operator via chat.

When testing phone support, a knowledgeable representative answered our calls almost immediately. We tested customer support with a range of questions from easy to difficult and had a good experience overall.

Deposit and Withdrawal

The base currency is the currency in which your account is denominated. XTB offers five base currencies that you can use to open an account: USD, EUR, GBP, HUF, and PLN.

Deposits

Traders can make deposits via bank transfer, credit/debit cards (Visa, Mastercard, Maestro), and digital wall (Skrill).

Clients can only make withdrawals via bank wire transfer. Withdrawals by bank wire are free for transfers above $100. For withdrawals of less than $100, the fee is $20.

Notably, withdrawals are initiated fast at XTB. Withdrawals are typically processed the same day if requested before 1:00 p.m. Requests after that time are processed the next day.

Account Types and Terms

Opening an account at XTB is fast and seamless. The process only takes a few minutes and prospective clients must go through the following steps:

• Enter their email and country of residence.
• Create a password.
• Enter their name, date of birth, nationality, gender, and in the case of the United Kingdom, their national insurance number.
• Declare their tax residence and TIN number.
• Enter their address and length of residence.
• Choose a base currency (the account in which the account is denominated) between GBP, EUR, USD, and HUF and enter their preferred language.

As part of the Know Your Customer (KYC) process, users must answer questions covering their net worth, occupation, source of funds, and length of their trading experience. There was also a question testing basic knowledge of trading. The KYC questionnaire aims to ensure that brokers understand prospective clients’ risk tolerance, investment knowledge, and financial position.

Finally, to activate the account for live trading, users must upload proof of identity (passport, driver’s license, or ID card) and address (such as an electricity bill or phone bill).

XTB covers all the bases regarding account types, offering Demo, Standard, Professional, Islamic, and Corporate Accounts.

With the Professional Account, the main difference is in the available leverage, which is 1:100. The spreads, available instruments, and platform are the same as the Standard Account. Both account types have negative balance protection and segregated funds. With the professional account, XTB is not required to provide the current risk warnings.

Islamic accounts are only available outside Europe, and corporate accounts have a minimum deposit of 15,000 GBP.

XTB’s Account Features

Leverage

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage is using borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account. The available leverage listed below is based on an account opened with the XTB Limited UK entity (XTB.com).

A standard account offers a maximum of 1:30 leverage. With 1:30 leverage and a $1,000 account, you can control up to $30,000 worth of positions in the market. Traders can apply for a professional account, which offers higher leverage, but the costs and platform are the same.

Investors with a professional account can trade with a maximum leverage of 1:100. Using 1:100 leverage with a $1,000 account, traders can control up to $100,000 worth of positions in the market. To qualify for a professional account, users must show a financial portfolio of over €500,000 and relevant financial experience.

Leverage is often described as a ‘double-edged sword’ because it can amplify your profits and losses. Leveraged trading comes with a high level of risk and can often result in significant losses.

Demo and Islamic Accounts

An unlimited demo account allows you to hone your skills without risking any real money. XTB also offers a swap-free Islamic account that adheres to the principles of Sharia law.

XTB accepts clients from the majority of countries globally. However, like most CFD brokers, XTB does not take clients from the United States or FATF (Financial Action Task Force) blacklisted countries, North Korea and Iran.

Research

XTB’s award-winning research team provides news and analysis via the xStation platform. Stories cover breaking news, in-depth market analysis, and specific trade ideas. These materials can cater to both beginners and advanced traders.

In addition, the platform offers a variety of tools to help conduct market research.

These include

• Market sentiment that shows what percentage of XTB’s traders are buying or selling specific instruments.
• Top movers that reveal which instruments are gaining or losing the most.
• Stock & ETF scanners that allow users to filter stocks and ETFs based on a range of criteria such as dividend yield or 6-month return.
• Heatmap – a real-time market map illustrating price percentage change and other factors.

Education

The XTB website features a Knowledge Base section with articles ranging from technical analysis to platform tutorials. The material is helpful to beginners, and even seasoned traders will be able to pick up some valuable ideas.

Within the xStation 5 platform, there are a variety of educational videos, including lessons from seasoned industry experts such as Steve Ward and Tom Hougaard.

Live events led by market experts complement the written and video material provided by XTB. Educational webinars are scheduled every Wednesday, covering live market analysis via the xStation 5 platform and followed by a discussion.

We rated the education section at XTB as high quality and better than average for the industry.

The Bottom Line

XTB provides a compelling offering to traders of all levels of experience. We were especially impressed by some of the innovative features of the xStation 5 platform, such as the heatmap, scanners, and traders statistics tool.

XTB’s low fees and tight spreads make it easier for clients to achieve trading success. This broker performed well in every category of our tests. If you are looking for a strong all-around broker who can nurture your development as a trader, XTB might be a good fit.

FAQ