XTB Review 2023
XTB is one of the leading brokers known for its excellence in the retail CFD industry. Based in Poland, the multi-asset brokerage firm is a brand name of XTB Group, founded in 2002. Besides providing excellent trading conditions, the company offer flexible account types and user-friendly trading platforms, enabling clients to explore multiple financial markets seamlessly. With competitive spreads, rich educational resources and round-the-clock customer service, the firm strives to become the preferred choice of both newbies and skilled professionals. Today, we review the broker in detail.
Regulation and Security
XTB holds multiple regulations from top regulators worldwide. Moreover, it’s a public limited company listed on the Warsaw Stock Exchange. XTB Group’s major regulators include;
- United Kingdom: Financial Conduct Authority (FCA)
- Europe: Cyprus Securities and Exchange Commission (CySEC)
- Global: International Financial Services Commission (IFSC)
Further, the company protects confidential information using state-of-the-art technology, such as Secure Socket Layer (SSL) encryptions and two-step authentication.
Negative Balance Protection
XTB offers negative balance protection to its clients in the UK and Europe. That means clients can’t lose more than their invested capital even under adverse market conditions. The firm also offers Guaranteed Stop-loss (GSLs) to protect clients against slippage issues that could occur during increased volatility. Click here to find out more details regarding XTB’s NBP.
Funds Segregation
Besides provisioning enough capital to fulfil clients’ orders round the clock, XTB must keep clients’ investments in segregated bank accounts in compliance with strict regulatory requirements. Therefore, investors can rest assured of their funds being readily accessible anytime.
Is XTB available worldwide?
XTB Group’s regulated entities operate through more than 13 regional offices across the UK, Europe and the Middle East. The company accepts clients from almost all parts of the world, excluding but not limited to Syria, Indonesia, Iraq, India, Iran, Pakistan, Australia, Albania, Turkey, and the United States.
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Supported Platforms
XTB offers easy-to-use, intuitive trading platforms across all channels, including web, desktop and mobile devices. Clients who feel more comfortable surfing online can access the company’s online trading terminals, including the proprietary cTrader and the industry’s most popular trading platform – MetaTrader 4. On the other hand, desktop versions for both platforms are available for those who prefer exploring the markets with the ease of their desktop. The company also facilitates commuting clients to control their positions with one-click trading via xStation 5 & MT4 mobile trading apps.
Let’s quickly review the available options under each category.
Online trading
While XTB’s custom-built trading platform xStation 5 comes with a stylish design and multiple features, the sleek appearance of the MT4 web-based terminal accompanying rich technical tools and indicators is also commendable. However, the MT4 is only accessible in selected regions. Therefore, we’ll review the xStation 5 for illustration purposes.
The xStation 5 distinguishes itself from other charting software thanks to its responsive and modern design and several unique features. For instance, the countdown timer on charts that displays the time still available for each candlestick is pretty appealing. Further, the appearance of economic news releases beneath charting windows provides traders with beneficial insights concerning upcoming economic events.
The technical tools such as heat mapping for top movers analysis, traders’ sentiment percentage display window, and stock screener are remarkable. Other features, including multiple order types, price alert notifications, and portfolio reports, seem to have nailed the xStation 5 offerings. However, the two-step login feature is missing in the web station, which could make clients feel a little insecure.
Desktop Trading
The sleekly designed xStation 5 desktop trading platform comes with 40+ technical indicators and 30+ drawing tools, making it convenient for clients to perform in-depth technical analysis. While the trading interface is pretty easy to adapt to, the search function help clients instantly locate their favourite tradable instruments. Rest assured, XTB’s xStation desktop version is almost identical to the web-based platform, including its appearance and functions.
The MT4 desktop trading platform is both user-friendly and straightforward. Further, it allows clients to monitor several accounts using its multi-terminal support. The MT4 market watch lets traders access real-time market quotes and track live prices for different financial instruments. Further, placing and modifying orders straight from the charting window is possible with the MT4 desktop version. Notably, the MT4 Authochartist tools make trading even more simplified.
Mobile trading
The xStation5 mobile trading app has a clean appearance and comes equipped with many features that are similar to its web terminal. However, it has fewer technical indicators available than the xStation5 desktop version, while the mobile trading app’s market watch doesn’t synchronize with the web-based trading platform either. On the other side, the automatic preservation of drawings and the ability to incorporate new technical indicators into charts seem impressive.
The mobile trading app is compatible with Android and iOS-based mobile phones and tablets. Clients can download the respective app from Google Play Store or App Store. Undoubtedly, monitoring your account with the power to execute trades via single-click trading makes on-the-go clients feel super contended.
Account Types
XTB offers two types of accounts; Standard and Professional. While the spread-free standard account is accessible to everyone, the company keeps the professional account reserved for clients meeting the new set of rules set by the European Securities and Markets Authority (ESMA).
XTB pricing appears in line with average industry standards but lags to compete with the prices offered by the industry’s best CFD brokers. Notably, the standard and professional accounts come with the same trading features and pricing, with only a few exceptions. For instance, the company offers a cash rebate of up to 30% to high-volume traders, making the professional account look a little cheaper. However, small traders might find the standard account more suitable.
Further, the company also offers a swap-free account to shariah practising traders, enabling them to trade their favourite financial instruments without going against their religious beliefs. You must explore different account types to find the best fit for you.
Signing Up
Although the XTB signup process is straightforward, it can take time to become fully activated. That’s because the company requires its clients to complete the KYC process before they can start placing trades. Clients can use the following documents to verify their identity.
1) National ID card / Passport/ Driving license
2) Bank Statement / Utility Bill
Clients need to follow the listed steps to complete the registration process.
1) Fill in details on the signup page.
2) Verify your identity and submit proof of residence
3) Select your account’s base currency and preferred language
4) Provide your employment details and source of income
5) Read and accept the terms and conditions
After the account is verified successfully, clients receive an update to their registered email address.
Trading Dashboard
XTB’s dashboard has a comprehensive design with many options on both sides and upper navigation panels. The menu button is available on the top right corner of the dashboard screen. While the account options display all details relevant to account configuration, the statistics screen shows trading history besides a quick summary of profit or loss. The setting tab allows clients to set their trading preferences and enable or disable price alert notifications. Clients also have the option of modifying the dashboard’s layout. Overall, the dashboard looks mesmerizing, but newbies might take some time to adapt.
Deposit and Withdrawals
XTB offers multiple payment methods for deposits and withdrawals, but the list of supported payment methods is not as extensive as of its competitors. Clients can make deposits or withdraw funds using Debit cards, Credit Cards, Paysafe, and bank transfers.
While the broker doesn’t define a minimum threshold for deposits, clients can start with the amount they see fit for their trading needs. All deposits made via cards are instantaneous, while bank transfers can take a little longer to appear in your account.
XTB processes withdrawal payments via the same methods used for deposits. Clients are allowed to withdraw a minimum of $50 or equivalent. The lead time needed for card payments is 24 hours. However, withdrawals processed via bank transfers may take between 3-5 working days. Read more about XTB’s withdrawal policy here.
Instruments
XTB customers can trade CFDs on 1,800+ stocks, 130+ exchange-traded funds (ETFs), 48+ FX pairs, 35+ indexes, 20+ commodities, and 5+ cryptocurrencies. However, the range of offerings may vary depending upon the regulations of your selected entity. For example, UK clients cannot trade crypto CFDs amid FCA restrictions on trading crypto derivatives. Therefore, checking the availability of your prefered tradable asset in advance may help you avoid inconvenience.
Commissions and Fees
Although XTB’s overall pricing structure seems competitive, it might still appear a little costlier to some clients due to non-trading fees. For instance, the company employs a commission of $20 on withdrawals less than $100 or equivalent. Further, the company charges a 10 EUR monthly inactivity fee from dormant accounts exceeding the twelve-month grace period.
XTB doesn’t offer commission from standard account holders, except for trading Stocks and ETFs. However, professional account holders must pay up to 0.30% commission on all trades depending upon the underlying tradable asset and the trading volume.
While the company doesn’t charge fees on deposits made via cards, e-wallets (Skrill, Neteller) payments attract a transactional fee of 1%-2% in addition to currency conversion charges.
Spreads
XTB employs floating spreads, and the minimum spread for standard account holders starts at 0.9 pips. On the other hand, the minimum spread charge stipulated for professional clients starts at 0.0 pips.
Clients can trade major currency pairs like EUR/USD for an average spread of 0.95 pips in the Standard account, while trading index CFDs such as S&P500 is accessible for a spread charge of 0.6 pts.
Available Leverage
Leverage refers to margin-based trading where brokers finance clients to open large positions with limited investment. XTB offers dynamic leverage of up to 1:500. However, the maximum leverage available depends on the entity’s jurisdiction where it operates. For example, clients in countries with stringent regulatory setups like UK and Australia may access maximum leverage of up to 1:30 on currency pairs, 1:20 on commodities and indices, and 1:5 on share CFDs & ETFs.
Notably, leverage is like a double-edged sword that can result in excessive returns or severe losses in a fast-moving market.
Analysis and Education
With its comprehensive written content, video resources, and archived webinars, XTB’s educational resources seem well aligned with higher industry standards. There are 200+ lessons accessible under XTB’s trading academy.
However, the video content split between the website and the company’s official Youtube channel is somewhat unconvincing. It would have been great if all the resources were housed in a single location.
Moreover, the ‘Learn to Trade’ tab allows clients to sort the informative material according to their individual needs and expertise. Newbies might find the glossary section extremely helpful in familiarising themselves with different trading jargon and terminologies. On the other hand, the fundamental analysis provides valuable insight to skilled professionals and helps them make informed trading decisions.
Customer Service
XTB pays special attention to customer service. While the company’s website is accessible in more than 20 languages, the multilingual customer support staff remains available round the clock. The available channels to contact the company’s customer services includes telephone, email and live chat.
The company also offers a dedicated FAQs section to help clients seek immediate resolutions to their queries on a self-serve basis. The broker also is accessible via different social networking channels, including Twitter, Facebook, and Youtube.
Reputation amongst Traders
While 59% of customers rated the company as an excellent platform on Trustpilot, 20% of the clients consider it a great choice to trade forex and CFDs. Only 17% of customers seemed unhappy with the company’s overall services. Therefore, with a rating of 3.8 stars, the company appears to be equally popular among newbies and professional traders.
Awards
XTB has won several awards for its service of excellence over the years. The list includes but is not limited to;
- Best Forex Broker for Low Costs Award 2021 by Investopedia
- Best NDD Forex Broker Award 2021 by Online Personal Wealth
- Best Mobile App for Investing Award 2020 by Rankia
- Best Execution Broker Award 2019 by Technical Analysis Exhibition
- Best Polish Forex Broker Award 2019 by Invest Cuffs
Can beginners trade with XTB?
XTB has every reason to become the right fit for the trading needs of newbies. However, the custom-built trading interface is slightly tricky to adapt. Nevertheless, the company offers sufficient resources to help clients learn how to set up and use the trading platform. Moreover, XTB provides access to virtually funded accounts, allowing beginners to learn and practise multiple trading and money management strategies without compromising their real funds.
Summing Up
With a robust regulatory framework, listing on the Warsaw Stock Exchange, competitive spreads and rich educational resources, the company is a solid choice for risk-averse clients who value safety more than anything. Further, XTB’s flexible account types and competitive spreads might appeal to retail and institutional investors. However, most of the XTB’s offerings are limited to CFD products despite having an extensive product portfolio. Therefore, clients looking to trade real stocks or ETFs can feel somewhat obstructed.
