XTB Review 2024
Website: www.xtb.com
Min. Deposit: US$
Leverage: 1:30
Trading Platforms: MT4, xStation 5
Regulation: FCA, KNF, FSC, CNMV, CySEC
Headquarters: UK
Founded: 2002
Regulatory Licenses:
- XTB Limited - authorized by FCA (UK) registration no. 522157
- XTB Limited - authorized by KNF (Poland)
- XTB International Limited (XTB) - authorized by FSC (Belize) License No.: 000302/46
- XTB Sucursal - authorized by CNMV (Spain)
- XTB Ltd - Regulated by CySEC (Cyprus) under license no. 169/12
Updated on May 21, 2024
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At Broker Insight, our review methodology for evaluating brokers is comprehensive and multi-faceted, ensuring a well-rounded analysis. We start by examining the broker's regulatory compliance and background, assessing the security and reliability of their operations. This is followed by a thorough evaluation of the range and diversity of trading instruments and markets offered, as well as the variety and suitability of account types available for different trader profiles. We delve into the trading platforms and tools provided, focusing on user experience, functionality, and technological robustness. Fees, spreads, and overall cost structure are scrutinized for transparency and competitiveness. A key component of our review involves testing the effectiveness and responsiveness of customer support. Additionally, we consider the ease and efficiency of the deposit and withdrawal processes. Finally, we incorporate real user feedback and the broker’s community reputation into our assessment to present a holistic and unbiased review that serves as a valuable resource for traders seeking reliable and insightful broker evaluations.
XTB stands as a reputable and leading brokerage in the UK and European markets, offering online trading solutions. With its roots in Poland and significant operations in London, UK, XTB has made a name for itself in the forex trading world. Established in Poland in 2002, it was among the pioneers in offering leveraged forex trading in the region. Following regulatory compliance enhancements in 2004, it rebranded to its current identity, XTB Online Trading. Marking a milestone, XTB went public on the Warsaw Stock Exchange in 2009, trading under the symbol "XTB".
XTB has cemented its reputation as a reliable broker, boasting robust regulation and being recognized as one of the leading forex brokers in Poland. Over the years, XTB has catered to both novice and experienced traders by offering competitive conditions, including low trading costs and exceptional support through educational and research materials. Its web platform and mobile app are laden with features, making them suitable for CFD trading and day trading activities. However, XTB falls short in providing round-the-clock support, and trading conditions might vary depending on the regulatory entity. Additionally, the lack of promotion for the MetaTrader 4 (MT4) platform in its UK, Poland, and Cyprus branches is noticeable.
Pros
Reliable regulation and safety of funds
Competitive trading conditions for all levels of traders
Comprehensive educational and research resources
Userfriendly web and mobile platforms
Cons
No 24/7 customer support
Trading conditions may vary by entity
Limited promotion of MT4 platform in certain regions
XTB operates as a group and has been recognized with numerous awards, highlighting its excellence in technology and service. Recent accolades include being named the Highest rated FX & CFD Broker by the Wealth & Finance International Awards, showcasing the company's esteemed position and professional approach within the industry.
XTB is far from being a scam, with its establishment in Europe and adherence to stringent regulations, including the prestigious FCA license, positioning it as a low-risk trading broker. The regulation by top-tier authorities such as the FCA, CySEC, CNMV underscores XTB's reliability, ensuring a secure trading environment for its clients. The Financial Services Compensation Scheme (FSCS) further bolsters client security by offering compensation up to £50,000 per person in the event of insolvency. Although XTB operates entities in the offshore zone of Belize, its adherence to high establishment standards affirms a safe trading environment, contrary to the risks associated with purely offshore firms.
In our examination of XTB's leverage offerings, it's evident that the broker has adapted to the stringent ESMA regulations prevalent within European jurisdictions, capping the maximum leverage available to traders at 1:30 for Forex pairs, 1:5 for stock CFDs, and even lower for other asset classes. This precautionary measure, although limiting for some, is primarily aimed at safeguarding traders from the heightened risks associated with high leverage trading. On a brighter note, XTB extends an olive branch to international clients, offering a staggering leverage of up to 1:500, subject to the trader's country of residence and its regulatory framework. Details regarding these offerings can be directly verified on XTB's official website.
XTB streamlines its account offering to a singular Standard Account, integrating all trading costs within the spread, which simplifies the trading process for many. Additionally, the broker acknowledges the diverse needs of its client base by providing a specialized Islamic Account that complies with Sharia Law, available upon verification of the trader's eligibility. The account opening process at XTB is designed for efficiency, requiring basic personal and financial information, followed by a verification step involving a national ID or passport and a bank statement. The Standard Account, apart from variations in swap rates and spreads, aligns closely with the general benefits and options provided across XTB's service portfolio.
XTB positions itself competitively within the market with respect to its fee structure. The broker's fees are considered average, yet leaning towards the lower end when compared to industry benchmarks, particularly for stock CFD trading. This balance of affordability and value is further accentuated in the swap rates and spread levels, which exhibit variability. For example, the spread for the Standard Account starts from a competitive 0.35 pips. Such cost-effective pricing structures are complemented by the broker's transparent fee policies, notably in areas like overnight fees, where XTB charges based on the differential between the two currencies involved in the transaction, and the nature of the position—whether it is a long or short.
XTB distinguishes itself through its low spread offering, achieving an impressive score of 4.55 out of 5 in our comparative analysis against a pool of 1000 brokers. The broker significantly undercuts the industry average with its Forex spreads, notably on the EURUSD pair, which are substantially lower than the typical 0.8 pips seen elsewhere. This advantageous pricing is not limited to major currency pairs but extends across a broad range of financial instruments, making XTB an attractive option for traders seeking cost-efficient trading conditions. For a clearer perspective, prospective clients are encouraged to review the typical spreads listed for Standard accounts and compare them against those offered by competitors to gauge XTB's competitive edge.
Offering a comprehensive range of trading opportunities across various global markets, this forex broker provides access to over 1500 instruments. These include Forex, Indices, Commodities, Crypto, Equity CFDs, and ETFs. A special mention goes to Crypto trading, which allows trading on major cryptocurrencies such as Bitcoin, Ethereum, Dash, Ripple, and Litecoin through CFDs. This service is available 24/7, does not require a wallet, and offers leverage up to 1:5. The swaps are relatively low, with long positions at 0.08% per day and short positions at 0.04% per day, and the spread is only 1% of the target. It's important to note that Cryptocurrency CFDs are not available to retail traders from the U.K. entity or to U.K. residents. The Market Instruments Score for this broker is 4.2 out of 5, given its wide selection of trading instruments, though it's worth mentioning that the European entity mainly offers CFDs and Forex Instruments, with a broader range available to international clients.
The broker offers several secure and popular methods for depositing funds into trading accounts, ensuring that traders can easily transfer funds. However, it's advised to check with customer service for specific conditions and methods, as these can vary according to regulations. The Funding Methods Score is 4.0 out of 5, thanks to the absence of minimum deposit requirements and low or nonexistent fees. This allows traders to benefit from various account-based currencies, although available deposit options may differ across entities. When it comes to withdrawals, bank transfers and credit card payments are free of charge for both withdrawals and deposits, with currencies such as EUR, USD, and GBP accepted. Other payment methods, like PayPal and Skrill, may incur a 2% charge on the deposited amount.
This broker offers two main platforms for clients to choose from. The primary platform, xStation5, has earned multiple awards for its efficiency, offering total trade transparency, real-time commentary, fast execution speeds, and a comprehensive charting package. The Trading Platform Score is 4.1 out of 5, reflecting the high quality of both the proprietary platform and MT4, although MT4 is only available in selected regions. The web platform is fully customizable and speedy, including tools like calculators, advanced charts, and technical analysis, though it is not as comprehensive as the desktop platform. For day traders and professionals, the desktop platform offers extensive settings, including watch lists and workspace accessibility across devices. The broker also provides a market sentiment indicator, a top mover feature, and an equity screener. Additionally, MT4 is enhanced with reliable trade execution and support for Expert Advisors.
Based on our assessments, the broker provides excellent customer support, offering relevant and swift responses through live chat, email, and phone lines in various regions, including the UK and internationally. The Customer Support Score is 4.5 out of 5, acknowledging the knowledgeable and easily reachable service during working days, although it is not available 24/7.
The broker aims to help clients develop profitable trading strategies over the long term. It offers a comprehensive educational program, including video tutorials, guides, online webinars, live market analysis, a trading club, one-to-one mentoring, and development managers. The Education Score is 4.5 out of 5, reflecting the high quality of materials, excellent research, and cooperation with leading data providers.
Overall, our research indicates that this forex broker is a multi-asset platform offering a well-balanced trading experience, regulated in several major financial centers and thus considered reliable. The broker's powerful platform and client offerings have earned it excellent ratings. Among its advantages are low spreads and cost-effective commissions. The xStation5 platform is functional and intuitive, while MT4 caters to more technologically advanced traders with features like expert advisors, back-testing, and auto-trading. While MT4 is not available in all jurisdictions, it can be accessed by changing your entity. This broker is particularly suited for cost-conscious traders looking to engage in the retail foreign exchange markets.
Based on our findings and financial expert opinions, this broker is recommended for:
Trading currency pairs and CFD trading
Scalping traders
Traders who prefer MT4
Both experienced traders and beginners
EA traders
Suitable for a variety of trading strategies, including scalping and hedging strategies.
