XTB review 2020

Broker XTB online trading reviews and experiences – Physical shares, ETFs, Forex, CFDs and cryptocurrencies, xStation

Among the providers that promise zero transaction fees is XTB, a European-based online broker that is a leader in trading stocks, ETFs and CFDs. Those who turn to this broker can expect a modern and user-friendly platform, first-class customer service and an excellent selection of underlying assets for investment.

In the following chapters, you can analyse the features of the XTB broker in detail so that you can get a clear picture of the advantages of this type of service and immediately start investing in the most traded cryptocurrencies or shares on the financial market.

What is XTB

XTB is an online broker that offers access to over 2,000 underlying assets with its innovative xStation 5 platform and is one of the few brokers that does not require a minimum deposit and does not charge commissions on stocks and ETFs (up to a volume of 100,000 euros per month).

XTB is a solid and proven broker that was founded in 2004, is listed on the stock exchange and thus has all the characteristics of a reputable and reliable platform that is internationally regulated.

XTB is a comprehensive but very easy to use online broker, even for traders who are investing online for the first time. In the following chapters, you will learn in detail how to open an account, how to verify the account identity (an essential step to invest safely), which financial products and instruments you can use, which account types you can activate, which deposit and withdrawal options are supported, and how customer support behaves.

Account opening and identity verification

To open an account, simply go to the official XTB* site, click on the Learn More button on the home page and then click on the Open Free Account button. On the following screens, provide a valid email address, select your country of residence, and provide a valid phone number and the documents required for identity verification.

Verification is essential to operate safely and ensure that only you can make investments with the account you have just created. Once created, you can immediately try out all the financial instruments and make your first deposit.

If you do not want to create an account right away, but still want to test the potential of XTB, you can open a free demo account by clicking on the corresponding button on the page mentioned above. To open a demo account, simply enter your name, a phone number and an email address and you will get access to the free account where you can make investments without spending a euro.

*68% of retail investor accounts lose money trading CFDs with this provider. You need to know how CFDs work and if you can afford to lose your money. Investing in cryptocurrencies is very volatile and unregulated in some EU countries. Consumers are not protected. Taxes may be levied on profits.

Underlyings assets and instruments

With XTB, you can invest in a large number of underlying assets on the xStation 5 platform:

• Forex: XTB offers more than 50 currency pairs. All major currency pairs are available, plus some lesser known pairs for experts.
• CFD and non-CFD stocks: With over 1,805 stocks of companies from the US and Europe, including major multinationals such as Apple, Airbnb, Tesla, Amazon and others, there is no shortage of stocks to invest in.
• CFD indices: All the major global indices are represented on the site, so you can invest your money well.
• Commodity CFDs: There are many commodities you can invest in at XTB. Of particular note are coffee, wheat, copper, aluminium, nickel, oil, platinum, silver and gold.
• CFD and non-CFD ETFs: For specialised, high-risk investors, it is possible to invest in the value of various ETFs.
• CFDs on cryptocurrencies: We couldn’t leave out cryptocurrencies. At XTB you can bet on the performance of Bitcoin, Litecoin, Ripple, Solana, Dash, Ethereum and other smaller cryptocurrencies.

The range of underlying assets is very broad and will satisfy both beginners and experienced investors.

Forex currency pairs in the form of CFD products have been part of the portfolio of instruments offered since the foundation of the broker XTB, which was called Forex Broker in the beginning. The broker offers 57 tradable currency pairs, tight spreads from 0.1 pip and micro lot trading with leverage up to 1:30.

Shares – physical and CFD

Above all, a trader should understand the difference between CFD products and the option to buy physical shares.

The rules for trading CFD shares are similar to those for trading in the foreign exchange or commodities market. CFDs allow you to speculate on the ups and downs of the market without owning the underlying asset. When trading CFD shares, you have to factor in a margin (from 10%) and fees (from 0.08%). The orders are settled directly on the exchange – DMA. The broker currently offers 1,880 tradable CFD shares.

Physical shares have been among the most sought-after assets in recent years, so it is not surprising that the broker XTB also offers this option to its customers in view of the demand. Trading or investing in shares is free of charge at XTB up to a monthly turnover of 100,000 euros. When buying shares, the spread between the BID and the ASK price can be considered as a kind of fee, which we will discuss in the next part of the overview. The XTB broker currently offers 2,805 physical shares. There is no possibility to buy fractional shares.

The rules for trading CFD shares are similar to those for trading on the foreign exchange or commodities market. With CFDs, one can speculate on the ups and downs of the market without owning the underlying asset. When trading CFD shares, you have to factor in a margin (from 10%) and fees (from 0.08%). The orders are settled directly on the exchange – DMA. The broker currently offers 1,880 tradable CFD shares.

Physical shares have been among the most sought-after assets in recent years, so it is not surprising that the broker XTB also offers this option to its customers in view of the demand. Trading or investing in shares is free of charge at XTB up to a monthly turnover of 100,000 euros. When buying shares, the spread between the BID and the ASK price can be considered as a kind of fee, which we will discuss in the next part of the overview. The broker XTB currently offers 2,805 physical shares. There is no possibility to buy fractional shares.

Cryptocurrencies

Since 2017, cryptocurrencies have also been part of the portfolio of instruments offered in the form of CFD products. The offer includes 20 tradable cryptocurrencies and cryptocurrency pairs such as Bitcoin, Ethereum, Litecoin, Ripple – XRP, Dogecoin, etc. Cryptocurrencies can be traded with a leverage of 1:2 and 7 days a week. The broker XTB is one of the most favourable brokers for CFD trading with cryptocurrencies.

ETFs – classic and CFDs

As with shares, we have a choice of CFDs and classic ETFs with 0% fees. For CFD ETFs, traders need to consider margin (from 10%), fees (from 0.08%), market access (DMA) and leverage from 1:1 to 1:5 as standard. There are 140 tradable CFD ETF instruments to choose from, such as Ark Innovation, Vanguard, SPDR Euro Stoxx 50, SPDR Gold Shares and many more.

Investing in classic ETFs offers 0% fees (up to a monthly turnover of €100,000) and the opportunity to invest in bonds, real estate, commodities and global companies. Broker XTB currently offers 257 ETFs that can replace more expensive investments in traditional funds.

Indices

Indices are one of the most popular instruments to speculate on the movements of the broad stock market by buying and selling CFDs. The broker offers 42 tradable index instruments from around the world, not excluding the United States, Germany and China. When trading index CFDs, you need to consider the leverage (1:5 – 1:20 standard), fees and spreads. The best known indices are undoubtedly the DAX, DJIA, NASDAQ 100 or SP500.

Commodities

The last group of tradable instruments at the broker XTB are commodities. Again, in the form of CFDs, without fees in the form of commissions, only with a spread that is competitive with foreign brokers. A total of 23 commodities from the areas of grains, softies, energy, precious metals, etc. are offered. Among the lesser known, which are not offered by many brokers, are: Aluminium, Nickel or Zinc.

Types of accounts at XTB

XTB offers a basic account type, aptly named STANDARD.

All available instruments from the XTB range can be traded via this account, i.e. CFD products (Forex, commodities, indices, shares, ETFs and cryptocurrencies) as well as physical shares and ETFs.

As the broker is subject to ESMA regulation and offers its products in the European Union, every customer is protected against negative balances.

Traders and investors have access to the xStation and MT4 trading platforms, both desktop and online (web-based).

Fees, commissions, spreads, volumes and much more vary depending on the instrument traded.

XTB Professional Clients

At XTB, you can achieve the status of a professional client if you meet the conditions. A professional XTB client can use leverage of up to 1:200 or 1:5 when trading cryptocurrencies.

Just like a retail investor, a professional client is protected against a negative balance. The capital is kept in a separate account and receives all XTB benefits, products and services.

Professional XTB Overview

To become a professional client of XTB, an applicant must meet two of three criteria:

• They must have made a sufficient number of large transactions in each quarter of the past year,
• the size of the portfolio of financial instruments must be more than EUR 500,000,
  At least one year of professional experience in the financial sector.

Opening an account with XTB

Opening a real money account with XTB is completely online and starts with a click on “Open account”, which leads the interested party to the online registration form.

In the first step, you enter your email address and confirm that you agree with the privacy policy (if you agree with it).

Before opening an account, I strongly recommend that you read all the documentation on the XTB website.

The whole account opening process is very quick and intuitive.

XTB account opening report

• Fill in your personal details (first name, last name, date of birth, etc.).
• Fill in a FATCA declaration (tax residency) and confirm the beneficial owner.
• Select the account currency and preferred language.
• Complete the investment questionnaire and provide details of your education or employment and trading and investment experience.

The entire registration process takes up to 10 minutes and your trading account is available immediately. Now you can log into your investor profile and familiarise yourself with the xStation 5 trading platform. Your trading account is not active at this stage, so select “Activate account” and you will be redirected to complete more information. You will then need to confirm your identity with two identification documents (ID card, passport, driving licence, etc.).

In the next step, you enter your bank details and wait (1-2 days) until the authorised person releases your investment account and we can start trading.

It should be noted that the first deposit into the account must be made from the specified bank account, further deposits according to the other options offered.

An equally interesting option is to set up multiple accounts or sub-accounts with the XTB broker, allowing us to hold accounts in different currencies as per our investment objectives.

Trading platforms at XTB

At XTB, an existing client basically has two options to choose from, namely Meta Trader 4 or xStation. These two trading platforms/applications are used to analyse the markets as well as to place trading orders and manage investment portfolios.

• Meta Trader 4 is still the most widely used trading and analysis platform in the world, originating from MQL5 and working on Android and iOS devices. MetaTrader 4 is only available to existing XTB traders in desktop (PC installation), tablet and mobile app formats. MetaTrader 4 is the first choice for many traders because of the ease of using AOS systems, helpers and other technical analysis indicators. Take a look at the TCZ tools I use in my trading.
• The xStation platform is a modern and intuitive application that is increasingly used by XTB clients, replacing the in some respects inadequate (limiting) MT4 platform. Like MT4, xStation can be used as a desktop, mobile or web app so that you are always in control of your trading account. The app works on Android and iOS devices.

New XTB customers currently have access to xStation and the XTB Mobile App.

Trade with XTB

Once you have opened a demo or live account with XTB, chosen your account currency and trading platform, it’s time to trade and invest with XTB.

The picture above is an example of the web platform xStation 5 (demo version), which is very similar to the well-known MT4 and with which everyone should be able to find their way around quite quickly. In the basic setting, we see the current account balance, the open positions and the pending orders, if any, in the bottom bar. On the left side is a list of available instruments sorted by basic groups (Forex, Indices, CMD – Commodities, CRT – Cryptocurrencies, STC – Physical and CFD Shares, ETFs Physical and CFD).

The largest area is taken up by the chart of the selected instrument, on which you can perform basic technical analysis and read price action, similar to what we know from MT4 or TradingView.

If you are just starting to trade and invest, visit the Trading School section to get basic information about the stock market environment and trading for free.

Deposits and withdrawals

There are several ways and methods to deposit into an investment account at XTB. The simplest option is to log into the investor profile, select the “Deposit” option and then choose one of the options offered.

The investor can choose between three options:

• Bank transfer – free of charge, next day credit, note the possible conversions when depositing in another currency.
• Deposit with Visa, Mastercard and Maestro – immediate crediting of the deposit, fee from 0.77% to 0.95% of the deposited amount depending on the chosen currency.
  PayPal – free of charge, immediate crediting of the deposit to the account.

The first deposit to the investment account must be made from the bank account specified during registration, further deposits can be made by card or PayPal e-wallet.

Deposits by credit card are mainly used by traders when open positions are running against the trader and he is threatened with a margin call or stop out. In such a case, it is possible to resort to the inefficient method of charging the investment account, which is burdened with fees, and thus prevent the closing of losing positions.

If you do not yet have PayPal, it may be time to consider such an option in the interest of your broker XTB. Deposits into the account are credited immediately and free of charge by PayPal. Therefore, many traders choose to send money to PayPal first and then to their XTB trading account.

Withdrawals from the trading account to the bank account are also made in the investor profile and are usually paid out on the next working day.

Customer funds are protected at XTB Broker up to EUR 22,000 in the event of insolvency.

XTB broker fees

One of the most important aspects of choosing a broker that we as traders and investors should go through in detail is the section on fees.

Broker fees can be divided into several types, such as fees for opening a position, swaps, spreads, account management, fees for deposits or withdrawals, inactivity fees, the transmission of daily transactions, etc.

Fees for forex, commodities, cryptocurrencies and indices – XTB spreads.

For Forex currency pairs, there is no transaction fee (opening or closing a position), here the spread plays a role.

For the most traded currency pair EURUSD the spread is 0.8 pip, GBPUSD 1.7 pip, USDCAD 1.5 pip, USDJPY 1 pip. SWAPS can play a role here. Swap points are different above for each pair, they can be positive and negative at the same time and are basically no different from those of the competition. Positive swap points are used by many forex traders for the so-called carry trade strategy.

In the case of cryptocurrencies, indices and commodity CFDs, the situation is very similar. Here, too, there are no fixed fees for buying or selling the instrument, but the spread or SWAP plays the main role. Some indices and commodities are traded without swap points (natural gas, oil, coffee, cocoa, corn, DAX, NASDAQ, DJIA or SP500) and are also suitable for longer holdings (swing and position strategies).

CFD trading fees for shares and ETFs

When trading shares and ETFs as so-called CFDs (leverage, margin, etc., see above), the commission for transactions (buying and selling) is 0.08% of the transaction value (min. 8 EUR).

Not only for the purchase of physical shares, but also for CFDs, the broker pays a dividend minus a fee of 0-35% depending on the market (country).

Fees for the purchase of physical shares

There are no fees for the purchase of physical shares at the XTB broker, with a monthly turnover of up to 100,000 EUR. If this is exceeded, the fee is 0.2% (minimum EUR 10).

If you invest in shares at XTB Broker, you should pay attention to a possible currency conversion and, if possible, do not buy shares listed in euros with a USD account. For dividend payments, withholding tax is levied according to the fee table.

All information must be read on the official website of the brokerage company!

Regulation of XTB

XTB Limited is authorised and regulated by the UK Financial Conduct Authority (FRN 522157)

XTB Highlights and Comparisons

XTB shares are traded on the Warsaw Stock Exchange

XTB is one of the few brokerage firms listed on the Warsaw Stock Exchange and is therefore obliged to publish its quarterly results. This gives us an overview of the company’s performance, the development of the number of clients, expenses, revenues and net profit.

XTB’s result for 2020 and comparison with 2019

Looking at XTB’s result for 2020, we can say that there is currently no reason to fear a financial insolvency or even bankruptcy of the broker. For brokers, especially STP brokers, 2020 was a very successful year thanks to the influx of new investors and their activities.

In 2020, XTB’s turnover was almost 800 million euros, and a net profit of 400 million. XTB shareholders were particularly pleased with the net profit, which increased by 600% compared to the previous year.

XTB’s share is one of the most volatile, which is probably due to the industry in which the company operates. XTB trades on the Warsaw Stock Exchange under the symbol XTB, has a market capitalisation of almost PLN 2 billion, a P/E ratio of 4.8 and a dividend of PLN 1.8/share.

Currently, one XTB share trades for 20 Polish zloty and no one will be surprised by a share price increase after the first quarter of 2020, i.e. after the emergence of the Covid 19 coronavirus pandemic and increased investor interest in participating in the growth of the equity, commodity and cryptocurrency markets.

XTB Awards

Broker XTB has won a number of awards abroad, such as:

Best Forex & CFD Broker (Invest Cuffs 2021) – Best Forex and CFD Broker.
Best CFD Broker for 2021 (Brokerchooser) – Best CFD Broker
Best Forex Broker for Low Cost (Investopedia 2021) – Best Forex Broker for Low Cost.

XTB Conclusion

The broker XTB is probably the best known and most popular broker in Poland and some countries in Europe. XTB can offer its clients cheap and modern trading with CFD products as well as building an investment portfolio with shares and ETFs.

XTB reviews

The broker has branches in 13 countries around the world, in Germany it is regulated by BaFin, and we don’t need to talk about credibility here.

In such a situation, it just depends on the needs of the particular trader and investor. Some traders may be looking for a forex broker with smaller spreads and commissions, while others may need more cryptocurrency pairs or fee-free transactions of smaller amounts from an investment account to a bank account for a change.

We would certainly find some weaknesses with any broker, XTB not excluded. However, there are not too many such brokers that offer such a range of services with German support.