Best More Detailed Review Of XTB Forex Broker 2023
In order to comply with new Polish legislation, X-Trade, which was established in 2002 as Poland's first leveraged foreign exchange brokerage company, changed its name to X-Trade Brokers in 2004. In 2009, it underwent a rebranding to become XTB Online Trading (XTB), and in 2016, it was listed on the Warsaw Stock Exchange under the ticker symbol XTB.
XTB presently offers access to a number of markets, including forex, shares, indices, metals, commodities, and even cryptocurrencies. This is despite the fact that the online brokerage industry is fiercely competitive and constantly evolving. The business is licenced in the United Kingdom and registered with both the Polish Financial Supervision Authority and the Financial Conduct Authority (FCA #522157). (KNF). XTB does not accept U.S. traders, like many other forex brokers.
The "xStation 5" web-based platform is the main product of XTB. This is XTB's whole online product offering to the user, together with the popular MT4 (downloadable) platform and a useful mobile application. Although XTB's ancillary costs were in line with industry norms, its constantly smaller spreads made it difficult to ignore the competition. This was taken into account by Investopedia's rating algorithm when determining XTB's appeal to price-conscious traders.
Why Use XTB Online Trading (XTB)?
XTB is a good option for traders who wish to cut their expenses, whether it's the cost of placing a trade itself (the bid/ask spread) or not having to pay extra expenses like wire fees. For non-U.K. accounts, XTB offers maximum leverage of up to 500:1, while U.K. accounts receive leverage of up to 30:1. The company prioritises customer service and provides accessible research resources and pertinent teaching tools that would be beneficial to a new trader. According to Investopedia, this business is the Best Forex Broker for Low Costs.
XTB Review: Pros & Cons
Pros
- Over 2000 assets
- Leverage up to 1:500
- Great mobile app
- xStation 5
- Simple to use
- Powerful platform
- Beginner friendly
- Emphasis on customer service
Cons
- MetaTrader support suspended
- Non-FX spread costs are high
- No back-testing or automated trading capabilities
- Not Available to US residents
Tradable assets
- Stocks
The first financial market was the stock exchange. A stock symbolises a portion of a firm's ownership. For instance, if a corporation issued 10,000 shares and an investor bought 1000 of them, he would own 10% of the company. There are thousands of stocks available to investors because every publicly traded company is required to be listed on a stock exchange of some kind.
On XTB, there are a plethora of stocks and shares. Trading possibilities abound as a result, and with the platform's built-in stock screener and heatmap, identifying opportunities has never been easier.
XTB supports a large number of foreign equities because it is a licenced international broker. Both investors and traders have a wide selection of equities to choose from because it includes some of the biggest publicly traded corporations from 16 different nations.
Overall, XTB's stock offerings are really good. There is a wide range of options, and the majority allow for 1:5, which allows traders to open a position worth $500 for every $100 in their account.
- Crypto
The newest and most intriguing asset class currently available is cryptocurrency. It's a market that is quickly developing, has plenty of changes, and is quite volatile, making it ideal for trading. It is a really fascinating market because even the price of Bitcoin, the biggest cryptocurrency, often fluctuates by double-digit percentages.
The XTB cryptocurrency options are pretty numerous. On XTB, investors can purchase Bitcoin in addition to a wide range of other crypto-assets. XTB only accepts 19 cryptocurrencies, however it does support the most widely used ones, such as Bitcoin, Ethereum, Chainlink, and XRP.
Contracts for Difference are how XTB offers cryptocurrency (CFDs). This makes CFD trading on XTB ideal for short-term or day traders because it allows users to place bets on whether an asset's value will increase or decrease without ever owning the underlying asset. There is no need to build an XTB wallet because the broker employs CFDs to house its crypto-assets. Additionally, when purchasing Bitcoin, XTB users have access to leverage at a 1:5 ratio.
Cryptocurrency trading on XTB is generally simple. The broker's cryptocurrency assets are CFDs, thus frequent buying and selling is exceptionally quick and unrestricted. The majority of XTB users can trade cryptocurrency CFDs, but UK citizens are not permitted to utilise the function.
Pros Explained
- The "negative balance protection" that XTB offers has grown to be a rather significant feature that most online brokers now offer. The SNB event of January 15, 2015, which shook the markets, notably the heavily leveraged retail FX market, was probably the catalyst.
- Customer service is a priority for XTB, and this includes live chat, 24/7 telephone assistance, and an assigned account manager. Anyone involved in the world of internet trading has to have easy access to a broker.
- The Financial Conduct Authority (FCA #522157), one of the key regulatory bodies in the United Kingdom, is in charge of overseeing XTB Online Trading (XTB). The FCA is renowned internationally for being tough in enforcing market rules that are equitable for both individuals and companies. Simply said, a company's legitimacy is greatly increased if it is governed by a respectable government-backed organisation. While traders are aware of the inherent risk in the markets, they would want to have the assurance that other hazards, including counter-party risk, won't affect their funds.
- For "Standard" accounts, XTB advertises minimum FX spreads of 0.5 with no commission and 0.1 with commission. This is unquestionably the greatest retail FX brokerage service available.
Costs
The entire price and cost structure of XTB is competitive in the world of online forex brokerage. The advertised minimal FX spreads for the various account formats are what distinguish XTB. The minimum spread for XTB's "Standard" account is 0.5, while the minimum spread for its "Pro" account is 0.1.
For trades on Pro accounts, a charge of $3.50/lot is however imposed. One standard lot is typically defined as 100,000 units of the base currency in retail FX terminology, which translates to a minimum spread of 0.45, still among the best in the business.
The average spread on EUR/USD for the most recent quarter, according to XTB, was 0.43 (for Pro accounts) and 1.02 (for Standard accounts). The average EUR/USD spread for Pro accounts would have actually been 0.78, which is once again among the finest in the online forex brokerage market, if not the best. The 0.43 is the average spread before commission was imposed. For cryptocurrency (Pro) and stock CFD (Standard and Pro) transactions, XTB also levies commission fees.
If "no opening or closing of the position on the Customer's account within the last 365 days and no cash deposit within the last 90 days," XTB does impose an inactivity fee of €10. Additionally, there are charges for withdrawals from a client's cash account that are less than a certain amount, a percentage charge for withdrawals to a credit card, and a percentage charge for utilising e-commerce websites (Skrill, Neteller, SafetyPay). However, cancelling an account or receiving or sending wire transactions don't incur any fees.
Customers who want to start a live account with XTB do not need to make a minimum deposit, but logically, this sum will be subject to the margin requirements of the smallest trade size that the customer desires to place. While U.K. clients that engage in big volumes of trading are given lower spreads, international clients with large account balances are qualified for cashback rebates and welcome incentives.
Source :
- https://www.investopedia.com/
- https://www.business2community.com/