XTB Review
XTB is a great choice for traders who want to reduce their costs. This includes the cost of placing a trade (bid/ask spread), as well as not being burdened by extra costs such wire fees. XTB allows non-U.K. accounts maximum leverage up to 500%, while U.K. accounts can get as high as 30:1 leverage. The firm is focused on customer service and provides relevant education tools and research facilities that would be useful to novice traders. "Broker Review's Best Forex Broker at Low Costs" voted this company as the winner.
Fast Facts
Minimum account: $0
Fees : Spread cost; Commissions, Overnight financing costs; Inactivity charges
Lowest Costs for Open An Account
Year: 2002
Financial instruments:
48 currency pairs
More than 20 global indexes
Major commodities
Global stock CFDs available in more than 1,500 countries
60 CFDs and ETFs in Cryptocurrency
The Key Takeaways
Our Best Forex Broker at Low Prices.
XTB gives you access to a range of markets, including forex, shares and indices.
XTB provides maximum leverage up to 500% for accounts not in the United Kingdom, while accounts in the United Kingdom get as high as 30:1.
Pros
Lowest FX spreads
FCA (U.K.).
Client accounts protected
Customer service is the main focus
Cons
Accepts no U.S. clients
Spread costs for non-FX are high
No guaranteed stop loss
There are no automated trading or back-testing capabilities
Rating of the company overall
Reliability ⭐⭐⭐
Platform ⭐⭐⭐
Commissions ⭐⭐⭐⭐
Support ⭐⭐⭐⭐⭐
Financial instruments ⭐⭐⭐
RATING: 4.1
History
X-Trade was established in 2002 as Poland’s first leveraged foreign currency brokerage house. In 2004, X-Trade Brokers was formed to meet new Polish regulations. In 2009, it was rebranded as XTB Online Trading (XTB) and listed on the Warsaw Stock Exchange under the ticker symbol XTB in 2016.
XTB is steadily expanding its presence in the highly competitive online brokerage market. It currently offers access to a range of markets including forex, shares and indices as well as metals, commodities, and even cryptocurrencies. The company is registered in the U.K. with the Financial Conduct Authority (FCA#522157) and the Polish Financial Supervision Authority. XTB, like many forex brokers does not accept U.S. trades.
XTB's flagship platform, "xStation 5," is a web-based offering. This platform, along with the ubiquitous MT4 (downloadable), platform, and a functional mobile app, makes up XTB's entire online offering for the consumer. Although ancillary costs were comparable to industry standards, XTB's consistently low spreads made it stand out from the rest. This was a factor in the ranking algorithm of Broker Review, which recognized XTB's appeal for cost-conscious traders.
Pros Explained
XTB advertises minimal FX spreads at 0.5 for Standard accounts and 0.1 for Pro accounts. This is the highest-rated retail FX brokerage.
XTB Online Trading is regulated by UK's Financial Conduct Authority (FCA#522157). This agency is a major regulator in the U.K. It is widely regarded for its strict approach to ensuring fair market practices for individuals and businesses. A firm's credibility is enhanced when it is regulated by a respected government agency. Although traders accept the inherent risk of trading, they want to be able to rest assured that their funds aren't exposed to other risks such as counter-party risk.
XTB provides "negative balance protection", which is something that many online brokers now offer. Most likely, the SNB Event of January 15, 2015 was the catalyst that rocked the markets, particularly the retail FX market which is highly leveraged.
XTB is a firm believer in customer service. This includes 24/7 telephone support, a dedicated account manager, and live chat. Anyone involved in online trading will find it crucial to be able contact a broker quickly.
Cons
Due to US regulatory restrictions, XTB is not able to accept U.S. clients. This prevents it from being considered a global brokerage. This would be a red alert if it weren't for the fact that XTB is regulated jointly by the FCA and the U.S. regulatory agencies (NFA and CFTC) which is widely considered to the most important regulatory body.
XTB charges commissions on both cryptocurrency (Pro), and stock CFDs (Standard, Pro) transactions. These are not as beneficial to the client.
XTB doesn't offer guaranteed stop loss (GSLO), making it one the most prominent forex brokers that does not. GSLOs protect traders from market risk. Many brokers will offer them (for an additional fee) and take the risk.
XTB's xStation 5 does not have back-testing capabilities or automated trading capabilities. MT4 is the only option for algorithmic traders.
Prices
The cost structure and fee totals of XTB are competitive in the online forex brokerage market. XTB's advertised minimum FX spreads are what sets it apart. XTB's Standard account has a minimum spread at 0.5 while its Pro account has a minimum spread at 0.1. Trades on Pro accounts will incur a $3.50/lot commission. Retail FX parlance states that one lot equals 100,000 units of base currency. This would mean that there is a minimum spread of 0.45. However, this is still a great deal in the industry.
XTB reports that the average spread on EUR/USD in the last quarter was 0.43 for Pro accounts and 1.02 for Standard accounts. The average spread before commission is added is 0.43. Therefore, the EUR/USD spread for Pro accounts would have actually been 0.78. This spread is again among the best in online forex brokerage, if it is not the best. XTB also charges commissions for stock CFD (Standard, Pro) and cryptocurrency (Pro).
XTB charges an EUR10 inactivity fee if the customer's account has not been opened or closed within the last 365-days and there have been no cash deposits within the past 90 days. Client withdrawals below a certain amount are subject to fees. There is also a percentage fee for withdrawing cash from a client's account and a charge for withdrawals to a credit card. There are also percentage charges for shopping on e-commerce websites (Skrill Neteller, SafetyPay). However, there are no fees for wire transfers incoming or outgoing or closing an account.
XTB does NOT have a minimum deposit requirement to open a live accounts. However, logic dictates that this amount will need to be subject to the margin requirements for the smallest trade the customer wants to place. Clients from international countries with large account balances can be eligible for cashback rebates or welcome bonuses, while clients from the United Kingdom who trade high volumes are offered lower spreads.
Trade Experience
XTB's custom trading app, xStation 5, is a streamlined trading platform. It is accessible from all browsers (Chrome Firefox Safari Safari Internet Explorer), and is stable and reliable. The user interface is simple and straightforward, which makes it appealing. Although it isn't the most feature-rich platform out there, its simplicity makes it seem more functional than it really is.
This is the company’s flagship product. It features a modern look, one-click trading and seamless integration across mobile and desktop platforms. It is easy to enter trades, create watchlists, and modify charts. You can also launch FAQs and educational materials from the trading app. Notifications are sent directly to traders via the mobile app or platform.
There were also some drawbacks. It was impossible to create custom indicators. XTB offers the standard MetaTrader4 platform. This and other features are available for traders who already have the third-party application.
xStation 5 offers three order types, with the option to attach "take profit" or "stop loss" orders. The trader has the option to make the trailing stop loss or the regular stop loss before or after executing a trade.
xStation5 Platform.
The mobile version xStation 5 has most of the same functionality as the desktop app, with the exception of the ability to set price alerts. This seemed odd. Traders have access to XTB's trading tools, complex order types, and charting via the Android or iPhone app. The mobile app also offers a streaming news feed.
XTB doesn't offer social trading (or "copy"), money manager accounts or a free VPS. Some traders may find some unique offerings worth looking at. It is remarkable to see "market sentiment", "top movers," and "stock scanner" tools.
xStation 5 Scanner, News.
XTB doesn't offer ready-made products to back-test, but clients can make their own applications using XTB's open API. This API is available for both MT4 as well as xStation. XTB uses smart order routing for equity CFDs and equities. XTB is not a member of any exchange and executes trades through a third party broker.
A wide range of offerings
XTB gives you access to a variety of financial instruments that can be used across a range of asset classes. The product catalogue includes:
48 currency pairs
More than 20 global indexes
Major commodities
Global stock CFDs available in more than 1,500 countries
60 CFDs and ETFs in Cryptocurrency
The lack of spread betting instruments is where the offerings fall short. XTB allows non-U.K. accounts maximum leverage of up 500:1, while U.K. accounts can get as high as 30:1 leverage.
Market - This is the simplest way for a trader to indicate that they want their request to be executed at market rates.
Limit - An order that is pending and the entry is at a predetermined level below or above the current market rate, depending on whether the trader is a buyer or seller. This order can also be extended by the trader.
Stop - An order that is pending and the entry is at a predetermined level above or below the current market rate, depending on whether the trader is a buyer or seller. This order can also be extended by the trader.
Customer Service
Online brokers that don't give priority to satisfying the customer's needs in a timely and satisfactory manner are likely to fail in this digital age. XTB knows this. There are many contact options available, including email for clients and potential clients, local phone support 24/5, and live chat. Clients are assigned an account manager who will assist them in any account-related issues.
Although phone support is very responsive, chat is more unpredictable. For example, live chat requests can be redirected to an e-mail form. Functional support is provided in the end. xStation 5 has a phone number and chat support that can be initiated from the trading platform. Online customer service is available in many languages which increases XTB's appeal for a wider client base. Satellite offices are also managed by the broker to assist licensed operations in different regions.
Education
XTB's educational offerings meet industry standards. This is despite the fact that XTB has made this a priority. Although the "courses" can be accessed through the website, they are only available in the first two categories: intermediate, expert, premium, and basic. The xStation 5 platform offers premium courses for free, though one must sign up (demo /live) to access them. There is no "expert" category.
The courses include both videos and articles of basic level. This material is consistent with industry standards of basic education in forex and CFD markets. The topics covered include fundamental and technical analysis, risk management and macroeconomics. Although new investors will find useful background information, it is not likely that they can rely solely on XTB for their market knowledge. The material covers all major topics that a beginner should know.
xStation 5 Market Sentiment, Education.
For some advanced topics and strategy updates, outside experts can also be used. This is mostly in the "premium" section of the supplemental education section. The majority of the content is organized in a familiar structure, with videos and quizzes. Although the academy course design of XTB is ambitious, it intends to cover material that can be used by traders at all stages of trading. However, this review is not yet complete.
Portfolio Analysis
It is easy and intuitive to place a trade on xStation 5. The order ticket only allows for the creation of basic market orders and pending orders. There are provisions for "stop loss", and "take profits" orders. If the trader so desires, they can make the stop loss trailing. XTB doesn't offer a trading journal or tax accounting tools.
Client selects the trade size. The order ticket contains pertinent information such as spread cost, commission, pip value and swap costs.
xStation 5 doesn't have a tool to analyze trading activity like some other platforms. This was a major omission that pushed them down to the bottom of the category. All traders can benefit from the ability to drill into trading activity beyond the basic metrics.
Investigate Amenities
XTB's research facilities are superior to industry standards. XTB provides a standard economic calendar, which is intuitively and filterable. It also offers a functional newsfeed that can be filtered using "instrument", "trading signals," "economic reports (fundamental) and "technical analyses."
A market analysis tab is also available. It includes sections such as "market sentiment", "top movers," stock scanner, and "heatmap" sections. This section is the best of XTB’s analytical tool options. Each section is well-designed and contains useful, or even interesting, information that traders can use to add value.
Security
Financial Conduct Authority license number 522157 regulates XTB U.K.
CySEC has licensed number 169/12 for XTB Europe as of 2018.
XTB International is regulated under license number IFSC/60/413/TS/19 by the Belize International Financial Services Commission.
X-Trade Brokers DM SA has been authorized by the Polish Securities and Exchange Commission (license number DDM-M-4021-51/2005) and supervised and monitored by the Polish Financial Supervision Authority.
XTB Spain is regulated by the Comision Nacional del Mercado de Valores under license number 40.
XTB South Africa has yet to receive a license approval at the time of this review.
XTB provides negative balance protection. This is required by ESMA rules, which came into effect in 2018. However, there are no guaranteed stop-loss orders (GSLO). XTB doesn't offer two-factor authentication (2FA), but it does provide bio-metric authentication for its mobile app. Passwords must include upper/lowercase letters, numbers and characters. XTB doesn't offer 2FA on its platform mobile offerings but it offers 2FA for key client offices processes like personal or bank data updates.
Verdict
XTB Online Trading (XTB), offers potential clients many tools to make it a success in online trading. It offers clients the lowest spread costs in the forex industry. The spread + commissions costs for other products are higher than the industry average. Although xStation 5 is limited in functionality, it is intuitive and functional. Certain features such as the heat map and instrument scanner make it appealing to all types of traders.
FCA regulation lends credibility, while clients have peace of mind knowing that negative balance protection is in place. The education catalog is good and customer service is a little better than average. MT4 provides "expert advisors", back-testing, auto-trading and expert advice for more technically advanced traders. XTB Online Trading (XTB), is the best option for clients who are budget conscious and want to trade the retail foreign currency markets.
