XTB Review 2024: The Best Option for UK Traders?
Dom Farnell
Co-Founder
Dom, a Co-Founder at TIC, is an avid investor and experienced blogger who specialises in financial markets and wealth management. He strives to help people make smart investment decisions through clear and engaging content.
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The information provided in this blog is for educational purposes only and should not be construed as financial advice. Always conduct your own research before making any trading decisions.
Quick Verdict: Would We recommend XTB?
Yes, we recommend XTB, awarding a 4.6/5 rating, competitive fees, wide asset range, and strong educational focus. The user-friendly interface and commission-free trading suit both novice and experienced traders. However, no ISA and SIPP align more with traders than investors.
Capital at risk.
| Feature | Details |
|---|---|
| Founded | 2002 |
| Headquarters | Poland |
| Regulation | FCA (UK), KNF (Poland), CySEC (Cyprus) |
| Minimum Deposit | £0 |
| Commission-Free Trading | Yes, for stocks and ETFs up to £100,000 per month |
| Available Instruments | 5,600+ (Forex, Indices, Commodities, Stocks, ETFs) |
| Interest on Cash | GBP: 5.2%, USD: 5.0%, EUR: 3.8% |
| Platform | xStation 5, Mobile App |
| Educational Resources | Webinars, Tutorials, Trading Courses |
| Demo Account | 30-day free demo with £100,000 in virtual funds |
| Inactivity Fee | €10 per month after 12 months of inactivity |
| Withdrawal Fee | £0 for withdrawals above £50; £5 for withdrawals below £50 |
| Leverage | Up to 30:1 for retail clients |
| Customer Support | 24/5 via phone, email, and live chat |
| Account Types | Standard, Pro (no Stocks and Shares ISA available) |
| Trustpilot Rating | 3.6/5 (as of July 2024) |
| Overall Rating | 4.6/5 |
What is This Article About?
XTB is a well-established online trading platform that caters to both beginners and experienced traders. In this review, we’ll dive into the features, costs, and tools that XTB offers, providing an in-depth analysis of its strengths and weaknesses. Whether you’re new to trading or a seasoned investor, this review will help you decide if XTB is the right platform for you.
XTB Summary
What is XTB?
XTB is a globally recognized CFD and forex broker headquartered in Poland, publicly listed on the Warsaw Stock Exchange. Founded in 2002, XTB has grown to serve over half a million clients worldwide, offering access to more than 5,600 financial instruments, including forex, indices, commodities, and stocks. XTB is regulated by top-tier authorities like the Financial Conduct Authority (FCA) in the UK, ensuring a secure trading environment for its users.
What are XTB best at?
XTB excels in providing low-cost trading options, especially with its commission-free trading on stocks and ETFs for monthly volumes up to £85,000. The platform is also highly regarded for its educational resources, making it an excellent choice for beginners looking to develop their trading skills. Additionally, XTB’s proprietary trading platform, xStation 5, is praised for its user-friendly design and advanced trading tools.
What makes them different?
XTB stands out with its robust educational offerings, including webinars, video tutorials, and trading courses tailored to different experience levels. The platform’s emphasis on client education has earned it multiple awards, including Best Trading Platform Education in 2023. XTB also differentiates itself by offering interest on uninvested funds, making it more than just a trading platform but a place to grow idle cash balances.
What are the account types?
XTB offers a range of account types to cater to different trader needs. The Standard account is the most popular, providing access to over 5,800 instruments without any account opening or management fees. XTB also offers a 30-day free demo account, ideal for beginners to practice trading with virtual funds. For more experienced traders, XTB provides the Pro account, which requires certain qualifications but offers more competitive spreads and higher leverage. However, it’s important to note that XTB does not offer a Stocks and Shares ISA, which may be a limitation for UK investors seeking tax-efficient investment options.
What are the Pro's and Con's of XTB?
- 0% commission on stocks and ETFs for monthly volumes up to £100k.
- Easy-to-use and highly customizable trading platform (xStation 5).
- Comprehensive educational resources including webinars and tutorials.
- Interest on uninvested funds with competitive rates.
- Fast and straightforward account setup with no minimum deposit requirement.
- No ISA or SIPP accounts, limiting tax-efficient investment options.
- Focus on CFDs might not appeal to long-term investors.
- £10 monthly inactivity fee after 12 months of inactivity.
Which Assets are Available to Trade?
XTB provides access to a broad range of assets, making it a versatile platform for traders. With over 5,600 financial instruments, traders can invest in forex pairs, indices, commodities, stocks, and ETFs. The platform offers more than 3,000 stocks from 16 global exchanges, including major markets like the London Stock Exchange and NYSE. Additionally, XTB allows fractional share trading, enabling investors to purchase portions of expensive stocks, thereby maximizing their investment potential. However, the absence of mutual funds and bonds might limit those looking for more traditional, long-term investments.
| Fee Type | Details |
|---|---|
| Account Opening Fee | £0 - No fee for opening an account. |
| Account Management Fee | £0 - No fee for managing the account. |
| Minimum Deposit | £0 - No minimum deposit required. |
| Inactivity Fee | €10 per month after 12 months of inactivity. |
| Stock and ETF Trading (UK & US) | £0 commission for trades up to £85,000 per month. |
| Stock and ETF Trading (Above £85,000) | 0.2% commission with a minimum charge of £10 per transaction. |
| Forex Trading | Spread-based fees, starting from 0.3 pips for major currency pairs like EUR/USD. |
| Index CFD Fees | Spread-based fees, e.g., 0.5 pips for S&P 500 CFDs. |
| Withdrawal Fee | £0 for bank transfers above £50. |
| Withdrawal Fee (under £50) | £5 fee applies for bank transfers. |
| Credit/Debit Card Deposit Fees | £0 for most regions, up to 2% for certain countries. |
| Currency Conversion Fee | 0.5% applied on transactions involving a currency different from the account’s base currency. |
| Commodity CFD Fees | Gold: 0.35, Crude Oil: 0.30 (Spread-based fees). |
| Equity CFD Fees (UK & US Stocks) | 0% commission for UK and US stocks. |
| Leverage Costs | Variable, based on the asset and account type. Overnight financing costs apply (e.g., -0.02341% for equity CFDs). |
| ETF Investment Plan Fees | £0 for investments up to £85,000 per month. 0.2% commission with a minimum charge of £10 for transactions above this threshold. |
| Fractional Share Trading | £0 commission unless turnover exceeds £85,000 per month. 0.2% commission with a minimum charge of £10 for transactions above this threshold. |
| Interest on Uninvested Funds | 5.2% for GBP, 5% for USD, 3.8% for EUR (rates subject to change). Interest applies only to the free margin available on the account. |
| Custody Fee for Holding Investments | £0 - No custody fee applied. |
What are the Costs, Commissions, and Fees?
XTB is known for its competitive pricing structure, particularly in the realm of commission-free trading. For monthly trading volumes up to £85,000, there are no commissions on stocks and ETFs. This makes XTB highly attractive to both beginner and experienced traders looking to minimize trading costs. However, for volumes exceeding this threshold, a 0.2% commission applies, with a minimum charge of £10 per transaction.
Low FX Fees
XTB offers relatively low forex trading fees, with spreads starting from as low as 0.8 pips for major currency pairs like EUR/USD. All forex fees are integrated into the spread, eliminating the need for separate commissions.
No Withdrawal Fee
For most withdrawal methods, XTB does not charge a fee, particularly for bank transfers above £50. This is a significant advantage for traders who frequently move funds in and out of their trading accounts. However, for withdrawals under £50, a fee of £5 applies, so it’s advisable to manage withdrawals accordingly.
Which Trading Tools are Available?
XTB offers a comprehensive suite of trading tools designed to cater to both beginners and experienced traders. The platform’s flagship tool is its proprietary xStation 5, which provides advanced charting features, market sentiment analysis, and risk management tools. Traders can also access real-time market news, economic calendars, and an integrated stock screener.
Additionally, XTB offers a range of order types, including market, limit, and stop orders, allowing for flexible trading strategies. The platform’s post-trade analysis tool helps traders review and optimize their strategies by providing detailed breakdowns of their trading performance.
Trade with Leverage
XTB provides leverage across various asset classes, allowing traders to increase their market exposure. For forex trading, leverage can go up to 30:1 for retail clients, depending on the regulatory environment. This means traders can control larger positions with a smaller initial investment. However, while leverage can amplify profits, it also increases the risk of significant losses, making it crucial for traders to use this tool judiciously.
How Secure is XTB?
XTB prioritizes security, implementing several measures to protect its clients’ funds and personal information. The platform is regulated by top-tier financial authorities, including the Financial Conduct Authority (FCA) in the UK, which ensures compliance with stringent regulatory standards.
XTB uses secure SSL connections for all online transactions and keeps client funds in segregated accounts, separate from the company’s own assets. Additionally, XTB clients are protected by the Financial Services Compensation Scheme (FSCS), which provides coverage up to £85,000 in the unlikely event of the broker’s insolvency. These measures make XTB a secure platform for trading.
How Does XTB Compare to its Competition?
XTB vs. Etoro
XTB and Etoro are both popular trading platforms, but they cater to slightly different audiences. XTB is known for its low fees, advanced trading tools, and strong educational resources, making it ideal for traders who prefer a more traditional trading environment. In contrast, Etoro stands out for its social trading features, including the ability to copy trades from other investors, which appeals to beginners looking for a more hands-off approach. While XTB offers more in-depth market analysis and a broader range of assets, Etoro’s user-friendly interface and social features make it more accessible to casual traders.
XTB vs. IG
When comparing XTB to IG, the primary differences lie in their fee structures and platform capabilities. XTB is generally more cost-effective, particularly with its commission-free trading options and lower forex spreads. However, IG offers a more extensive range of markets, including options and spread betting, which XTB does not provide. IG also boasts a more comprehensive set of trading tools, including ProRealTime charts and advanced risk management features. For traders looking for a broader market selection and sophisticated trading tools, IG might be the better choice. However, XTB’s competitive pricing and excellent educational resources make it a strong contender, especially for those focused on cost-efficiency.
eToro
- User-friendly interface
- Social trading features
- Diverse asset selection
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
XTB
- Low Trading Costs
- User-Friendly Platform
- Interest on Cash
Capital at risk.
IG
- Diverse trading tools
- Educational resources
- Wide market access
Capital at risk.
Is There any Education Available Through the XTB Platform?
XTB offers a rich array of educational resources tailored to traders of all levels. The platform provides access to a series of video tutorials, webinars, and comprehensive trading courses.
Beginners can start with the “Trading Basics” course, which covers essential concepts like market terminology and trading strategies. More experienced traders can benefit from advanced webinars and the “Trading Masterclass” series, which delves into topics such as risk management and technical analysis.
XTB also regularly updates its educational content with market insights and expert analysis, helping traders stay informed about the latest trends and strategies.
What is our Final Verdict on XTB?
XTB is a well-rounded trading platform that offers a solid blend of low fees, a user-friendly interface, and a comprehensive suite of educational tools. Its commission-free trading and advanced trading features make it a strong choice for both novice and experienced traders. However, the lack of certain account types like ISA or SIPP might be a drawback for UK investors seeking tax-efficient options. Overall, XTB stands out for its commitment to education, security, and cost-efficiency, making it a reliable option for a wide range of traders.
Who is XTB Best Suited To?
XTB is best suited to traders who are looking for a platform that combines low costs with a robust set of trading tools. Beginners will appreciate the extensive educational resources, while more experienced traders will benefit from the advanced features of the xStation 5 platform. The platform’s commission-free trading is particularly attractive to those with smaller portfolios or those who trade frequently. However, long-term investors might find the lack of ISA and SIPP accounts limiting.
FAQ
Is XTB’s trading app any good?
Yes, XTB’s trading app is highly regarded for its user-friendly design and functionality. It offers a seamless trading experience on the go, with access to all major features, including real-time data, charting tools, and price alerts. However, the app does not support trading directly from charts, which is available on the desktop platform.
Is XTB’s trading platform any good?
XTB’s xStation 5 trading platform is excellent, offering advanced features like customizable charts, integrated market news, and post-trade analysis. The platform is highly intuitive, making it accessible for beginners while still providing the depth needed by experienced traders. It is a strong competitor in the trading platform market, known for its speed and reliability.
Is XTB any good for forex trading?
XTB is a solid choice for forex trading, offering competitive spreads starting from 0.8 pips on major currency pairs. The platform supports a wide range of forex pairs with leverage up to 30:1 for retail traders. Additionally, XTB provides valuable forex education and analysis tools, making it suitable for both novice and seasoned forex traders.
Is XTB regulated in the UK?
Yes, XTB is regulated in the UK by the Financial Conduct Authority (FCA), one of the most respected financial regulatory bodies globally. This ensures that XTB adheres to strict standards of transparency, security, and client protection, making it a trustworthy platform for UK traders.
Is XTB a good broker?
XTB is considered a good broker, particularly for those looking for low-cost trading with a reliable platform. Its strengths lie in its competitive pricing, educational resources, and the range of assets available. While it may lack some features that long-term investors seek, such as ISAs or SIPPs, it excels in providing a secure and efficient trading environment.
Is my money safe at XTB?
Yes, your money is safe at XTB. The platform is regulated by multiple top-tier financial authorities, including the FCA. XTB also segregates client funds from its own and provides coverage under the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 in the event of insolvency.
What is the minimum deposit at XTB?
XTB does not require a minimum deposit, making it accessible for traders with varying levels of capital. This feature is particularly beneficial for beginners who want to start trading with a smaller amount of money without the pressure of a high minimum deposit requirement.
Is XTB Good for Beginners?
Yes, XTB is an excellent choice for beginners. The platform is user-friendly with an intuitive interface, making it easy to navigate for those new to trading. XTB also offers a 30-day free demo account, allowing beginners to practice without risking real money. Additionally, the extensive educational resources, including webinars and tutorials, provide valuable guidance, helping new traders build their knowledge and confidence.
References
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XTB Official Website
- Reference: XTB. (2024). Trading Platform & Broker for Forex, Stocks, Indices, Commodities, and ETFs. Retrieved from https://www.xtb.com
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Financial Conduct Authority (FCA) – UK
- Reference: Financial Conduct Authority. (2024). FCA Register – XTB Limited. https://register.fca.org.uk
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Investopedia – Overview of CFD Trading
- Reference: Investopedia. (2024). What is CFD Trading?. Retrieved from https://www.investopedia.com/terms/c/cfd.asp
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Finance Magnates – XTB Market Updates and News
- Reference: Finance Magnates. (2024). XTB’s Expansion in Global Markets. Retrieved from https://www.financemagnates.com
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Morningstar – ETF and Stock Market Analysis
- Reference: Morningstar. (2024). ETF and Stock Market Performance Data. Retrieved from https://www.morningstar.com
