XTB: A Great Way To Trade CFDs And Forex

July 11, 2020
Brokers
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XTB is a Forex and CFD trading platform that is gaining a lot of positive reviews of late. It is regulated by the UK’s Financial Conduct Authority and Poland’s KNF, which renders credibility to the platform. The broker is available in 13 countries and has some great features like no deposit charges and no withdrawal fees for withdrawals below $100. XTB has an amazing interface that makes trading intuitive and fun. You can choose a Standard account with no commissions or a Pro account with lower spreads to get started with trading CFDs and Forex right now.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with XTB and scored our findings on a 10-point scale across 10 distinct categories.
Fees 5
Signup Process 9
Minimum Deposit 8
Ease of Use 10
Deposit & Withdrawal Options 9
Customer Support 10
Asset Classes 6
Referral Program 0
Demo Account & Educational Resources 9
Safety & Regulation 10
Total 76

The final score for XTB is 72, which is really good in terms of our scoring guidelines. The app has a brilliant interface, decent customer support and a good safety score making XTB an overall good trading platform.

What Is XTB?

XTB is a CFD, cryptocurrency and forex broker with offices in 10 countries. The broker agency came into inception in 2002 and has its headquarters in London and Warsaw. It is regulated by the UK’s Financial Conduct Authority (FCA) and Polish Supervision Authority (KNF). XTB is also listed on the Warsaw Stock Exchange and allows you to trade in currency pairs, stock CFDs, stock index CFDs, Commodity CFDs and 25 cryptocurrencies. This makes it a great platform to find a range of CFDs and forex trading options.

XTB Pros & Cons

Pros

  • Low forex and stock index CFD fees.
  • No Deposit fees.
  • Quick and free deposits and withdrawals.
  • The app is available in 19 languages.

Cons

  • Stock CFD trading costs are high
  • Slow customer service via email
  • High fees of 2% for using electronic wallets for depositing funds
  • High fees of 20% for withdrawals below $100

XTB Account Types

There are 2 types of accounts in XTB, the Standard and the Pro account. There aren’t many differences between the two apart from the charging methodology. Below, we delve into the difference between standard and pro accounts.

XTB Standard Account

The Standard Accounts is a typical no-commission brokerage account. This means that you won’t pay commissions for trading, but you end up paying in terms of wider spreads. This can make it a good option for you if you are averse to paying commissions.

XTB Pro Account

This account offers much tighter spreads, but you pay a commission when trading. The commissions vary with respect to the magnitude of trades and the time a position is held. However, an example that we can give is that the CFD fees for a long position on $2,000 held for one week would be $2 provided the stock is from S&P 500. If you were to trade on the Europe 50 index the CFD fee would be $2.2.

Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 Fees For Using XTB

Lets have a look at the fees structure to determine if XTB fits the bill for your investing needs

  • The fees are built into the spreads. 0.6 pips is the average spread cost of trading CFDs in S&P 500 CFD.
  • Europe 50 CFDs have an average spread cost of 2.2 pips.
  • Forex fees are $4 per lot of currency. One lot can contain an amount of 100,000 currency units.
  • There are no withdrawal fees in general, however, electronic wallets like Paypal and Skrill are charged a fee of around 2% of the total deposit, which can be quite high if the amounts that you are depositing are large. For instance, depositing $10,000 would translate to $200.

Withdrawal Fees For XTB

There are no withdrawal charges for over $100, which is a big positive but the charges for below $100 can be quite significant. Let’s have a look at minimum thresholds for different currencies where the withdrawal fees are low.

Threshold & CurrencyWithdrawal Fee
$100$20
£80€16
£60£12

The withdrawal fees for small currency amounts are significant and contribute to 20% of the withdrawal amount. This can make it tough for you to withdraw your funds from the application especially if you want to close your account and you have funds in XTB.

The overall fee structure is slightly expensive to the benchmarks in our scoring system and coupled with the withdrawal and depositing regulations the fees dimension scores a 5/10 in our scoring system. As you’ll learn further down the post, the process to get started can be rough for new users because of a high minimum deposit and it’s not friendly to get out of because of high fees for withdrawal of small amounts. For instance, if you are trading with amounts below $100 and wish to close your account it is almost sure that you will end up losing money since it will cost you 20% of your funds.

XTB Fees Score: 5/10

#2 Sign Up Procedure For XTB

The signup procedure for XTB is pretty simple and self-explanatory. You can open your account in 1 day. The procedure will help you in quickly getting signed up and start trading. Let’s look at the procedure at how you can get started.

Step 1: Provide Basic Account Information

First, you need to provide your email address and country of residency to get started.

Step 2: Add Personal Information

This step includes basic biographical details like your name, date of birth and physical address.

Step 3: Set Up Your Account

You basically just choose if you want a Pro or a Standard account along with the platforms that you want to trade in such as desktop or mobile version along with the base currency that you want to trade in.

Step 4: Provide Financial Information

You need to answer financial questions like your job, salary and whether or not you have past experience trading with different financial instruments.

Step 5: Verify Your XTB Account

In order to verify your account information, after you sign up you need to upload a picture of your ID card along with a bill or receipt that shows that you live in the country that you have chosen. Once verified you’re ready to trade.

The simple sign up process and quick verification time help XTB score high in this dimension.

XTB Signup Process Score: 9/10

#3 Minimum Initial Deposit

The minimum deposit to get started with trading in XTB is $250. The amount is nominal compared to other apps that even require you to invest $1,000 or more to get started. However, This can be a bit much if you are not currently earning. This also makes it slightly tough for beginners to get started because then you have to significantly invest in the platform to get started. Keeping in mind the minimum deposit of other brokers, some of which don’t even require a minimum amount, XTB scores 8/10 in our scoring system.

XTB Minimum Initial Deposit Score: 8/10

#4 Ease Of Use

The interface of XTB is one of the friendliest ones that I have used. It’s simple, explanatory and helps you in trading. Below you can see a screenshot of the interface. You have data visible in the form of various graphs and textual information on the left side to assist you. You can also set up email notifications, phone notifications and push notifications.

XTB Ya'll

Similarly, the search feature window is simple and easy to use as you can see from the picture below. The interface is intuitive and easy to use. You can easily choose the financial instrument that you want to trade in and the country that you want to trade it in. The score for ease of use due to the simplicity of the platform is 10/10.

XTB

XTB Ease of Use Score: 10/10

#5 Deposit And Withdrawal Options

With a plethora of depositing and withdrawal options, XTB ranks well in this dimension. Let’s have a look at the overall depositing options that you have at XTB.

Some of the options that you can use to deposit funds in XTB are:

  • Bank Transfer
  • Credit and Debit cards
  • Paypal
  • Skrill
  • BlueCash (Available only in Poland)
  • PayU (Available only in Poland)
  • SafetyPay (Available only for clients outside Europe)

As you can see, there are quite a few options but a few of them are restricted to European countries only. However, a major drawback is that you can only withdraw via a bank transfer, which shaves a point from the maximum.

XTB Deposit & Withdrawal Options Score: 9/10

#6 Customer Support

The customer support for emails is a bit slow and sometimes the response can take a few days. However, the customer support is available in 19 languages and you can reach out via live chat on the website, phone and email. The multiple options coupled with the slow email response helps the customer support to get a score of 10 out of 10.

XTB Customer Support Score: 10/10

#7 Asset Classes

There are several asset options under the forex, cryptocurrency and CFD domains that make XTB a good fit for you if you like trading in CFDs and currencies. Here’s a list of options that you have for every asset.

AssetOptions
Currency Pairs49
Stock Index CFDs42
Stock CFDs1,700
ETF CFDs103
Bond CFDs3
Commodity CFDs18
Cryptocurrency25

However, the fact that the app is based just on 2 asset types, forex and CFDs, gives it a 6 on our score.

Related: Also, check out our other post on day trading options.

XTB Asset Classes Score: 6/10

#8 Referral Program

XTB does not have a referral program for individual users. This is a slight negative as trading with friends can help one learn a lot about a platform and a referral program can incentivise potential customers to use the application with their friends. Hence, the score for this is obviously 0.

XTB Referral Program Score: 0/10

#9 XTB Demo Account & Educational Resources

XTB has a free demo account that has quite a few features to train beginners. It has a 4-week limit in which you can trade with a $100,000 virtual funds and you have access to over 1,500 CFD Markets. Similarly, the demo account also offers a 24-hour customer service hotline on +357 257 25356 from Sunday to Friday that can help you learn more and determine if XTB is right for you.  The demo account scores a 9 in our system because of the detailed and helpful nature of it, losing 1 point due to the limited time during which it is available.

XTB Demo Account & Educational Resources Score: 9/10

#10 XTB Safety & Regulations

Trading with XTB is secure because it is regulated by FCA and KNF, both of which are established regulatory authorities with their own separate compliance rules. This ensures that the app is run in a way that makes the procedure helpful and safe for users, earning it a solid 10 out of 10.

XTB Safety & Regulation Score: 10/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

XTB Comparison With Capital.com

One of the most relevant aspects when putting the best and most profitable investment ideas into practice is that you can have a platform that can add value to your strategies. Moreover, the said platform should allow you to be confident when investing your money by providing tools and information to do the best analysis possible, all the while charging the lowest rates in the market. Taking into account the most relevant aspects for an investor we prefer Capital.com over XTB for the following reasons:

Capital.com Is More User Friendly And Intuitive

Capital.com is a much easier platform to start with than XTB. Additionally, you can practice all you want with a limitless demo account, and you’ll have access to a lot more educational content than with XTB. Capital.com offers access to lectures, articles and resources for you to better understand the platform and trading in general to become a profitable trader, all free of charge. Some of the features offered by Capital.com’s demo account are as follows

  • Free financial webinars.
  • Educational courses for traders.
  • Extensive market glossary.
  • Comprehensive CFD trading guide.
  • Cryptocurrency trading tutorial.
  • Investmate, Capital.com’s investor education app.

You start off with a demo account with $100,000 paper money, and you can use it to trade with real market data so you can put your strategies to the test before risking any real money. As you can see, Capital.com is a comprehensive guide for not only understanding the platform but also understanding all the trading options that the application provides.

Capital.com Has A Much Lower Minimum Deposit

Another fact is that you can just get started with $20 on Capital.com whereas at XTB you need $250, which is a significant amount for a platform that just offers CFDs and currencies. This can be cumbersome if you do not have a lot of funds to start trading.

Capital.com Offers More Investment Options

XTB only offers the possibility to trade with two asset classes, CFDs and forex, which limits the possibility to diversify your portfolio. Capital.com, on the other hand, offers more asset classes, and you will be able to access a greater number of CFDsallowing you a greater possibility to mitigate risk by means of diversifications.

Final Verdict

XTB has a good interface with a lot of options in CFDs and currencies to choose from. Additionally, it is a safe application with regulations from FCA and KNF. If you are a professional trader who is looking for a nice and intuitive platform for trading CFDs and Forex click the join now button and get started with XTB today.

The minimum deposit and constraints on small withdrawal amounts on XTB such as the 20% surcharge on amounts below $100 show that it is perhaps a good platform for professional traders who trade high volumes, and perhaps not fit for beginners, like Capital.com is. Moreover, plenty of withdrawal and deposit options make the app an easy way to trade but perhaps more needs to be done to make the XTB an app that is useful for people who are beginners in trading. Similarly, Capital.com has many asset offerings like bonds, ETFs, stocks, apart from CFDs, forex and crypto. Hence, we recommend Capital.com as a much better alternative to XTB for beginners and professional traders alike.

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