What is XTB Online Trading?
XTB Online Trading is an Online Forex and CFD Broker with one of the most extensive penetrations in the FX & CFD markets by offering many Currency Pairs and CFDs of international financial instruments. Among their CFD offering, you may trade on global stocks, indices, metals and energy.
Founded in Poland in 2004 under the name of X-Traders, the company was the first online broker to offer leveraged instruments in its country. XTB as a company trades at the Warsaw Stock Exchange under the symbol XTB, and it has offices in over ten countries, including the UK, Germany, France and Spain.
Trading with XTB is an excellent alternative to investing at the local Stock Exchange, where only locally listed instruments are available.
Forex Pairs & CFDs available at XTB
Forex: 48 currency pairs, including majors, minors, and exotics. Spreads start at 0.9 pips for the most commonly traded instruments.
Shares: XTB offers CFDs on 1500 Stocks from major Stock Exchanges, among which there are the New York Stock Exchange and Nasdaq, two of the most popular among investors.
Commodities: XTB offers CFDs on several commodities, being Gold and Oil the most popular among traders.
Indices: XTB offers CFDs on 20 major stock exchanges indices.
Bottomline on XTB's instrument offering: It is not the broker that offers the highest number of instruments, but it does have the top traded ones, with good trading conditions (i.e. fees).
What Are CFDs?
Let's first address the most basic question: what is a CFD? The term CFD stands for contracts for difference. A contract for difference creates, as its name suggests, a contract between two parties (typically described as 'buyer' and 'seller') on the movement of an asset price.
There are several key features of CFDs that make them a unique and exciting product:
CFDs are a derivatives product.
CFDs are leveraged: Leverage means you gain higher market exposure for a relatively small initial deposit. In other words, your return on your investment is significantly larger than in other forms of trading.
You can profit and incur losses from both rising and falling prices.
The term 'derivatives product' means that you don't own the underlying asset when trading CFDs. You're simply speculating on whether the price will rise or fall. When you trade CFDs, you agree to exchange the difference in the price of an asset from the moment the contract is opened to the moment it's closed. Let's take stocks as an example. You'd like to purchase 10,000 shares of Apple, and its share price is 1,000, which means that the total investment would cost you $100,000, not including the commission or other fees your broker would charge for the transaction. In exchange for this, you receive a stock certificate, legal documentation that certifies ownership of shares. In other words, you have something physical to hold in your hands until you decide to sell them, preferably for a profit.
With CFDs, however, you don't own those Apple shares. You're simply speculating and potentially profiting from the same movements in share price.
XTB's Trading Platforms
xStation5 Trading Platform
xStation5 Trading Platform is a trading app developed internally by XTB, designed to allow traders to operate currency pairs and CFDs (more than 3,000 instruments for clients residing in the EU and more than 1,500 International clients). The platform has a simple interface, and it is straightforward to use.
MT4 is one of the most widely used [and complete] platforms to trade Forex. MT4 connects different Brokers to get the best prices available.
XTB's Trading Account Conditions
Execution Type: Market
Minimum spread: 0.5
Segregated account's funds
Minimal Order: 0.01
Account setup: Free
Forex, Indices, Commodities: No commission
Stock CFDs and ETF CFDs: Commission from 0.08% per lot
Cryptocurrencies: No commission
How to Open a Trading Account with XTB
Like any other online service, opening a Forex and CFD trading account with XTB is a process that takes only a few minutes and requires uploading a valid ID and a proof of address (electricity, water bills, etc.). Should everything be approved by XTB, the account would be operational in less than a day.
Opening a Demo Account is free, so you may try the Demo, test it, and then decide whether you will deposit funds or not. XTB doesn't require a minimum amount to deposit, so after trying the Free Demo account, you may start trading without depositing a significant amount.
Is XTB a trustworthy broker?
A way to understand if a Broker is reliable is through the Public entities that regulate its operations. Suppose the government entities controlling the broker are considered as Top Tier worldwide. In that case, it's an excellent indicator to demonstrate that it is safe to deposit funds and operate with the platform. XTB as a group is also regulated by some of the world's strictest supervision authorities, including the UK's FCA (Financial Conduct Authority), the Polish KNF (Polish Financial Supervision Authority), the Turkish CMB (Capital Markets Board of Turkey), DFSA from Dubai and Spain's CNMV (Comisión Nacional del Mercado de Valores).