f you are thinking of using the XTB broker for trading or investing, you should first read this review. Do you know the clients’ opinions and the broker’s commissions? Do you know if their trading platform works well? Does it offer a demo account? What is the minimum deposit? Is it reliable or is it a scam? If you want to know our opinion quickly, we can tell you that XTB is one of the leading brokers in the UK in 2020. However, it also has bad aspects, so in this review we will analyse both the good and the bad (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money).
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Is XTB a scam? Is it safe? Is it reliable?
One of the things that most concerns investors is choosing an online broker that is reliable. In recent years some brokers have appeared with very attractive offers that were really a scam, and they only wanted their clients’ money. Generally, scams share a number of characteristics that help us to detect them. The main one is that they are not regulated. Therefore, we must make sure that the broker we are interested in is regulated. Is XTB regulated? The answer is yes.
XTB is the trade name of X-Trade Brokers Dom Marklerski, S.A. If you are British, you will be using the branch in the UK. Therefore, XTB is regulated in the UK through the FCA. In addition, it is also regulated in other European countries such as Germany in the Banif. Furthermore, XTB is a company listed on the Warsaw Stock Exchange
Apart from the regulation, there is a second aspect that adds security to XTB, and that is that it has a physical office in the UK, more specifically in London. It is true that having an office does not mean anything, as there are many brokers who only operate online that are just as secure as they are regulated. However, many investors find it reassuring to know that there is a specific place they can go if they have any kind of problem.
In view of all this, our opinion is that XTB is a serious and reliable broker. Based on the fact that 100% security does not exist, everything seems to indicate that XTB is reliable.
Commissions and spreads
Once we know that the broker is not a scam, the next aspect to analyse is the fees. Few things are as important to traders as commissions, so fees require a section of their own like this. In general XTB does not charge commissions for trading, but the main expense for the investor comes through the spreads. However, there is a commission of 0.08% of the amount of each transaction in stock and index CFDs, and 0.10% in synthetic shares with a minimum of 8 euros/pounds. As the commissions are not high rather than focused, we will pay special attention to the spreads where most money is usually going to the investor.
The spreads, in the case of XTB, depend on the type of account you have contracted. There are 3 types of account on XTB:
The Pro has the lowest spreads, but the minimum initial deposit is higher. On the other hand, the Basic one does not require any minimum deposit, so you can start from 0 euros/pounds. Now that we know this, let’s look at it in more detail.
Basic account rates (Fixed)
The Basic account has the highest spreads of the 3 XTB account types. However, if we compare it with similar Basic accounts from other competitors, we will see that XTB’s spreads are quite good. In addition, it has the advantage that there is no minimum initial deposit.
As you know, the spread for each type of asset is different. That is, if you are interested in Forex, the spread of the most common currency pair, the Euro/Dollar, you will have one spread, but if you are interested in another, the spread is different. And the same happens with the rest of the currencies and commodities. This makes it impossible to see a complete and exact list of the spread for each instrument. Finally, it must be clarified that the spreads of this account are fixed, unlike the standard, which are floating. Therefore, if you want to see the XTB Basic account rates in detail click here (79% of retail investor accounts lose money when trading CFDs with this provider).
Standard Account Rates (Floating)
In this account the spreads are usually lower than in the Basic account. In addition to this there is another important difference, which is that here, the spreads are floating, i.e. they change over time and depending on the market circumstances.
In this case the spreads also change according to the type of asset, and within each of them, but they also oscillate as we have just explained. That said, the average spreads are quite attractive if we compare them again with other online brokers such as Plus500 or eToro among others. For example, the average spread on the Euro/Dollar currency pair is 0.00009 as these lines are written in 2020. In other words the spread is really low. However, we can’t see each and every spread here, so if you want, you can click here to see the rates and spreads for XTB’s Standard account (79% of retail investor accounts lose money when trading CFDs with this provider).
Pro account rates
The Pro account is clearly focused on the more professional public. In fact, unlike previous accounts where you can start with just 1 euro, on the Pro account you have to deposit at least 100,000 euros, something that is not within the reach of many people.
Although the rates of the two previous accounts are quite good in our opinion, in the Pro account they are even better. To give you an idea, the spread of the Euro/Dollar currency pair is 0.00003. Therefore we are looking at one of the lowest spreads in the market, if not the lowest of all. If you want more details about XTB’s Pro Spreads click here (79% of retail investor accounts lose money when trading CFDs with this provider).
Simulator and demo
As you know, CFDs are high risk products and difficult to understand. In fact, the FCA considers that they are not suitable for individual investors. Although there is a lot of money to be made in them, there are also large amounts to be lost, especially if trading is leveraged. Therefore, to gain experience, some brokers offer demo accounts where you can practice and learn how CFDs and markets work.
The general evaluation of the XTB simulator is very positive according to the opinions we have been able to read, and the truth is that we agree with them. The XTB demo account is totally free, it is in English and allows you to trade with 20,000 virtual dollars so you can do all the tests you want. In addition, it has the advantage that it also includes crypto currencies such as Bitcoin, Ripple or Ethereum.
Perhaps now you are wondering how it works and what a demo is for. The truth is that simulators like XTB allow you to make the same operations as in a real account, but in a virtual way.
This way you don’t risk your money, and you can see first hand how prices and quotes move. In addition, it is useful to get used to and learn how to handle the trading platform, and to understand how leverage works. There are also bad things about it, because with the simulator you don’t feel the same as with real money, and psychology is a very important part of trading. Nevertheless, in broad terms we can say that the demo is very useful.
If you want to get the free demo of XTB just click on the button below, and click where it says «DEMO». After that, enter your email address and click next. In a few steps you will have your demo ready to use (79% of retail investor accounts lose money when trading CFDs with this provider).
Opinions of XTB in forums and reviews
We have already talked about the opinions of XTB users throughout this review. However, we believe that customer feedback is one of the most important things when reviewing a broker. Who better than user feedback to rate a company? However, at this point there are several important issues, and that is that everyone has a different opinion and there are hundreds of reviews on the internet. That is why, in addition to filtering, we have tried to find the most repeated opinions. This section deals, precisely, with those opinions. To do this, we are going to look at it in two parts, distinguishing between positive and negative reviews.
Among the positive reviews we have those who speak well of XTB because it offers two platforms. On the one hand it offers its own software platform xStation 5 with what they call ultra-fast execution and a market screener, and on the other, MetaTrader 4. Being able to choose between two options is something very well valued. The commissions are considered low in general, although we will not deny that any investor is annoyed by having to pay. There is also a lot of feedback on the free face-to-face courses and webinars offered by XTB. Regulation creates confidence as XTB is regulated in the UK. Finally, there are also good opinions from the demo.
We have already seen the good part, but everything has bad aspects, and here XTB is not spared as there are also negative reviews about them. For example, some people complain that traders with more money have better conditions thanks to the Pro account. Another opinion that we have been able to read more than once is about the duration of the demo, as it can be used for 4 weeks, and there are people who would like to be able to use it for longer.
We believe that we have already given the most important information about XTB, so in our opinion it is a good moment to finish the review. However, before doing so, we would like to give you the most important aspects of our review as a summary. To do this, below you will find a list of what we like and dislike most about XTB.
- Regulated in the UK
- Free in-person courses
- Free online training webinars
- Two trading platforms to choose from
- Many tools available
- Reasonable rates and spreads
- Free Demo
- You can deposit and withdraw by card, transfer, Paypal and more means of payment
- CFDs on crypto-currencies
We do not like
- Simulator limited to 4 weeks
- Different conditions depending on the amount deposited
Open a Live Account
As you can see, in broad terms XTB looks like a good broker to trade with. Even so, before finishing we want to remind you that the risks of trading CFDs are very high. Knowing this, if you want more information about XTB or if you want to see how to open a demo or a real account, you can go to their official website (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money).