XTB review: read this before you start

Pros and cons of using XTB

The story of XTB

XTB (originally X-Trade Brokers) was founded in 2002 in Poland by Jakub Zabłocki. It has grown to be one of the leading broker platforms in Europe, offering both commission-free investing and CFD trading. Today, XTB counts over 1.6 million clients around the world and holds approximately €7.2 billion in customer assets. The company’s growth accelerated in recent years as it introduced “zero commission” trading for stocks and ETFs. XTB, in a similar vein to eToro, is publicly listed on the Warsaw Stock Exchange, which adds transparency to its operations.

XTB’s platform essentially serves two types of investing. On one hand, you can invest in stocks and ETFs through their “Invest” offering, with low fees. On the other hand, XTB has a strong focus on CFD trading (Contract for Difference) for more advanced or short-term traders. In this review, we will focus on XTB’s ETF investing features for long-term, passive investors, rather than its CFD trading side.

Fees

Fee structure

It’s free to open an account with XTB, and there are no monthly account fees or custody fees. XTB offers commission-free investing in stocks and ETFs up to a high volume each month. In fact, there’s no commission when buying or selling shares until you reach €100,000 in trading volume in a given month. Beyond that cap, a fee of 0.2% applies on the excess amount (with a minimum charge of €10). Most investors will never hit that €100k/month threshold, so effectively your stock and ETF trades cost €0 in broker fees.

Let's take a closer look at the pricing:

Other things to note

• Account maintenance: Free
• Account opening: Free (no minimum deposit required)
• Withdrawal fee: Free for withdrawals above €50

If everything is “free”, how does XTB make money? There are a couple of important points to be aware of:

Currency conversion fees

If you buy an ETF or stock that is listed in a currency different from your account’s base currency, XTB charges a currency conversion fee of 0.5% on the trade value. This is relatively high. For example, purchasing a US-listed stock from a Euro account will incur a 0.5% FX fee on the euro-dollar conversion. Over time, these currency fees can add up if you frequently invest outside your currency zone. Many European investors stick to EUR-denominated ETFs (like those on Euronext) to avoid conversion costs, but if you plan to buy USD assets, keep this 0.5% fee in mind.

They encourage CFDs (which are very risky)

We're focusing on XTB's stock and ETF investing features. But it's also key to know that CFD trading is central to XTB's business model. Most of XTB’s revenue comes from clients trading CFDs (contracts for difference) on indices, forex, and commodities. CFDs are complex and risky. They let you speculate on price movements using leverage. With a CFD, you don’t own the underlying asset. It's a contract with XTB. You exchange the price difference between when you open and close the trade.

One of the main risks of CFDs is the use of high leverage. Leverage lets you control a big position with a small amount of money. This can increase both your gains and your losses. Leverage can boost your gains, but it can also increase your losses beyond what you invested. It’s not uncommon for inexperienced traders to lose significant money with CFDs. XTB’s own disclaimer notes that 75% of retail investor accounts lose money when trading CFDs with XTB. Here is what appears on their entire website pages:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.            

CFDs also have overnight financing costs if you hold positions for more than a day. They can be tricky to understand. If you’re new to investing or pursuing a long-term strategy, you should steer clear of CFDs. XTB’s platform will promote these products because they help the company make money. However, if you want passive, long-term growth, focus on real stocks and ETFs.

You can’t easily transfer your assets to another broker

A key limitation of XTB is the challenge of transferring your portfolio to another provider. XTB supports fractional shares. For example, if you invest €50 in a stock priced at €200, you receive 0.25 of a share. This feature is helpful for small investments, but you cannot transfer fractional shares outside XTB. If you decide to switch brokers later, you must sell any fractional holdings since no other broker can accept them.

XTB does allow outbound transfers for whole shares or ETFs, but it comes with a fee of €25 per position (per ISIN). This can add up quickly if you own many different stocks or ETFs. In practice, most XTB users who want to leave end up liquidating their investments to cash and then moving the cash out. They may need to re-purchase with the new broker. This process isn’t ideal, as selling your assets could trigger taxable events, such as capital gains tax or the Belgian Reynders tax. So, be aware that moving from XTB to another broker involves effort and potential extra costs.

Convenience of XTB

Targeted for traders‍

XTB’s platform was designed for active traders. You can trade in many ways: stocks, ETFs, forex pairs, commodities, stock indices, and cryptocurrencies, all using CFDs. The desktop interface, called xStation 5, is advanced. It provides real-time charts, technical indicators, order books, market news, economic calendars, and more. Essentially, XTB focuses on trading first and investing second.

For long-term investors, many features may be excessive and distracting. New investors might find the flashing prices, leverage options, and numerous tabs overwhelming. XTB offers tools ideal for experienced traders making short-term moves. However, beginners wanting to invest in a few ETFs may feel lost amid the information. This makes XTB not the most beginner-friendly broker. Its complex design can intimidate users uninterested in day trading.

If you prefer a minimalist approach, XTB may seem "too much." However, the mobile app (xStation mobile) is more streamlined than the desktop version. The app allows you to buy or sell, track your portfolio, and follow news, all in a simplified layout. Many long-term investors can manage their ETF investments comfortably using just the mobile app, avoiding the complexity of the desktop platform. XTB's design offers more options and data than you may need for passive investing. Be mindful of this to avoid being drawn into active trading.

Automated savings plans‍

XTB has a feature called “Investment Plans.” This is like a savings plan or auto-invest option for ETFs. It’s great for passive investors. With these plans, you can set up regular investments into a portfolio of ETFs you choose. You can select up to nine ETFs per plan and assign a percentage of your monthly contribution to each. Then, XTB will invest the amount you set on a schedule, like monthly.

For example, you could invest €200 each month: 50% in a world equity ETF, 30% in a bond ETF, and 20% in an emerging markets ETF. XTB will handle the purchases every month. You can start with just €15 to fund an Investment Plan, making it easier for beginners. In fact, you can run up to 10 different plans at once, though most people find one or two sufficient. Setting up and maintaining these plans is free, with no extra fees for using the auto-invest feature. You can still enjoy commission-free trading on amounts up to €100k each month. Trades from the Investment Plans also count towards that total.

XTB’s Investment Plans focus on long-term, passive investing. This feature is like “AutoInvest” which is promoted on Saxo or “ETF savings plans” from brokers like Scalable Captial. It lets you practice euro-cost averaging. This means you invest a fixed amount regularly, so you don’t have to place each order by hand. Investing at regular times, no matter what the market does, lowers timing risk and helps grow wealth steadily through compounding.

Fractional shares‍

A popular investment strategy for long-term investors is regular investing with small amounts, as opposed to investing large lump sums at once. Many people, for instance, will invest part of their salary every month. Fractional shares are what make this feasible even if the ETFs or stocks you want to buy have high per-share prices. Fortunately, XTB offers fractional shares for both stocks and ETFs. This means you can invest from as little as a few euros. XTB’s minimum trade value is around €10 for stocks and you can still build a diversified portfolio with that.With fractional shares, if an ETF costs €50 per share, you could buy 0.2 shares for €10, for example. XTB holds your fractional entitlement in their custody system. The benefit is flexibility: you’re not forced to invest in large increments. You can top up your investments with whatever amount you have available, even €20 or €50 at a time. This pairs perfectly with the "Investment Plans" feature described above if your monthly plan splits €50 across several ETFs, XTB will buy fractional units to match the allocation precisely.

Customer support‍

XTB provides customer support through multiple channels. You can reach out to their team via live chat, which is often the quickest way to get help, or by sending an email. Notably, unlike some newer fintech brokers, XTB also offers phone support. You can actually call them for assistance. XTB has local offices in various countries (they have a presence in e.g. Spain, France, Poland, Italy, etc.), so they often provide support in multiple languages. Italian investors, for instance, can access Italian-speaking support.

🇮🇹 Declarative regime (Italian taxes)

If you are an Italian investor, it’s important to know that XTB operates under what’s called a “regime dichiarativo” (declarative tax regime). This means XTB does not act as a sostituto d’imposta (tax substitute) for you. Unlike an Italian bank or broker which might withhold taxes on your investment income and handle reporting, XTB will not automatically withhold the 26% capital gains tax or 26% dividend tax on your behalf, nor will they report your accounts to the Italian tax authorities. Instead, the responsibility is on you to declare and pay any taxes due on income from your XTB investments.

Concretely, this means each year you will need to declare any capital gains you realised when selling investments, any dividends or interest you received, and you will also have to pay the IVAFE (wealth tax on foreign financial assets) on your XTB account value. IVAFE is 0.2% of the account’s total value, assessed annually, for Italian residents holding assets abroad. XTB will usually provide you with an annual statement of your account (often called a tax report or an “estratto conto”) that lists your positions, any dividends received, and transactions for the year. You can use this information to help fill out your Italian tax return (the RW form for foreign assets, RT for capital gains, and so on).It’s worth noting that you must declare your foreign account as well. XTB is a foreign broker (for Italians, it’s based in Poland or Cyprus for regulatory purposes, not in Italy), so you need to report the existence of this account in the RW section of your dichiarazione dei redditi each year, in addition to reporting the income. XTB’s approach is basically to put the entire tax burden on you as the investor. They might give you a summary of your yearly profits/losses, but they do not withhold or pay any taxes to Italy for you.

🇧🇪 TOB ("beurstaks" / "taxe boursière")

There’s a tax on the transaction every time you buy or sell a security in Belgium. The rules concerning the tax rate are complicated, also for ETFs. Depending on the characteristics of the ETF, the transaction tax varies between 0.12% and 1.32%.

Here’s the bad news: XTB provides no support for TOB. In fact, XTB’s solution to TOB appears to be simply not accepting Belgian clients at all, likely to avoid dealing with this tax.

🇧🇪 Dividend tax

XTB doesn't help you with the dividend tax. In Belgium, any dividend you perceive is taxed at 30%. Accumulating funds, which directly reinvest dividends, are a way around this tax. On the other hand, distributing funds distribute their dividends, which means they're taxable.

🇧🇪 Reynders Tax

For ETFs that consist of at least 10% bonds, there is a 30% tax on the profits made when selling. For example, if you bought a bond ETF at €100 and end up selling it later for €130, your net profit will only be €21. The other €9 will go to the Belgian state through this tax.

Unfortunately XTB, like all taxes, doesn't withhold this tax for you. You will have to calculate and declare it yourself.

🇧🇪 Does XTB require declaring the account to the NBB?

Yes, your XTB account is outside of Belgium so you have to declare it to the National Bank of Belgium as well, as on your tax returns every year.

Setting up an account

Let’s dig into the details of setting up your XTB account for the first time.

You can't create an account if you're resident in Belgium

One of the first things to note: if your legal residency is in Belgium, XTB will not allow you to register an account. The reasons aren’t explicitly stated on their site, but likely it’s due to the Belgian regulatory environment. As of now, Belgium is the only EU country that XTB has on its restricted list. XTB’s help center clearly states they do not accept residents of Belgium. This is similar to Trading 212, which also blocks Belgian sign-ups.

For residents of Italy (and most other European countries), XTB is available. You can sign up online through their international website or the local XTB site for your country. The process is fully digital.

Create an account on the web and mobile

Opening an account with XTB is quick. You can often finish registration and verification within the same day, sometimes in just hours. XTB claims it takes around 15 minutes to provide your details and upload documents. After that, it usually takes a few hours to a day for verification. Based on our experience and feedback from other users, expect account activation in about one business day.

When you sign up, you need to give personal details, like your name and address. You will also answer some standard regulatory questions. Since XTB offers complex instruments like CFDs, they must check your knowledge and experience. You can expect a questionnaire about your investing background, risk knowledge, and financial situation. Be honest when answering. If you say you have no experience, you might still open the stock or ETF part. However, you may be restricted from CFDs, which is okay if you only want ETFs.

You will need proof of identity and residence. Usually, this means uploading a copy of your ID or passport. You might also need to upload proof of address, like a utility bill or bank statement.

Ease of use: 2/5

The web and mobile platforms are powerful and packed with features, but this makes them less simple. Beginners might find XTB’s interface confusing. When you log in, you see a professional trading layout with multiple panels, charts, watchlists, and news tickers. The web platform has many options, like technical analysis tools and different order types. This can feel overwhelming if you just want to buy and hold. We found it “busy” and not very beginner-friendly.

The mobile app is easier to navigate. It condenses information, showing your portfolio and allowing you to search for instruments. Yet, it still displays categories like “Forex” or “Crypto” alongside stocks and ETFs, which can be distracting. The app looks modern and responsive, but its usability for new investors is moderate. The demo mode is a helpful feature. You can switch to a demo account with virtual money to practice using the interface before investing real money.

Overall, XTB’s user experience suits those who value advanced features over simplicity. This is the trade-off for an all-in-one platform: you gain many capabilities but lose some clarity. Compared to streamlined apps like Trading 212 or Degiro, XTB feels more complex.

Children accounts and joint accounts

You're unable to open a joint account using XTB. Note that you can't create children accounts so all investments have to be in your name.

Business accounts

XTB’s focus is on regular investors, but technically they do allow corporate accounts in some cases. This means a legal entity (company) could open an account with XTB. However, this isn’t advertised prominently and the process/documentation for it is more involved. Unless you have a specific reason (e.g. you manage a company’s treasury and want to invest through XTB), you’ll likely stick to a personal account.

Is XTB safe?

Who is the regulator?

XTB operates in many jurisdictions. For clients in the European Union, such as those in Italy and France, XTB is regulated by XTB S.A., its Polish entity. This entity is approved by the KNF, which is Poland’s financial supervisory authority. XTB has a license in Cyprus (CySEC) and is registered with several EU regulators. They must segregate client assets and meet conduct standards.

In the UK, XTB is regulated by the FCA for its UK branch. It also includes other entities. For example, XTB International is regulated in Belize for non-European clients. There’s also a branch in Spain that is supervised by the CNMV. If you sign up from Italy, you’ll fall under the EU entity, either Poland or Cyprus. The main regulator for EU clients appears to be the KNF, with possible CySEC oversight if needed. Regardless, EU law applies. Being publicly traded on the Warsaw exchange means more oversight and transparency. They publish financial reports and are accountable to shareholders.

In short, XTB is a regulated broker, overseen by top-tier European regulators. This should reassure investors. It means protections are in place, so XTB can't engage in risky practices without facing consequences.

Have they had any issues with the regulator?

XTB’s record is generally solid, but we found a couple of regulator issues to highlight:

• In 2018, the Polish KNF investigated XTB for its CFD order execution. They found an unfair practice called “asymmetric slippage.” Client orders didn't get positive price improvements and saw negative slippage instead. The KNF fined XTB about PLN 9.9 million (around €2.2 million). XTB initially disputed the fine, but Polish courts upheld it in 2021. XTB paid the fine and changed its practices. This issue involved CFD trading from 2014 to 2016. It didn’t directly affect stocks or ETFs, but it's an important blemish to note.
• In 2021, the AMF in France fined XTB’s French branch €300,000 for compliance failures. These failures involved client categorisation and information transparency. .

How much of your assets are protected by the investor protection scheme?

Your assets are protected by the standard €20,000 European investor protection scheme as XTB are based in the EU.

Is your cash protected by the deposit guarantee scheme?

No, cash in your XTB account is not protected by a bank deposit guarantee. XTB is not a bank; it’s a broker. Any uninvested cash you hold with XTB is held in segregated client accounts at banks, but those accounts are in XTB’s name (for clients) and thus the deposit guarantee might not directly apply per client. Instead, the protection for cash also falls under the €20k investor compensation scheme.

Does XTB do securities lending?

No, XTB does not lend your securities to third parties by default. Some brokers, like Trading 212 or Interactive Brokers, do lend shares to short-sellers to make money. However, XTB's terms state they won't use client assets for securities financing. This means your stocks and ETFs at XTB are not lent to anyone. So, you don’t need to worry about lending counterparty risk or recalling shares. XTB makes money through spreads, CFD trading, and some margin or interest. They don't earn by lending your holdings.

Does XTB do payment for order flow?

No, They do not do payment for order flow (PFOF). It is an important source of revenue for many new brokers, including another German provider Trade Republic. This practice involves routing your orders to certain market makers, who then pay the broker for the right of executing these orders. PFOF can work at your detriment, as brokers may prioritise payment over executing the best possible trade for you.

XTB vs other brokers

If you're Belgian, we looked at all the brokers for investing in ETFs.

Curvo: investing made simpler

Brokers push you to trade and to pick individual companies to invest in. Rather than picking individual stocks such as Amazon or Tesla, index funds are a way to buy the whole market, across all sectors and regions of the world. Essentially, you own a small portion of thousands of companies throughout the world. Instead of betting on a particular company, you are placing a bet on the global economy.

Rather than having to pick the right stocks or ETFs among the thousands available through a broker like XTB, you invest in a portfolio that is tailored to you and your goals. These portfolios are composed of globally diversified index funds, meaning you earn a piece of the growth of the global economy, and they're best suited to make the most of your savings long term. And they're secure, as they're under the supervision of the regulator in the Netherlands (AFM).

We believe that investing is an important tool for our generation to improve our financial well-being and to prepare for our future. We are building Curvo to fulfil that vision, by making good investing easy and accessible to all:

• Diversified portfolio set up for you: The best portfolio for you is built based on your time horizon and financial goals. Simply answer a short questionnaire and you’ll get everything set up for you.
• Automated savings plans: Through Curvo’s app you can set up a monthly contribution from €50. That means that money is automatically invested for you in your portfolio. Put your savings on autopilot!
• Fractional shares: All the money you send towards your portfolio is fully invested. No cash is left on the side.
• No TOB 🇧🇪 : Significant savings as the portfolios aren’t liable for the Belgian transaction tax (or "TOB"). This saves you between 0.12% and 1.32% for every time you buy or sell!
• Sustainable investments: Your investments focus on one guiding principle: don’t invest in companies that are considered destructive to the planet. This means that sectors like non-renewable energy, vice products, weapons and controversial companies are all excluded.
• Project yourself into the future: Through Curvo you can see how much your portfolio is expected to be worth in the future. You can answer questions like “how will increasing my monthly contribution by €50, €100 or €200 affect my long-term savings?” to give a concrete idea for the “future you”.

Learn more on how it compares to investing through a broker.

Summary

XTB offers an impressive package for experienced investors who want low-cost access to European markets. The commission-free trading up to €100,000 monthly and solid regulatory backing make it attractive for those comfortable managing their own investments. However, the platform's complexity and focus on trading can overwhelm beginners who simply want to build long-term wealth through ETFs.

The biggest hurdle for many Europeans is the tax complexity. Whether you're dealing with Italy's declarative regime or the complete exclusion of Belgian residents, XTB puts the entire tax burden on your shoulders. If you're comfortable with this responsibility and want maximum control over your investments, XTB could work well for you. But if you prefer a simpler approach where someone else handles the complicated bits, you might want to explore alternatives that take care of the administrative work for you.