XTB Review – Is it scam or safe?explained by professional Forex trading experts the “ForexSQ” FX trading team.
XTB Review – Is it scam or safe?
XTB or X-Trade Brokers is a leading forex broker in Central and Eastern Europe, providing online trading in over 1500 instruments, including forex, indices, shares, commodities and ETFs on two trading platforms – its in-house xStation and the ever popular MetaTrader 4.It has offices in more than 15 countries in Europe, South America and Asia.
Behind the XTB brand is XTB Limited, a UK-based, FCA-regulated subsidiary of the XTB Group. Its other subsidiaries are regulated by Poland’s financial supervision commission (KNF).
Security of Funds
XTB Ltd., operating under the trading name XTB, is authorised and regulated by UK Financial Conduct Authority (FCA). As a UK-based brokerage XTB has to adhere to strict requirements and the highest regulatory standards.
For example, in order to acquire a license from the UK financial watchdog, brokers have to provide proof of financial stability: they must hold a minimum of €730 000 in order to conduct their business activities legitimately. Similar minimum capital requirements apply in other jurisdictions, for instance brokers based in Australia are required to possess at least $ 1 million.
Regulation by FCA also involves additional guarantee to clients’ funds, since they fall under the umbrella of the Financial Services Compensation Scheme (FSCS), where the maximum compensation cover is £50,000 per person in the event that a broker becomes insolvent.
In case you are interested, you may look up more FCA-regulated brokers.
What is more, in May 2016, XTB went public by debuting on the Warsaw Stock Exchange (WSE:XTB), which adds additional transparency to its business model and finances.
Trading Conditions
Minimum initial deposit
XTB requires $250 as initial deposit for opening a live account, which is average.
Average Spreads & Commissions
This broker offers both fixed and variable spreads. The fixed ones are available on the Basic account and amount to 2.0 pips on EUR/USD, which is average. As regards the variable spreads, the ones provided on the Pro account are as low as 0.3 pips on EUR/USD, but incur a commission fee of 2.5 GBP / 3,5 EUR / 4 USD / 1400 HUF per lot (per side). No commission is charged on the Basic and Standard accounts.
In comparison, FxPro offers average spread of 1.4 pips on the EUR/USD for its commission-free accounts and average spreads as low as 0.4 pips on the EUR/USD for its cTrader accounts, charged $4.5 per standard lot.
On the whole, a maximum leverage of 1:200 is deemed average for the market, however some traders may wish to trade more with less.
Other FCA-regulated brokers, like HY Markets, provide leverage up to 1:300, and XM offers leverage levels as high as 1:888. Traders, however, should be careful, because high leverage ratios may not only allow them to trade more with less, but also to lose more than they have initially deposited.
Trading Platforms
Clients of XTB are offered a choice of two trading platforms: their in-house xStation and the renown MetaTrader 4, both available as desktop, web and mobile versions.
xStation is user-friendly, fully-customizable platform, which is equipped with an advanced trading calculator (instantly determining a trader`s potential profit or loss, thus allowing more informed trading decisions).
In addition, XTB offers the most widely-used trading platform MetaTrader 4. It allows users to fully automate their trades by Expert Advisors (EA) and let the program do all the work. This is one of the reasons MT4 to be the preferred platform by most traders What is more, it offers a wide range of technical indicators, extensive back-testing environment and advanced charting package. Here is a list of more forex brokers offering MT4 platform.
Risk Management Options
Since CFDs are leveraged products and carry a high level of risk and losses can exceed traders` deposits, XTB provides guaranteed stop losses available on the Basic account.
The broker said on its website it guarantees that stop losses will be executed at the price requested, free of charge – even in cases of slippage.
Bonuses, Rebates, Promotions
XTB offers a variety of promotions to its clients:
– the Loyalty program that offers traders the opportunity to earn cashback on each completed
up to £2.60 cash back per lot.
– Monthly interest cash – traders can earn up to 1.1% on their cash balance each month, depending on the volume of trades.
– Refer a friend bonus – if a trader refers a friend and the latter opens a real account and trades a total of 10 round lots, both of them are entitled to £40.
Methods of Payment
This broker provides its clients with the following payment methods: bank transfer, credit/debit cards (Mastercard, Maestro, Visa) and e-wallets (Paypal, Skrill, Neteller).
XTB Review – Is it scam or safe? Conclusion
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