XTB offers a competitive fee structure that appeals to a wide range of traders, particularly those engaging in forex and CFD trading. The platform is known for its low spreads, which can significantly reduce the cost of entering and exiting positions. For major currency pairs like EUR/USD, XTB offers spreads as low as 0.6 pips during peak trading hours, which is considered competitive in the industry.
When it comes to stock and ETF trading, XTB provides commission-free trading for many European customers, particularly those who trade less than €100,000 in a month. This offer is available for UK and EU customers onboarded under XTB’s Polish entity. However, for investments at or above €100,000 per calendar month, a 0.2% commission is charged with a minimum of €10 per trade. It’s worth noting that while this offer is favorable, some competitors provide commission-free trading without any limitations.
For CFD trading, XTB doesn’t charge direct commissions. Instead, the cost is built into the spread, which varies depending on the product and market liquidity. For instance, the S&P 500 CFD has an average spread cost of 0.5 points during peak trading hours. This pricing model can be advantageous for traders who prefer a more straightforward fee structure without separate commission charges.
XTB also implements a currency conversion fee of 0.5% for trades involving different currencies. This is particularly relevant for traders with accounts in one currency but trading assets denominated in another. To mitigate this cost, XTB offers the option to open accounts in different base currencies, including GBP, EUR, and USD.
It’s important to note that while XTB’s fee structure is generally competitive, there are some additional costs to consider. For instance, there’s an inactivity fee of €10 per month after one year of trading inactivity if no deposit was made in the last 90 days. However, XTB doesn’t charge fees for most deposits and withdrawals, which can be a significant advantage compared to some other brokers.
Overall, XTB’s fee structure is designed to be attractive to both novice and experienced traders, with its combination of low spreads, commission-free options, and transparent pricing. However, as with any trading platform, it’s crucial for traders to carefully consider their trading style and volume to determine if XTB’s fee structure aligns with their specific needs and strategies.