XTB Fees and Commissions With the XTB broker you can invest online in a multitude of different financial instruments such as more than 50 currency pairs from the Forex market, raw materials, CFDs on stocks and indices, cryptocurrencies, … Currently it also offers the possibility of investing in stocks and ETFs at cash (without leverage).
This company, which has more than 14 years of experience in the sector , stands out for offering a professional and transparent service . The XTB group has a presence in more than 10 countries and has various regulations, for example it is regulated by the CNMV (National Securities Market Commission) and in the United Kingdom it is regulated by the FCA (Financial Conduct Authority), one of the most demanding supervisory bodies worldwide.
But, what is the cost of their services? Like other online brokers, XTB applies a series of fees, which represent their fees . If you want to know what are the most significant commissions for trading in Forex, CFDs and spot stocks with this online broker, whether you are a client belong to the Latin American area, we invite you to read this article:
XTB broker fees
Before moving on to talk about XTB Fees , it is necessary to make a distinction between the accounts that this broker offers . The hiring of an account implies accepting certain conditions. Each client, depending on their needs and preferences, will hire the one that is most advantageous for their profile and type of operation. In this sense, commissions have an important role in each of the accounts , because they vary according to the one contracted.
XTB broker account types
if you intend to contract the services of this broker from Latin America, there are two types of accounts:
- Standard Account
- Pro Account
NOTE: There are other types of accounts, reserved for professional clients. To go from being a retail trader to having a professional status, a series of requirements must be met in terms of capital, experience and / or frequency in the volume of operations. The commissions that we are going to detail in this article are those related to retail traders.
However , the conditions – and, above all, the commissions – are not the same when the origin of the client is Latin America . For this reason, we will be exposing what the commissions are for each type of account and for each of the two geographical areas.
(Example of the two types of XTB accounts for clients in Latin America)
A first difference that we can find is the leverage allowed between one region and another .
While LATAM clients can leverage up to 1: 500 in both types of accounts,only a maximum leverage of 1:30 is allowed (and for higher currency pairs, for other instruments it is even lower). This is due to restrictions imposed by ESMA (European Financial Authority) that only affect clients in the European Union.
Once this note is made, we begin to analyze the commissions that XTB applies for its services:
XTB commissions for operations
Commissions for operations, that is, for entering and leaving the market , represent the bulk of the fees received by XTB and any broker. It is a charge for carrying out your financial intermediation task.
These types of commissions can be variable. The factors that influence this are the type of financial instrument to operate, the account that is contracted and the geographical area to which it belongs.
1. Operating commissions
Commissions for purchase or sale orders (for trading) can be in the form of spread, fixed commission or a percentage of the monetary volume of the order.
A- Standard Account
Depending on the type of financial instrument in question , one type of commission or another will be applied.
- Forex: A variable spread is established . A differential over the Bid and Ask price (offer price and demand price) that may undergo changes depending on the liquidity of the currency pair on which it is intended to trade as well as the volatility conditions that occur in the market in time to operate. To get an idea, for the most liquid currency pair that exists in the Forex market, that is, the EUR / USD, XTB applies a minimum spread of 0.8 pips (an average value of 0.9 pips).
(Example spread applied on the currency pair EUR / USD in XTB)
- Stock index CFDs: The commission that is applied is also in the form of a spread . In addition, it is also a variable fork . For example, one of the most liquid stock indices that exist, such as the German DAX 30, the minimum value of the spread is 0.9 points (an average value of one point).
- Commodity CFDs: Like the other CFDs we have seen, the operating fee (financial intermediation fee) is represented by a spread (variable) . We can get an idea of the spreads it applies (since they are variable) of different raw materials if we look at the following table . As a note, we will include that the minimum spread for a commodity as widely used as gold is 0.3 points.
(Example of commodity spreads applied by XTB, spreads vary depending on market conditions)
- Cryptocurrency CFDs: In this case, despite the fact that a commission is also applied in the form of a spread and it is also variable , it is expressed as a percentage of the price of the financial asset on which it operates. For example, if Bitcoin is trading at $ 10,000, and its minimum spread is 1%, the difference between the Bid and Ask price will be at least $ 100 (remember that these financial instruments are extremely volatile and can fluctuate this amount without no difficulty).
(Example of the spread applied to Bitcoin in XTB)
- CFDs on ETFs: The trader has the possibility to trade listed funds (ETFs) through the XTB broker. Either through CFDs (with leverage) or cash (without leverage). In this case we refer to CFDs on ETFs . XTB leaves aside the spread (typical of CFDs) on these financial instruments to apply a brokerage commission . This commission amounts to 0.08% of the value of the transaction (with a minimum of 8 euros, dollars or any other unit of currency used in the financial instrument on which it is intended to operate).
- CFDs on stocks: What has been said for ETFs is perfectly valid for trading with CFDs on stocks on XTB . It is possible to trade with shares in cash (without leverage) or through CFDs on shares. In the case of CFDs, an intermediation commission (not a spread) of 0.08% is applied on the volume to invest (with the same minimum).
- Spot stocks and ETFs: For clients, XTB offers the possibility of trading stocks and ETFs without using leverage (in order to carry out other types of financial strategies other than trading, generally in the longer term). The brokerage commission (no spread) is variable according to the type of shares in question, it is usually 0.10% for shares of the European Union and 0.12% for American shares of the value of the transaction, with a minimum of about 10 units of currency (generally, in cases such as Denmark, Switzerland, Norway or Sweden 15 euros applies). In the case of ETFs, they have a similar commission.
- In addition, an additional fixed commission is applied , relative to the value of the operation, according to tables (for operations below € 2,500 it is € 0.25). NOTE: There is a currency conversion fee of 0.5% of volume.
B- Pro Account
The fundamental characteristic of the Pro account, which is the difference between the Standard account and the spread , in exchange for the collection of a fixed commission of € 3.50.
This difference only affects those financial instruments subject to spread . For example, XTB explains on its website that for EUR / USD, the spread is reduced from the minimum established in 0.8 pips to 0.1 pips (as a counterpart to paying the fixed commission).
An issue to keep in mind is that the fixed commission will be paid each time an intermediation service is carried out (both at the opening and at the closing of the operation). A complete trading operation will have a fixed commission that doubles the indicated amount, therefore being € 7.
2. Operating commissions in LATAM
The conditions vary significantly with respect to the services offered, based on the fact that it is not possible to trade instruments in cash. XTB only offers CFDs in Latin America.
CFDs are available on the following financial instruments :
- Stock indices.
Thus, operating fees are in the form of a spread , except for CFDs for stocks and ETFs , which will be 0.08% of the value of the transaction with a minimum of 8 units of the currency in which the financial instrument is denominated. (both in the Standard account and in the Pro Account).
In all other assets, we must make a distinction according to the existing account types in XTB LATAM.
A- Standard Account
In the Standard account of the XTB broker there are different statuses (or sublevels within the same type of account) , depending on the minimum initial deposit made by the client when opening the trading account. The statuses are called A, B and C. The applied operating fees are different according to each of these levels:
- A: 15,000 USD minimum deposit.
- B: 1500 USD minimum deposit.
- C: minimum deposit of 1 USD.
As you can see, just one dollar is enough to open a trading account with XTB in LATAM . However, in order to obtain better conditions, in the form of commissions to operate, a greater initial capital must be contributed to the account.
According to the type of status or subaccount (without leaving the Standard account), the minimum applicable spread is as follows ( spreads are also variable ):
- A: 0.70 pips.
- B: 1.5 pips.
- C: 2.8 pips.
B- Pro Account
The difference between the Pro account and the Standard account is the exchange of a fixed commission for a lower spread (not applicable to CFDs on stocks and ETFs, since these instruments do not have a commission in the form of a spread).
By trading with this account, the trader can obtain a minimum spread of 0.3 pips . However, you will have to pay a fixed commission of 4 USD for each lot to invest . We remind you that this commission must be paid for each order executed (the opening or closing of the position), so in a complete trading operation this commission is doubled (8 USD).
To open a Pro account in XTB, when it comes to clients that belong to the LATAM area, a minimum initial deposit of USD 40,000 will be required.
Swap Commission (night premium)
This commission is represented by the payment of interest that the trader must make to obtain leverage , given that said leverage involves a loan from the broker to the client.
It is applied daily , since the broker only lends that money for a specific day. CFD trading is refinanced every day .
At the end of the day, at a specific cut-off time (17:00 EST) , the open positions are refinanced and the official interest of the currency in which the operation is denominated is charged . Therefore, the swap commission will be applied for each day that an open position is maintained.
This commission is also called a night premium because, the cut-off time coincides with 23:00 peninsular time. An open position during this hour is considered an overnight operation. In this way, the swap commission will be applied.
One aspect to consider is what happens to the night premium when operating in the Forex market. When opening a position in a currency pair, a simultaneous purchase and sale is made of each of the currencies that make up the pair (depending on whether the operation is short or long, one is bought and another is sold). This assumes that you have a purchased currency and a sold currency , so the interest on the purchased currency must be paid (and the interest on the sold currency charged). The broker pays or charges us the difference between the official interest rates of the currencies . Thus, when operating in the Forex market, it is possible to receive a credit to our account for this concept instead of a charge.
In any case, XTB reports that the positions have no overnight commission when it comes to stock index and commodity CFDs . As you can see in the following image.
For operations with shares or spot ETFs this commission does not take place , because there is no financial leverage and, therefore, no interest is earned. This is a commission applicable to CFDs.
Commission for the collection of dividends
When trading in shares, either in cash or through CFDs, the trader is entitled to receive dividends if he has an open position during a distribution thereof (before the ex-dividend date).
With CFDs on shares, despite not owning the physical share, you have certain economic rights (not the political rights that derive from the shares) . With a long position, an amount equivalent to the dividend distributed in the trading account is paid. The opposite happens when you have a short position, in this case the trader owes the dividends and they are discounted from the trading account.
The point is that all financial intermediaries, as a general rule, apply a commission for the management of the collection of dividends (regardless of withholding tax that can be deducted) and XTB is no stranger to this fact.
Specifically, the commission applied to the dividend is as follows :
- For clients : A percentage of the dividend to be received is charged for both cash shares and CFDs on shares. The percentage applied varies according to the market in which it is operated (for example, the dividend for spot shares has a 19% commission; if trading CFDs on these same instruments, a 21% commission will be charged.
- For Latin American clients: It is calculated on a percentage of the amount to be received. This percentage is variable depending on the market in question (for example, for shares of the United States it is 15%). Also, there are markets that don’t have this fee (UK stocks, to be more exact).
In both cases, XTB will pay the customer the amount corresponding to the dividends after deducting the relevant commission.
XTB Withdrawal fee
The commission for withdrawing funds from our trading account only occurs in cases where it is less than a minimum amount specified by the XTB broker. This amount will depend on the geographical area in question:
- In: Withdrawals of less than € 200 >> Commission of € 20.
- In LATAM: Withdrawals less than $ 100 >> Commission of $ 30.
There may be certain costs for withdrawing funds generated by the payment method used (for example, from your bank for receiving international transfers, currency exchange, …), but this fact is foreign to XTB for its services and you should make sure if they exist depending of your means of payment, country, … If you have any doubts, contact the broker or your provider of the means of payment for more information.
Additionally, when it comes to accounts from Latin America , XTB charges a commission for the transfer to cash accounts through express payment . The commission is as follows:
- Through SafetyPay: 1.5%.
- Through Skrill / Neteller: 2%
- Through credit cards: 1.5%
Account maintenance fee
XTB does not apply any account maintenance fee as long as one trading operation is made per year. Otherwise, a monthly commission of € 10 will be charged . For XTB customers from Latin America, this inactivity fee does not occur.
Keep in mind that the commissions specified in this article have no contractual value , we try to detail you and explain what the main commissions of the XTB broker consist of, but these may change and become outdated, so it is advisable that you contact the broker directly or that Check the XTB website for more information:
In addition to the XTB Fees & commissions seen in this article, the XTB broker may apply fees for a number of other additional services . Such is the case, for example, of the preparation and sending of daily reports or confirmations of orders in paper format, …
A good way to know the impact of these commissions and test the broker’s services is to open a free demo account with XTB . It is an account that comes loaded with a virtual balance and that offers a virtually identical environment to an account with real money to be able to carry out operations but without putting your money at risk.
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