XTB : a renowned broker for cryptocurrency
When you are interested in investing, and more particularly in crypto trading, you quickly hear about the famous XTB platform. It is one of the best known brokers on the market.
XTB is a trading tool. Brokers are indeed platforms for the purchase and resale of contracts on certain financial assets. The platform is present on several markets, including cryptocurrencies.
Active for more than 16 years, the company has offices in 13 different countries and offers its services worldwide. In particular, there is an XTB France office.
Like all brokers, XTB is regulated by many organizations depending on the country. In France, XTB is regulated by ACP.
Investing in cryptocurrencies with XTB is actually trading with CFDs. These are “Contracts for Difference”. This means that an investor opens a position in an asset by betting on its rise or fall.
In reality, the investor never owns the asset but a contract that attests to his entry and the movement he predicts for the asset.
In short, this means that the user never owns cryptocurrencies. Investing in cryptos through brokers has advantages and disadvantages. For example, investing through brokers is often much easier than through cryptocurrency exchanges, which often require basic knowledge.
What services does XTB offer ?
XTB is a fairly versatile broker that offers access to major financial markets to its users. We will cite :
- Raw materials
- The actions
Trade Forex on XTB
Forex is the currency market. We therefore trade on the movements of value between two currencies.
Example: Euro/US Dollar
You can find 48 currency pairs on XTB.
Indices are groupings of stocks that are usually grouped by country or category. Each country has its index which includes the largest companies present there.
Example: the CAC40 in France (or FRA40 when it comes to CFD contracts)
On XTB, it is possible to trade on 39 different indices.
Commodities are physical financial assets whose value is listed on a stock exchange. The best known is gold, but there are also oil, aluminum, coffee, etc.
26 commodities are listed on XTB.
Stocks and ETFs
Stocks are simply corporate stocks. The investor buys a share, which represents a share of the company, the value of which fluctuates depending on the state of health of the company in question.
ETFs are investment funds made up of several shares.
XTB lists no less than 287 ETFs and more than 3000 different stocks!
XTB crypto trading
XTB has also entered the cryptocurrency market and today references 19 different tokens. A fairly low number that should increase in the future.
Among the proposed cryptos, we obviously find Bitcoin, Ethereum, and the best known such as Dogecoin, Cardano, Avalanche, Ripple, Polkadot, etc.
Create an XTB account
To register on the XTB platform and start trading cryptocurrencies, it’s very simple. Let’s see the different steps of XTB registration to create an account in just a few minutes.
- Go to www.xtb.com and click on “Real Account”
- You then reference your email address and your country of residence
- Enter the password you want
- You must then fill out a form with your main information
- XTB then asks you questions about your knowledge of the financial products they offer. They also ask general questions about the theory of financial markets
- Then, questions about our professional situation, the funds we will invest on the platform
- After accepting various conditions, we approve your registration request
Your account is now created !
To start trading, you have to go through the account activation step, which requires verification of your identity. You must send proof of your identity and also of your tax residence.
The XTB DEMO account
The advantage of XTB is that it is possible to create a demo account in order to test the platform as well as try trading if you have little knowledge.
This allows you to start trading in just a few clicks and without risking your own money.
We advise you to start by opening an XTB DEMO account if you are a beginner to get your hands on the various financial tools and instruments.
XTB Fees: what are the fees applied to trade ?
To be attractive, brokers always try to apply a minimum of fees to their users. Or in any case, to practice them so that the user has the impression of not paying too much.
First of all, you should know that the XTB platform does not charge any registration fees or any commission (up to €100,000 of monthly investment) on cash stocks and ETFs.
On the other hand, for CFD contracts, the platform charges fees in the form of spreads, but also daily fees on the assets you hold.
The amount of commissions per transaction is 0.08% for each order execution (with a minimum of 8 euros per commission).
The amount of daily fees (overnight funding fees) varies according to the assets but generally ranges between 0.004% and 0.008%.
Otherwise, XTB does NOT charge ANY FEES for :
- Account creation
- Custody rights
XTB minimum deposit
There is no minimum deposit amount on the XTB platform. Users can invest whatever capital they want initially.
XTB Review : what to think of the broker?
XTB is a world-famous platform that has been awarded many times, has renowned ambassadors (José Mourinho) and a number of years of existence.
These different aspects constitute a first positive point for the platform because they are reassuring elements on the reliability of the platform.
XTB offers a wide range of financial instruments and products, which allows investors to find a versatile platform on which they can diversify their investment.
The platform offers investments on the largest financial markets.
However, we regret the absence of services such as copy trading, offered by their competitor eToro.
The world-famous broker has also developed its own trading platform: xStation, which has also won several awards. For example: “Best Trading Platform 2016” by Online Personal Wealth Awards.
Investing in cryptocurrency via a broker : a good idea ?
The question of the appropriate platform to invest in cryptos comes up very often. Indeed, the two big choices facing users are :
- Invest via an exchange (Binance, ByBit, Bitget, etc.)
- Invest through a broker (eToro, XTB, Vantage, VT Markets, etc.)
Generally, brokers are easier to learn and more intuitive than trading platforms. For a start, it may therefore be better to turn to a trading broker.
However, buying cryptos through a broker can represent costs in the long term and depending on your investment strategy, it may be more appropriate for you to turn to an exchange platform. Moreover, you will truly own your cryptos. Via a broker, you hold a position contract on a course of a crypto.
However, it can also be more beneficial and less risky when knowing the volatility of the digital currency market.