With the XTB broker you can invest online in a multitude of different financial instruments such as more than 50 currency pairs on the Forex market, commodities, CFDs on shares and indices, energies, cryptocurrencies,…
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 is regulated by the FCA (Financial Conduct Authority) in the UK, one of the most demanding supervisory bodies in the world. More info: XTB Broker Review and Opinions.
But how much do its services cost? Like other online brokers, XTB applies a series of commissions, which represent its fees. If you want to know what are the most significant commissions for trading Forex, CFDs and spot stocks with this online broker we invite you to read this article:
XTB broker fees and commissions
Before discussing XTB’s commissions, it is necessary to make a distinction between the accounts offered by this broker. When you sign up for an account, you must accept certain conditions. Each client, depending on their needs and preferences, will contract the one that is most advantageous for their profile and type of operations. In this sense, commissions play an important role in each of the accounts, as they vary according to the account contracted.
Types of XTB broker accounts
In most of the countries where XTB broker XTB offers its services, there are two main types of accounts:
- Standard Account
- Pro Account
NOTE: Pro account is reserved for professional clients. To move from being a retail trader to professional status, a number of requirements must be met in terms of capital, experience and trading volume. The commissions we are going to detail in this article are those relating to retail traders.
You have to keep in mind that the conditions detailed below may vary from one country to another, so they can serve as a guide, but in any case you should go to the broker’s website to consult the conditions that are in force in your case.
Having made this note, we will now analyse the commissions charged by XTB broker for its services:
XTB commissions for trading
Trading commissions, i.e. for entering and exiting the market, represent the bulk of the fees received by XTB and any broker. This is a charge for carrying out its financial intermediation role.
These types of commissions can be variable . The factors that influence this are the type of financial instrument to be traded, the account that is contracted and the geographical area to which it belongs.
Typical Operating Commissions
Commissions for buying or selling orders (for trading) may be in the form of a spread, a fixed commission or a percentage of the monetary volume of the order.
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 spread on the Bid and Ask price (bid and ask price) that can be altered depending on the liquidity of the currency pair on which you intend to trade as well as the volatility conditions in the market at the time of trading. To give you an idea, for the most liquid currency pair in the Forex market, i.e. EUR/USD, XTB applies a minimum spread of 0.8 pips (an average value of 0.9 pips).
(Example spread applied on the EUR/USD currency pair at XTB)
- CFDs on stock indices: The commission applied is also in the form of a spread. In addition, it is also a variable spread. For example, for one of the most liquid stock market indices, such as the German DAX 30, the minimum spread value is 0.9 points (an average value of one point).
- CFDs on commodities: Like the other CFDs we have seen, the trading commission (financial intermediation commission) is represented by a (variable) spread. We can get an idea of the spreads that apply (as they are variable) to different commodities by looking at the table below. As a note, the minimum spread for a commodity as widely used as gold is 0.3 points.
(Example of spreads on commodities applied by XTB, spreads vary depending on market conditions)
- CFDs on cryptocurrencies: In this case, although a commission is also applied in the form of a spread and is also variable, it is expressed as a percentage of the price of the financial asset being traded. For example, if Bitcoin is trading at USD 10,000, and its minimum spread is 1%, the difference between the Bid and Ask price will be at least USD 100 (it should be remembered that these financial instruments are extremely volatile and can fluctuate this amount without any difficulty).
- CFDs on ETFs: Traders can trade exchange-traded funds (ETFs) through the XTB broker. Either through CFDs (with leverage) or spot (without leverage). In this case we refer to CFDs on ETFs. XTB waives the spread (typical for CFDs) on these financial instruments in order to apply a brokerage commission. This commission amounts to 0.08% of the transaction value (with a minimum of 8 euros, dollars or any other unit of currency used in the financial instrument on which you intend to trade).
- CFDs on shares: What has been said for ETFs is perfectly valid for trading CFDs on shares at XTB broker. In the case of CFDs on shares, a brokerage commission (not a spread) of 0.08% on the volume to be invested (with the same minimum) is also applied.
This commission is represented by the interest payment to be made by the trader for obtaining leverage, as such leverage is a loan from the broker to the client.
It is applied on a daily basis, as the broker only lends this money for a specific day. CFD trades are rolled over on a daily basis.
At the end of the day, at a specific cut-off time (17:00 EST), the open positions are re-funded and the official interest rate of the currency in which the trade is denominated is charged. Therefore, the swap commission will be applied for each day that an open position is held.
This commission is also called overnight premium because, in some countries, the cut-off time coincides with 00:00 h . A position opened during this time is considered an “overnight” operation. Thus, the swap commission will be applied.
One aspect to consider is what happens with the swap commission when trading in the Forex market. When you open a position in a currency pair you simultaneously buy and sell each of the currencies that make up the pair (depending on whether the trade is short or long, you buy one and sell the other). This means that you have one currency bought and one currency sold, so the interest on the currency bought must be credited (and the interest on the currency sold charged). The broker pays or charges us the difference between the official interest rates of the currencies. Thus, when trading in the Forex market, it is possible to receive a credit to your account for this rather than a debit.
In any case, XTB informs that positions are free of overnight maintenance fees for CFDs on stock indices and commodities. XTB also offers Islamic accounts with no swaps.
Commission for the collection of dividends
When trading shares, either in cash or through CFDs, the trader is entitled to a dividend pay out if he has an open position during a dividend distribution (before the ex-dividend date).
With CFDs on shares, even though you do not own the physical share, you have certain economic rights (but not the political rights derived from the shares). With a long position, an amount equivalent to the dividend distributed is credited to the trading account. The opposite happens with a short position, in which case the trader owes the dividends and they are deducted 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 (apart from the tax deductions that can be deducted) and XTB is no stranger to this fact.
As a general rule (it can vary depending on your country, trading account,…), this commission is calculated on a percentage of the amount to be received. This percentage varies according to the market in question (for example, for US shares it is 15%). There are also markets that do not have this commission (UK shares, to be more precise).
XTB broker will credit the client’s account with the amount corresponding to the dividends after deducting the relevant commission.
Withdrawal fee
The commission for withdrawing funds from our trading account generally occurs in cases where it is below a minimum amount specified by the XTB broker (although there may be exceptions for electronic means of payment such as Skrill or Neteller). This amount will depend on the geographical area concerned to your account.
For example in XTB International Limited:
If the withdrawal amount is less than 50 USD, a fee of 1.5% applies for withdrawals by credit or debit card.
If the withdrawal amount is less than 100 USD, a fee of 30 USD applies for withdrawals by bank transfer.
There may be certain costs for withdrawals of funds generated by the means of payment used (for example from your bank for receiving international transfers, currency exchange,…), but this fact is beyond the control of XTB for its services and you should make sure if they exist depending on your means of payment, country,… If you have any doubts, please contact the broker or your payment method provider for more information.
Account maintenance fee
XTB does not charge any account maintenance fees as long as one trading operation is made per year or if cash is deposited in the trading account in the last 90 days. Otherwise a monthly fee of 10 EUR will be charged (or the equivalent amount in other currencies).
Important note:
Please note that the commissions specified in this article have no contractual value, we try to detail and explain to you what the main commissions of XTB broker consist of but these may change and become outdated so it is advisable that you contact the broker directly or consult the XTB website for more information:
In addition to the XTB commissions discussed in this article, the XTB broker may charge fees for a number of additional services. This is the case, for example, for the preparation and sending of daily reports or order confirmations in paper format,…
A good way to see the impact of these fees and to test the online broker’s services is to open a free demo account with XTB. This is an account that comes loaded with a virtual balance and offers an environment that is similar to a real money account so that you can trade without putting your money at risk.
We hope you found the article useful. You can help us spread the word by sharing it on social networks and send us your feedback, experiences or queries in the comments section. Thank you very much.
You can create your real account with XTB here:
