The XTB Capital Group (“XTB Group”, “Group”) is an international provider of trading and investment products, services and technology solutions, specialized in financial OTC market with a particular focus on CFDs (contracts for difference), which are investment products with returns linked to the changes in the prices and values of underlying instruments and assets).Currently the XTB Group offers more than 1,700 CFDs based on currency pairs, commodities, indices, shares of companies listed on stock exchanges in 12 countries and American and European ETFs, and new CFDs may be added to the Group’s offer.
Founded in Poland in 2004, the XTB Group has been growing dynamically, operating on the basis of licenses granted by regulators in Poland, the UK, Turkey, Cyprus and Belize. Currently the Group is focusing on growing its business in 12 key countries, including Poland, Spain, the Czech Republic, Portugal, France and Germany. Apart from expanding its operations in the CEE and Western Europe, XTB Group’s strategy includes growth in the new markets, including Latin America, and further development of the institutional operations arm of the XTB Group’s business (X Open Hub). The area of Company operations are subject to regulatory supervision in XTB’s markets, including the EU where it conducts business based on the ‘single EU passport’.
Thanks to innovative products and services, the Group has for many years been recognised for its technology, including the award for the best FX platform by the Polish daily business newspaper, Gazeta Parkiet. The core software development team located in Poland focuses on augmenting the competitive strength of XTB technological solutions.
The Group has a strong track record in developing and implementing innovative products. In 2013, the Group was one of the first entities on the European market to introduce internally developed social trading in the form of a regulated asset management service that enables clients to follow other clients’ trading activity. In 2014, xRisk was introduced as a proprietary trading solution for managing market risk. The Group has also become a trading technology and liquidity provider for institutional clients, brokers and start-up businesses in the institutional operations segment. In March 2018, the Group introduced cash equity from European and American markets.
The Management Board believes that the Group’s online trading platforms enable reliable, fast and effective trade execution in a user friendly environment. The unique functionality features of the xStation trading platform serve as a competitive differentiator and allow the Group to avoid competing only in terms of the prices offered for products and services. The Group is able to process approximately 30,000 orders per minute. The average execution time from placing an order until the receipt of full confirmation is less than 60 milliseconds. The Group offers its clients various trading alternatives based on client sophistication, from beginner to expert, and on the mode of access, from smartphones to web-based interfaces to downloadable desktop applications. The offered applications provide retail and institutional clients with useful and varied tools, including charts, analytics, research and online training. To advertise its business and increase its client base the Group utilizes online as well as offline marketing channels. A differentiating factor that allows the Group to continue to increase its market share is a team of over 110 employees in direct sales and marketing across the regions in which the Group operates. The Group’s marketing activities are supported by superior client service and ongoing initiatives for the Group’s retail clients, such as an educational portal, Trading Academy, that continuously contribute to increased trading volume, retention of clients and a stable flow of new clients to the Group.
Developing and maintaining robust risk management and compliance capabilities is one of the priorities for the Group. It performs on an ongoing basis analyses and evaluates its exposure to various risks inherent to its business model and reviews its risk management policies and compliance regularly in order to adequately control and manage such risks. The Management Board believes that the Group’s risk management experience and applied policies have become an important factor that contributed to the Group’s robust financial results and ensured its strong capitalization and financial stability.