As promised
earlier this year, XTB has unveiled stocks and shares Individual Savings
Accounts (ISAs) for UK investors, offering zero-commission trading alongside a 4.75%
interest rate on uninvested cash balances.
Finance
Magnates, the first
to review the announcement, also had the opportunity to ask additional
questions to Joshua Raymond, Managing Director of the UK branch. Raymond
acknowledged that this marks another step towards becoming “a full-service
investment and savings platform.”
XTB’s New ISA Combines
Zero Commission, 4.75% Cash Yield
The new
tax-efficient investment vehicle marks a departure from traditional ISA
offerings, combining commission-free trading for most investors with competitive
interest rates on idle funds. The account maintains full flexibility, allowing
customers to manage their investments without sacrificing tax benefits.
“ISAs
have proved wildly popular since their launch 25 years ago,” said Joshua
Raymond, XTB UK Managing Director. “However, too many accounts have costs
and interest rates that are significantly worse when compared to accounts
outside the ISA regime. Our intention is to offer terms and conditions that are
among the best in the market.”
XTB took
its first step towards introducing ISAs into its offering back in May by
obtaining the necessary licenses, paving the way to enter the £400 billion
market. Although the launch was initially scheduled for early autumn, it
experienced a slight delay. As Raymond explained to Finance Magnates, “New
product launches often take more time than initially envisaged, and we have
left no stone unturned in our testing and preparation phases.”
The structure
proposed by XTB eliminates trading commissions for the majority of clients,
with fees only applying to investors trading volumes exceeding €100,000 per
month, who will face a 0.2% fee. Interest on cash balances is calculated daily
and credited to customer accounts monthly, ensuring optimal returns on
uninvested capital.
Moving to Passive
Investments, but CFDs Still Important
The
strategy aligns with XTB’s broader strategy to “democratize” investment access
for UK and global customers through both passive and active investment
products. In the meantime, XTB introduced a multi-currency card for everyday
payments and Individual Retirement Accounts (IKE) for Polish investors.
“We
believe that offering customers a zero-cost route into the market, coupled with
one of the best rates of interest is a best-of-both-worlds solution,”
Raymond added. “It gives customers the confidence to go in and out of the
market as and when they choose without feeling their cash is not working for
them if it remains uninvested.”
The launch
builds on the fintech ’s established presence in the global financial technology
sector, where it serves over 1.2 million clients across Europe, the Middle
East, and South America. The company, listed on the Warsaw Stock Exchange since
2016, recently expanded its offering with the introduction of Investment Plans,
enabling automated investments in customizable passive ETF portfolios.
Raymond
confirms that XTB is moving towards becoming a full-service investment and
savings platform. However, this will not affect the current dominance of CFDs,
which account for 98% of the company’s revenue structure. “We expect the
ISA to complement rather than overshadow our other offerings,” explained XTB’s
UK Managing Director.
“We want
our offering to be the most competitive in the market and our ISA launch is
just the latest example of that commitment,” added Raymond. “While we don’t
expect ISAs to shift the balance for us in a material way, by continuing to
roll out high-demand investment products we aim for XTB to become the go-to
platform for all investors.”
The ISA is
the latest in a series of initiatives planned by XTB for this year. Alongside
it, the company rolled out two-factor authentication (2FA) and social trading,
among others. However, one goal, adding bonds to its offering, remains
unfulfilled.
At the
beginning of next year, XTB plans to unveil its strategy for 2025. And who
knows, bonds might make the list. Finance Magnates also inquired about the PEPP Scheme, the EU’s counterpart to the UK’s ISA and Poland’s IKE, but Raymond did not confirm or deny the company’s plan in this matter.
„We keep
our product pipeline continually under review but rest assured we are extremely
committed to delivering the investment products our clients demand and this
will continue as we announce our 2025 plans early next year,” the XTB’s UK Managing
Director concluded.
The offering upgrades appear to be paying off for the Polish broker. In Q3 2024, the company reported a 67.3% increase in revenue compared to the same period in 2023. Revenues for the first nine months of 2024 also grew, reaching 1.4 billion zlotys. Meanwhile, net profit for the past quarter nearly doubled, jumping to almost 204 million zlotys.
As promised
earlier this year, XTB has unveiled stocks and shares Individual Savings
Accounts (ISAs) for UK investors, offering zero-commission trading alongside a 4.75%
interest rate on uninvested cash balances.
Finance
Magnates, the first
to review the announcement, also had the opportunity to ask additional
questions to Joshua Raymond, Managing Director of the UK branch. Raymond
acknowledged that this marks another step towards becoming “a full-service
investment and savings platform.”
XTB’s New ISA Combines
Zero Commission, 4.75% Cash Yield
The new
tax-efficient investment vehicle marks a departure from traditional ISA
offerings, combining commission-free trading for most investors with competitive
interest rates on idle funds. The account maintains full flexibility, allowing
customers to manage their investments without sacrificing tax benefits.
“ISAs
have proved wildly popular since their launch 25 years ago,” said Joshua
Raymond, XTB UK Managing Director. “However, too many accounts have costs
and interest rates that are significantly worse when compared to accounts
outside the ISA regime. Our intention is to offer terms and conditions that are
among the best in the market.”
XTB took
its first step towards introducing ISAs into its offering back in May by
obtaining the necessary licenses, paving the way to enter the £400 billion
market. Although the launch was initially scheduled for early autumn, it
experienced a slight delay. As Raymond explained to Finance Magnates, “New
product launches often take more time than initially envisaged, and we have
left no stone unturned in our testing and preparation phases.”
The structure
proposed by XTB eliminates trading commissions for the majority of clients,
with fees only applying to investors trading volumes exceeding €100,000 per
month, who will face a 0.2% fee. Interest on cash balances is calculated daily
and credited to customer accounts monthly, ensuring optimal returns on
uninvested capital.
Moving to Passive
Investments, but CFDs Still Important
The
strategy aligns with XTB’s broader strategy to “democratize” investment access
for UK and global customers through both passive and active investment
products. In the meantime, XTB introduced a multi-currency card for everyday
payments and Individual Retirement Accounts (IKE) for Polish investors.
“We
believe that offering customers a zero-cost route into the market, coupled with
one of the best rates of interest is a best-of-both-worlds solution,”
Raymond added. “It gives customers the confidence to go in and out of the
market as and when they choose without feeling their cash is not working for
them if it remains uninvested.”
The launch
builds on the fintech ’s established presence in the global financial technology
sector, where it serves over 1.2 million clients across Europe, the Middle
East, and South America. The company, listed on the Warsaw Stock Exchange since
2016, recently expanded its offering with the introduction of Investment Plans,
enabling automated investments in customizable passive ETF portfolios.
Raymond
confirms that XTB is moving towards becoming a full-service investment and
savings platform. However, this will not affect the current dominance of CFDs,
which account for 98% of the company’s revenue structure. “We expect the
ISA to complement rather than overshadow our other offerings,” explained XTB’s
UK Managing Director.
“We want
our offering to be the most competitive in the market and our ISA launch is
just the latest example of that commitment,” added Raymond. “While we don’t
expect ISAs to shift the balance for us in a material way, by continuing to
roll out high-demand investment products we aim for XTB to become the go-to
platform for all investors.”
The ISA is
the latest in a series of initiatives planned by XTB for this year. Alongside
it, the company rolled out two-factor authentication (2FA) and social trading,
among others. However, one goal, adding bonds to its offering, remains
unfulfilled.
At the
beginning of next year, XTB plans to unveil its strategy for 2025. And who
knows, bonds might make the list. Finance Magnates also inquired about the PEPP Scheme, the EU’s counterpart to the UK’s ISA and Poland’s IKE, but Raymond did not confirm or deny the company’s plan in this matter.
„We keep
our product pipeline continually under review but rest assured we are extremely
committed to delivering the investment products our clients demand and this
will continue as we announce our 2025 plans early next year,” the XTB’s UK Managing
Director concluded.
The offering upgrades appear to be paying off for the Polish broker. In Q3 2024, the company reported a 67.3% increase in revenue compared to the same period in 2023. Revenues for the first nine months of 2024 also grew, reaching 1.4 billion zlotys. Meanwhile, net profit for the past quarter nearly doubled, jumping to almost 204 million zlotys.
This post is originally published on FINANCEMAGNATES.
