XTB Brazil Exit Possible as Profit Falls 74%

XTB Brazil exit reflects growing challenges for foreign brokers facing protectionist measures, regulatory barriers, and weakening market conditions. The firm is reconsidering its position in Brazil just six months after obtaining regulatory approval, citing local protectionist policies that have made it difficult for foreign brokerages to operate in the country.

XTB Brazil Exit Signals Shift in Global Strategy

The Polish fintech gained authorization to operate in Brazil earlier this year and began the process of joining the nation’s list of regulated financial institutions. However, the firm now states it is “evaluating all potential business options, including the possibility of ceasing further operations in this market,” according to its third-quarter earnings report.

The company attributes its reassessment to the “current conditions in the Brazilian brokerage sector, especially local protectionist measures,” which have hindered its ability to launch operations in one of Latin America’s largest economies.

The review comes as XTB reports a sharp downturn in profitability. Net income plunged 74% year-on-year to PLN 53.2 million in the third quarter, down from PLN 203.8 million in the same period last year. Revenue also slipped 20.1% to PLN 375.8 million, as low volatility in both financial and commodity markets reduced profitability per trade.

“For most instruments that are most popular among clients, a more predictable trend was observed, with the market moving within a limited price range,” the company said in the report.

Indonesia Expansion Advances

While facing setbacks in Brazil, XTB’s Asian ambitions are progressing. Its Indonesian subsidiary has started onboarding clients and currently provides access to stocks and ETFs, with contracts for difference (CFDs) set to follow by early 2026. The firm secured its Indonesian license late last year, marking its first regulatory milestone in Southeast Asia.

Additionally, XTB obtained a Chilean securities license from the Financial Market Commission in February, reinforcing its long-term commitment to Latin America. Earlier this year, CEO Omar Arnaout described Chile as a “key player” in XTB’s global expansion strategy, with client onboarding in the country expected to begin in the first half of 2025.

Brazil, however, remains challenging. Although XTB completed the local licensing process as planned, shifting regulatory and market conditions have prompted a full strategic evaluation.

In parallel, XTB rolled out its eWallet service this year—a multi-currency digital payment solution that attracted nearly 22,000 users by the end of September. The wallet enables seamless transfers and payments across 19 currencies.

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