XTB Expands UK Market with Zero-Fee ISA

XTB expands UK market with zero-fee ISAs, offering 4.75% cash yield and tax-efficient savings. As previously announced this year, XTB has launched stocks and shares Individual Savings Accounts (ISAs) for UK investors. These accounts come with zero-commission trading and a 4.75% interest rate on uninvested cash balances.

XTB Expands UK Market, Offers 4.75% Yield

This new tax-efficient investment option stands out by combining commission-free trading for most investors with an attractive interest rate on idle cash. Customers retain full flexibility to manage their investments while enjoying the tax benefits of an ISA.

“ISAs have been immensely popular since their inception 25 years ago,” remarked Joshua Raymond, XTB UK Managing Director. “However, many accounts feature higher costs and lower interest rates compared to non-ISA accounts. We aim to provide terms and conditions that rank among the best in the market.”

XTB began the process of adding ISAs to its product lineup in May by securing necessary licenses, enabling entry into the £400 billion ISA market. The launch, initially scheduled for early autumn, encountered minor delays. As Raymond explained, “New product launches often take longer than expected, and we’ve ensured thorough testing and preparation at every stage.”

The ISA structure offers zero trading commissions to most clients, with a 0.2% fee applying only to those trading over €100,000 per month. Interest on cash balances is calculated daily and credited monthly, maximizing returns for customers with uninvested funds.

XTB Expands UK Market: Revolutionizes ISA Landscape

This initiative aligns with XTB’s broader goal to “democratize” investment access globally through both active and passive investment products. The company has also introduced a multi-currency card for daily transactions and Individual Retirement Accounts (IKE) tailored for Polish customers.
“We believe offering customers a no-cost entry into the market alongside one of the best interest rates provides the ideal combination,” said Raymond. “This enables clients to move in and out of the market freely while ensuring their cash remains productive if uninvested.”

XTB, serving over 1.2 million clients worldwide, continues to expand its financial technology services. The company, listed on the Warsaw Stock Exchange since 2016, recently added Investment Plans, which allow automated investments in customizable passive ETF portfolios.

Raymond confirmed that XTB aims to become a full-service investment and savings platform, although contracts for difference (CFDs), which constitute 98% of its revenue, remain a core offering. “The ISA is designed to complement our existing products rather than overshadow them,” noted the UK Managing Director.

“We strive to make our offerings the most competitive in the market, and the ISA launch reflects that commitment,” Raymond continued. “While ISAs may not significantly alter our revenue structure, we are focused on rolling out high-demand investment products to position XTB as the platform of choice for all investors.”

Redefined ISA Offerings

The ISA marks one of several initiatives XTB has introduced this year, including two-factor authentication (2FA) and social trading features. However, a key goal—adding bonds to its offerings—remains in progress.

XTB plans to outline its 2025 strategy early next year, with bonds potentially becoming part of the roadmap. “We constantly review our product pipeline to meet client demands, and we remain committed to delivering innovative investment solutions,” Raymond concluded.

The upgrades appear to be yielding results. In Q3 2024, XTB reported a 67.3% year-over-year increase in revenue, reaching 1.4 billion zlotys for the first nine months of 2024. Net profit for the third quarter nearly doubled, climbing to nearly 204 million zlotys.

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