XTB admits that CFD offerings will not provide as many customers as shares or savings products.
As a result, it will introduce a new instrument in 2023 to help expand its customer base.
Contracts
for Differences (CFD) have transitioned from a niche product to a more
mainstream one over the past decade, yet they still trail behind stocks and
savings accounts in popularity, Omar Arnaout, the CEO of XTB, admitted during a
recent earnings conference. Thus, considering
the growing number of consumers seeking simple forms of capital preservation,
XTB, a publicly listed brokerage (WSE: XTB), plans to introduce a new 'investment-savings'
product by the end of the year.
XTB Seeks New Clients
Outside the CFD Market
Arnaout has
long reiterated that XTB's primary goal is to continually expand its customer
base and secure a larger number of new accounts each quarter. To appeal to a broader
audience, the broker aims to focus on products of particular interest to new potential
clients.
"We
aim to expand our product offerings to reach a broader range of clients,"
Arnaout stated. "New products are crucial for us to break the barrier of
40-55 thousand new accounts. Only new products, coupled with strong marketing
efforts, can achieve this goal."
According
to information disclosed during the earnings conference, the new product is set
to debut this year. Arnaout suggested that despite generating significant
turnover, CFDs remain niche products. The introduction of real stocks to XTB's
offer has opened the company to an entirely new audience and a broader range of
clients.
The company
intends to leverage this trend and direct its services towards consumers
looking for ways to protect their funds from heightened inflation, but who lack
the time for active portfolio management.
"The
product will be less investment-oriented and more savings-oriented. It will
certainly be a much more passive product compared to what we currently
offer," added the CEO at XTB.
Record Profits and Record
XTB Share Price
XTB has set
high standards for acquiring new clients. According to the Q1 2023 report, the broker attracted over 100,000 new customers, and their total client base grew 46.1%
year-on-year to almost 704,000. Following a weaker Q4, the first quarter
brought a record-breaking consolidated net profit of EUR 64.4 million, which is an
impressive increase of 19.9% YoY.
In pursuit
of new clients, XTB decided in April to introduce fractional shares to its
offering, debuting first on the Romanian market, followed by the Czech, Slovak,
and Portuguese markets. Arnaout revealed to Finance Magnates this week
that the offer would also reach retail traders in Poland and Spain in the
coming weeks.
"We
are proceeding according to the planned schedule. I can reveal that the
introduction of Fractional Shares to two additional markets – Poland and Spain
– is just a matter of weeks," XTB's CEO told Finance Magnates.
In addition, XTB awaits approval from the national supervisory commission KNF for a share
buyback. Upon approval, the broker will allocate 25% of last year's profit for
the buyback, with 50% earmarked for dividend payout, confirming plans that were announced
nearly two months ago.
In response
to the positive Q1 results published on Wednesday, XTB shares gained 15% on the
WSE on Thursday, rising to PLN 40.76, which is the highest level in its history. Since
the beginning of the year, the broker's shares have gained 31%, while in the
same period, competitor Plus500 lost 7% on the LSE and CMC Markets 20%.
Contracts
for Differences (CFD) have transitioned from a niche product to a more
mainstream one over the past decade, yet they still trail behind stocks and
savings accounts in popularity, Omar Arnaout, the CEO of XTB, admitted during a
recent earnings conference. Thus, considering
the growing number of consumers seeking simple forms of capital preservation,
XTB, a publicly listed brokerage (WSE: XTB), plans to introduce a new 'investment-savings'
product by the end of the year.
XTB Seeks New Clients
Outside the CFD Market
Arnaout has
long reiterated that XTB's primary goal is to continually expand its customer
base and secure a larger number of new accounts each quarter. To appeal to a broader
audience, the broker aims to focus on products of particular interest to new potential
clients.
"We
aim to expand our product offerings to reach a broader range of clients,"
Arnaout stated. "New products are crucial for us to break the barrier of
40-55 thousand new accounts. Only new products, coupled with strong marketing
efforts, can achieve this goal."
According
to information disclosed during the earnings conference, the new product is set
to debut this year. Arnaout suggested that despite generating significant
turnover, CFDs remain niche products. The introduction of real stocks to XTB's
offer has opened the company to an entirely new audience and a broader range of
clients.
The company
intends to leverage this trend and direct its services towards consumers
looking for ways to protect their funds from heightened inflation, but who lack
the time for active portfolio management.
"The
product will be less investment-oriented and more savings-oriented. It will
certainly be a much more passive product compared to what we currently
offer," added the CEO at XTB.
Record Profits and Record
XTB Share Price
XTB has set
high standards for acquiring new clients. According to the Q1 2023 report, the broker attracted over 100,000 new customers, and their total client base grew 46.1%
year-on-year to almost 704,000. Following a weaker Q4, the first quarter
brought a record-breaking consolidated net profit of EUR 64.4 million, which is an
impressive increase of 19.9% YoY.
In pursuit
of new clients, XTB decided in April to introduce fractional shares to its
offering, debuting first on the Romanian market, followed by the Czech, Slovak,
and Portuguese markets. Arnaout revealed to Finance Magnates this week
that the offer would also reach retail traders in Poland and Spain in the
coming weeks.
"We
are proceeding according to the planned schedule. I can reveal that the
introduction of Fractional Shares to two additional markets – Poland and Spain
– is just a matter of weeks," XTB's CEO told Finance Magnates.
In addition, XTB awaits approval from the national supervisory commission KNF for a share
buyback. Upon approval, the broker will allocate 25% of last year's profit for
the buyback, with 50% earmarked for dividend payout, confirming plans that were announced
nearly two months ago.
In response
to the positive Q1 results published on Wednesday, XTB shares gained 15% on the
WSE on Thursday, rising to PLN 40.76, which is the highest level in its history. Since
the beginning of the year, the broker's shares have gained 31%, while in the
same period, competitor Plus500 lost 7% on the LSE and CMC Markets 20%.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
58% of UK Investors Choose Professional Guidance over 'Finfluencers’
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
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Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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🔔 Subscribe to our YouTube channel for more!🔔
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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🔔 Subscribe to our YouTube channel for more!🔔
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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