After reaching the milestone of over 1 million retail clients, the Polish fintech XTB is seeking new directions for expansion. To this end, it has acquired 90% of the shares of an Indonesian derivatives broker, Finance Magnates has learned.

XTB's press office confirmed this information, admitting that the company wants to establish its presence in the local market. Moreover, it could "definitely become a gateway to Asia" and a base for expansion in this part of the world.

Indonesian Broker Joins XTB Group

The report summarizing the results for 2023, published by XTB this week, appears to show that the company has not only exceeded the number of one million clients but has also made an important acquisition in the markets where it wants to develop more dynamically in the coming years.

On 17 January 2024, the fintech finalized the acquisition of 90% of the shares of the derivatives broker brand Eagel Capital Futures, operated by PT Rajawali Kapital Berjangka, which is regulated in Indonesia by the local Commodity Futures Trading Supervisory Agency (BAPPEBTI). This is the finalization of the acquisition process, which was initiated last year.

"As we aim to build our presence in non-European markets, namely Latin America, Asia, and Africa, this was a natural step towards accomplishing this goal," XTB representatives confirmed to Finance Magnates.

Although the broker is regulated in Indonesia, XTB admitted that before it starts offering services through the new entity, it must obtain independent licenses to operate in this Asian market.

"Apart from the regulatory aspect, it also requires integration performed by our technology team to make sure that we are able to provide local investors with the best possible solutions," added the broker's representatives.

According to the company's report for 2023, it achieved a net profit of PLN 791.3 million, growing by several percentage points compared to 2022.

Indonesia as a Gateway to Asian Markets

The Indonesian financial market has been booming in recent years, significantly increasing the number of active retail investors and interest in saving and multiplying wealth. In this country of nearly 300 million people (which constitutes 70% of the total population of the European Union), about 12 million invest. According to data from the Indonesia Central Securities Depository from September 2023, this value grew 14% year-on-year.

As XTB admitted, this is a "great moment to mark a presence in the region." The fintech 's representatives frankly stated that "Indonesia could definitely become our gateway to Asia."

Development in this part of the world, as well as in Africa and Latin America, is part of the company's strategy, as attractive in terms of FX/CFD and stock markets with "high growth potential." Currently, the company focuses on developing its business in 12 countries, having licenses in Poland, the UK, Cyprus, Belize, and the UAE.

The recently introduced XTB Social, which is part of the publicly listed company's roadmap for 2024, may be an opportunity to attract new customers. XTB is also strongly committed to promoting passive investments, including through ETFs. To this end, in February, it entered into a cooperation with BlackRock, one of the largest issuers of this type of fund.

XTB isn't the sole company recently turning its attention to Indonesia. At the end of 2023, the American-based retail trading platform Webull also made a similar move. This move continues its global expansion, following its debut in Singapore, among other locations.