XTB is reconsidering its entry into Brazil less than a year after securing regulatory approval, citing protectionist measures that have complicated the market landscape for foreign brokerages.

XTB Licensed Since February but Still No Activity

The Polish fintech obtained authorization to operate in Brazil earlier this year and started the process to join the country's list of regulated institutions. But the firm now says it's “evaluating all potential business options, including the possibility of ceasing further operations in this market,” according to its third-quarter earnings report released yesterday (Tuesday).

What is the reason? XTB says the “current conditions in the Brazilian brokerage sector, especially local protectionist measures,” are preventing it from launching brokerage operations in Brazil, one of Latin America’s largest economies.

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The reassessment comes as XTB faces a sharp profit drop driven by weak trading conditions. Net income fell 74% year-over-year to PLN 53.2 million in the third quarter, down from PLN 203.8 million a year earlier. Revenue declined 20.1% to PLN 375.8 million as subdued volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term across financial and commodity markets reduced profitability per contract.

“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 its report.

Indonesia Launch Proceeds

Despite local problems in Latin America, XTB's Asian expansion is moving forward. The brokerage's Indonesian subsidiary has begun onboarding clients and offers stocks and ETFs, with plans to introduce CFDs by early 2026. The firm secured its Indonesian license at the end of last year, marking its first regulatory approval in Southeast Asia.

Moreover, XTB received its Chilean securities license from the country's Financial Market Commission in February, signaling its commitment to Latin America. Omar Arnaout, XTB's CEO, said earlier this year that Chile was a “key player” in the firm's global growth strategy. The company expected to start onboarding Chilean clients in the first half of 2025.

Brazil, however, presents a different picture. The company had been pursuing Brazilian approval simultaneously and completed that process as planned. But local market conditions have since prompted a strategic review.

XTB also launched its eWallet service this year, a multi-currency payment solution that nearly 22,000 clients had activated by the end of September. The wallet supports cashless payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and transfers in 19 currencies.