Financial and Business News

XTB Considers Brazil Exit Six Months After License Over “Protectionist Measures”

Wednesday, 29/10/2025 | 04:43 GMT by Damian Chmiel
  • The Warsaw-listed brokerage reconsiders part of its Latin American expansion amid regulatory hurdles.
  • The fintech obtained a local authorization in February, but it appears it has not been able to begin operating in the country.
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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.

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 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 and transfers in 19 currencies.

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.

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 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 and transfers in 19 currencies.

Topics
xtb
brazil
About the Author: Damian Chmiel
Damian Chmiel
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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.

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