Continuing with the roadmap announced at the beginning of 2024, XTB is introducing another new service to its offering, this time based on social trading. As part of the XTB Social product, users can follow the most successful investors, review their own statistics and portfolio composition, and receive personalized notifications about transactions.

In a conversation with Finance Magnates, XTB admitted that it was looking for a solution that would "meet expectations in the context of social features" and, at the same time, "allow users to follow other people's investments."

XTB Launches Social Trading Feature, Enabling Investors to Follow Top Performers

The launch of XTB Social marks another milestone in the company's product developments this year. In recent weeks, XTB's clients gained the ability to exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term currencies between their investment accounts.

Now, the investment app has been enriched with social features allowing customers to follow the best investors, check their investment statistics, and share user profiles with friends. The company also promised to introduce bond trading this year.

"Social aims to fill a gap that we perceive in the financial market," Omar Arnaout, the CEO of XTB, emphasized the growing popularity of user engagement-based social features.

XTB Social enables users to follow top investors and friends investing with the broker, providing insights into their portfolio composition, transaction history, and investment statistics. At present, the new service will only be available in Poland, with plans to expand to other markets soon.

The leaderboard ranking is based on an algorithm that considers portfolio profitability relative to risk and other criteria, such as diversification, concentration, and risk levels. The service further allows users to receive notifications about transactions made by the investors they follow.

"Social is a service that will help our clients develop their own investment strategies," added Arnaout.

Social trading will be another addition to XTB's offering after the company started to more heavily promote passive investments, including ETFs. To this end, a month ago, it entered into a partnership with BlackRock, the $10 trillion giant of the fund market.

It Won't Be Copy Trading

Finance Magnates spoke with XTB representatives about the details of the new offering. As the press spokesman admitted, XTB Social will have nothing to do with copy trading, and there are currently no plans for the service to evolve in that direction.

"When we tested Social before its launch, it turned out that users were most eager to follow their own statistics as well as the results and transactions of their friends," XTB explained. This means that beta testers preferred to focus on the results of friends and personal acquaintances rather than more experienced investors.

XTB has long "resisted" introducing social trading, unlike its competitors. However, as it explains, it wanted to create a solution based on "original ideas and its own technology." Furthermore, the fintech promises that XTB Social will be a completely different service from the social trading tools offered by, for example, eToro, the leader in this branch of retail trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term.

"We focus exclusively on the social aspect," the XTB spokesman summarized in a conversation with Finance Magnates.

Back in January, XTB released preliminary financial results for 2023, which the company confirmed this week. The report highlighted a surge of 51% in the number of active clients to 311,971 and a net profit of PLN 791.3 million.