XTB Introduces Social Trading, Focusing on Investor Engagement

by Damian Chmiel
  • The new feature will enable users to follow top investors and view their portfolios.
  • This is another step in implementing the fintech's roadmap for 2024.
XTB Headquarter in Warsaw, Poland
XTB Headquarter in Warsaw, Poland

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 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.

Omar Arnaout, the CEO of XTB
Omar Arnaout, the CEO of XTB

"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 .

"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.

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 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.

Omar Arnaout, the CEO of XTB
Omar Arnaout, the CEO of XTB

"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 .

"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.

About the Author: Damian Chmiel
Damian Chmiel
  • 1369 Articles
  • 28 Followers
About the Author: Damian Chmiel
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.
  • 1369 Articles
  • 28 Followers

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