Is XTB free?
XTB does charge a commission for real stock trading on US markets, so in this sense it is not a free-to-trade broker. However, it might still be a reasonable choice for some of you, as there are many other aspects other than commissions that are important when you choose a broker. If you wish to stick with XTB though, then you will find the fees they charge below. Alternatively, you could check our article detailing the best zero commission brokers and how their apps scored in our test.
We should note that the payment-for-order-flow model, which is used by some zero-commission brokers to generate income (rather than relying on commissions), could potentially create a conflict of interest between you and your broker. This could result in trade execution (like routing your orders to specific market makers) that might be unfavorable for you under certain market conditions, especially when using market orders (as opposed to limit orders, which seem to be less affected).
Overview of XTB fees and charges
It's safe to say that XTB's fees are low in general. They either don't charge a brokerage fee for things that other brokers do, or they only charge a small amount.
Here's a high-level overview of XTB's fees
|Assets||Fee level||Fee terms|
|US stock fee||-||Real stocks available only in a few countries. US stock fee: 0.12% of trade value with $10 minimum.|
|EURUSD fee||Low||Pro account: €3.5 /£3 /$4 per lot commission plus spread cost. 0.2 pips is the average spread cost during peak trading hours.|
|US mutual fund fees||-||Not available|
|Inactivity fee||Low||€10 per month after 1 year of trading inactivity and if no deposit was made in the last 90 days|
XTB fees explained
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because online brokerages' businesses can be much better scaled: from a purely technical standpoint, it doesn't make that much of a difference for them if they have 100 or 5,000 clients.
This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:
- Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
- A commission is either fixed or based on the traded volume.
- A spread is the difference between the buy price and the sell price.
- A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.
We compare XTB fees with its closest competitors, eToro and Trading 212.
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XTB trading fees
XTB's trading fees are low, which makes it suitable for you even if you trade often (i.e. several times a week).
Let's break down trading fees according to the different asset classes available at XTB.
XTB's trading fees are low.
Stock fees and ETF fees
XTB has stock trading fees.
XTB's forex fees are low.
|EURUSD benchmark fee||$8.5||$8.7||$28.5|
|EURGBP benchmark fee||$8.2||$13.1||$26.6|
XTB has average CFD trading fees.
XTB non-trading fees
Some of XTB's non-trading fees are average.
Non-trading fees include various brokerage fees and charges at XTB that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.
XTB deposit fee
Usually, brokers don't charge anything for deposits, and XTB is no different.
XTB withdrawal fee
XTB generally doesn't charge a withdrawal fee.
|Withdrawal fee for bank transfer||$0||$5||$0|
XTB inactivity fee
XTB does apply an inactivity fee and it is €10 per month after 1 year of trading inactivity and if no deposit was made in the last 90 days. Keep this in mind to avoid getting charged after a longer idle period. The fact that XTB charges an inactivity fee makes it less ideal for you if you are a buy-and-hold investor.
The inactivity fee charged by XTB is low.
|Inactivity fee||€10 per month after 1 year of trading inactivity and if no deposit was made in the last 90 days||$10 per month after one year inactivity. Inactivity means that you don't log in to your account.||No inactivity fee|