Stock CFD trading at XTB - costs, risks and more

It's not always immediately obvious whether a broker offers stock CFDs or only real stocks. And even when stock CFDs are available, fees are sometimes high and product selections can be thin.

The good news is that yes, you can trade stock CFDs at XTB. Besides availability, we also checked fees - spoiler: they're low - and took great effort to size up XTB's stock CFD selection.

How I liked XTB's stock CFD selection

How I liked [Broker name]'s stock CFD selection

Adam Nasli

Trading • Safety • Market Analysis

I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.

Learn about our methodology

Adam Nasli

Trading • Safety • Market Analysis

As a seasoned CFD trading pro, I went the extra mile to thoroughly assess XTB. I even rolled up my sleeves and counted their stock CFDs. Why? My drive is rooted in my deep understanding of CFD trading, where I recognize that fees, leverage options, and the product selection are the key considerations. These are my most important findings:

• You can trade around 2,022 stock CFDs at XTB; this compares to an average ca. 1,000-2,000 stock CFDs available at brokers tested by BrokerChooser
• Overall trading costs of stock CFDs at XTB, including spreads and financing rates, are low
• You can't change leverage manually at XTB; this is a problem if preset leverage levels are too high for your risk tolerance

Data updated on December 12, 2024

Where do we get these data? We regularly check or scrape broker fees at 100+ global brokers, and when it comes to product selection, we likewise regularly count (by hand if we need to) the number of stock CFDs available - this figure is unavailable at most broker comparison sites.

Stock CFD trading fees and conditions can differ greatly among brokers, so check BrokerChooser's list of the best CFD brokers in 2024 to see if there are better alternatives to XTB. This ranking is based on an in-depth review and live-testing of more than 100 brokers, and incorporates trading costs as well as the general quality of each broker's services and trading platform.

First, let's start by explaining what a CFD is. CFDs, short for Contract for Difference, are trading instruments that allow you to speculate on the price movements of an underlying asset without actually owning it. Your profit or loss is based on the difference between the opening and closing price of the CFD.

In the case of a stock CFD, the underlying asset is a stock.

You can trade around 2,022 stock CFDs at XTB. Just to give you some context: the number of stock CFDs available at brokers tested by BrokerChooser ranges from a few dozen to as many as 20,000; an average CFD broker would offer about 1,000-2,000 stock CFDs.

So what's the difference between trading a stock CFD and a “real” stock? In the case of a real stock, you would actually buy that stock at an online broker; then later, when selling the stock, you would realize a profit or a loss. With a stock CFD, you don't buy the stock; you simply make a bet with your broker that the price of the underlying stock will rise. If it does rise during the period you keep your position open, you will get the difference between the closing price and the opening price of the stock; if not, you will lose the same amount. (It is also possible to bet on the price of a stock to fall; this is called short selling.)

Another key difference is that stock CFDs and other CFDs are typically traded using leverage. The main idea of trading with leverage is controlling a much larger trading position than you could otherwise afford with just the money you deposited. This can amplify your gains, but also your losses.

For example, in the case of 10:1 leverage, a $100 initial margin can get exposure to a stock position worth $1,000; so a 5% increase in the price of the underlying stock would bring you a gain of $50, or 50% of your initial margin. However, in the same way, a 5% drop in the price of the stock underlying your position would result in a 50% loss on your initial margin.

Do you feel like stock CFDs are too risky for you? I have good news: it is possible to trade real stocks at XTB.

Downsides and risks of stock CFD trading

Trading stock CFDs is risky, and generally not recommended for beginners. Here's why you, too, should be extra careful:

• High leverage means it's easy to lose a substantial part of your initial investment even if the underlying asset falls by just a small percentage
• As you don't own the underlying stock, you won't be eligible for stockholder benefits such as dividends, and you also may not be fully covered by investor protection
• CFD trading is a complex activity that requires the use of sophisticated analytical and trading tools, a thorough understanding of the market and often round-the-clock attention

Benefits of stock CFD trading

Still, stock CFD trading is popular for a reason. Here's what attracts most traders:

• High leverage also means the potential for high profits over a relatively short time period
• You can access a diverse range of underlying stocks from many global markets and industries, and they're often more liquid than their “real” counterparts
• By short selling, you can make a profit even if the price of the underlying asset falls

Want to exploit these benefits while steering clear of the risks? Read our overview of some of the most common CFD trading tips and strategies.

Setting leverage

At XTB, it is not possible to change default leverage levels manually. This is not ideal, as pre-set leverage levels may be too high and expose you to more risk than you can afford.

Stock CFD trading fees at XTB are relatively low, making this broker a great choice if trading costs are your primary consideration.

Before we show you the details, here's a quick rundown of the cost types you'll face when trading stock CFDs at any broker:

• The spread is the difference between the bid (sell) and the ask (buy) price. Brokers set spreads at their own discretion, taking into account market liquidity and the price volatility of the asset.
• Some brokers also charge a commission for each trade - this can be a flat fee (such as $1), a percentage of the value of your trade, or a combination of these. Brokers who charge a commission often quote a smaller spread.
• An overnight fee (also expressed as the financing rate) must be paid if you hold your position for more than one day - or more precisely, when your CFD position is open past a specific daily cutoff time.

To illustrate overall stock CFD trading costs at XTB and its competitors, we calculated with a $2,000 position size, holding it for one week and then selling it.

Data updated on December 12, 2024