XTB will launch a new investment savings product in late 2023 to target more savings account-oriented customers. The company targets adding clients to reach 40,000 to 55,000 new accounts.
Leading global multi-asset broker headquartered in London, XTB Group, plans to launch a new 'investment savings' product by the end of the year, focused on customers outside of CFD traders looking for a simple form of capital savings. The company aims to increase its client base and penetrate 40,000 to 55,000 new accounts.
CFD trading has developed into a niche product over the last ten years bringing in huge profits, but it still lags behind the popularity of stocks and savings accounts. XTB CEO, Omar Arnaout, emphasized the importance of expanding the company's product offerings on savings accounts and adding new clients every quarter.
The company aims to capitalize on this trend and adapt its services to protect customer funds from rising inflation but has no time for active portfolio management.
"This product will be oriented towards savings rather than investment. It will be a more passive product compared to what we currently offer," Arnaout commented.
46.1% Increase in Customer Base
In the first quarter of 2023, XTB added more than 100,000 new customers, bringing its total customer base to around 704,000, a year-over-year increase of 46.1%. After a weak fourth quarter, consolidated net profit for the quarter reached a record €64.4 million, up 19.9% year-over-year.
In addition, XTB WSE shares rose 15% to PLN40.76 million following the positive Q1 results. It is the highest standard in the company's history. So far this year, XTB's share is up 31%, competitor LSE Plus500 is down 7%, and CMC Markets is down 20% over the same period.
2 Comments
Jun 1 2023
Based on the information provided in the article, XTB Group, a prominent global multi-asset broker, is set to introduce an "investment savings" product aimed at customers who are not specifically CFD traders. This product aims to provide a straightforward method of capital savings. In light of this development, I'm interested in understanding the potential differences between CFD trading and this new investment savings product.
Could you shed some light on how the new "investment savings" product offered by XTB Group differs from traditional CFD trading? What distinct features or characteristics might this new product have that cater specifically to customers seeking a simpler approach to capital savings? Additionally, how does this product align with XTB Group's overall strategy and vision in serving a broader range of customers beyond CFD traders?
Jun 4 2023
Considering XTB Group's plans to launch a new 'investment savings' product by the end of the year, with a focus on customers outside of CFD traders who seek a simplified form of capital savings, it's crucial to understand the regulatory framework surrounding this offering. Given that XTB Group is a prominent global multi-asset broker headquartered in London, it is subject to various financial regulations and oversight. What specific regulatory measures are in place to ensure the compliance of XTB Group's new product? How does XTB Group navigate these regulations to safeguard the interests of its clients while simultaneously expanding its client base and aiming to attract 40,000 to 55,000 new accounts?