XTB published some positive figures in its financial report for Q1. CFD is the most profitable instrument for this broker.
XTB, a Poland-based broker, announced its financial report for the first three months of 2023. Overall, the company recorded an increase compared to Q1 2022. XTB's revenue was up 21% to PLN531 million from PLN440 million. On a QoQ basis, XTB's gain in this first quarter was twice more significant than LN 216 million in the last quarter of 2022.
As a brokerage company, the quantity of active members matters. The number of active accounts was 215,700, getting more than 1497,700 in Q1 2022. XTB also made new accounts opened increased, which was 104,200 from 55,300.
XTB saw its achievement at the beginning of the year thanks to the marketing strategy. This Polish company expected the strategy to bring more clients in the future. In addition, the conflict between Russia and Ukraine is well used by traders to make money. No wonder, then XTB's trading volume has skyrocketed.
"Thanks to the cooperation with such personalities as Joanna Jędrzejczyk, Conor McGregor, Jiří Procházka, or Iker Casillas, XTB started promoting the offered investment solutions, in particular, convincing that investing in various types of assets is available to everyone, using the tools provided that facilitate entry into the world of investments: through daily market analysis, as well as numerous educational materials," the report further states.
Last, CFD trading at this broker also marked an increase. The CFD segment contributed 49% of the company's total revenue, more than 30% last year. This is where the Russia-Ukraine conflict comes into play, as the war has had an essential effect on the prices of natural gas and gold, which are the basis of CFD instruments. XTB concluded that the most significant contribution of the company's profit is from CFD. The second profitable is indices CFD; forex trading only contributed 4.2%.