XTB introduces passive investing to its offer

Passive Investing For many people, it is a convenient and long-term perspective way of investing their savings. XTB, to meet the needs of clients practicing this investment model, has introduced the first product of this type to its offer. Only in Romania for now.

What is passive investing?

Passive investing is a long-term approach to investing that involves allocating a relatively small amount of money to purchase stocks, ETFs or other financial instruments. The main goal is usually not the highest possible rate of return, but the gradual creation of wealth over a long period of time, which usually means a wider distribution of risk.

Passive product at XTB – what is it?

X-Trade Brokers has been trying to elbow its way onto the stock market for a long time. And it must be admitted that he does it quite efficiently. The xStation application is much more functional than the outdated platforms of Polish brokerage houses. If we add to this offer with zero commission on shares and ETFs up to the turnover level of 100 thousand EUR per month, it is currently difficult to find a better option on the domestic market.

It's time for another innovation, though for now it will only be available on the Romanian market. XTB's first passive investment product allows clients to build up to 10 strategies based on ETFs. What is it about? Users can select up to 9 ETFs to create a long-term portfolio. You can have a maximum of 10 such portfolios. It is possible to set the percentage of capital for each ETF yourself. The minimum investment value for Romania has been set at 15 USD / 15 EUR / 75 RON, i.e. approx. PLN 65. In Poland it will be even less.

"Free is a fair price"

Using investment plans is free, and the free commission conditions will be maintained (up to EUR 100 per month) also for this part of the offer. At the moment, however, it is not known when the new product will appear in Poland or on other markets. The only certainty is that one day it will happen.

– Of course, we have our own internal schedule for both the evolution of the product itself and its launch in subsequent markets. However, at the moment we would not like to talk about exact dates. I can only reveal that Investment Plans will appear in the XTB offer in Poland and other EU countries later this year. - comments Filip Kaczmarzyk, member of the management board of XTB.

Why did the Polish broker choose Romania first? It turns out there is a very simple explanation. Romanians love ETFs.

– Romania is a market where our clients often start investing in financial markets by purchasing ETFs. The number of people investing in ETFs on XTB platforms is also systematically growing - in 2021 it was 50% of our clients, and in August 2023 this percentage was already 58%. The product itself is already relatively well known there, and additional facilities that make investing in ETFs even easier and more intuitive may contribute to greater interest of our clients in passive investing - commented Filip Kaczmarzyk.

ETFs are also becoming more and more popular in Poland. This is evidenced by the appearance of many so-called robo-advisors, i.e. solutions prepared for passive investing through simply established criteria for selection by investors (ready-made portfolios are created depending on the selected proportions for the instruments and risk appetite). This is about finax, Fondee, Portu and ING Investment Robot. Interestingly, however, Aion Bank, a Belgian online bank, withdrew from this solution and announced its expiration just over a year after introducing this part of the offer.

In the case of the previously mentioned offers, each collects commissions from its clients on an annual basis. Does XTB have a plan to do so? "to sweep" competition?

CFDs are complex instruments and involve a high risk of a quick loss of cash due to leverage. 76% of retail investor accounts record monetary losses as a result of trading CFDs with this CFD provider. Consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.