XTB Social is now available. A Polish broker launches social trading

XTB Broker announced the launch of a new service – XTB Social. This is a previously announced social commerce solution (social trading), which will allow you to follow the best investors, view their most important statistics, portfolio composition and receive notifications about their latest transactions.

XTB Social now available in Poland

The introduction of the Social service is the next stage of the implementation of the product plan for 2024. In recent weeks, customers have been able to exchange currencies between their investment accounts, and at the end of 2023, a passive investing solution was introduced - the so-called Investment Plans. Today, XTB enriches the xStation application with social solutions thanks to which traders can follow the best investors, check their own investment statistics and share inspiring profiles with their friends.

Poland is the first market where XTB launched the Social service. Ultimately, in the coming months, it will also appear on other XTB markets.

- Social features based on user engagement are becoming extremely popular. Social is intended to fill the gap we see in the financial market – says Omar Arnaout, president of the management board of XTB.

How does social trading work at XTB?

Social is an additional functionality that allows you to follow not only the best investors, but also your friends investing with XTB - the composition of their portfolio, transaction history and investment statistics. The leader ranking is based on an algorithm that takes into account the profitability of portfolios relative to risk and other criteria such as the level of diversification, concentration and risk. Social also allows you to receive notifications about the transactions of the user you follow.

- Social is a service that will help our clients develop their own investment strategies.  Observing both profitable and loss-making trades can be an important lesson. The key is that control over one's own investments always remains in the hands of the investor – adds Arnaout.

In the latest version of the XTB application, investors will be able to follow profiles that have been set as public. To take advantage of this new feature, it is not necessary to share your own profile. The decision to share the profile remains flexible - users can decide to activate or deactivate it at any time. However, the data of profiles made available as part of the Social service are fully anonymized, and the portfolio value or transaction volume is not visible at any stage. Only data regarding the percentage of assets in a given portfolio is transferred.

XTB Social on the xStation platform (click to enlarge).

Social YES, Copy NO

XTB Social is currently only available from the mobile application. Just go to the tab in the top menu of the app Social . It is then divided into three additional tabs:

• Leaders – ranking of the best traders,
• Following – traders we follow,
• Activity – activity (purchase, sale of assets) performed by the traders we observe.

The Social service itself looks very transparent. The statistics look very clear, and in addition, each trader receives a Risk Scoring based on an algorithm analyzing his trading history. We also have the option of sorting the leader ranking according to several parameters, such as the highest and lowest rate of return in the last 12 months, the highest/lowest risk scoring and "social ranking".

However, it is worth mentioning a certain difference from other brokers that have had a social element on their investment platforms for years. Namely, in XTB Social it is possible to follow leaders or selected traders, as well as monitor their actions. However, it is not possible to automatically duplicate their transactions, unlike how it works, e.g. on the platform eToro or ZuluTrade. Of course, we can do it ourselves based on reported activities from the appropriate tab, but the transaction conclusion process must be done manually. Will this change over time? XTB does not reveal this at this stage, however, please remember that the service is new and will certainly be further developed.

76% of retail investors' accounts record losses as a result of trading CFDs at this supplier. Think about whether you understand how CFDs work and whether you can afford a high risk of losing money.