Mille Lees Mille Lees, Tuesday 28th April 2020, 12:04 PM CEST
XTB Revenue Almost Doubles

Financial reports for the 1st quarter results with the XTB Brokerage were released. These results indicated a marginal increase in net profits, which was obtained with the acquisition of new clientele. XTB Brokers released new CFD products and saw an immediate rise in registrations. It should be mentioned that multiple online brokerages have found soaring profits amidst the coronavirus pandemic, with consumers of cryptocurrencies and blockchain looking to increase their account margins. XTB Brokers are an infamous brand, holding significant reserve funds that would’ve allowed them to survive throughout the pandemic. Those funds haven’t been touched amidst the increased profits.

Net profits with XTB Brokers were listed at €39 million throughout the 1st quarter in 2020. This is a significant increase compared to their 2019 valuations, with profit margins jumping by 375%. The popularity behind their new Contracts-for-Differences enabled XTB Brokers to become a notable name, which saw Polish investors and European traders register with their exchange.

It should be mentioned that net profits throughout 2019 were critically low for XTB Brokers. This period saw the corporation drop by 98% in profit margins, with corporate investors supplying XTB executives will millions to remain active. This wasn’t because of things this online brokerage house did, but because of the product intervention measures inducted with the European Securities & Markets Authority. These measures destroyed multiple brokerage houses, with XTB being the exclusive operator to recover after a 98% decline.

After these product intervention measures had settled, with brokers and traders re-evaluating their positions in the market, profits began to return for exchanges in the European Union. XTB Brokers saw immediate influxes in account registrations, prompting the 375% increase in net profits. It should be mentioned that Revenue Streams for XTB Brokers increased by 650%, with their 2019 Q1 Margins listing €9.04 million. That number increased to €67.79 Million in the 1st quarter of 2020.

The Chief Executive Officer with XTB Brokers, Omar Arnaout, spoke on the quarterly reports. He stated: “The significant factors determining the level of revenues were above-average volatility on financial and commodity markets caused by among others coronavirus COVID-19 global pandemic and a constantly growing client base combined with their high transaction activity noted in the number of concluded transactions in lots.”

Remarks from the CEO concluded with: “The results in the first quarter of 2020 are not only the effect of exceedingly high market volatility but also the effect of everything we have been building in previous years. After the product intervention, we did not change our strategy, we did not decrease costs, and we put complete focus on significantly increasing the number of active clients as well as the diversification of our products and our global presence. I am happy that our strategy has brought such effects and I am also sure that without our immense technological development this would not have been possible.”

CFD Trading Volumes Double

Implementing new Contracts-for-Differences during 2019 allowed for their CFD measurements to double. XTB Brokers previously listed their measurements with CFC Investor Trading, which comprised of €130 billion throughout Q1 2019. That number jumped to €248 Billion this year. It follows after a drastic increase in customer registrations was seen between January to March. XTB Brokers indicated through their financial reports that an additional 45+ thousand traders had registered with their services. It’s reported that the average income per investor is €1,480.00. Consumers registering with XTB Brokers would have every opportunity to inquire similar monthly profits.

Mille Lees

Author: Mille Lees

Millie has been with whichbroker.com since the start. She has a passion writing financial news after an internship at Bloomberg London. Millie's background in journalism and politics means she has an eye for a good story. Millie graduated from LSE and has a masters from Durham University England. Mille Lees can be contacted at [email protected], View all posts by Mille Lees

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