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#1 03-03-2020 17:19:39

johnedward
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XTB to launch operations in South Africa soon

XTB to launch operations in South Africa soon


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Poland's XTB brokerage posted solid revenue in last year's final quarter. In fact, the company managed to double its fourth-quarter revenue year-on-year, with total operating revenues of 22.9 million dollars (PLN 90.01 million).

"On the one hand, individual traders have adapted their strategies to the new trading conditions, but on the other hand, the significant improvements in our income are also the result of the very dynamic increase in our client base," says Omar Arnaout, CEO at XTB.

"After ESMA's intervention on products, the number of active clients trading CFDs decreased to around 12,950 traders, while this number exceeded 23,500 traders in January, which represents an increase of over 79% of our total customer base in less than two years. This clearly shows that the strategy we've undertaken has proven to be effective and it is crucial that we not only continue on this path, but that we also give them the ways to grow."

XTB plans to expand its market share

In the company's preliminary financial report, XTB says that the ESMA restrictions gave the broker a unique opportunity to gain market share. How does the company plan to achieve this?

"In general, our strategy is to become better in all aspects of our business, be it products, technology, sales, marketing or trader support. Each department and each branch is always challenged to do better and grow every month," says Arnaout.

"What is crucial for us is that, unlike most brokers, we are a "fintech" with over 100 in-house programmers. This gives us opportunities that most of our competitors don't enjoy, and we we're focusing on how we can use this to our advantage. "

However, it should be noted that the situation in Poland, in terms of leverage restrictions, is much more relaxed than in the other European countries. The Polish financial supervisory authority, KNF, decided to go against the wishes of ESMA and decided to allow 100:1 leverage for certain assets.

Speaking on this decision, the CEO of XTB says "We are very happy that the KNF is aware of the problem of traders who migrate to non-European jurisdictions, which are often not regulated either, looking for greater leverage. The introduction of the experienced trader category has severely limited trader migration, which is very good news for the whole industry and not just for XTB".

XTB's geographic expansion

XTB has big plans for this year. Among its projects, it is going back to its roots and continues to expand its activities worldwide.

Although the CEO of XTB did'n't want to disclose exactly where the broker will develop throughout 2020, he mentioned that the company hopes to start operating in South Africa in the coming weeks.

"With regard to overseas expansion, in recent years we have worked to optimise our activities in Europe and in South America and even if we always want to improve, we are convinced that we have built a very solid base in these regions, where in each country we are either the largest broker or one of the larger ones. Currently, we have over 9 offices worldwide and we have traders in over 149 countries" says Arnaout.

"The time is right to move forward and return to geographic expansion. We are very optimistic about the possibility of offering trading in South Africa in the coming weeks. This will be the first milestone in terms of expansion, we are awaiting the issuance of another license and we hope that by the end of the year we will have offices on most of the world's continents."

Evolving from just a broker to a fintech company

According to the CEO, XTB's growing involvement in technology, and its transformation from broker to fintech, have played an important role in XTB's growth.

"Becoming a fintech has immensely influenced XTB's growth in every way. If I were to provide all the benefits, this interview would probably take us a few hours," he says.

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