XTB Releases Q4 2020 Report, Profit Increases Sixfold


Forex and CFDs broker, XTB has released its final report for Q4 of 2020, boasting that it earned 6 times more in 2020 than in 2019.

February 4, 2021 | AtoZ Markets –  The Polish forex broker XTB, also known as X-Trade Brokers, has released financial results for the last quarter of 2020 and the full fiscal year ended December 31, 2020. The last year was one of the most successful for the company.

Compared to the sluggish performance of 2019, when industry participants had to adjust to new ESMA requirements, online broker XTB saw a sharp increase in trading activity in 2020 amid rising market volatility.

XTB revenues up 300% in Q4 2020 report

On an annualized basis, the company’s operating profit increased to $213 million (PLN 798 million), which is 3 times more than in 2019. Moreover, the net income jumped 600%, from $14.89 million to $107 million.

Meanwhile, the discrepancy in quarterly and annual indicators is due to weak dynamics in the first half of 2019, when the company’s net profit was only $1.34 million.

The broker noted that the volume of trading in contracts for difference, the so-called CFDs, has almost doubled: from 1.6 million in 2019 to 3.2 million in 2020. The profitability of the lot has also increased for this asset class.

XTB signs contract with Jose Mourinho to promote new products

XTB explained that operating income was primarily affected by the equity index CFD segment, as this asset class contributed 56% of the company’s total revenue. However, compared to the previous year, the share of CFDs has decreased. In 2019, it was 76%.

Commodity CFDs became the second most profitable asset class, increasing their share of total revenue from 5.2% to 33%. Meanwhile, currency CFDs accounted for 11.5% of total revenue, up from 18.2% in 2019.

Finally, the XTB brand noted an increase in the number of active accounts from 30,815 in Q4 2019 to 72,346 at the end of 2020. Thus, the increase was 140%. In addition, the number of new accounts has tripled compared to the same period last year from 10,424 to 38,413.

The forex broker expects its marketing strategy to lead to more clients in 2021. In particular, the brand is betting on a partnership with José Mourinho, one of the best football managers in the world, who has become the new ambassador of the XTB brand.

“The volatility in financial markets caused by the coronavirus pandemic, as well as an ever-growing client base combined with high transaction activity, has become a significant factor in determining income levels,” the Polish broker said in a statement.

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