Two of the brokers that have attracted the most customers in recent years in the United Kingdom and Europe are DEGIRO and XTB. Therefore, many users wonder how they compare and what makes them stand out from other online brokers.
This article provides a comprehensive comparison of DEGIRO vs XTB and aims to discover which broker is better. Read on to find out what makes them unique, their benefits, but also their drawbacks, so you can choose the best online broker for your needs and experience level.
DEGIRO vs XTB: how do they work?
How does DEGIRO work?
DEGIRO was established in 2008 as a company providing financial services to professional clients. In September 2013, the company expanded their offering to cater to retail customers in the Netherlands, and from that point onwards, during 2014 and 2015, it started expanding to other European countries.
The business model revolves around providing customers with a broad range of financial products at the most competitive cost. The competitive cost structure propelled them to become a market leader in customer acquisition in several European countries.
How does XTB work?
XTB was established in 2002 in Poland, where it is headquartered and is listed on the Warsaw Stock Exchange. Since then, it has gained recognition as a broker specialising in leveraged products, leading to its growth and expansion in Europe and subsequently in Latin America.
The Polish broker has always been distinguished by offering a wide range of training, its proprietary platform, and a team of analysts. In 2018, a major shift and customer acquisition occurred as it made the decision to launch stocks and ETFs, and in 2020, it became one of the first brokers in Europe to introduce a “zero commissions” trading model, which we will delve into later.
Detailed comparison: XTB vs DEGIRO
In this table, we summarise the main characteristics of each broker:
|Federal Financial Supervisory Authority of Germany (BaFin)
FCA in the UK
|FCA (UK) and CySEC (Cyprus)
|€20,000 (German Investor Protection Scheme)
|£85,000 (FSCS in the UK)
|Basic / Trader / Active / Day trader
|Stocks, ETFs, Bonds, Investment Funds, Options, Futures, Warrants
|Stocks, ETFs, Indices, Forex, Commodities
|£1.75 + handling £1 (for UK stocks)
|£0 for stocks and ETFs
Regulation and protection of funds
Let's examine the emphasis on the security and reliability of both brokers. How trustworthy and secure is each of them?
Regulation and reliability of DEGIRO
DEGIRO does not have a local office in the United Kingdom. However, it is authorised by several watchdogs in Europe, including the well-reputed FCA in the UK and BaFin in Germany, among others. Hence, DEGIRO is a fully regulated broker.
In case of bankruptcy, the German Investor Protection Fund covers up to €20,000 per customer. Also, as per the FCA rules, DEGIRO keeps its clients' funds in segregated accounts, so they are fully protected in case of insolvency.
Regulation and reliability of XTB
XTB is a Polish broker which is also fully regulated in the United Kingdom. It is licensed by the FCA and up to £85,000 is covered by the FSCS in the UK. Also, it is regulated by several other authorities, including in Cyprus (CySEC) and Poland (Polish Financial Supervision Authority).
To put it simply, XTB can be considered a foreign broker in most aspects, except when it comes to oversight, where it must comply with regulations set by the local regulator for its branch operations. Moreover, it is important to note that XTB is listed on the stock exchange, which adds an additional layer of requirements and protocols, enhancing its security and reliability.
In summary, both brokers, apart from adhering to regulations and being subject to supervision by their respective regulatory bodies, adhere to stringent protocols and are fully licensed and regulated in the United Kingdom.
XTB vs DEGIRO: financial instruments
The initial distinction between DEGIRO and XTB lies in their primary focus. XTB primarily concentrates on providing stocks, ETFs, CFDs, and forex, whereas DEGIRO primarily focuses on stocks, ETFs, futures, and options.
To put it differently, DEGIRO does not operate as a CFD broker, whereas XTB stands out specifically for its extensive utilisation of these instruments in its product portfolio.
DEGIRO vs XTB: stock markets
When comparing the markets offered by each broker, it becomes evident that DEGIRO provides a broader range of products and markets compared to XTB. However, it is worth noting the extensive selection of Polish stocks offered by XTB, which is particularly interesting.
According to the table below, both brokers cover the main markets in Europe and the US.
Fee structure: XTB vs DEGIRO
This is the area where the two entities compete for the most, as both offer highly competitive rates. In general terms, the main differences are outlined below.
XTB has a zero-commission cost structure. In other words, you do not need to cover fixed fees when trading with XTB. However, if you trade more than £100,000, there will be a commission of 0.2%.
Because of its 0% commission fee structure, XTB is considered one of the most competitive brokers on the market.
However, traders must cover variable fees when trading with XTB – a spread that starts at a minimum of 0.5 pips and varies depending on your chosen asset, volatility, and liquidity.
The market you trade in is also important because there is a 0.5% exchange fee on transactions in foreign currencies (other than your account's base currency). So, if your account is in GBP and you trade US stocks, you will need to cover this fee.
In addition to this, if your CFD positions are open overnight, you may need to cover the swap fee, which depends on market conditions and is also variable.
Finally, there is an inactivity fee of £10 if your account is inactive for more than 12 months. If you deposit or withdraw less than £50, you need to cover a £30 fee. Otherwise, deposits and withdrawals are free of charge.
DEGIRO has a more complex fee structure that depends on the asset and markets in which you trade. In general, its commission structure consists of a fixed fee and a handling fee. For example, trading UK stocks is charged with £1.75 fee and a £1 handling fee. In the case of trading foreign markets, traders must add a currency exchange fee, which is 0.25%.
Perhaps one of the most competitive offers is a selection of ETFs that cost only €0 + €1, while global ETFs are charged with €2 + €1. Also, futures and options are charged with a fixed fee of €0.75.
XTB vs DEGIRO: deposits and withdrawals
The available methods for deposit and withdrawal are crucial considerations for many individuals when opening a trading account with a broker. Here are the main differences between XTB and DEGIRO.
XTB allows you to deposit money into the trading account via:
- Bank transfer: free
- Credit cards: Visa, Mastercard for free
- PayPal: free
- PaySafe: free
To withdraw funds from your XTB account, simply select the trading account from which you want to withdraw money and enter the desired amount. However, keep in mind that:
- Withdrawals below £50: £30 fee
- Withdrawals equal to or above £50: no charge.
DEGIRO only accepts bank transfers. However, there is no limit and no fee for deposits or withdrawals.
To withdraw funds from DEGIRO to your associated and designated main bank account, you can do so by clicking on “Deposit/Withdrawal” in the top right corner of the platform.
Minimum deposit: XTB vs DEGIRO
Another aspect to consider, especially if you are a beginner, is the minimum deposit:
- No minimum deposit
- You will be charged a minimum of £0.01 when making an account to verify your bank account (DEGIRO only)
XTB and DEGIRO: platform and demo accounts
Undoubtedly, a significant aspect that many users appreciate is the availability of trading platforms offered by each broker
XTB places its emphasis on its proprietary platform, xStation 5. It is a comprehensive trading platform, although it is more tailored towards traders or technical analysts.
However, when it comes to fundamental company information, it is relatively limited. Additionally, there is a mobile version of xStation available, known as xStation Mobile, which can be downloaded and used on Android and iOS devices.
The demo account is free of charge and remains available for up to 4 weeks if you'd like to check XTB's features before committing real cash. However, if you decide to open a real account, the demo account becomes unlimited, so you can always test your strategies with virtual cash.
Also, check out our in-depth XTB review to find out the entire range of features, tools, and other characteristics of this broker.
Regarding DEGIRO, it provides its own WebTrader platform. The interface is intuitive but may be seen as quite basic by experienced traders. However, with the recent integration of the Reuters database, there has been a significant increase in the amount of fundamental information and ratios available on the platform.
DEGIRO was also recognised with the Financial Times & Investors Chronicle award for the best-rated investment platform in 2020.
You can also find the app for mobile devices, available for Android and iOS operating systems.
On the other hand, DEGIRO does not have a demo account.
Taxation with XTB and DEGIRO
As per current regulations, you will need to state your tax residency when opening an account with any broker. Regarding tax reports, DEGIRO provides a thorough report section where you can download different forms, including account statement, transaction statement, portfolio overview, and others.
On the other hand, XTB does not offer any section to help you with calculating your taxes. As XTB is a CFD broker, you will only need to pay taxes on capital gains above your tax-free allowance. If unsure, you should consult a tax advisor to help you determine your tax situation.
XTB vs DEGIRO: types of accounts
Next, let's have a look at the types of accounts provided by the two brokers and their key features.
XTB offers 3 types of accounts:
- Standard Account: XTB's standard account allows trading with a leverage of 1:30 (maximum allowed in the UK, although the broker advertises 1:500), has spreads starting at 0.5 pips, and 0% commissions.
- Swap-Free Account: The swap-free account is the same as the standard account but does not charge swaps (interest rate), so it has a higher minimum spread of 0.7 pips.
- Demo Account: available for up to 4 weeks or indefinitely when opening a real account; it allows you to trade with virtual money to test the broker's trading platform or your strategies.
The broker DEGIRO offers four different types of accounts:
- Basic Account: DEGIRO's basic account is for beginners and does not offer leverage or short positions. Later, you can switch to a Trader or Active account.
- Active Account: DEGIRO's Active Account is slightly more advanced, so you can trade with limited leverage.
- Trader Account: More leverage is available, ideal for more experienced traders.
- Day Trader Account: Maximum leverage allowed and extended trading hours.
DEGIRO vs XTB: customer service
XTB provides customer service options via email, phone, or chat on the trading platform. On the other hand, DEGIRO Broker offers customer service through phone or email.
The difference is that XTB has a physical office in London, while DEGIRO does not – its office is located in the Netherlands.
|+31 20 261 3072 (7 am to 9 pm)
The telephone service hours are as follows:
- XTB: 24 hours from Sunday to Friday.
- DEGIRO: from Monday to Friday, 7 am to 9 pm.
XTB vs DEGIRO: research & education
XTB offers an extensive research and educational section. Ranging from courses and webinars to market analysis and economic news, this broker has a great range of resources for traders and investors of all knowledge levels.
Similarly, DEGIRO has a knowledge section. The most important aspect is the “Investor's academy”, but also offers deep insight into different strategies and financial products.
Both brokers offer free knowledge and market analysis.
Which broker to choose: XTB or DEGIRO? Reviews
In this case, we can refer to the Trustpilot ratings, where DEGIRO holds an average rating of 4.3, while XTB has an average rating of 3.8.
|Truspilot XTB Reviews
|Trustpilot DEGIRO Reviews
It is important to note that XTB and DEGIRO cater to different audiences. DEGIRO is targeted towards long-term investors, while XTB is a CFD broker ideal for trading and short- and medium-term strategies. Consequently, DEGIRO is highly regarded by investors due to its extensive range of investment products, low costs, and user-friendly interface.
On the other hand, XTB is renowned for its focus on forex and CFD trading, along with its advanced xStation trading platform that offers intuitive features and interface.
Ultimately, the choice between DEGIRO and XTB will depend on the needs and preferences of each individual. If you lean towards long-term investing and have limited involvement in financial markets, DEGIRO might be the more suitable option. However, if you have an active or trader profile, XTB could be a better fit, thanks to its zero commissions and extensive selection of leveraged derivatives.
Check out more broker comparisons
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- eToro vs XTB
Summary: XTB vs DEGIRO review
From our perspective, both brokers offer viable alternatives for the average user in the United Kingdom, although it is crucial to understand their strengths and weaknesses.
XTB has a focus on derivatives (particularly CFDs), which constitutes a significant portion of their offering, while DEGIRO aims to provide a wide range of products and markets at competitive prices, albeit with a limited range of services ideal for long-term investors.
We understand that there may still be lingering doubts or factors you would like to compare between both brokers. Therefore, we encourage you to ask any questions or provide comments using the form below.
DEGIRO vs XTB: advantages and disadvantages
|✅ Wide range of assets and markets
✅ Low commissions
✅ Easy to use platform
|✅ Allows demo account
✅ No minimum deposit
✅ Wide range of assets
|❌ No demo account
❌ Simple platform, but begginer-friendly
|❌Trading platform more complex (but suitable for traders)
What are the main differences between DEGIRO and XTB?
The key differences between DEGIRO and XTB lie in their focus and offerings. DEGIRO provides a wider range of investment products and markets, including stocks, ETFs, futures, and options. On the other hand, XTB specializes in forex and CFD trading, with a particular emphasis on its xStation trading platform and leveraged derivatives.
Which broker is better for long-term investors?
DEGIRO is often considered a suitable choice for long-term investors due to its extensive range of investment products and competitive pricing. It is well-regarded for its low costs and user-friendly interface, making it appealing to those looking for a diverse portfolio of stocks and ETFs.
Which broker is more suitable for active traders or those interested in derivatives?
XTB is generally favoured by active traders and investors interested in derivatives trading. With its focus on Forex and CFDs, along with the advanced features of the xStation trading platform, XTB offers a comprehensive solution for those seeking active trading opportunities and leverage options.