Being the HouseNarrow moat

XTB (XTB) — moat facet

XTB does not take a commission on the trade; it takes the other side of it, which is why no commission and a 40 per cent margin can both be true.

The reason XTB can advertise no commission and still run a 40 per cent EBITDA margin is that it is not a broker in the ordinary sense.1 It writes the contract itself.

Derivative notional and how much of it is hedged, PLN m11 60431 Dec 24 total14 pcwith brokers15 05231 Dec 25 total16 pcwith brokers11 71230 Jun 26 total8 pcwith brokersBroker share halved in the half-year that produced record profit
Ninety-two per cent of the notional is XTB against its own customers.

Its own words: the model "combines the features of an agency model with a market maker model, in which the Company is a party to transactions concluded and initiated by clients".2 For shares and exchange-traded funds XTB routes to the market and states plainly that it is not a market maker in that class. For contracts for difference it is. At the end of June 2026 transactions with outside brokers were 8 per cent of the 11 712 million złoty of derivative notional on the books; at the end of 2025 they were 16 per cent, and at the end of 2024, 14 per cent.3

What this buys is the whole spread rather than a share of it. An agency broker earns a commission and is indifferent to the outcome. A market maker earns the difference between what clients pay and what the position costs to carry or close, which over a large enough book is the spread plus whatever the clients collectively get wrong. In 2025 that came to 2 035 million złoty on contracts for difference alone.4

It is also the reason the earnings move the way they do. A commission is a rate applied to volume. A spread captured against a directional client base is a rate applied to volume multiplied by how the market behaved, and the second term is not XTB's to choose.

Everything on this page reduces to one line in the off-balance-sheet note: brokers took 8 per cent of the notional, and the share is falling.5

Moat trajectory: Narrowing

The share of notional transacted with outside brokers fell from 16 per cent to 8 in six months, which raised both the earnings and the exposure. Meanwhile the product this facet describes is the one European regulators have restricted once and continue to examine, and it is 96 per cent of the gross gain.

The number that tests this moat
Reported
Share of derivative notional transacted with brokers
8% at 30 June 2026, from 16% six months earlier

XTB is the counterparty to its clients' contracts for difference rather than an agent routing them elsewhere, which is why it earns the whole spread and can advertise no commission. The off-balance-sheet note gives the exposure: of 11 712 million złoty of derivative notional at the end of June 2026, transactions with outside brokers were 8 per cent, against 16 per cent at the end of 2025 and 14 per cent a year before. The lower the figure, the more of the client book XTB is holding itself.

Source: XTB Group half-year report for the first half of 2026 ↗
Aspects of the moat
DIG DEEPER 01
Ninety-Two Per Cent Stays on the Book
The hedge halved in the six months that produced record profit, which is the same sentence read two ways.
DIG DEEPER 02
The Price Is Quoted, Not Matched
There is no order book between XTB and its client, so the price is a decision - and the realised take still swings by a factor of three.
DIG DEEPER 03
Seventy-Four Per Cent Lose Money
The only company here legally required to publish the proportion of customers who end up worse off for having been customers.
DIG DEEPER 04
Where the Profit Actually Comes From
Volume correlates 0,25 with revenue and margin per contract correlates 0,92; almost everyone watches the wrong one.
⚠ Threats to the moat
⚠ THREAT 01
The Hedge Went Down as the Bet Went Up
Retained exposure is invisible on the way in and enormous on the way out, and it is disclosed twice a year as a single percentage.
⚠ THREAT 02
Volatility Is the Product, and It Is Not Ordered
Half-year income rose 79,7 per cent on volume down 1,8 per cent - a number with no run rate attached to it.
References
  1. ReportedThe reason XTB can advertise no commission and still run a 40 per cent EBITDA margin is that it is not a broker in the ordinary sense.
    XTB Group Management Board report on activities in 2025, business model and competitive landscape - the model "combines the features of an agency model with a market maker model, in which the Company is a party to transactions concluded and initiated by clients"; "XTB operates as a market-maker, meaning it is the counterparty to a client's transaction"; "XTB executes all transactions in shares, ETFs, and CFDs based on these assets directly on regulated markets or alternative trading systems. XTB is not a market maker for this class of instruments"; the competitive environment divided into trading platform providers (eToro, Trading 212, Robinhood), fintech companies (Trade Republic, Scalable Capital, Revolut) and CFD-only brokers (Plus500, IG Group, CMC Markets, Saxo Bank), with Polish bank-affiliated brokerages named as mBank Biuro Maklerskie, Santander Biuro Maklerskie, Dom Maklerski Banku Ochrony Srodowiska (BOSSA), PKO BP Biuro Maklerskie, ING Securities and Bank Pekao S.A. Biuro Maklerskie, and XTB described as a market leader in Poland; the planned European ban on the payment-for-order-flow model from 2026; key competitive advantages listed as a wide product range including stocks, ETFs, Investment Plans and CFDs plus interest on free funds, an eWallet with a multi-currency card and long-term savings accounts IKE (Poland), ISA (United Kingdom) and PEA (France); the proprietary xStation platform and XTB mobile app; no commissions up to EUR 100 000 turnover on stocks and ETFs and no withdrawal fees; operations in over 15 countries; regulation by nine financial authorities including the FCA and KNF; client fund segregation; 24/5 support; and the XTB Academy. Brand ambassadors Mads Mikkelsen (2016-2018), Conor McGregor and Iker Casillas (2022-2024) and Zlatan Ibrahimovic (2024-2026); nearly PLN 585 million allocated to marketing in 2025, up 69,6%, including the largest campaign in the group's history launched in September 2025 across 13 markets including Poland, France, Germany, the United Kingdom, Chile, the Middle East and Indonesia, and sponsorship at Roland Garros and Wimbledon; the XTB brand dating from 2009 and the word "trading" replaced by "investing" in 2023 — FY2025 · publ. March 2026 · source ↗
  2. ReportedIts own words: the model "combines the features of an agency model with a market maker model, in which the Company is a party to transactions concluded and initiated by clients".
    XTB Group Management Board report on activities in 2025, business model and competitive landscape - the model "combines the features of an agency model with a market maker model, in which the Company is a party to transactions concluded and initiated by clients"; "XTB operates as a market-maker, meaning it is the counterparty to a client's transaction"; "XTB executes all transactions in shares, ETFs, and CFDs based on these assets directly on regulated markets or alternative trading systems. XTB is not a market maker for this class of instruments"; the competitive environment divided into trading platform providers (eToro, Trading 212, Robinhood), fintech companies (Trade Republic, Scalable Capital, Revolut) and CFD-only brokers (Plus500, IG Group, CMC Markets, Saxo Bank), with Polish bank-affiliated brokerages named as mBank Biuro Maklerskie, Santander Biuro Maklerskie, Dom Maklerski Banku Ochrony Srodowiska (BOSSA), PKO BP Biuro Maklerskie, ING Securities and Bank Pekao S.A. Biuro Maklerskie, and XTB described as a market leader in Poland; the planned European ban on the payment-for-order-flow model from 2026; key competitive advantages listed as a wide product range including stocks, ETFs, Investment Plans and CFDs plus interest on free funds, an eWallet with a multi-currency card and long-term savings accounts IKE (Poland), ISA (United Kingdom) and PEA (France); the proprietary xStation platform and XTB mobile app; no commissions up to EUR 100 000 turnover on stocks and ETFs and no withdrawal fees; operations in over 15 countries; regulation by nine financial authorities including the FCA and KNF; client fund segregation; 24/5 support; and the XTB Academy. Brand ambassadors Mads Mikkelsen (2016-2018), Conor McGregor and Iker Casillas (2022-2024) and Zlatan Ibrahimovic (2024-2026); nearly PLN 585 million allocated to marketing in 2025, up 69,6%, including the largest campaign in the group's history launched in September 2025 across 13 markets including Poland, France, Germany, the United Kingdom, Chile, the Middle East and Indonesia, and sponsorship at Roland Garros and Wimbledon; the XTB brand dating from 2009 and the word "trading" replaced by "investing" in 2023 — FY2025 · publ. March 2026 · source ↗
  3. ReportedAt the end of June 2026 transactions with outside brokers were 8 per cent of the 11 712 million złoty of derivative notional on the books; at the end of 2025 they were 16 per cent, and at the end of 2024, 14 per cent.
    XTB Group half-year report for the first half of 2026, notes - nominal value of derivative financial instruments at 30 June 2026 and 31 December 2025: Index CFDs 3 642 905 and 3 933 252; Commodity CFDs 3 967 775 and 6 216 958; Currency CFDs 2 204 780 and 3 284 496; Stock and ETF CFDs 1 767 315 and 1 615 397; Bond CFDs 4 118 and 1 553; Options 125 478 and nil; total 11 712 371 and 15 051 656, and as at 30 June 2026 transactions with brokers represent 8% of the total nominal value of instruments against 16% at 31 December 2025; clients' financial instruments at 30 June 2026 and 31 December 2025: listed stocks and rights to stocks 23 345 382 and 15 138 542; ETFs 20 018 050 and 12 144 808; other securities 207 and 207; total 43 363 639 and 27 283 557; amounts due to clients: retail 7 023 586 and 6 428 875, institutional 100 955 and 99 348, total 7 124 541 and 6 528 223; contributions to the compensation scheme with a closing balance of 28 338 against 23 981; total employment at 30 June 2026 of 1 548 people against 1 516 at 31 December 2025; XXZW Investment Group S.A. holding 42 067 329 shares or 35,78% at 30 June 2026; XTB Lithuania UAB incorporated with no operations yet; dividends of 478 507 thousand złoty paid in the period — H1 2026 · publ. 28 August 2026 · source ↗
  4. ReportedIn 2025 that came to 2 035 million złoty on contracts for difference alone.
    XTB Group consolidated financial statements for 2025, comprehensive income statement and revenue notes - total operating income 2 146 056 against 1 873 436; income from fees and charges 20 287 against 12 291; other income 3 198; marketing (584 898) against (344 808); salaries and employee benefits (413 019) against (311 574); commission expenses (107 415) against (97 289); other external services (132 846) against (79 226); amortisation and depreciation (25 405) against (19 905); taxes and fees (15 955) against (13 109); costs of maintenance and lease of buildings (10 559) against (7 999); other costs (23 580) against (12 791); total operating expenses (1 313 677) against (886 701); profit on operating activities 832 379 against 986 735; finance income 39 603 against 62 845 including interest income on financial instruments at amortized cost 26 538 and income on bonds 12 744 against 26 138 and foreign exchange gains of nil against 10 307; finance costs (94 594) against (1 129), of which foreign exchange losses (93 125) against nil, relating to unrealised differences on the measurement of balance sheet items denominated in a currency other than the functional currency; profit before tax 777 388 against 1 048 451; income tax (133 189) against (191 595); net profit 644 199 against 856 856; basic earnings per share 5,48 against 7,29. Result of operations in financial instruments by class for 2025 and 2024: Commodity CFDs 923 714 and 896 672; Index CFDs 760 736 and 622 728; Currency CFDs 290 408 and 272 276; Stock and ETP CFDs 60 047 and 44 762; Bond CFDs 101 and 735; total CFDs 2 035 006 and 1 837 173; Stocks and ETPs 78 310 and 30 654; gross gain on transactions in financial instruments 2 113 316 and 1 867 827; bonuses and discounts paid to customers (17 328) and (12 629); commission paid to cooperating brokers (51 406) and (54 623); net gain on transactions in financial instruments 2 044 582 and 1 800 575; interest income on client funds 140 129 and interest paid to clients (62 140), giving net interest income of 77 989 and 58 989 — FY2025 · publ. March 2026 · source ↗
  5. ReportedEverything on this page reduces to one line in the off-balance-sheet note: brokers took 8 per cent of the notional, and the share is falling.
    XTB Group half-year report for the first half of 2026, notes - nominal value of derivative financial instruments at 30 June 2026 and 31 December 2025: Index CFDs 3 642 905 and 3 933 252; Commodity CFDs 3 967 775 and 6 216 958; Currency CFDs 2 204 780 and 3 284 496; Stock and ETF CFDs 1 767 315 and 1 615 397; Bond CFDs 4 118 and 1 553; Options 125 478 and nil; total 11 712 371 and 15 051 656, and as at 30 June 2026 transactions with brokers represent 8% of the total nominal value of instruments against 16% at 31 December 2025; clients' financial instruments at 30 June 2026 and 31 December 2025: listed stocks and rights to stocks 23 345 382 and 15 138 542; ETFs 20 018 050 and 12 144 808; other securities 207 and 207; total 43 363 639 and 27 283 557; amounts due to clients: retail 7 023 586 and 6 428 875, institutional 100 955 and 99 348, total 7 124 541 and 6 528 223; contributions to the compensation scheme with a closing balance of 28 338 against 23 981; total employment at 30 June 2026 of 1 548 people against 1 516 at 31 December 2025; XXZW Investment Group S.A. holding 42 067 329 shares or 35,78% at 30 June 2026; XTB Lithuania UAB incorporated with no operations yet; dividends of 478 507 thousand złoty paid in the period — H1 2026 · publ. 28 August 2026 · source ↗
Sources
Generated September 24, 2026