FX trading contributes only 10% to XTB’s 2023 revenue

abdelaziz Fathi

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2023 and the full fiscal year ending on December 31, 2023, showing one of its most successful corporate years.

XTB’s financial results for 2023 showed an increase in both revenue and net profit. The company’s consolidated net profit was PLN 791.3 million, up 10% compared to PLN 766.1 million in the previous year. Consolidated revenues increased to PLN 1,588.2 million, up from PLN 1,444.2 million in 2022. Operating expenses also rose, reaching PLN 693.6 million in 2023, up from PLN 558.6 million in 2022.

The Polish brokerage firm, like rivals, saw trading volumes skyrocket over the last two years as retail traders tried to take advantage of swings in the financial markets brought on by the geopolitical conflicts.

XTB said its operating revenues were primarily influenced by a growing client base combined with their solid trading activity in the stock markets. Specifically, CFDs trading volumes spiked by 16.5% year-over-year. The total transaction volume in CFD instruments was 7.4 million lots, with an average profitability per lot of PLN 214.

On a quarterly scale, Q4 2023 was marked by even higher volatility in the markets. During this period, XTB’s revenues increased by 127.7% year-over-year, from PLN 216.7 million to PLN 493.6 million. This increase was attributed to a rise in profitability per lot and a higher number of transactions in financial instruments, with an increase of 69.1 thousand lots.

In 2023, XTB saw a substantial increase in its client base. The company acquired 312,000 new clients, leading to a 51% increase in the number of active clients, from 270,600 in the previous year to 408,500.

XTB expects its marketing strategy to yield more clients in the year ahead, referring to its board’s ambition to acquire, on average, at least 40-60 thousand new clients per quarter.

XTB’s revenue structure in 2023 shows a clear dominance of certain financial instruments, reflecting market trends and investor preferences. Specifically, indices CFDs generated 47.8% of the company’s total revenue, slightly up from 46.4% a year earlier. As explained, this was a consequence of high profitability on CFD instruments based on major indices such as the US 100, the German DAX index (DE30), and the US 500 index.

CFDs based on commodities accounted for 39.9% of the total revenue, a notable increase from 33.8% in 2022. This rise was attributed to the high profitability of CFD instruments based on natural gas, gold, and oil prices.

Nevertheless, the share of revenues from CFDs based on currencies saw a decline in 2023, accounting for 10.1% of the total revenue, down from 17.0% in the previous year. Within this class, the most profitable instruments were CFDs on the EURUSD and USDJPY currency pairs.

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