A reader asks: I live in the UK, I am a beginner, do I choose XTB or IG?
Without knowing your individual circumstances and what exactly you are looking for from a broker it’s not possible to answer that question directly, I am afraid.
The first point I should make is that trading, whilst appealing may not be appropriate for beginners. It’c very high risk and trading on margin mean that you can lose all your money very quickly if you get it wrong.
Trading is a high-risk type of speculation that should only really form a small percentage of your overall portfolio. If you want to make money in the markets I’m afraid the reality is that it is very boring and the people that win, Like Warren Buffett, just buy quality companies and hold them in the long term.
But, if you want to trade, the Good Money Guide is here to provide guides, reviews, and interviews with trusted providers.
You can also read our exclusive CEO interviews with the bosses of both companies
Or if neither IG nor XTB seems right you can compare them to more brokerages and the trading accounts and services here.
Both brokers are decent and properly regulated by the FCA. As you are based in the UK you will also get the protection of the FSCS on your deposits should either broker default. You can keep an eye on the health of each broker by checking their share prices. IG is listed on the London Stock Exchange and XTB in Poland.
Personally I think that IG, pips it as one of the best all-round brokers, but XTB does offer some other excellent features like the ability to build a basket of your own assets.
As with all investing diversification is key and there is no reason to limit yourself to just one broker.
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.