XTB the Polish multi-asset broker becomes the latest firm to expand into UK retail investment products.
XTB ISA
The ISA market in the UK is about to get a new entrant.
XTB, the Polish fintech and CFD broker is now authorized to offer Individual Savings Accounts (ISAs) to UK investors.
This marks a major expansion for the company and one that goes beyond its core CFD and forex trading roots.
Opening the door to the potentially lucrative UK ISA market, which has more than £700 billion in AUM
After announcing plans to move into ISAs earlier this year, XTB has now secured the necessary regulatory approval from the UK authorities.
It aims to launch its inaugural ISA products to UK clients during the third quarter of 2024 or early autumn.
What are ISAs?
ISAs allow UK private clients to invest up to £25,000 annually in tax-efficient savings vehicles via stocks and shares, funds and ETFs or cash deposits, without incurring taxes on any gains or income generated by those investments.
ISAs are a popular way for retail investors to build long-term wealth, and as of June 2023 11.80 million people in the UK had ISA accounts.
What asset classes will XTB offer to its ISA clients?
XTB’s initial ISA product suite will focus on investing in stocks and shares alongside passive exposure through ETFs, according to the firm.
This is in line with XTBs strategic vision of expanding their business through the roll-out of new investment products, beyond CFDs and forex trading.
Joshua Raymond, the CEO of XTB’s UK entity, said:
“Our entry into the ISA market would mark yet another milestone for our product rollout in the UK…to complement what is already a broad offering including ETFs, stocks, Investment Plans, and CFD products.”
With over 300,000 active traders globally and an aggressive growth strategy, XTB’s foray into ISAs should offer the firm the chance to compete for a bigger slice of the UK’s retail investor market.
We are seeing more margin trading brokers expanding their product ranges, as they try to cross-sell services to their existing client base, as well as attracting new customers, in a bid to defray the high cost of client acquisition, in the increasingly competitive UK market.
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