XTB Cashback Rebates - All You Must Know

In forex trading, many quality brokers offer their traders incentives to reward their loyalty to their brand. Among the many incentive programs that brokers offer, cashback rebates have emerged as a popular way for traders to potentially reduce their trading costs and enhance their overall profitability. XTB, a well-known broker in the forex and CFD space, offers its own cashback rebate program that rewards active traders based on their trading volume. 

In this article, we are going to explore all you need to know about XTB Cashback Rebates, including eligibility and benefits. Let’s begin.

What Are XTB Cashback Rebates?

Cashback rebates are a form of trading incentive where brokers return a portion of the spread or commission paid by traders. Essentially, the more you trade, the more you can earn back. XTB offers a direct cashback rebate program to its clients based on their trading volume. The XTB cashback program operates by automatically calculating the amount of cashback a client is entitled to based on their closed trades within a calendar month. This cashback is then directly deposited into the client's trading account as cash.

Please note that the amount of cashback you stand to make each month will be agreed between you and your dedicated account manager. This will help to make it optimised for your trading experience. Traders can use the cashback they receive however they like. They can even use it to fund trades for the next month and earn more cashback in the process.

75-78% of retail investor accounts lose money when trading CFDs with this provider.

XTB Cashback Rebates Eligibility

The eligibility of XTB’s Cashback Rebate program depends on where you are trading from (location) and which branch of the XTB Group you are trading with. Here is a quick summary of the eligibility per XTB branch:

• For non-UK/EU residents onboarded with XTB’s IFSC Belize regulated entity, XTB offers traders cashback as part of their loyalty offer. If you trade more than 15 contracts (lots) per month, you can contact your account manager, who will set up your personalised discount program.
• For UK residents (FCA) - It is against regulations to offer cash-based incentives to retail clients in the UK. However, XTB UK does offer a discount program which is available to high-volume traders.
• For EU residents (EU Branches) - It is against regulations to offer cash-based incentives to retail clients in the EU.
• For UAE residents (DFSA) – It is against UAE regulations to offer cash-based incentives to retail clients in the UAE.

On top of the regional restrictions for this program, there are also account restrictions for this program. As per the terms and conditions, the XTB cashback rebate program is only available on the standard and pro accounts. 

Benefits of XTB Cashback Rebates

The XTB cashback rebate program offers several potential benefits for traders:

• Reduced Trading Costs: This is the most direct advantage. By receiving a portion of their spread or commission back, traders effectively lower the cost of each trade. This can significantly impact overall profitability, especially for high-frequency traders.
• Increased Profitability: As mentioned, lower trading costs directly translate to higher net profits, assuming all other factors remain constant.
• Incentive for Higher Trading Volume: This cashback program incentivises traders to increase their trading volume to reach higher rebate amounts. However, it's crucial for traders to increase their trading activity based on well-thought-out strategies and not solely for the sake of earning more cashback.
• Flexibility: The XTB cashback is credited as cash directly into the trading account, providing traders with the flexibility to use these funds as they see fit.
• Transparency and Automation: XTB's system automatically calculates and deposits cashback, ensuring transparency and convenience for traders.

Why Trade With XTB?

To fully appreciate the value of XTB's cashback program, it's important to consider the broker's overall reputation and offerings. Let’s take a look at the main features of this broker:

XTB Trading Instruments

XTB offers traders access to a wide range of over 5,000 global financial markets, providing the flexibility to diversify across various asset classes. With XTB, investors can trade both CFDs (Contracts for Difference) and select real underlying assets. 

The CFDs available on XTB include:

• Forex - XTB allows people to trade 70 currency pairs, including major, minor, and exotic pairs. 
• Indices- Traders also gain exposure to over 30 major stock indices from around the world. Popular options include the UK100, DE30, US500, US2000, FRA40, and EU50, among others.
• Commodities - XTB provides access to a variety of key commodities such as gold, silver, oil, natural gas, and agricultural products like cocoa.
• Stocks - On XTB, traders can speculate on price fluctuations in global stocks. These include the stocks of well-known companies like Apple (AAPL), Amazon (AMZN), Barclays (BARC), and BMW. These CFDs allow you to benefit from both rising and falling markets.
• Cryptocurrencies- This broker allows investors to participate in the fast-moving world of digital assets by trading CFDs on popular cryptocurrencies such as Bitcoin, Ethereum, Stellar, and Dogecoin.
• ETFs - CFD trading on ETFs enables broad market exposure without direct ownership. On XTB, investors can choose from a range of sector, industry, or region-specific funds.

The real underlying assets on XTB include:

• Stocks - Investors can purchase real shares of publicly listed companies. Once bought, the stocks are owned outright and can be held for as long as desired.
• ETFs - With access to over 500 real ETFs, XTB allows investors to build diversified portfolios across different sectors, themes, and geographical regions by owning the actual exchange-traded funds.

Spread and Fees on XTB

XTB’s primary account type is the Standard Account, which provides highly competitive trading conditions. Traders benefit from tight spreads starting at just 0.5 pips on major forex pairs, with no added commission on forex trades. Please note that swap fees apply, and these vary depending on the specific instrument and trade size.

For traders who require swap-free trading in accordance with Islamic finance principles, XTB also offers a Swap-Free Account. This account maintains similarly low spreads, beginning at 0.7 pips on major currency pairs, and carries no commission charges.

XTB’s Trading Platform

XTB primarily offers its proprietary trading platform, xStation 5, for trading. This platform is available across desktop, web, and mobile devices. The platform boasts a user-friendly design, catering to the diverse range of experience levels, from new traders to more experienced investors. Beyond its ease of use, xStation 5 offers powerful features, including one-click trading for speed, a rich selection of technical indicators and drawing tools for in-depth analysis, and integrated market updates.

XTB’s Credibility

XTB is a highly reputable broker with more than 15 years of industry experience. It operates under the oversight of several respected regulatory bodies, including the UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Polish Financial Supervision Authority (KNF), and Belize’s Financial Services Commission (FSC). Furthermore, XTB is a publicly listed company on the Warsaw Stock Exchange, which necessitates that XTB adheres to strict transparency and accountability standards.

XTB also enjoys a strong reputation among its users. The broker enjoys a user rating of 4.1 out of 5 stars on Trustpilot based on over 1,800 reviews. This combination of strong regulation, market transparency, and positive user feedback makes XTB a popular choice for traders worldwide.

Closing Remarks

XTB’s cashback rebate program is a compelling offering for active traders seeking to lower their trading costs and boost profitability. Unfortunately, it comes with regional and account-specific eligibility requirements. Nonetheless, those who qualify can benefit from direct cash rewards based on their trading volume, funds that can be used freely, including to fuel further trading. 

When combined with XTB’s top features, the cashback rebates add another layer of value to an already robust trading environment. This broker excels in several key areas, including offering broad market access, competitive spreads, a reliable trading platform, and strong regulatory oversight. Before participating in the cashback program, traders should review the eligibility criteria and consult their account manager to tailor the offer to their trading strategy.