How does XP work?
XTB operates as a global online foreign exchange and contract for difference (CFD) broker, generating its revenue primarily through trading activity executed across its proprietary xStation platform. Its primary income stream is driven by the transaction spread—the fractional difference between the buying and selling prices quoted for currency pairs, commodities, indices, stocks, and cryptocurrencies. Additionally, XTB earns revenue through overnight financing charges, known as swap points, applied when clients keep leveraged positions open past daily market closing times. The company also utilizes a hybrid business model combining agency execution with market-making functions for specific derivative assets, capturing revenue from market volatility and active trading volume while providing risk-management safeguards like negative balance protection. Commissions on physical stock and ETF transactions in select markets further diversify its transactional cash flow.
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