Index CFDs drove 52.3% of XTB’s revenue in Q1 2025, surpassing commodities and currencies amid client growth.
Index CFDs drove 52.3% of XTB’s revenue in Q1 2025, surpassing commodities and currencies amid client growth.
XTB shifts revenue focus to index CFDs in Q1 2025, with record client growth and evolving fintech strategy.
Key Points:
Polish retail brokerage XTB reports a major revenue realignment as index-based CFDs take the lead in its financial performance, leaving commodities and currencies in the rearview mirror.
XTB has announced a significant shift in its revenue mix for Q1 2025, with index CFDs emerging as the primary revenue driver, while commodity and currency-based CFDs have seen their contributions shrink. This transformation comes as a direct response to changing client preferences, with equity indices becoming the dominant trading asset in the retail brokerage space.
XTB‘s preliminary financial results for Q1 2025 revealed that more than half of the company’s revenue was now derived from index CFDs, a notable shift from the previous year’s figures. Index CFDs alone accounted for 52.3% of total revenue, up from 41.9% in Q1 2024. This shift represents a strategic pivot, with the firm capitalizing on strong performance from markets such as the German DAX (DE40), US 100, and US 500, which have seen heightened demand.
Omar Arnaout, CEO of XTB, commented on the change, stating, “The first quarter of 2025, in terms of market characteristics, particularly the presence of long and distinct trends, was similar to the fourth and third quarters of 2024. Index CFDs proved to be particularly profitable during this period.”
On the other hand, commodity-based CFDs experienced a decline in relative importance. They contributed just 29.1% of total revenue, down from 48.7% in the same period the previous year, despite strong performances in natural gas, gold, and coffee contracts. Currency CFDs also saw a decrease, dropping to 13.5% of total revenue from 23.2% in Q1 2024.
As a result, overall CFD revenues now account for more than 97% of XTB‘s total income, signaling a shift toward equity-driven trading.
XTB‘s client base grew rapidly during the first quarter, with the number of active clients surging by 76.5%. The company’s total client base increased by 49.8%, reaching new heights as more retail investors joined the platform. Trading volumes in CFDs also rose significantly, with transaction volumes increasing by 24.9% in lots and 61.2% in nominal USD value.
However, despite the increase in trading activity, profitability per lot experienced a decline. The average profitability per lot fell to PLN 277 from PLN 344 in Q1 2024, possibly reflecting margin compression from high-frequency or range-bound trading.
XTB’s results were well-received by the market, with shares rising 6%, hitting new all-time highs of PLN 83.80. The company’s expanding client base and growing market presence were key drivers of this positive sentiment.
Looking ahead, XTB is positioning itself to capitalize on further growth. Filip Kaczmarzyk, Head of Trading at XTB, highlighted that the broker experienced a threefold increase in active users on April 7, 2025, compared to the surge observed during the COVID-19 pandemic’s announcement. This suggests a continued rise in market activity, particularly among equity indices.
The company is also expanding its service offering, including the launch of new fintech products such as eWallets and specialized investment accounts. In line with its strategy to diversify beyond CFDs, XTB plans to introduce cryptocurrency trading and options in the near future.
The brokerage company’s aggressive marketing strategy continues to pay off, with a 73.9% year-over-year increase in marketing expenses. These expenditures have been used to expand advertising campaigns in multiple European markets, and XTB expects marketing costs to rise by 80% in 2025 compared to the previous year.
Additionally, the company is making notable strides in transforming into a more comprehensive fintech platform, particularly in markets like France, where interest in CFDs remains limited. XTB is shifting its focus to broader investment products, catering to the growing demand for alternatives like PEA investment accounts.
XTB continues to push forward with ambitious client acquisition goals, projecting the addition of between 150,000 and 210,000 new clients per quarter in 2025. To reward shareholders, the company has announced a dividend of PLN 5.45 per share for its 2024 profits, totaling a payout of PLN 640.8 million.
As XTB embraces its transformation into a broader fintech entity, its focus on equity-driven CFD trading appears to be a central component of its growth strategy, and the firm will be watching closely as market conditions evolve in the coming quarters.
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