Is XTB Regulated by the BaFin as of 2024

XTB is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, Indices, Commodities, Cryptocurrencies, Stocks and ETFs. It also supports multiple trading platforms and tools such as xStation 5..

Although XTB is regulated by several authoritative bodies, including FCA, CySEC, CNMV, KNF, FSC(Belize), it is not regulated by BaFin. In this article, we will explore XTB’ regulations, and its features, and provide a list of alternative brokers that are regulated by BaFin.

Does XTB Operate Under BaFin?

No, XTB does not operate under BaFin regulations. The broker is regulated by several other reputable financial authorities, including the FCA, CySEC, CNMV, KNF, FSC(Belize). These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the BaFin in the UK.

What Other Regulations Does XTB Have?

FCA (Financial Conduct Authority)

XTB is regulated by the Financial Conduct Authority (FCA) in the UK. The FCA, established in 2013, is responsible for regulating financial markets and firms in the United Kingdom.

The FCA requires XTB to adhere to strict guidelines for financial conduct, including maintaining adequate capital, safeguarding client funds, and ensuring transparency in its operations. This includes keeping client money separate from company funds and providing regular financial reports. FCA regulation helps ensure that XTB operates securely and fairly, offering a high level of protection and trust for clients in the UK and across Europe.

CySEC (Cyprus Securities and Exchange Commission):

XTB is regulated by CySEC. Established in 2001, Cysec is Cyprus’s financial regulator. Since Cyprus joined the European Union in 2004, CySEC’s regulations align with the MiFID directive, ensuring compliance with EU-wide financial standards and investor protection. This regulation allows the broker to offer services across the European Economic Area (EEA) under the MiFID II directive, ensuring investor protection and transparency. CySEC regulation requires brokers to follow strict guidelines for handling client funds, including segregation and periodic reporting.

KNF

XTB is regulated by the Komisja Nadzoru Finansowego (KNF). The KNF, established in 2006, is Poland’s financial regulatory authority, responsible for overseeing the country’s financial markets and institutions.

The KNF ensures that XTB adheres to strict guidelines for transparency, financial stability, and investor protection. This includes maintaining adequate capital reserves, segregating client funds from the company’s own, and providing regular financial reports. KNF regulation helps protect Polish investors and ensures that XTB operates securely and in compliance with Polish financial regulations.

FSC(Belize)

XTB is regulated by the Financial Services Commission (FSC) of Belize. The FSC, established in 1999, is the regulatory authority overseeing non-bank financial services in Belize.

The FSC requires XTB to comply with strict regulations, including maintaining adequate capital, protecting client funds by segregating them from company assets and providing regular financial reports. FSC oversight helps ensure that XTB operates transparently and securely, offering a safe trading environment for clients in Belize and internationally.

CNMV

XTB is regulated by the Comisión Nacional del Mercado de Valores (CNMV) in Spain, which is responsible for overseeing and regulating the financial markets in the country. Established in 1988, the CNMV ensures that firms operating in Spain, like XTB, comply with strict financial conduct standards, promoting transparency, fairness, and security.

Under CNMV regulation, XTB is required to maintain adequate capital reserves, segregate client funds from its own, and provide regular financial reporting. This regulatory framework protects clients by ensuring that their funds are kept secure and that the company operates in a transparent and compliant manner. CNMV oversight enhances trust and confidence in XTB, reinforcing its commitment to providing a reliable and secure trading environment for clients in Spain and across Europe.

Best Bafin Regulated Forex Brokers: Alternatives to XTB

XTB is one of the leading forex and CFD brokers. The broker is not regulated by BaFin. It is regulated by other top-tier regulators including FCA, CySEC, CNMV, KNF, FSC(Belize). There are several BaFin regulated brokers that can serve as alternatives to XTB. These brokers include: 

These brokers operate under BaFin  regulation. According to BaFin rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about BaFin-regulated forex brokers, you can read our content on the best BaFin-regulated forex brokers.

How Can I Verify If My Broker is Bafin Regulated?

To verify if your broker, such as XTB, is regulated by the BaFin, follow these steps:

1. Find the Broker’s Reference Number or Name: Obtain this information from the broker’s website.
2. Search the BaFin Register: Visit the Bafin Financial Services Register and enter the broker’s reference number or name.
3. Check the Broker’s Authorization: Ensure that the broker is authorized to provide “Rolling spot forex contract” services to retail customers in the UK.
4. Match Firm Details: Verify that the details on the BaFin website, such as the broker’s website and email, match those provided by the broker. Any discrepancies might indicate an unauthorized broker, and you should avoid trading with them.

Frequently Asked Questions ( FAQs)

What is XTB?

Founded in 2002, XTB is an exchange-listed forex and CFD broker with headquarters in Poland and offices in over 13 countries. The broker offers more than 5,500 forex, CFDs as well as real stocks and ETFs for trading on its proprietary platforms. XTB boasts of over 800,000 clients from all over the world.

Is XTB Considered Safe?

Yes, XTB is considered safe. The broker is regulated by multiple top-tier regulatory authorities, including FCA, CySEC, CNMV, KNF, FSC(Belize). It offers negative balance protection and holds client funds in segregated bank accounts. Additionally, XTB provides an investor protection scheme for clients regulated under FCA and CySEC, making it a reliable and trustworthy broker.

Does XTB Offer Negative Balance Protection?

Yes, XTB offers negative balance protection. All BaFin-regulated brokers must offer negative balance protection. Negative balance protection means that traders are protected from losing more money than they have in their trading accounts. If a trade results in losses that exceed the amount of funds in the account, negative balance protection ensures that the trader’s balance cannot go below zero. This prevents the trader from owing the broker any additional money.

Is XTB regulated in Australia?

No, XTB is not regulated in Australia. The broker is not regulated by ASIC, the Australian regulator. However, it accepts Australian clients under its global entity. XTB is regulated by several other authorities, including FCA, CySEC, CNMV, KNF, FSC(Belize).