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.
XTB is regulated by several authoritative bodies such as FCA, CySEC, CNMV, KNF, FSC(Belize). However, XTB is not regulated by the FINMA ( The Financial Market Supervisory Authority). In this article, we will explore XTB’ regulations, and its features, and provide a list of alternative brokers that are regulated by FINMA.
Does XTB Operate Under FINMA?
No, XTB does not operate under FINMA (The Financial Market Supervisory Authority) regulation. However, the broker is regulated by several other reputable financial authorities including 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 FINMA in Switzerland.
What Other Regulations Does XTB Have?
FCA (Financial Conduct Authority)
XTB is regulated by the Financial Conduct Authority (FCA) in the UK under license number 684312. 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 FINMA Regulated Forex Brokers: Alternatives to XTB
XTB is one of the leading forex and CFD brokers. The broker is not regulated by FINMA. It is regulated by other top-tier regulators including FCA, CySEC, CNMV, KNF, FSC(Belize). There are several FINMA regulated brokers that can serve as alternatives to XTB. These brokers include:
Affiliate Table: 5 FINMA-Regulated Forex Brokers
These brokers operate under FINMA regulation. According to FINMA rules, they offer leverage up to 30:1 and provide negative balance protection for retail traders. To learn more about FINMA-regulated forex brokers, you can read our content on the best FINMA -regulated forex brokers.
How Can I Verify If My Broker is regulated by FINMA or Not?
How Can I Verify If My Broker is FINMA Regulated?
Here’s a detailed explanation of how to verify if your broker is regulated by FINMA, with expanded paragraphs under each subheading:
1. Find the Broker’s Name:
The first step in verifying your broker’s regulatory status is identifying their legal name. This information is typically available on the broker’s official website under sections like “About Us” or “Legal Information.” Make sure you’re using the broker’s full legal name, not just the brand name, as companies often operate under multiple names or subsidiaries. Having the exact name ensures an accurate search when you look up their registration with FINMA.
2. Visit the FINMA Website:
Once you have the broker’s legal name, visit the official website of FINMA. The Swiss Financial Market Supervisory Authority maintains a public register where you can find all authorized institutions and individuals. This register is a reliable source for confirming the legitimacy of brokers and other financial institutions operating under FINMA’s supervision. You can access it through this link: FINMA Licensed Institutions and Persons Page.
3. Enter the Broker’s Name:
On the FINMA website, you will find a search bar designed for checking the authorization status of financial firms. Enter the broker’s full legal name in this search bar. Make sure you input the name exactly as it appears on the broker’s official website. A precise search is crucial to ensure you are checking the correct entity, as some brokers may have similar or overlapping names.
4. Select the Category:
To refine your search and get the most relevant results, choose the appropriate category from the drop-down menu. For forex brokers, you should select “Banks and Securities Firms” as the category. This narrows down the search to firms that are authorized to offer forex and other securities trading services under FINMA’s regulation. Selecting the right category helps avoid confusion with other types of financial service providers.
5. Check the Broker’s Information:
Once the results are displayed, examine the broker’s profile on the FINMA website. Compare the information provided by FINMA with what’s available on the broker’s website. Look for details like the broker’s full name, address, and license status. It’s important to confirm that the broker is authorized as a bank or securities firm by FINMA, as this is a key requirement for offering forex trading services in Switzerland. If the broker is not listed or does not hold the necessary license, you should be cautious, as they may not be legally allowed to provide forex services. In such cases, it’s advisable to avoid dealing with that broker
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. XTB is not regulated by FINMA. However, The broker is regulated by other reputed regulatory authorities including FCA, CySEC, CNMV, KNF, FSC(Belize). These regulations ensure strict compliance with industry standards and provide protection for client funds.
