Approximately three months following its announcement to penetrate the UK Individual Savings Accounts (ISAs) sector, XTB has now become an authorized manager capable of offering this popular retail investment option, tapping into a market worth approximately £400 billion.
XTB, a publicly-listed Polish fintech company (listed on the Warsaw Stock Exchange as XTB), aims to roll out its initial ISA products in the UK by the upcoming autumn, as per information gathered by Finance Magnates.
During an earnings conference in February after its 2023 annual report, XTB’s CEO, Omar Arnaout, disclosed plans for expansion beyond its inaugural offerings for future retirees in Poland.
XTB is set to dive into the highly competitive arena of tax-exempt investment products.
The UK ISA market, accommodating 27 million individuals, manages around £400 billion in stocks and shares savings accounts, with British citizens eligible to invest up to £20,000 annually in these accounts without any tax liabilities.
To extend its product range, XTB pursued and secured a license to operate within this market, transitioning from its conventional CFD offerings to include stocks and gradually, passive investments via ETFs.
Now, the firm is prepping to introduce ISA offerings.
Joshua Raymond, Managing Director at XTB UK, expressed his satisfaction with the firm’s licensing progress: “As part of our commitment to broadening our investment and savings product range, I’m pleased to say our ISA licensing application has been approved by HMRC.”
Raymond also indicated that XTB’s ISA products should be available to UK retail investors by the third quarter of this year.
“We are aiming to launch our ISA product to UK clients at the start of Autumn,” he remarked.
In 2023, XTB observed a significant client base expansion, reaching 312,000 active clients and surpassing one million users in 2024, bolstered by robust growth in the UK market, where the number of active clients rose by 93% last year.
Although XTB UK’s operations have been relatively modest, generating £4.7 million in revenue in 2023, the company anticipates that entering the ISA market will significantly enhance its financial performance.
Highlighting the substantial growth opportunity, Raymond emphasized the importance of the ISA market: “The UK ISA market has 12 million new subscriptions every year, constituting a significant opportunity for the business.
“Our entry into ISA accounts would mark yet another milestone for our products rollout in the UK, to complement what is already a broad offering which includes ETFs, stocks, Investment Plans, and CFD products.”
Furthermore, XTB is expanding its reach globally, having recently announced at the end of March the acquisition of Indonesian broker Eagle Capital Futures, a move poised to “become a Gateway to Asia.”