XTB has suspended the opening of new accounts for residents
in Brazil following the termination of its partnership with Finvest DTVM Ltda. As reported by Finance Magnates last week, XTB
began reconsidering its entry into Brazil less than a year after securing
regulatory approval. The brokerage cited protectionist measures that have
complicated the operating environment for foreign firms.
XTB Pauses Account Openings
The brokerage will also deactivate the partnership website
as it updates its operating model in the country.
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A notice on the website stated that the change would not
affect current clients, including the security of their funds or the quality of
service. No timeline for resuming new account openings has been provided.
Profit Drop Drives XTB Brazil Reassessment
XTB said earlier that it was reassessing its entry into
Brazil, citing “current conditions in the Brazilian brokerage sector,
especially local protectionist measures” as preventing it from launching
operations in one of Latin America’s largest economies.
The move follows a sharp profit drop, with net income
falling 74% year-over-year to PLN 53.2 million in the third quarter, down from
PLN 203.8 million a year earlier. Revenue declined 20.1% to PLN 375.8 million
as subdued volatility across financial and commodity markets limited
profitability per contract. The company noted that most popular instruments
moved within narrow price ranges.
Indonesian Onboarding Begins, Chile License Secured
Despite challenges in Brazil, XTB is advancing its expansion
in Asia and other regions. Its
Indonesian subsidiary has started onboarding clients, offering stocks and
ETFs, with CFDs planned for early 2026, following its licensing at the end of
last year.
In Latin America, XTB
obtained a Chilean securities license in February, with client onboarding
expected in the first half of 2025. The
firm also launched its multi-currency eWallet, supporting 19 currencies,
which had nearly 22,000 activations by September.
This article was written by Tareq Sikder at www.financemagnates.com.
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