Is XTB Legal in Malaysia? Is it Safe?
Reliability is the key criterion for choosing any broker. If you have doubts about the reliability of a company, it is not recommended to work with it. Traders from Malaysia often ask “Is XTB safe? Does the company operate legally in the territory of the country, can it be trusted?" Traders Union analysts have prepared a detailed analysis, where we will see whether XTB is legal in Malaysia and whether you can work with this broker.
Short summary about the broker XTB
The X Trade Brokers (hereinafter “XTB”) is registered in Belize and provides a fairly extensive list of financial services to traders. The company was incorporated in 2002 and its financial regulator is the Belize International Financial Services Commission (FSC, 000302/438), CySEC (169/12), FCA (522157). The broker has offices in Spain, Poland, and the UK, where it is authorized and regulated by the National Financial Supervision Commissions. The XTB is focused on working primarily with European investors. It has several significant awards, including the Best Broker in Europe award by Global Banking & Finance Review and Best Financial Teacher by World Finance Exchange & Brokers.
| 💰 Account currency: | USD |
| 🚀 Minimum deposit: | no minimum deposit |
| ⚖️ Leverage: | Up to 1:500 |
| 💱 Spread: | From 0.1 pips |
| 🔧 Instruments: | Currencies, stocks, indices, raw materials, CFDs, and cryptocurrencies |
| 💹 Margin Call / Stop Out: | 30%/30% |
Pros and cons of XTB
👍 Advantages of trading with XTB:
•minimum deposit - $1;
•a wide range of trading instruments;
•branches in 12 countries.
👎 Disadvantages of XTB:
•the demo account is only available for four weeks;
•all analytical materials provided by the broker are exclusively in English;
•no PAMM accounts;
•the broker is focused on European clients.
What information should a broker disclose?
Only the broker that discloses all legal information can be considered reliable. You need to take notice of this factor when choosing the company.
The official website of the broker should contain the following information:
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The name of the legal entity.
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Country of registration.
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Number of the registration certificate.
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Legal address, factual addresses of the offices of the broker.
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License to conduct financial activity.
The information must be published either in a special section on the website of the broker or in the disclaimer. Make sure to check it.
The official website of the broker must also provide internal regulatory documents. Before you start working with a company, review Terms of Use, Privacy Policy, Disclaimer, Risks Notice, and other documents.
Is XTB legal in Malaysia? Broker’s license
Security (Protection for Investors)
The financial regulator of X Trade Brokers is the Belize International Financial Services Commission (FSC). The broker's license number is 000302/438.
Also, X Trade Brokers is licensed by financial regulators in Spain, Poland, and Turkey.
👍 Advantages
- Licensed by financial regulators in several countries
- There are representative offices in 12 countries
- The broker's regulations and rules for the provision of financial services are freely available on the official website.
👎 Disadvantages
- Complaints are accepted only in English
- Complex and lengthy complaint procedure
- Claims that relate to compensation for personal injury damage are not considered
- Claims by traders with small losses are not considered
Brokers that are similar to XTB
In addition to license and reliability, you also need to take notice of the trading conditions of brokers. This is important both for beginners and experienced traders, as the demands of the clients with different experience differ. Traders Union analysts have prepared a comparison table of XTB with similar brokers.
Comparison of XTB with other Brokers
| XTB | Bybit | Eightcap | XM Group | RoboForex | TeleTrade | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, xStation 5 |
MetaTrader5 |
MT4, MT5, TradingView |
MT4, MT5, MobileTrading, XM App |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
MT4, MT5 |
Min deposit |
$1 |
No |
$100 |
$5 |
$10 |
$10 |
Leverage |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
10.00%% |
1.00%% |
Spread |
From 0.1 points |
From 0 points |
From 0 points |
From 0.8 points |
From 0 points |
From 0.2 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution |
Market Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
No |
No |
No |
Yes |
Yes |
XTB is a broker that focuses on the European segment of the market. The company is suitable for novice traders because the deposit in XTB starts from $1. A leverage of 1:500 will allow you to test almost any trading strategy without significant investments.
Overall. Bybit offers seamless Forex integration with crypto infrastructure, automatic leverage allocation, and MT5 support with Expert Advisors. The platform is suitable for users familiar with trading basics, as well as beginners and algorithmic traders.
Eightcap has favorable working conditions due to a large choice of instruments, tight spreads, high leverage, and no withdrawal fees. Integration with popular trading platforms and basic deposit/withdrawal options greatly facilitates work with the broker and reduces the entry threshold. In addition to comfortable conditions and low financial costs, traders get free educational materials and special services for technical analysis. A relative disadvantage is the absence of opportunities for passive income. Also, the broker works only with CFDs, so other groups of trading instruments are not available.
XM Broker is a broker for professional trading. Trading conditions correspond to the average market; there are technical advantages that distinguish XM Broker from its competitors.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
TeleTrade is a broker for traders who value the variety of trading instruments and trade using their PC or a mobile app. The company is a good broker both for beginners and experienced traders.
Conclusions
Traders Union showed that XTB is indeed very reliable and legal in Malaysia. The company holds all necessary licenses to conduct financial activity; it complies with all key requirements of the regulator. Legality of the broker’s operation in the country is one of the key criteria for choosing the company for trading. It is important to take this into consideration, as well as the trading conditions. In this case, we can say that the broker meets all the reliability requirements.
FAQ
Can I work with a broker who does not hold the license?
Trading with a broker without the license involves high risks. The license guarantees that the company performs its obligations. Working with a broker without the license creates a risk of manipulations with quotes, failure to pay, and other schemes.
Where can I complain if a broker with a license violated its obligations?
If a broker allows a violation of the conditions, you can appeal to the authority that issued the license and to the court.
How do I choose the best broker in Malaysia for beginners?
Novice traders need to consider the brokers with licenses issued in Malaysia or other European Union countries, availability of a demo account or cent account, the level of commissions and fees and minimum deposit, as well as educational materials.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.