XTB Aims for £400 Billion Market in The UK

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After
debuting its first offering for future pensioners in Poland, XTB is now looking
to enter a much more competitive market. During a conference call, the
company’s CEO revealed that the fintech would like to offer Individual Savings
Accounts (ISAs) to savers in the UK.

Finance
Magnates
asked
XTB’s Regional Director, Joshua Raymond, for more details on these plans. As he
confirmed, the publicly traded company plans to apply for an ISA manager
license in the coming weeks.

At the end
of January, XTB reported its 2023 results, after which its shares skyrocketed
to historic highs. Along with the update about the increase in active clients
to almost 312,000, the company also presented a roadmap of new products
for 2024. In addition to the social trading and bonds offering, there was a
real treat for hundreds of thousands of Polish savers: IKE and IKZE retirement
accounts
.

Without
going into details, both allow Poles to save funds or invest in financial
markets while offering additional long-term tax benefits. In total, nearly
1.5 million people in Poland have such accounts, and their value grew last year
to a record PLN 23 billion ($5.7 billion).

During the
conference call a day later, however, it turned out that IKE and IKZE are not
everything. The fintech is also looking at a much larger retirement and savings
market, namely British ISAs.

Omar Arnaout, the CEO of XTB

“Budgeting
for the end of last year as well as this year, we want to fight for the market
again, because we finally have something to fight with,” commented Omar
Arnout, the CEO of XTB, quoted by the Polish Press Agency. “We want to
apply for an ISA, which are the British savings plans, and I hope that we will
be able to compete in a market that, it must be admitted, is competitive.”

27 million
people in the UK have an ISA, definitely more than in Poland, and its total
value is £400 billion in stocks and share saving accounts. Every year, up to
£20,000 can be invested without having to pay tax on capital gains and
dividends.

XTB “Anticipate
Strong Take Up” of ISAs

Joshua Raymond, the CEO of XTB UK

In an
interview with Finance Magnates, Raymond confirmed that XTB is preparing
to launch ISAs in the UK market, and the licensing application will be
submitted soon. And, there is a lot to fight for. In addition to existing ISAs,
“there are nearly 12 million ISA subscriptions each year in the UK,”
commented the CEO of XTB UK. “This represents a huge market for XTB to be
operating in.”

XTB will
want to attract new clients primarily through its modern application and no
commissions for stocks and ETFs
with monthly turnover below €100,000. However,
the company did not reveal what specific products would be included in the
savings account offering and mentioned: “We are working on the details.”

“ISA
accounts mark the next milestone for our product pipeline in the UK, which
already includes ETFs, stocks, Investment Plans and CFD products. We feel this
range of products offers something for clients of all investment styles, be it
traders, long term investors and those that prefer active or passive
investing,” Raymond added.

Although Arnaout
stated during the press conference that: “The UK market is not among the
company’s priorities,” the opinion of the UK director is, naturally, quite
different. He claims that XTB intends “to grow market share” in the
UK.

When asked
if, after IKE and IKZE in Poland and ISAs in the UK, the fintech will be
planning to launch a similar offering in other markets, he admitted that the
company certainly intends to “explore other possibilities,” including
the Pan-European Personal Pension Products.

IKE/IKZE vs ISA

IKE and
IKZE are Polish retirement accounts with age limits but tax perks for
retirement savings, while ISAs in the UK are open to any age and limited to
tax-free growth up to a yearly contribution cap.

“Both
of them are special-purpose investment accounts offering tax benefits. In general, the products are similar, but the details differ from one country to another; therefore, there is no unified solution for all markets,” explained Raymond.

So, while
both offer some tax incentives, IKE and IKZE are specifically retirement
schemes with age requirements, whereas ISAs are more flexible general
investment accounts without age limits. The key similarity is that both provide
options for tax-advantaged investing suited to their respective countries’ laws
and regulations around retirement planning.

After
debuting its first offering for future pensioners in Poland, XTB is now looking
to enter a much more competitive market. During a conference call, the
company’s CEO revealed that the fintech would like to offer Individual Savings
Accounts (ISAs) to savers in the UK.

Finance
Magnates
asked
XTB’s Regional Director, Joshua Raymond, for more details on these plans. As he
confirmed, the publicly traded company plans to apply for an ISA manager
license in the coming weeks.

At the end
of January, XTB reported its 2023 results, after which its shares skyrocketed
to historic highs. Along with the update about the increase in active clients
to almost 312,000, the company also presented a roadmap of new products
for 2024. In addition to the social trading and bonds offering, there was a
real treat for hundreds of thousands of Polish savers: IKE and IKZE retirement
accounts
.

Without
going into details, both allow Poles to save funds or invest in financial
markets while offering additional long-term tax benefits. In total, nearly
1.5 million people in Poland have such accounts, and their value grew last year
to a record PLN 23 billion ($5.7 billion).

During the
conference call a day later, however, it turned out that IKE and IKZE are not
everything. The fintech is also looking at a much larger retirement and savings
market, namely British ISAs.

Omar Arnaout, the CEO of XTB

“Budgeting
for the end of last year as well as this year, we want to fight for the market
again, because we finally have something to fight with,” commented Omar
Arnout, the CEO of XTB, quoted by the Polish Press Agency. “We want to
apply for an ISA, which are the British savings plans, and I hope that we will
be able to compete in a market that, it must be admitted, is competitive.”

27 million
people in the UK have an ISA, definitely more than in Poland, and its total
value is £400 billion in stocks and share saving accounts. Every year, up to
£20,000 can be invested without having to pay tax on capital gains and
dividends.

XTB “Anticipate
Strong Take Up” of ISAs

Joshua Raymond, the CEO of XTB UK

In an
interview with Finance Magnates, Raymond confirmed that XTB is preparing
to launch ISAs in the UK market, and the licensing application will be
submitted soon. And, there is a lot to fight for. In addition to existing ISAs,
“there are nearly 12 million ISA subscriptions each year in the UK,”
commented the CEO of XTB UK. “This represents a huge market for XTB to be
operating in.”

XTB will
want to attract new clients primarily through its modern application and no
commissions for stocks and ETFs
with monthly turnover below €100,000. However,
the company did not reveal what specific products would be included in the
savings account offering and mentioned: “We are working on the details.”

“ISA
accounts mark the next milestone for our product pipeline in the UK, which
already includes ETFs, stocks, Investment Plans and CFD products. We feel this
range of products offers something for clients of all investment styles, be it
traders, long term investors and those that prefer active or passive
investing,” Raymond added.

Although Arnaout
stated during the press conference that: “The UK market is not among the
company’s priorities,” the opinion of the UK director is, naturally, quite
different. He claims that XTB intends “to grow market share” in the
UK.

When asked
if, after IKE and IKZE in Poland and ISAs in the UK, the fintech will be
planning to launch a similar offering in other markets, he admitted that the
company certainly intends to “explore other possibilities,” including
the Pan-European Personal Pension Products.

IKE/IKZE vs ISA

IKE and
IKZE are Polish retirement accounts with age limits but tax perks for
retirement savings, while ISAs in the UK are open to any age and limited to
tax-free growth up to a yearly contribution cap.

“Both
of them are special-purpose investment accounts offering tax benefits. In general, the products are similar, but the details differ from one country to another; therefore, there is no unified solution for all markets,” explained Raymond.

So, while
both offer some tax incentives, IKE and IKZE are specifically retirement
schemes with age requirements, whereas ISAs are more flexible general
investment accounts without age limits. The key similarity is that both provide
options for tax-advantaged investing suited to their respective countries’ laws
and regulations around retirement planning.

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