XTB Rethinks Brazil Entry Six Months After Licence, Citing “Protectionist Measures”

XTB may withdraw from Brazil less than a year after securing regulatory approval, with the broker pointing to “protectionist market barriers” that have made it difficult for foreign firms to operate in the country’s brokerage sector.

The decision follows a period of weaker financial performance for the Warsaw-listed broker, prompting management to reevaluate regional priorities and focus on markets with stronger regulatory and commercial conditions.

Licence Secured in February, But Launch on Hold

XTB obtained its Brazilian authorization earlier in 2025 and began the process of registering as a regulated financial institution. However, the broker has yet to begin active operations and is now considering whether to pause or fully exit its local plans.

According to the company’s Q3 financial report, “current conditions in the Brazilian brokerage sector, especially local protectionist measures, prevent the commencement of operations in this market.”

The statement marks a significant reversal for XTB, which initially identified Brazil as a cornerstone of its Latin American expansion strategy. The country represents one of the region’s largest retail trading markets, with a rapidly growing investor base.

Weaker Quarter Pressures Global Expansion

The reassessment comes as XTB posted a 74% year-over-year drop in net profit for Q3 2025, falling to PLN 53.2 million from PLN 203.8 million a year earlier. Revenue also declined by 20.1% to PLN 375.8 million, driven by lower volatility in global financial and commodity markets.

“For most instruments that are most popular among clients, the market moved within a limited price range,” the company noted, adding that reduced market activity directly affected profitability per contract.

Despite this, XTB maintained that its long-term strategy remains focused on global diversification and technology-driven growth.

Indonesia Launch Gains Traction

While Brazil faces headwinds, XTB’s Asian expansion is gathering pace. The broker’s Indonesian subsidiary has begun onboarding clients and currently offers stocks and ETFs, with CFDs expected to be introduced by early 2026.

The Indonesian license, secured at the end of 2024, marked XTB’s first regulatory approval in Southeast Asia and reflects its commitment to establishing a footprint in fast-growing, mobile-first markets.

Earlier this year, XTB also obtained authorization from Chile’s Financial Market Commission, allowing it to offer investment services locally. CEO Omar Arnaout described Chile as a “key player” in the firm’s Latin American strategy, with client onboarding scheduled throughout 2025.

New Products and Digital Wallet Adoption

XTB has continued expanding its ecosystem with the rollout of XTB eWallet, a multi-currency digital payment solution launched in 2025. The service allows clients to make cashless payments and transfers across 19 currencies.

By the end of September, the eWallet had attracted nearly 22,000 active users, highlighting growing interest in seamless, cross-border transaction tools among the broker’s global client base.

Outlook: Rebalancing Toward Growth Markets

The potential Brazil exit underscores a broader recalibration of XTB’s geographic focus. While Latin America remains strategically important, operational barriers and regulatory hurdles have shifted attention toward more receptive jurisdictions across Asia and Europe.

If XTB proceeds with scaling back in Brazil, it will join a growing list of foreign brokers struggling to navigate the country’s complex licensing environment and domestic protectionist policies.

While XTB’s expansion in Latin America faces uncertainty, the broker continues to strengthen its footprint in the Middle East. Earlier this month, XTB Launched a Free Shares Promotion and Financial Education Drive Across the MENA Region — part of its broader strategy to engage new investors through localized initiatives and in-person workshops.