The Warsaw-listed brokerage XTB is reconsidering its move into the Brazilian market only six months after receiving its operating licence. Despite its early optimism about expanding across Latin America, the fintech is facing unexpected challenges due to what it calls “protectionist barriers” within Brazil’s financial system.
When XTB secured authorisation to operate in Brazil earlier this year, it marked a key milestone in the company’s broader international expansion strategy. However, the firm has yet to begin operations. In its third-quarter report, XTB confirmed it is “evaluating all possible business options, including the potential withdrawal from the Brazilian market.” According to the company, current market conditions and local protectionist measures are making it extremely difficult for foreign brokerages to compete and operate efficiently.
Sharp Profit Drop Adds Pressure
XTB’s strategic pause in Brazil comes during a financially challenging period. The company reported a 74 percent decline in net profit for the third quarter, falling from PLN 203.8 million last year to PLN 53.2 million. Revenue also decreased by more than 20 percent to PLN 375.8 million. The brokerage attributed the drop to reduced trading activity, weaker volatility across global markets, and limited price fluctuations in popular instruments, all of which have lowered profitability per trade.
Asian Expansion Gains Momentum
While Brazil presents regulatory obstacles, XTB’s expansion in Asia is moving forward successfully. The brokerage’s Indonesian division has officially started onboarding clients, offering access to stocks and ETFs. Plans are underway to introduce contracts for difference (CFDs) by early 2026. XTB received its licence in Indonesia late last year, marking its first official entry into Southeast Asia and signalling its continued focus on growth in emerging markets.
Strong Commitment to the Chilean Market
Despite the setbacks in Brazil, XTB remains committed to strengthening its presence in Latin America through other markets. The company obtained its licence from Chile’s Financial Market Commission earlier this year and expects to start onboarding clients in 2025. CEO Omar Arnaout previously described Chile as a key market for XTB’s long-term growth strategy, citing its transparent regulations and openness to foreign financial institutions.
Focus on Digital Innovation and Security
In addition to its regional expansion, XTB has been investing in digital services to enhance client experience. The company launched a multi-currency eWallet earlier this year, which enables smooth transfers and payments in 19 different currencies. By the end of September, over 22,000 clients had activated the service. XTB also introduced mandatory two-factor authentication (2FA) as part of its cybersecurity improvements following reports of an alleged client hack earlier in the year.
Strategic Shift Toward Favourable Markets
XTB’s reconsideration of its Brazilian operations highlights the growing difficulties faced by international brokerages in protectionist markets. With friendlier regulatory conditions in regions like Southeast Asia and Chile, the company may pivot its attention toward markets offering smoother entry and better growth potential. As XTB evaluates its next steps, the outcome could reshape its global expansion strategy and determine how it positions itself in competitive international financial sectors.