What are Investment Plans?
Investment Plans offer an excellent strategy for long-term, passive investing. With an Investment Plan, you have the flexibility to design a personalised portfolio of Exchange Traded Funds (ETFs) that align with your risk tolerance, industry preferences, or regional coverage.The plan will then automatically allocate your invested capital to each ETF according to your designated percentage allocation. As the value of your Investment Plan evolves over time, you'll get alerted to readjust the plan based on your initial fund allocation preferences.
How can I create an Investment Plan?
You can only create an Investment Plan on the XTB app, though you can manage the plan from xStation after being created. To create an investment plan you need to Choose the desired ETFs for your plan, Determine the percentage of each ETF in the portfolio, Top up your Plan , Set the investment amount, Confirm your choice and your Investment Plan will be created. To manage your Investment Plan, go to the Edit tab of your plan, Remove the ETF that does not align with your strategy, Add a new fund to your portfolio, Set the percentage share of instruments in the portfolio, Confirm your choice and your investment plan will be updated. Watch a demonstration video here.
Are Investment Plans a form of Investment Advice?
No. XTB does not offer any investment advice and you are ultimately responsible for all of your investment decisions. Our Investment Plans product has been designed to help you passively invest in the financial markets over the long term in an easy to use way.
In the ‘choose your funds’ section of creating my Investment Plan, there are some selected ETFs shown. Are these recommended funds by XTB?
No. As noted above, XTB does not offer any investment advice and you are ultimately responsible for all of your investment decisions. There’s hundreds of ETFs available to choose from as part of creating your Investment Plan. Therefore at the initial set up phase of your plan we decided to show you some of the most popular ETF markets to improve your user experience. To view all ETFs, simply click on the ‘I want to see a full ETFs list’ link at the bottom of the page and you can use the search bar to find your desired ETF.
How do I find out more information about the ETFs I’m selecting for my Investment Plan?
When selecting which ETFs to choose as part of your plan, simply click on the ‘i’ button to learn more information about that specific ETF. This will take you to another section of our platform where you can learn some valuable information such as Basic Info, Key Facts, Performance and Portfolio. It’s important you fully understand information about each ETF under your Investment Plan and we encourage you to do your research before finalising your plan.
What does the star rating system mean?
We want to be as transparent as possible about each ETF we offer. As part of that dedication, we import the star rating from Morningstar, one of the world’s leading investment research firms. Morningstar has been publishing a star rating system for investment funds since 1999 and their system has been designed using an easily-identifiable scale from one to five stars. Morningstar ratings have helped investors to make more fully informed decisions about which funds to include as part of their portfolios.
Morningstar assigns a one- to five-star ranking to each fund based on past performance relative to peer funds. Star ratings are graded on a curve; the top 10% of funds receive five stars, the next 22.5% receive four stars, the middle 35% receive three stars, the next 22.5% receive two stars and the bottom 10% get one star.
Morningstar Ratings for funds are based on a risk-adjusted return quantitative measure, in line with Morningstar’s global ratings methodology. Morningstar’s qualitative research is separate from the star ratings, and incorporated exclusively in the Morningstar Analyst Rating. Morningstar Ratings are calculated within fundamentally-based fund categories, enabling more robust peer comparisons.
For more information on Morningstar's ratings system, please view their methodology here.
What are the tax implications of owning an Investment Plan?
The tax implications for creating an Investment Plan is the same as if you were to buy individual stocks or ETFs separately. This is because your Investment Plan still invests in assets which are subject to Capital Gains Tax in the UK. Therefore, as per the government's website, you may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) some or all of the assets within your Investment Plan. The amount of capital gains tax you pay will depend on your income and the amount of profit.
XTB can provide reports on what you have invested in to help with your self-assessment submission to HMRC.
Please visit or contact HM Revenue & Customs (HMRC) to ensure you have the most accurate and up-to-date information. https://www.gov.uk/tax-sell-shares https://www.gov.uk/tax-on-dividends
Are Investment Plans commission free?
Yes, there is no commission as long as your monthly turnover does not exceed the equivalent of 100 000 EUR (then commission 0.2%, min. 10 GBP). Additionally, 0.5% currency conversion cost may apply when you invest in ETFs that are priced in a currency that’s different from your base currency i.e. You have a GBP account but invest in a EUR ETF.
How much does it cost to run an Investment Plan?
Setting up and running Investment Plans at XTB is completely free of charge. We don’t charge any management or custody fees for this product.
Where can I find a list of all ETFs available on offer?
A complete list of all ETFs available on offer can be found here.
Do I become the direct owner of the ETFs purchased under Investment Plans?
Yes, after purchasing ETFs you become their rightful owner and XTB holds your assets in a fully protected custody account on your behalf.
How many Investment Plans can I run simultaneously?
It is possible to run up to 10 Investment Plans simultaneously (all plans are free to run).
What is the minimum investment value under the plan?
There is no single, lower limit to the value of investment, as it depends on the number of ETFs in the composition of a given plan, as well as on their current market price. Therefore, it will be different for each plan.
Can I add shares to my Investment Plan?
At the moment it is not possible to add shares or other markets to Investment Plans apart from ETFs currently.
Are there any currency conversion fees for buying ETFs in another currency?
Yes, there are currency conversion fees when executing transactions. Please note, 0.5% currency conversion cost may apply when you invest in ETFs that are priced in a currency that’s different from your base currency i.e. You have a GBP account but invest in an EUR ETF.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.