XTB Investment Products: Understanding Low and High-Risk Investment Options

Products with Lower Risk

Investment Plans

Investment Plans offer a 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.

With these plans, you can build your own portfolio based on your risk tolerance and preferred sectors. Choose from over 350+ ETFs (Exchange-Traded Funds) to create a diversified mix. Here are some key points:

• Minimum deposit of £15
• No minimum investment period
• Open or close plans anytime
• XTB handles all calculations based on the percentages you set

Learn more about investment plans here. 

Stocks and ETFs

• Stocks: When you buy stocks, you own a part of a company. Stocks can increase in value if the company performs well, but they are subject to market volatility. Stocks are ideal for long-term investment.
• ETFs: ETFs are collections of assets like stocks, grouped into a single investment. They help reduce risk by diversifying across multiple investments.

Learn more about Stocks and ETFs.

Fractional Shares

With fractional shares, you can invest in portions of a single share rather than needing to buy whole shares. This makes investing more accessible as you can start with smaller amounts.

For more on fractional shares, click here.

Higher-Risk Products

CFDs (Contracts for Difference)

CFDs are financial derivatives that allow you to speculate on price movements without owning the underlying asset. They involve leverage, which can amplify both gains and losses. CFDs are suitable for experienced investors who understand the risks and terms such as leverage, margin calls, and rollovers. CFDs require careful study and are best suited for short-term, active trading.

For more information on CFDs, please refer to the following educational articles; 

• What is CFD trading? 
• What is leverage in trading?
• CFD definitions 
• Margin Call - What is it? 
• Everything you need to know about rollovers!
• What is a pip? 
• Swaps and Charges 
• Long position 
• Short position 

The table below provides a quick look at the differences between lower and higher-risk products, helping you decide which option aligns best with your investment goals and risk tolerance.