CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Educational Articles

Knowledge Base

Reading time • 9 minute(s)
UK Budget Preview: One month to go
The UK Budget at the end of this month will be the first for the new Labour Government. Chancellor Rachel Reeves will deliver the budget around 12:30pm on 30th October. This will set out the new government’s spending and tax plans, and the Office for Budget Responsibility will also publish an independent assessment of the UK’s economic health and their estimates for future levels of public debt. The Budget will need to be passed by MPs in the House of Commons. However, Labour controls more than 400 seats in the Commons, which is a large majority, so it is reasonable to presume that the Chancellor’s plans set out in this month’s Budget will get passed into law.
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Reading time • 2 minute(s)
How to Hedge Forex
Forex hedging is a strategic approach employed by traders to mitigate potential losses from adverse movements in currency exchange rates. It involves taking additional positions in the foreign exchange market to offset risks associated with existing trades. This article explores various hedging strategies, their implementation, and the underlying principles that guide these practices.
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Reading time • 5 minute(s)
US Presidential Election 2024: Kamala Harris vs Donald Trump. Which candidate is better for stock markets?
The US presidential elections take place every 4 years. This year, the election is scheduled for Tuesday, November 5th, whilst the inauguration will be held on January 20th, 2025. Voters will cast their ballots for candidates to the US Congress, composed of the House of Representatives and the US Senate. This year’s election concerns the entire HoR (435 members elected every 2 years), as well as 1/3 of the Senate (33 members for a 6-year term). Back in July, it seemed that Donald Trump's victory in the November 2024 US presidential election was almost certain. President Joe Biden's health problems caused a significant drop in his popularity. An unsuccessful assassination attempt on Trump during a campaign in Butler, Pennsylvania (one of the key swing states) seemed to seal his presidential race.
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Reading time • 20 minute(s)
Investing during a crisis: Strategies and Tips
Asset prices in financial markets largely depended on the emotions of market participants. Their fluctuations mean that periods of temporary panics and euphoria are cyclical. They are part and parcel of the “mechanics” of the market, and since human psychology has not changed significantly over the past hundreds of years, financial crises and crashes happen periodically. And they are likely to continue to happen, in the future. Usually, a crisis is preceded by a period during which most investors are wrong, driven by greed. Such situations may lead to a crash and can herald a prolonged crisis, fuelled by investors' fear. Most spectacular examples include the 2020 crash caused by the Covid-19 virus, the dot-com bubble of the 2000s, and the Great Depression of 1929, after which the US stock market took nearly 25 years to recover. In good times, investors overestimate the value of some companies and underestimate the risk. This is a characteristic element of a great economy, during which no one worries about the future. Risk control and uncertainty recede into the background. Usually, however, an unexpected event shows that reality is not so great. It could be a systemic problem in the financial sector like the subprime loans in 2008, a war or a period of economic downturn. During a recession, corporate profits and revenues begin to fall. The effect? In the end, euphoria turns into panic and leads to drastic price drops. During them, the market gets rid of assets it loved until recently. Investors see the future in black. They believe that there is no price too low for the things they own. Over time, they are proven wrong again, and the market begins to recover.
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Reading time • 30 minute(s)
GBP/EUR 2025 Forecast: Euro, Pound Exchange Trends
The pound to euro exchange rate has remained volatile in 2024, with the pound rising in value against the EUR for much of the year compared to the end of 2023. The GBP/EUR rate has often threatened to break out to its highest levels since August 2022. However, recent shifts in expectations suggest potential weakness for the pound, following the belief that UK interest rates have likely peaked and could be reduced by at least two times in 2024. Looking ahead to 2025, the pound's performance against the euro will be influenced by several key factors, including economic growth projections, inflation rates, and future UK monetary policy decisions. If interest rate cuts materialize as expected, this could lead to further downward pressure on the pound, while any economic recovery or growth in the UK could provide support for the GBP. Analysts also suggest that ongoing political and economic uncertainties may continue to play a significant role in currency fluctuations. For 2025, it is anticipated that the pound may continue to face challenges, but there is also the possibility of periodic gains should the UK's economic performance outperform expectations or if the European Union faces its own set of challenges. As always, exchange rate forecasts remain subject to change based on evolving economic conditions. Stay updated with our live blog tracking key changes in the pound-to-euro rate and the latest analyst forecasts.
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Reading time • 3 minute(s)
The FCA Consumer Duty: What is it?
The financial services industry has undergone a significant transformation with the introduction of the Consumer Duty. This regulation, enforced by the Financial Conduct Authority (FCA), came into effect in July 2023 and places a paramount focus on protecting consumer interests and ensuring that firms deliver consistently excellent outcomes. At the heart of the Consumer Duty are four core principles: acting in good faith, avoiding foreseeable harm, being open and transparent, and delivering fair value. These principles demand a fundamental shift in how financial firms operate, prioritising customer needs and well-being above all else. In this article, we will delve into the key aspects of the Consumer Duty, exploring its impact on both consumers and financial firms. We will also discuss how XTB is actively working to comply with this landmark regulation, ensuring that our clients benefit from enhanced protection, transparency, and fair value.
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Reading time • 11 minute(s)
Investing in Currencies
Picture a bustling marketplace that never sleeps, where traders from around the globe are constantly buying and selling. This isn’t your ordinary marketplace; this is the foreign exchange market, better known as forex. The foreign exchange market is the largest market in the world, but it is worth noting that the forex market is dominated by speculators who trade trillions of dollars every day, all over the world. But currencies are not just about trading. How can they be used in investments?
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Reading time • 6 minute(s)
What is Next for the AI Trade?
The Artificial Intelligence trade has been a huge market theme for most of the last 18 months, and big gains for the likes of Nvidia have been a key driver of US stock markets. However, has it reached a tipping point? As we move through the second half of the year, the AI trade can no longer be relied on to keep stock markets moving higher. Added to this, the Q2 earnings season also shows us that investors are becoming more demanding about the financial impact of Artificial intelligence investments.
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Reading time • 4 minute(s)
What’s Next for Global Stock Markets?
The first half of 2024 will be remembered for strong gains in stock markets, particularly in the mega caps stocks in the US and Japanese equities. Smaller cap stocks and European equities trailed these gains, however, there could be a chance for them to play catch up. The start of the year was dominated by the chip makers and US stocks, especially the tech stocks. The Nasdaq was one of the top performing stock indices globally, rallying more than 16% from January through to the end of July. Japanese stock indices were also top performers, the Nikkei is higher by more 13% than while the Topix is higher by 14%, as investor interest in Japan was piqued by the prospect of interest rate normalisation by the Bank of Japan. As we move through Q3 a new theme could be about to take over markets.
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Reading time • 5 minute(s)
The Outlook for Commodities in the Second Half of 2024
The commodity market has had a mixed year. After rallying strongly in the first few months of the year, as the months have progressed commodities and some raw materials have given back most of these gains. For example, Brent crude oil is higher by just under 3% YTD, however, it is down nearly 10% in the last three months. The price of copper reached a record high close to $11,000 per tonne in mid-May, however, it is now trading at just over $9,000 per tonne. The weakness across the commodity landscape is down to various factors including macroeconomic fundamentals as well as supply and demand factors.
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Reading time • 6 minute(s)
Best Stock Broker - How to Choose the Best UK Broker
Many individuals embarking on their trading journey often seek out the best brokerage firms in the UK. In the competitive world of online trading, XTB offers a comprehensive range of services and features designed to cater to traders of various experience levels and trading styles. In this article, we delve into what XTB offers, exploring the tools, platforms, and services that traders can expect to find catering to both beginner and experienced traders.
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Reading time • 8 minute(s)
Artificial Intelligence ETFs - Smart Investing in AI
Do you agree that technology will transform the world in the following decades? If yes, one may consider investments in the technology sector. After generative intelligence entered the business world, financial markets tried to value this historic change. It’s powerful enough to completely change some companies' valuation and disrupt business models. It’s really hard to choose winners, without risking investing in losers, as technology is changing constantly. Choosing stocks related to AI for some investors may be too risky and bring additional risks. Professional and individual investors often use exchange traded funds. Why? Those instruments give the opportunity to have well-balanced exposure to all technology, including the AI sector. This limits the potential of investing only in future winners, but it also limits the risk of investing in wrong companies, with inherent risks related to such investments. Navigating the growth of the artificial intelligence trend, our focused guide on ETFs which offer directly and indirectly exposure to AI. We will show pros and cons and try to identify key strategies for AI, focusing on Nasdaq100.
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Reading time • 2 minute(s)
Invest Wisely: Why Financial Education is Key Before You Start Trading
The financial markets can be a tempting arena, promising the potential for high returns. But just like entering anything new, proper training is crucial. Before diving into the world of trading, educating yourself about financial assets is the first step to making informed decisions and protecting your capital.
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Reading time • 3 minute(s)
The Importance of Maintaining a Presence in the Financial Markets All Year Round
Summer is a time for vacations, barbeques, and enjoying some well-deserved downtime. But whilst doing all the above, maintaining a consistent presence in the financial markets throughout the year, including during the summer months, is crucial for investors. Here's why it's important to stay engaged with the markets year-round.
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Reading time • 2 minute(s)
Building Balance: How to Diversify Your Portfolio with XTB
The key to a healthy investment strategy lies in diversification. By spreading your holdings across various asset classes, you reduce risk and improve your portfolio's resilience in volatile markets. XTB, with its diverse offerings, empowers you to create a well-rounded portfolio tailored to your financial goals. Here's how you can leverage XTB's platform to achieve effective diversification. XTB offers over 5,600 instruments to help you build a diversified portfolio, including stocks, ETFs, investment plans and other assets. Let's explore how you can utilise these to your advantage:
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Reading time • 1 minute(s)
Staying in Control of Your Investments
When you're an active investor, it can be challenging to monitor your portfolio 24/7. Unexpected market movements can happen at any time, and you need a way to stay informed and react quickly, even when you're not glued to your trading platform. Fortunately, XTB offers two powerful tools to help you maintain control over your investments - price alerts and stop loss orders.
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Reading time • 10 minute(s)
Best ETFs to Look Out For
Out of the hundreds, available ETFs, every investor wants to choose the one that will bring the highest return in the future. However, we cannot predict the future. In assessing the 'quality' of the ETF funds we choose, we can look at some basic information that will tell us more about the costs involved and, most importantly, whether they truly reflect the return of the asset, sector or index they track. In the following article, we will consider what ETFS to look out for. ETFs are mainly aimed at long-term investors looking for ways to diversify their portfolios, which can save time analysing each listed company individually. Speaking of 'best' funds, the article will refer to those whose broadly defined quality is high. This, of course, does not prejudge future returns. Without a doubt, the very popular ETFs are those offering exposure to the U.S. stock market and indexes like the S&P 500 or Nasdaq 100, although funds for emerging market economies or precious metals are also popular. Exchange traded funds (ETFs) make diversified exposure to global financial markets possible, without searching and buying hundreds or a thousand of stocks. From the precious metal, stocks of major companies around the globe, to bonds and emerging markets. Who has ever heard about bull market cycles, technology stock rallies or precious metals investments? Thanks to ETFs, investing gained popularity. However, in this article, we will learn more about how to select a high quality ETF, and we will present you with a few.
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Reading time • 14 minute(s)
Climate change investments: Maximising impact
The world is moving forward, and high economic development continues to generate significant levels of carbon emissions. The Earth's climate is changing, and restoring a sustainable environment will help humanity achieve long-term growth without disrupting the planet's ecosystem and the risks that supply behind its damage. A very important “green economy” trend has been hatched as a response to rapid climate change. However, it cannot happen without trillions of dollars worth of investment from the private sector. Climate change creates powerful opportunities for companies that get given the ability to create successful business models based on the new green trend. Investors who choose to invest in this change can expect long-term returns and a positive impact on planet Earth. Of course, this cannot take place without the risks that always accompany investments. How to invest and, above all, how to understand the trend of investing in climate change? From electric cars to investments in uranium miners to investments in water. Examine how renewable energy, sustainable transport, and carbon reduction technologies can align your investments with environmental sustainability and potential growth. Read this article to know how to benefit and impact from climate change investments.
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Reading time • 3 minute(s)
Utilities, Homebuilders, Healthcare & Tech firms: Stocks To Look Out For ahead of the UK General Election
We recently highlighted several stocks that could be worth watching as the general election approaches. Now, with the election drawing nearer, let's take a look at how some of those stocks have been performing over the past month in the lead-up to the big day.
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Reading time • 6 minute(s)
Poll Shows Public More Confident in Labour's Ability to Tackle Economy and the Stock market
The UK is soon approaching July 4, making the pound rally ahead of election day. Labour is still on track to win 40%, with the conservatives on 20% and Reform on 17%. This election is incredibly significant as it could end 14 years of the Conservatives ruling, meaning this would be Labour's biggest win since Tony Blair's 1997 landslide.
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