XTB has reportedly acquired a 90 per cent stake in an Indonesian derivatives broker, XTB confirms, as it looks to gain a foothold in the local market.

Indonesian Brokerage Joins XTB Group

XTB's 2023 performance summary report released this week revealed not only crossing the 1 million client mark but also a significant acquisition in a market it hopes to invigorate in the coming years.

On January 17, 2024, the fintech company completed the acquisition of 90% of the shares of derivatives brokerage brand Eagel Capital Futures, operated by PT Rajawali Kapital Berjangka and regulated by the local commodity futures trading regulator, BAPPEBTI. This is the culmination of the acquisition process initiated last year.

A representative of XTB stated, "Given our aim to establish our presence in non-European markets, namely Latin America, Asia, and Africa, this is a natural step towards achieving that goal."

While the brokerage is regulated in Indonesia, XTB acknowledges the necessity of obtaining separate licenses to operate in the Asian market before commencing services through the new entity.

XTB added, "Apart from regulatory aspects, there is also the integration required by our technical team to ensure we can offer the best solutions to local investors."

According to the company's 2023 report, it achieved a net profit of 791.3 million złoty, representing a growth of several percentage points compared to 2022.

Indonesia: Gateway to the Asian Market

In recent years, the Indonesian financial market has experienced significant growth, with a surge in active retail investors and increasing interest in savings and wealth accumulation. In this country of nearly 300 million people (70% of the total population of the EU), approximately 12 million people are engaged in investment. According to data from the Indonesian Central Securities Depository in September 2023, this figure saw a 14% year-on-year increase.

The development in this region, as well as in Africa and Latin America, is part of the company's strategy, as the forex/CFD and stock markets in these regions offer "high growth potential." Currently, the company focuses on expanding its operations in 12 countries, holding licenses in Poland, the UK, Cyprus, Belize, and the UAE.

The recently launched XTB Social is part of the listed company's roadmap for 2024 and could be an opportunity to attract new clients. XTB is also committed to promoting passive investment, including investment through ETFs. To this end, in February of this year, the company partnered with BlackRock, one of the largest issuers of such funds.

XTB is not the only company recently turning its attention to Indonesia. Towards the end of 2023, the US-based retail trading platform Webull also took similar actions. Following its debut in places like Singapore, this move continued its global expansion efforts.