XLibre

Trust

XLibre Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the several entities operating under the XLibre trade name:

• XLibre (formerly Lindholm Capital Ltd) is licensed and regulated by the Financial Services Commission (FSC) of Mauritius under license number GB21026537. We rate the FSC as a Tier-3 regulator.
• XLibre SA Pty Ltd is licensed and regulated by the Financial Services Conduct Authority (FSCA) of South Africa under license number 47159. We rate the FSCA as a Tier-2 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, while others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. Both entities guarantee the segregation of client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. Both entities guarantee negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. XLibre does not participate in a compensation scheme.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with XLibre is 1:2000.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

I discovered that XLibre was formerly Linholdm Capital Ltd. The entity has changed its name but retained the same license from the Financial Services Commission (FSC) of Mauritius.

I reviewed XLibre’s other legal documents and discovered that information is readily available and easy to understand. The broker has also issued a ‘best execution policy,’ which is an essential safety mechanism that guarantees the delivery of optimal price quotes.

I also noticed that the broker does not display live spread info and the full list of available instruments on its website.

Is XLibre Safe to Trade With?

I concluded that XLibre is relatively safe to trade with because of the following factors:

• Is licensed and regulated
• Keeps client funds in segregated accounts
• Has issued a ‘best execution policy’
• Ensures negative balance protection

Fees

XLibre Trading Fees

XLibre Spreads

I tested XLibre’s spreads on 22 August 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, XLibre charges low spreads on share CFDs, indices, and cryptocurrencies, low-to-average spreads on commodities, and average-to-high spreads on currency pairs.

XLibre Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units).

My tests indicate that XLibre’s overnight fees at the time of the review were average-to-high compared to the benchmark. This is not particularly suitable for longer-term trading strategies, such as swing trading.

Commissions

XLibre’s Standard account features commission-free trading on currency pairs, commodities, and indices. However, there is a fixed commission for trading share CFDs and digital assets:

XLibre Non-Trading Fees

The broker charges dormant accounts with an inactivity fee of $5. An account is considered dormant when there has been no activity on it for a period of six calendar months. The fee is charged monthly until activity resumes or the account balance drops to zero.

Additionally, XLibre does not have a handling fee for deposits and withdrawals. XLibre may also reimburse its clients for banking fees paid to external payment processors.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of XLibre’s several retail account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

According to my findings, XLibre’s Standard and Raw accounts feature spreads that exceed the industry average for both STP and ECN accounts. More competitive conditions are available on XLibre’s Pro account, which, however, has a minimum deposit requirement of $2000.

Are XLibre’s Fees Competitive?

Overall, XLibre’s fees are favorable. However, the level of competitiveness depends on the particular instrument traded. For example, the broker’s share CFDs and cryptocurrency spreads on the Standard account are better than the industry average, but there is also a commission.

Accordingly, the level of competitiveness of XLibre’s fees is subject to the traded instrument, volume, and account type.

Platforms and Tools

The Desktop Version of XLibre’s MT5 Platform

In this review, I tested the MetaTrader 5 platform, which features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs) feature. The platform also has an intuitive strategy tester, allowing experienced algo traders to tweak the parameters of their strategies so that they can be used under different market conditions.

Additionally, MetaTrader 5 has an intuitive mobile app, which helps traders stay connected to the global capital markets even on the go.

General Ease of Use

MT5’s layout is pretty straightforward. Account info is displayed at the bottom of the screen. Charts occupy the middle portion of the window; a watch list of selected instruments and tools screen is positioned on the left side of the window. A panel with various settings and configurations can be found at the top of the window.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when we add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 24 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather large collection of drawing tools, MT5’s ruggedness makes it difficult to discern price action behavior.
• 21 timeframes. One of the standout features of MetaTrader 5 is its vast array of timeframes. MT5 allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 3 chart types. Price action can be represented as a line, bars, or candlesticks. This diversity allows traders to examine potential trading opportunities from different angles.

Orders

MetaTrader 5 features three types of order execution: market, pending, and one-click trading (top-left corner). One-click trading allows immediate entries at the spot price.

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

My Key Takeaways After Testing the MetaTrader 5 Platform

MT5 is a good option for fast and simple order execution. However, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

XLibre’s Execution Model

XLibre operates as a market maker without a dealing desk. It serves as a counterparty to client orders by filling their orders.

I measured XLibre’s average execution speed over several days and assessed that the broker achieves speeds of around 50-55 milliseconds. This is faster than the industry average of 60 milliseconds. XLibre’s execution performance is suitable for implementing most trading strategy types.

MT5’s Mobile App Version

To stay on top of the latest market developments, XLibre offers a mobile version of MetaTrader 5, which allows quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions.

Traders can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

My Key Takeaways After Testing MT5’s Mobile App

MT5 mobile app is quite easy to navigate, and it allows traders to retain control over their accounts at all times. However, it suffers from the same underlying problem inherent to other mobile apps. Analyzing price action behavior on low-resolution devices is extremely difficult. That is why I recommend using the mobile app only to monitor the development of your open positions and make changes if needed.

Tradable Instruments

Compared to the industry average, XLibre offers an average number of currency pairs and cryptocurrencies and a high number of commodities, share CFDs, and indices.

What Are CFDs?

Contracts for difference (CFDs) are derivatives that speculate on the underlying asset’s price without physical ownership.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With XLibre?

My Key Takeaways After Exploring XLibre’s Instruments Offering

I assessed that XLibre offers a decent amount of higher-yield/risk assets, such as share CFDs and cryptocurrencies. However, the broker lacks lower-risk securities, such as ETFs, bonds, treasuries, and more. Also, there is no alternative to its CFD instruments, such as options or futures contracts.

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