The XSPOT Story

A WORD FROM OUR FOUNDERS

XSpot was built around a simple idea: Transparency and innovation which benefits our clients’ savings and investments. We work to keep our investors at the heart of everything we do by offering a better, modern, and more efficient way to build and manage their wealth

Since day one, we put our purpose to look for ways to offer our clients more value and better experience. We are confident that with XSpot Wealth people from all levels of income can now take ownership of their financial future in any stage of their life.

Leaving our jobs as traders to start XSpot Wealth, one of the most innovative digital wealth managers in Europe was the best decision. Now 5 years on, XSpot is regulated around Europe with authorisations in the UK, France, Germany, Spain, Italy, Greece and 24 more EU countries, and is now ready to change the way people save and invest their hard-earned money

It was late 2014; We were working in different jobs in the financial industry and met in a small café in Knightsbridge. Both having long experience in different fields of the financial markets industry, we met back in 2011 in the busy trading desks of a prop trading firm in London, where we were traded derivatives, having the constant urge to move forward with a new project that would be more ambitious and challenging.

In a period of rapid regulatory changes with MIFID I, and the discussions around MIFID II and its implementation, we realised that if Europe decided to implement these changes, the entire wealth management industry would change forever. We needed to come up with a solution that could relate to everyone and not just the few, a solution which we could easily explain to our family and friends.

As traders and senior analysts, we had many people who sought our advice on how to invest their money, thinking that we would know best. What they did not know is that this was a very difficult question; trading and long-term investing are two different things. This is when we started thinking of creating a service that we could recommend to our families, friends, and simply to everyone!

Top wealth management services for all
How should we do it? Till that point, savings and investments were handled by banks and traditional wealth managers with old-style methodologies, offering expensive products and having very high minimums (more than €100,000 in some cases) prohibiting smaller investments. The question was how people could get top wealth management services even when investing a few thousands, as most of our family and friends didn’t have this kind of cash required by most banks and traditional managers to start their saving plans.

The key would be revamping everything through fintech. For us automation was already there; we were using algorithms and artificial intelligence in trading; this made us realise that if we could apply some of these rules in Wealth Management we could democratise investing and help everyone start their investment pots with great diversification, full transparency and very low costs. This would lead to a totally new era of people taking their future in their own hands.
It was then that we decided to quit our jobs and launch the idea of XSpot Wealth.
Another thing we did not like was the lack of transparency. Hidden fees were (in many cases still are) eating up the growth and income of the portfolios, and there was a similar lack of clarity on the risk scale of every portfolio. Investors didn’t (and many still don’t) have a complete understanding of the risk they were taking as long as managers hid behind such names as ‘Balanced’, Conservative’, ‘Growth’, which do not relate to risk profiles. Not with us.

In XSpot Wealth we believe in the Markowitz Modern Portfolio Theory, where each model portfolio has a pre-set quantified level of risk in % terms. This way our investors know from the beginning what risk they are taking in every plan. On the other hand, our team with the help of high-end algorithms, create, monitor, and rebalance the assets of our portfolios in order to maximise the reward within the specified investment horizon

We only use Exchange Traded Funds (ETFs) as we believe in keeping costs low. We choose these over mutual funds for several different reasons but mainly because they are way more cost efficient. Many studies show that any portfolio with total fees above 1.50%-2.00% cannot make money in the long term. We also don’t believe in the single stock/bond picking as this is by far the single most risky strategy for investors providing no room for diversification for smaller investments with high probability of single risk events in the long term. This is why use ETFs and why our Smart Wealth plans total fees are only 1.15% per year and they include all fees applied in your account. This is just €57.50 per year (or €4.80 per month) for a €5,000 investment. With traditional banks or asset managers a client will still pay 3-8 times higher!
So we took the old model and re-shaped it in what we believe is the new era of savings and investments for everyone. With XSpot you can set up your plan in less than 20 minutes. You can create as many plans as you like. You can have a theme like ‘Invest for my new home’ or a ‘rainy day’, or simply choose a ‘Junior Smart Wealth’ plan for your little ones. And you can top up, transfer, or withdraw whenever you like at no extra cost. Actually we don’t charge for most of the fees you used to pay other providers. Our experts will regularly monitor and rebalance your portfolio, selecting from a range of 4,750 exchange traded funds to ensure you are following all trending asset classes around the world.

Our team is there to assist you by chat, email, phone or even by your visiting our offices. With a small extra fee of 0.25% per year on invested assets, you can even have your personal Private Wealth Manager, with whom you can meet in our offices or even online in a video conference, replacing the old style of private banking.

We are a company that takes pride in its model and technology.
We’ve built a team of successful and talented individuals who believe in our project and feel ready to change the way things are done in the industry.
We support causes which we believe can make the world a better place for us all.
We put our investors first.
We democratise savings and investments.
We are XSpot Wealth
our founders