Why XP’s move to zero brokerage fees matters for day traders
Day trading has gained significant traction in the Brazilian stock market in recent years. After experiencing a sharp rise between 2019 and 2021, the activity saw a decline due to high interest rates and global market volatility. Still, day trading remains relevant, accounting for approximately 40% of trading volume on the Brazilian stock exchange (B3).In this scenario, XP’s recent announcement to eliminate brokerage fees for day trading in stocks is a strategic shift aimed at attracting new investors and enhancing customer satisfaction.
XP’s strategic decision: zero brokerage for day traders
XP Investimentos, one of the largest brokers in Brazil, has officially announced zero brokerage fees for stock day trading. The initiative aims to remove a significant barrier that discouraged many retail traders from participating in this high-frequency trading model.
According to Marcos Horie, Head of Products at XP, an internal survey showed that “40% of detractors complained about the cost of trading.” The brokerage decided to act on this feedback by eliminating the fee, aiming to boost client satisfaction and market engagement.
To benefit from the offer, customers must have RLP (Retail Liquidity Provider) active a mechanism that provides better execution for retail orders. The offer is available to both direct XP clients and those connected through independent advisory offices.
The rise, fall, and relevance of day trading in Brazil
Day trading in Brazil became highly popular between 2019 and 2021 due to a combination of low interest rates, favorable market conditions, and increased access to technology. However, with the global economic tightening and increased market volatility, many traders pulled back.
Despite this, day trading remains a strong segment. It plays a crucial role in market liquidity and continues to attract traders seeking quick returns and portfolio diversification. By removing brokerage fees, XP aims to revive interest and empower both new and experienced traders to engage more actively.
High leverage: XP’s competitive edge
One of XP’s most attractive features for day traders is its offer of the highest leverage in the market. This means investors can perform intraday operations without having full cash reserves. With the elimination of brokerage fees, the cost-benefit ratio becomes even more favorable.
This move is expected to lower entry barriers and drive trading volumes. “Many potential clients find trading costs too high and hesitate to start. We want to eliminate that friction and boost volume both on B3 and within XP,” Horie explains.
Copilot trader: real-time insights and risk management
Day trading demands speed, precision, and emotional control. To support traders, XP has developed the Copilot Trader, a smart platform integrated into the trading environment. It provides:
- Real-time insights based on market data
- Customizable gain and loss thresholds
- Automated risk management suggestions
Horie points out that many traders make impulsive decisions, leading to significant losses. With Copilot Trader, the platform suggests personalized risk parameters based on each asset traded, helping traders maintain control and discipline.
A test conducted with 500 clients showed that 40% improved their trading results using Copilot’s tools. This demonstrates the system’s effectiveness in helping traders act more rationally.
Artificial Intelligence to customize day trading strategies
The Copilot Trader platform is undergoing significant improvements. In the new version, AI (Artificial Intelligence) will play a central role. The system will analyze:
Each investor’s trading history
Portfolio composition
Risk appetite
Using this data, Copilot will suggest a daily maximum trading volume and loss cap, making each recommendation highly personalized. This AI-driven approach aims to enhance user safety and minimize emotional decision-making one of the key challenges in short-term trading.
A broader investment strategy
According to XP, clients engaged in day trading generally hold 4 to 5 other investment products, including fixed income, ETFs, mutual funds, and real estate investment trusts (REITs). Day trading is not seen as a standalone strategy but rather a complementary diversification tool for active investors.
Horie concludes: “Day trading is part of a broader portfolio strategy. Our goal is to offer tools that help clients operate safely, efficiently, and with full control over their risks.”
XP reinforces its role in a competitive market
By eliminating brokerage fees for stock day trading, XP reinforces its position as an innovative and client-focused brokerage firm. Combined with high leverage, smart platforms like Copilot Trader, and AI-driven risk management, XP is creating an attractive environment for both novice and experienced traders. As competition among brokerages increases, initiatives like this could drive more financial inclusion, boost the liquidity of the stock market, and pave the way for more intelligent, informed, and cost-efficient investing.
