Investors Wave Off Record KNF Fine, Push XTB to New All-Time High

XTB shareholders appear entirely unbothered by one of the largest fines Poland's financial regulator has ever handed to a local brokerage house. A day after the Komisja Nadzoru Finansowego (KNF) disclosed a PLN 20 million ($5.5 million) penalty for MiFID II breaches in XTB's client onboarding process, the stock climbed another 0.7% today (Tuesday) to test a fresh all-time high of 109.28 zlotys, extending a rally that has carried it more than 20% higher since the start of the year and pushed the company's market value above 12 billion zlotys.

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The penalty, disclosed by KNF yesterday (Monday), is the second multi-million-zloty sanction the Polish regulator has imposed on XTB in less than a decade. It covers how the broker screened retail clients and defined target groups for Contracts for Difference between January 2022 and September 2023, as Finance Magnates reported.

KNF said the practices caused XTB to operate in a manner it described as unreliable and unprofessional.

XTB Says Decision Is Not Final and Not Immediately Enforceable

In a Polish-language statement sent to local media after the ruling, XTB said the KNF decision relates primarily to its target-group determination process and new-client onboarding, including the registration form in use from January 2022 through September 2023. The company said both the form and the onboarding mechanism have already been revised in line with the regulator's guidelines.

"The KNF decision is not final. XTB is currently analyzing the content of its justification in detail in order to decide on possible further legal steps," the broker said in the statement, translated from Polish. XTB added that because the regulator did not attach an immediate enforceability clause to the ruling, the company "will not be obliged to pay any penalty before the decision becomes final."

That distinction matters in Poland's administrative system, where broker fines can stay tied up in the courts for years.

Previous KNF Case Took Nearly a Decade to Close

The muted market reaction suggests investors remember what happened the last time KNF went after XTB, a case that ran for close to a decade and never produced the kind of knockout blow some activists had pushed for.

That earlier saga centered on XTB's use of an asymmetric "deviation" parameter in its instant-execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term order model between January 2014 and May 2015, which KNF said breached best-execution rules by passing negative slippage to clients while keeping positive moves for the broker. The regulator and Polish prosecutors went public with their findings in November 2017, triggering a drop of more than 35% in XTB's share price and forcing a temporary trading halt on the Warsaw bourse. KNF imposed a PLN 9.9 million ($2.7 million) penalty in September 2018, which XTB contested twice.

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The Voivodship Administrative Court in Warsaw dismissed the first appeal, and in early 2023 Poland's Supreme Administrative Court rejected XTB's cassation appeal, making the 2018 ruling final roughly five years after it was issued and eight years after the disputed conduct.

XTB publicly conceded the case at that point, saying that although it considered the decision unfair, it recognized the verdict and was ending its battle to have it revoked. XTB shares actually rose after the 2023 court decision, as investors had long since priced in the loss.

One of KNF's Biggest Broker Penalties as Regulator Sharpens Its Teeth

At 20 million zlotys, the new penalty ranks among the largest KNF has imposed on a domestic brokerage in recent years. In March 2026, the regulator fined Santander Bank Polska a combined 21.1 million zlotys over eight separate breaches tied to investment services, which market watchers read as a sign Warsaw's supervisor has stiffened its stance toward financial firms operating in Poland.

Retail CFD oversight has also hardened elsewhere in Europe. Spain's CNMV bans CFD advertising to retail investors, a restriction XTB has already had to work around despite Spain accounting for roughly 10% of its revenue. The UK's Financial Conduct Authority made ESMA's 2018 leverage caps permanent, Belgium has outlawed leveraged CFDs and rolling spot FX marketed through electronic platforms to retail clients, and Germany's BaFin has restricted certain CFD structures on consumer-protection grounds.

KNF pointed in its announcement to its own annual retail forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term studies, which show that between 70% and 80% of active clients lose money on CFDs and similar leveraged products. Protecting retail investors from improper sales practices, the regulator said, remains its priority.

Fine Dwarfed by Earnings Expectations for Record 2026

The financial hit from the penalty is modest against XTB's current earnings trajectory. Noble Securities analysts forecast full-year 2026 net profit of around 1 billion zlotys for the broker, a level that would be a record, as Finance Magnates reported earlier this year. BM mBank analyst Mikolaj Lemanczyk projects first-quarter 2026 net profit alone at roughly 455 million zlotys, with revenue climbing about 64% year-over-year to 951.7 million zlotys on heavy trading activity in gold, commodities, and metals.

XTB is scheduled to publish preliminary first-quarter figures later in April. The broker, which has tested successive all-time highs over the past two weeks following the rollout of options trading in Germany and Spain, ended 2025 with more than 2 million clients globally and added 525,452 new Polish accounts over the past twelve months, according to KDPW data.

For now, the market appears to be doing the same math Warsaw brokers have grown used to over the past decade. A single-digit-basis-point hit to expected earnings, years of potential appeals, and a product set that investors view as firing on all cylinders have kept the KNF announcement in the background of what continues to be one of the Warsaw exchange's strongest 2026 performers.