Multi-regulated FX and CFDs brokerage XTrade was defeated last month in a legal fight over a disputed brand name in Poland, as the Polish FX brokerage XTB, whose shares are listed on the Warsaw Stock Exchange, filed a lawsuit claiming the name is too similar to its own trademarked name.
On March 15, the Warsaw Court of Appeal decided that XTrade is forbidden to use the following verbal and word markings: ‘XTB’, ‘X-Trade’ and ‘XTrade’. In addition, the court said that XTrade Europe Ltd is banned from using the sign xtrade.eu while providing or promoting its financial and brokerage services.
The dispute arose over concerns that similar business names are confusing customers, and because the listed Polish broker considers that it has a legal right to the exclusive use of this particular business name.
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X-Trade Brokers (XTB) Limited claims the similarity has caused harm to its business particularly with both brands offering the same services on the same market. It argued that consumers wrongly assume that XTB and XTrade are related when they are not.
The company further claims that customers have also been left confused as logos and other marketing materials used by XTrade Europe Ltd are similar to those of XTB. The Polish broker believes that the confusion is misleading as to its identity and is causing irreparable damage to its business.
XTrade is operated by XFR Financial Ltd and has offices in five continents. In addition to NAFD membership, Xtrade is regulated by the Cyprus financial watchdog CySEC (under Xtrade Europe), the IFSC of Belize as Xtrade.BLZ, and also holds a licence from the Australian watchdog ASIC.
Earlier in May 2016, XF Financial Limited decided to consolidate its offering and phase out the older brand, XForex. It now officially operates under Xtrade Group. The company made headlines last year after it tapped the four-time Golden Boot winner football star Cristiano Ronaldo as its official ambassador.