Forex Brokers in Poland
Trading forex is popular and legal in Poland, with the international forex markets being managed by the Polish Financial Supervision Authority (PFSA or KNF). The PFSA/KNF supervises public companies and the sale and acquisition of public companies in Poland. Forex traders in Poland can choose a PFSA regulated broker or another regulated broker that can accept clients in Poland. Using a regulated broker can give you the peace of mind that you are trading forex online with a broker that can be trusted and must operate according to a strict set of rules that have been implemented to protect investors. You may also have somewhere to get help if things were to go wrong.
Best forex brokers Poland
To find the best forex brokers in Poland, we created a list of all the regulated forex brokers that accept traders based in Poland, then ranked them according to our overall ratings. You can see the list of our top forex brokers for Poland below.
ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA
PFSA/KNF forex brokers in Poland
The local financial authority regulating Forex trading is the Polish Financial Supervision Authority (PFSA) or the Komisja Nadzoru Finansowego (KNF) in Polish. Founded in 2006, they aim to keep the trading equation as level as possible for traders who fall under its jurisdiction.
The activities of the KNF\PFSA are inspected by the ‘President of the Council of Ministers.’ Its supervisory power extends to all the licensed Forex brokerage firms, credit institutions, insurance firms, investment advisors, pension scheme companies, and financial organizations.
The KNF\PFSA monitors the Polish financial markets as well as the banking system on a regular basis to provide a trustworthy and safe financial structure for all the investors.
Warsaw Stock Exchange (GPW)
The primary stock market in Poland is the Warsaw Stock Exchange (GPW), which is located in Warsaw, Poland and was created in 1991 after the overthrow of Poland’s communist leadership.
The Warsaw Stock Exchange is a securities exchange based in Poland whose core activities include organizing exchange trading in financial instruments and activities related to such trading.
The group also pursues activities in education, promotion, and information concerning the capital market. The company has traditionally generated listed interest from both local and regional European companies but primarily from small and medium-sized Polish companies.
The Warsaw Stock Exchange is the largest national financial instruments exchange in the region of Central and Eastern Europe and one of the fastest-growing exchanges in Europe.
The Group offers a wide range of products and services within its trading markets of equity, derivative, debt and structured products, electricity, natural gas, property rights, as well as clearing of transactions, operation of the Register of Certificates of Origin of electricity and sale of market data.
In terms of stock trading, The Warsaw Stock Exchange provides a fair and transparent market in a variety of asset classes, in addition to Polish stocks. GPW exchange trades are generally executed in Polish zlotys.
How to verify PFSA or KNF regulated brokers in Poland
Being an EU member, Poland is governed by EU regulations in regards to online trading. Thus, any forex broker with a license from an EU-based regulatory authority can offer its services to Polish traders.
You can get the broker’s license number from the disclosure text at the bottom of their homepage. You can then look up the registration number on the relevant website to confirm if the forex broker is regulated in Poland to provide forex trading products and services to Polish traders.
Is forex trading legal in Poland?
On Polish soil, trading on the forex markets is entirely legal. Brokerage companies can properly serve local traders if they are granted a license by the Polish Financial Supervision Authority (PFSA). During the application procedure for a license, a number of requirements must be satisfied.
Applicants must submit all required paperwork, including a list of shareholders and subsidiaries, details on the board of directors’ members and their backgrounds, and proof of the firms’ minimum substantial capital. Additionally, the registrants must set up a regional chapter in Poland.
It goes without saying that the local traders profit from this stable regulatory environment. They are safeguarded and given fair trade circumstances. Due to Poland’s membership in the EU, certain of its capital market regulations have been combined with those in other member states in accordance with the Markets in Financial Instruments Directive (MiFID).
Brokers with EU licenses are allowed by the MiFID to serve clients from all other member states. Obviously, this legislation offers individual members the freedom to oversee their own foreign exchange regulations, but they must continue to abide by all applicable EU laws and directives.
Some brokers opt to get their licenses from the PFSA in order to enjoy tax exemptions, minimal licensing and staffing costs, and other benefits. The Polish regulatory body places a high premium on supplying local retail traders with a secure, open, and equitable trading environment.
After carefully examining the actions of big brokerages, the watchdog limited the maximum leverage for complex derivatives to 100:1 with a margin of 1% back in the summer of 2015. The action was conducted in response to the watchdog’s discovery that over 81% of Polish retail customers had negative account balances, with undue leverage being the main contributor.
In an effort to address the rising number of Poles who suffered losses when trading on margin, the leverage restrictions were tightened. For traders with varying degrees of experience, the new caps vary. Experienced retail consumers are now permitted to trade Forex with a maximum leverage of 100:1 for particular assets.
Customers can change their status to “experienced retail traders” if they can demonstrate that they have handled at least 40 significant transactions on a variety of securities in the last two years. The nominal value of each CFD transaction shall not be less than €50,000 or its equivalent in Polish Zloty (PLN). There must be ten of these transfers each quarter.
Retail customers are anticipated to have thorough knowledge of how derivatives operate and to be able to support that knowledge with an appropriate certificate. Base assets like currency pairings, significant stock indexes like Dow Jones and NASDAQ, and gold are all covered by the 100:1 leverage with a 1% margin of the CFDs’ nominal value.
Despite receiving harsh criticism from ESMA, which suggests leverage ceilings of no more than 30:1 in Europe, the PFSA introduced these regulations. The new leverage ratio, according to the EU regulator, is drastically out of proportion to the rates permitted in other member states.
The rejection didn’t impress the Polish watchdog. The regulator defended its choice to raise the caps by providing the justification that it wanted to stop local traders from signing up at offshore websites that are active without the required PFSA authorization. Leverage is typically much higher there, sometimes reaching a ratio of 500:1.
A leverage ratio of no more than 50:1 will be required of retail investors who cannot be categorized as experienced. Prior to abandoning the initiative, the Polish government had intended a 25:1 cap with a 4% margin for novice traders.
According to the PFSA, increasing leverage for some investor classes may not be as detrimental as what ESMA claims. Additionally, while trading CFDs, the Polish regulation mandates that brokerages publish quarterly reports with the performance of their clients. Brokers who are found to be in violation of the new regulations are subject to 5 million PLN in fines apiece.
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