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#1 10-12-2020 12:02:36

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2994
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Why are brokers setting up shop in Poland?

Why are brokers setting up shop in Poland?


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Poland's forex industry, which is one of the most developed markets in Europe for retail traders, with an established position and strong broker brands, has recently attracted the interest of several international brokers such as AvaTrade, Plus500 and ATFX, among others.

Poland is one of the 35 largest countries in the world in terms of population, and according to recent data, it has nearly 39 million citizens. Previously under the domination of communists, though, their market economy has only been developing for 25 years. Thus, economic awareness is relatively low, as is the number of active retail traders. In 2020, the number of trading accounts held by Polish residents reached a record 1.29 million. Although this figure is small compared to other nearby countries, it is increasing rapidly.

For years Poland has been considered a country that has been very proactive in regulating the derivatives market. Five years ago, the Polish Financial Services Authority (PFSA), to protect traders from exotic broker offers and very high leverage, introduced a 100:1 leverage limit. A few years later, as the only EU-28 country, it opposed the ESMA's (European Securities and Markets Authority) proposal to limit leverage to a maximum of 30:1. Poland then introduced its regulations, which led to the creation of an independent category of "experienced investors". Retail clients who can confirm their market knowledge and experience can benefit from more attractive trading conditions.

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Poland's forex industry is growing, but XTB remains confident in its dominant position
On the Polish market, apart from XTB and TMS, only a few local brokers stand out. These include bank brokers: mForex from mBank, BossaFX from BOŚ BANK and several foreign brokerage firms. The recent addition of OANDA, AvaTrade and Plus500 could shake up the current environment.

The biggest Polish broker, XTB, has given its opinion on the subject. Omar Arnaout stresses that the Polish market is one of the most competitive markets in Central Europe, and that it is made up of local and international companies. For XTB, it is important to maintain its position as market leader, and Arnaout is convinced that his company has "the necessary know-how and experience".

"After the introduction of the product intervention 2 years ago, the sector has become very difficult, especially for small brokers. So I think that, in general, and regardless of whether we are talking about Poland or any other place in the world, only the biggest and most optimised brokerage firms will be able to grow. One of our main goals is to become not only one of the largest providers of forex trading services in Europe, but also globally, which is why we recently started our partnership with our new brand ambassador, Jose Mourinho - one of the best football managers, says Arnaout.

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