Introducing The Polish Financial Market
Formerly a part of the Soviet Union and now the European Union, Poland has always seen economic growth. Facing several market reforms and the fall of the USSR, the Polish Market has gained its strength through all this time and came out to be one of the strongest financial markets in the world. Its regulatory body is the Polish Financial Supervision Authority (PFSA) and is strictly regulating all the Polish Brokers.
Warsaw Stock Exchange
Poland Financial Market can be explained without mentioning the Warsaw Stock Exchange. It was founded in 1817 as the Warsaw Mercantile Exchange, later it became Warsaw Stock Exchange in 1991 when it first started trading. Warsaw Stock Exchange (WSE) is a joint-stock company located in Warsaw, Poland. Being the largest stock exchange in Eastern Europe, it is providing a major platform to the Polish Brokers for trading.
Trading In Poland
The Polish Financial Market offers options to trade with both local Polish Brokers or international brokers. Both offering their own advantages, one must make sure that the brokers are regulated as it will ensure the safety of the trader’s funds and prevent any kind of misconduct. If something happens the trader can always rely on the authority to resolve the issue, only if the broker is regulated. Although the International brokers of the European Union are widely popular for their reputation, local traders prefer Polish Brokers over international brokers.
The Polish market has a wide variety of offerings in the market. Traders can choose from CFDs, commodities (agricultural and metals), cryptocurrencies, forex pairs (polish brokers trade in polish national currency ‘Zloty’), and stocks. Apart from these, traders, especially the infant traders, also have an option of Demo Accounts. Demo Accounts, as the name suggests, does not require the trader to actually put in his capital but practice and learn from it by trading in Poland and other international Financial Markets. It would teach him the tricks and necessary moves that will help him in the long run, in the trading
Advantages and Drawbacks of the Poland Financial Market
Being one of the largest economies in the Europian Union, Poland’s Financial Market has a lot to offer. Ranked as 40th in dealing with construction permits, 32nd in credit facilities, 25th with insolvency resolving, and in top 5 for trading across borders, Poland is one of the most suitable countries for international traders with English being spoken widely here, resolving the issues of even communication barriers. With Technology Parks and Special Economic Zones (SEZs), businesses have a lot of opportunities to grow with the ever-growing economy.
Although starting a business is deemed to be good, getting electricity, payment of taxes, and minor investors’ protection can be troublesome here. With Brexit and the transition period in its way, it cannot be neglected that it will impact the Europian as well as the Polish market. The Czech Republic, France, Germany, Italy, Netherlands, and the UK are Poland’s major trading partners and with Brexit, there will be some alterations in such relationships.
Verdict
With so much to offer and with the security of the regulators, Poland Financial Market is a place where traders will earn as well learn a lot. With the large and dynamic economy, SEZs offering business opportunities, ease of communicating in English, and the regulatory body safeguarding the investors’ money, the market has a positive conclusion for those who are seeking suggestions.
Types of Accounts and Trading In Poland
Poland has a wide variety of trading options and the types of accounts to the traders who wish to trade in this market. There are CFDs, cryptocurrency, commodity trading, ETFs, and forex that the trader can discuss with his broker to get a better knowledge about his/her trading options.
- Cryptocurrency
Poland has recently improved its internet technology. With that cryptocurrency paved its way into Poland Financial Market. Being a new member of the market, cryptocurrency has gained wide popularity among the traders with Bitcoins worth $6 Billion USD being traded every other day. But its future purely depends on the legal policies of the government.
- Commodity Trading
Poland is a potential member of the commodity market by providing raw materials including agricultural commodities, energy, and metals. These raw materials are widely imported and exported in the world especially in the case of developing countries where these commodities are needed on a large scale. Keeping up with the growing demand for these commodities, Poland is evidently an active country in terms of commodity trading.
- Forex Trading
Although there were rumors that Forex trading is banned in Poland, it is very much legal and has a huge market with over $5.1 Trillion USD being traded every day, from across the world. Forex trading in Poland has a huge potential because of the high level of competition between brokerages, vast internet coverage, and the latest and improved technology. This not only reduces the cost of trading in forex but also provides easy access to the market. But the trader must always make sure that their broker is regulated to ensure the safety of their investments and to prevent any misuse or misconduct.
Since the income from forex trading is obtained from the country, it is taxable after a certain level of profit made by foreign investors. It is advised to contact a Tax professional in Poland to understand the taxation policy in order to prevent any disagreements with the government. There are some reservations and exceptions also in case of different accounts. For example, if a taxpayer has stayed in the use for more than 183 days, the tax can be paid in the US.
- Islamic Trading Accounts
Islamic trading account or Islamic accounts are special accounts offered to people who wish to follow the Quran. Brokers, generally, do not prefer offering such accounts because they are less profitable and the demand is relatively less as according to Islam, paying or receiving interest (Riba) is prohibited (haram). But Polish Brokers offer such accounts in accordance with the Sharia Law ( Islamic law prohibiting the collection of interest). They are also known as swap-free account as to respect the Muslim faith the do not offer rollover interest in overnight positioning.
What Can a Trader Expect While Trading in Poland
With the growing internet technology and a strong economy, Poland attracts many investors offering them opportunities in finance and business. Even with such positive aspects, it is always advised to always to have the knowledge about trading and leverage. One can always opt for a demo account. To practice trading, before going fully into the market. One must always make sure that their selected broker is regulated and is suitable to the needs of your portfolio. The Poland Trading Market is now able to defraud the unsuspecting investors due to the technological advancement and trading digitization. But one must not always blind about the fact that there will always be profit coming their way. High leverages can give you both negative and positive outcomes. But the Polish Brokers take measures by offering their traders to stay away from such losses through stop-order and negative balance protection which will help diminish the losses to a great extent.
Selecting The Polish Broker
While selecting a broker, traders must keep in mind the following factors that will help them understand their broker in a more accurate and to make them more confident in their decision-making process
- As said before, make sure that the Polish Broker you select is regulated by the authority and all his actions are conducted under the regulatory body. The broker may also have the skills and knowledge of arbitration which can help the trader in case of any disagreements in the market.
- What resources and connections does your broker has in the international market that can help you in cases where you need someone to communicate in your language, for a better understanding.
- Understand the positions and presence of the Polish Broker in the international market.
- Customer support is also an important factor to consider the position of the broker in the market. Better customer support reflects the working ethics of the broker which can give positive feedback of the broker.
- Trading experience of at least 2 years is considered worthy of considering a broker for trading. So, look for a Polish Broker who has a history of 2 or more years in the Poland Financial Market.
- The broker must also be able to process the fundings within 2 or 3 days as it will help in preventing any delays during withdrawals which can be a hassle and a time-consuming process in certain cases.
In case the trader is opting for an international broker, he/she must make sure that the regulated by an international regulatory body. In the case of Polish Brokers, they are regulated by the Polish Finance Supervision Authority (PFSA).
Important Questions
Before selecting a broker, the trader must male sure to get answers to the following questions in order to match the requirements of his trading plan with that of the broker. The questions being:
- What trading platforms can the Polish Broker offer you?
- What are the funding methods used by the Polish Broker?
- What is the Customer Support Level of the Broker? (more than 15 acceptable)
- What is the minimum deposit requirement?
- If the broker is offering, what is the spread type?
- How much is your limit to trade with each brokerage?
Comparison Between Top 15 Polish Broker
Following is the list of Polish Brokers compared on the basis of the above-stated questions such as funding methods, fees, regulations, and others.
Top Polish brokers
| Forex broker Review | Visit | Promotions |
|---|---|---|
Hotforex | Hotforex |  |
Instaforex | Instaforex |  |
FxPro | FxPro |  |
Avatrade | Avatrade |  |
Dukascopy | Dukascopy |  |
XM.com | XM.com |  |
Detailed Polish Brokers
While selecting a Polish Broker, careful consideration of every aspect, and every character of the broker is completely necessary. Sometimes all the knowledge and education of the trader is not enough to select the perfect broker whom the trader can rely on completely with his funds. In such cases, it is a smart move to look for a broker who is an industry leader and is well versed with the latest technological improvements and changes taking place in the market. Apart from these getting information on the basis of the below-mentioned features of the brokers is equally necessary for the process of selecting a suitable broker and having access to the financial markets.
