Table of Contents
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 became one of the strongest financial markets in the world. Its regulatory body is the Polish Financial Supervision Authority (PFSA) and strictly regulates all Polish Brokers.
Warsaw Stock Exchange
Poland’s 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 provides 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 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. As the name suggests, Demo Accounts do 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 to help him in the long run in trading.
Advantages and Drawbacks of the Poland Financial Market
Being one of the largest economies in the European 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 many opportunities to grow with the ever-growing economy.
Although starting a business is deemed good, getting electricity, paying 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 European and Polish markets. 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.
With so much to offer and with the security of the regulators, Poland’s Financial Market is a place where traders will earn and 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 seeking suggestions.
Types of Trading Accounts In Poland
Poland has a wide variety of trading options and accounts for the traders who wish to trade in this market. CFDs, cryptocurrency, commodity trading, ETFs, and forex that the trader can discuss with his broker to better understand his/her trading options.
- Cryptocurrency
Poland has recently improved its internet technology. With that, cryptocurrency paved its way into Poland’s Financial Market. Being a new market member, cryptocurrency has gained wide popularity among traders, with Bitcoins worth USD 6 Billion 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 globally, especially in 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 commodity trading.
- Forex Trading
Although there were rumors that Forex trading is banned in Poland, it is very legal and has a huge market with over USD 5.1 Trillion 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 their investments and 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 is made by foreign investors. It is advised to contact a Tax professional in Poland to understand the taxation policy to prevent any disagreements with the government. There are some reservations and exceptions also in the case of different accounts. For example, if a taxpayer has stayed in 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. The demand is relatively less as, according to Islam, paying or receiving interest (Riba) is prohibited (haram). But Polish Brokers offer such accounts by Sharia Law ( Islamic law prohibiting the collection of interest). They are also known as swap-free accounts to respect the Muslim faith that does 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 know 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 suitable to your portfolio’s needs. The Poland Trading Market is now able to defraud unsuspecting investors due to technological advancement and trading digitization. But one must not always blind to 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 more accurately and make them more confident in their decision-making process.
- As said before, make sure that the authority regulates the Polish Broker you select, 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 any disagreements in the market.
- What resources and connections does your broker have in the international market that can help you when 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 in the position of the broker in the market. Better customer support reflects the working ethics of the broker, which can give positive feedback to the broker.
- Trading experience of at least 2 years is considered worthy of considering a broker for trading. So, look for a Polish Broker with 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 prevent any delays during withdrawals which can be a hassle and a time-consuming process in certain cases.
If the trader is opting for an international broker, he/she must make sure an international regulatory body regulates that. In Polish Brokers, they are regulated by the Polish Finance Supervision Authority (PFSA).
Important Questions
Before selecting a broker, the trader must be male sure to get answers to the following questions 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?
Top 15 Forex Brokers in Poland – Table
Following is the list of Polish Brokers compared based on the above-stated questions such as funding methods, fees, regulations, and others.
Top Polish brokers list
| 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 essential. 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 well-versed with the latest technological improvements and changes taking place in the market. Apart from these, getting information based on the below-mentioned features of the brokers is equally necessary for selecting a suitable broker and having access to the financial markets.
