With the Polish KNF defying ESMA’s cautious approach towards leverage for retail traders, brokers operating in the country are already starting to take notice. XTB is the first company to publish on its website a section for ‘experienced traders.’ Customers can get acquainted with the conditions necessary to get reclassified and make use of 100:1 leverage.
XTB’s portal lists all of the requirements for trading volumes and the relevant proof of qualifications which are requested from individuals willing to classify as ‘experienced retail customer.’
The local branch of CMC Markets has also come out with a statement elaborating on the new state of the market. While the company supports ESMA’s restrictions, it also acknowledged the side effects of limiting the investment strategies used by certain customers.
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While the ESMA’s restrictions did reshape the European investment landscape for retail investors, many of them chose to flee offshore and continue to make risky bets with higher leverage. The financial regulator in Poland has acknowledged the move and chose to deliver to retail traders in the country a more flexible offering, which applies only to clients who can prove their financial markets trading experience.
In a statement, the local representation of CMC Markets outlined that the latest decision of the Polish KNF seems to be balancing out between adequate investor protection and investment strategy choice issues.
“The introduction of the ‘Experienced Retail Client’ status may allow clients to make better use of investment opportunities. As far as the security of capital is concerned, it is worth remembering that every quarter Polish brokers publish the results of their clients who are investing using CFDs, thanks to which the matter has been very transparent for a long time,” said CMC Markets in a statement.
The broker also announced that it would be undertaking a list of initiatives to improve the education level of its clients across the country. CMC Markets is preparing to deliver tailor-made education, both online and in the form of seminars organized in the largest Polish cities. The company is preparing to announce more details soon.