CySEC-regulated forex broker easyMarkets has announced that it will be exiting the Polish market effective June 30, 2018, and will be withdrawing registration of its Polish branch Easy Forex Trading Sp. Zoo., located at Warsaw Financial Center.
In an email sent to clients this morning, easyMarkets told traders in Poland that its headquarters in Limassol, Cyprus will handle their trading operations, including the reception and transmission of orders, as of 31st of May 2018.
Back in December, the Polish Ministry of Finance has submitted a draft of a new law that introduces sweeping changes to its FX regulations, including the imposition of maximum leverage on forex trading accounts to 1:50.
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The draft of new propositions, however, allows brokerage firms to raise the maximum permitted leverage to 100:1 only if the customer made at least 40 transactions during the last 24 months.
Earlier in July, Polish authorities announced plans to cut the maximum leverage from the current 1:100, with a margin of 1 percent, to 1:25 with a margin of 4 percent.
The efforts reflected Poland’s ongoing clampdown on the high-risk retail trading products. It also places the country’s regulations on par with other European nations, notably the UK’s FCA, which has proposed a maximum of 50:1, and Cyprus’ CySEC, which has made similar limitations but added a provision for experienced traders to access higher leverage levels.
Recently, reports provided to the Polish Financial Supervision Authority (KNF) by the nation’s regulated brokers showed that 36.1 percent of clients investing in currency derivatives made a profit, down from 39.5 percent in the previous quarter. Reports provided to the KNF last year showed that the percentage of investors making money from trading in the OTC market averaged 20.7 percent in the period from 1 January 2016 to 31 December 2016. But ultimately, 80 percent of the profitable traders made losses in the long run.