Profitability of Poland’s Forex Retail Traders Keeps Status Quo in Q2 2017

KNF-regulated brokers stated that 36.1 percent of clients investing in currency derivatives made a profit.

As is usual at the end of every quarter, the Polish Financial Supervision Authority (KNF) has compiled a report on the profitability of traders in the OTC markets, and it shows that little has changed from the first quarter although a notable improvement was seen across fixed income instruments, according to a recent filing from Poland’s financial regulatory body.


Reports provided to the KNF by the nation’s regulated brokers showed that the percentage of investors making profits on the OTC market increased QoQ in 3 investment categories. The average profitability of all categories has improved in the last 3 months to 41.6 percent from 40.4 percent in Q1 2017.

More specifically, 56.6 percent of Polish investors made profits through investments in bonds and interest rates derivatives. This is compared to only 52.1 percent in the first three months of 2017. Overall, fixed income brokers in the country have been reporting profitability in this approximate range for many quarters now.

Also of note, more domestic brokers have reported higher client profitability across the OTC markets of equities and stock market indices. Nearly 36 percent of those investing in stock products ended the past 3 months in profit relative to 31 percent in the first quarter of 2017.

During the reported period, KNF-regulated brokers stated 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.

The KNF noted on several occasions that retail forex investors enter into a market that is lightly regulated while they are allowed to supercharge their bets with high leverage. This mix can lead to wins, but more often it leads to big losses where some traders can have their entire investment wiped out in a matter of days.

Investment services and activities in Poland may only be provided by companies licensed by the Polish Financial Supervision Authority (KNF) under the terms of the Act on Financial Market Supervision.

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