Poland's KNF Seeks Traders’ Feedback on 100:1 Leverage


KNF is conducting a survey of retail traders from December 1 to December 31, 2020, to see if the 1: 100 leverage has worked.

December 2, 2020 | AtoZ Markets – Back in August last year, the Polish financial regulator, the Financial Supervision Authority (KNF), followed the example of its pan-European “big brother” and introduced restrictions on the offer of CFD instruments to retail investors (including the Forex market).

But KNF made it more democratic by allowing a higher shoulder. And now the time has come to collect the stones, and the Polish regulator is trying to understand whether their approach was justified or hurt investors.

Is the Polish regulator right to introduce softer restrictions?

On Monday, the KNF Authority published an announcement inviting individual (retail) consumers to take part in the survey from December 1 to December 31, 2020. The regulator emphasizes that it collects information about the activity on the CFD market precisely in the period starting from the introduction of restrictions on August 2, 2019. The survey responses are anonymous and are intended solely to provide an overview of the consumer impact of these changes on the OTC sector.

Questions concern the status of the user (professional, unskilled), the level of profitability or loss, the geographical origin of the Forex (CFD) brokers, the size of the preferred leverage, trading indicators, the quality of training, attitude to the imposed restrictions, and more.

Poland KNF allowed 1: 100 leverage instead of EU's 1:30

As a reminder, on August 2 last year, the Polish regulator KNF announced the introduction of additional requirements for Contracts for Difference (CFD) offers for retail investors. The regulator ignored criticism from the pan-European financial supervisor, the European Securities Markets Authority (ESMA), concerned about the large-scale flight of retail investors offshore. Thus, Poland has allowed 1: 100 leverage instead of 1:30 introduced by most EU countries.

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