Polish Chamber of Brokerage Houses reclassifies Experienced Trader Category


The Polish Chamber of Brokerage Houses (IDM) introduces a uniform trader verification standard on the experienced CFD market in Poland.

October 2, 2019, | AtoZ Markets IDM is self-government organization of investment firms, established in 1996. Membership in the IDM is voluntary and open for all investment firms operating in the Republic of Poland. IDM represents and protects the common interests of its members concerning legal regulations related to the capital market.

The Chamber of Brokerage Houses (IDM) introduces a uniform standard for verifying the knowledge of a client experienced on the CFD market for residential brokerage houses. To build the protection of the interests of the clients of local investment companies, the Chamber postulates compliance with such rules by all entities operating on the CFD market in Poland.

In August this year, The Polish Financial Supervision Authority complied with the demands of the Chamber. And it took into account the specifics of the Polish market and introduced the status of an experienced customer under governmental intervention. That will allow investing in the CFD market using 1:100 leverage while maintaining the protection appropriate for a retail client.

According to the IDM’s research in 2018, half of the active and experienced domestic traders decided to transfer their brokerage account to a non-EU country after introducing ESMA’s product intervention. The most active clients fled the local market – experienced investors who accept the high risk and want to use high leverage consciously. The negative consequences of product intervention in Poland were also felt by a significant decline in the turnover of domestic investment companies. IDM members reported to the PFSA Office that CFD trading fell on average by 50% in the first months of intervention.

A uniform standard for all CFD market in Poland

After implementing ESMA’s intervention, the Chamber of Brokerage Houses has repeatedly pointed out that foreign brokerage entities which are also from outside the European Union. It has already appeared on the Polish market, offering domestic retail clients competitive trading conditions on the forex market. These entities often do not comply with EU regulations. And there are doubts about their actions in the light of national rules which carry a risk for retail customers.

IDM is considering the challenges related to new solutions implemented by governmental intervention. And it believes that all entities operating on the CFD market in Poland should apply a uniform standard when verifying an experienced client.

Therefore, the Chamber prepared the substantive scope of the verification test along with questions and obliged its members to use the same verification procedure. IDM calls for the implementation of the CFD market for all companies operating in Poland. It should benefit domestic clients.

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