Admiral Markets Denies Media Reports on Poland Exit

Admiral Markets, a multi-regulated FX and CFDs brokerage firm, has denied reports published in financial media about exiting the Polish market. However, it confirmed plans that its subsidiary in the country is being closed down.

The broker clarified that it actually switches the affiliation of its branch in Poland from the Estonian arm "Admiral Markets AS Oddział w Polsce" to its CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term-regulated subsidiary 'Admiral Markets Cyprus Ltd.'

Admiral Markets further explains that this decision was taken to provide their Polish clients with the "Experienced Customer" status - a unique categorization introduced by the Polish Financial Supervision Authority last year. While the Estonian regulator applies EU-wide Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term limits on the CFDs in its entirety, its newly-acquired Cypriot license allows the firm to re-categorize Polish clients from a retail client to an experienced.

"By replacing the Estonian regulator with the Cypriot one, Polish customers will have the opportunity to change the categorization from a retail client to an experienced client , and we will continue the highest quality of services offered on the Polish market for over 8 years," it said.

Polish traders chose to flee offshore

After nearly a decade, Admiral Markets plans to stop activities of its Polish branch by May 31, 2020. In its latest financial disclosure, Admiral Markets said it would continue serving existing and potentially new customers on the basis of a cross-border license.

As Finance Magnates reported last year, Poland was a notable outlier from ESMA's new restrictions on risky trading products when it introduced an additional level between retail and professional status – 'experienced,' which applies only to clients who can prove their financial markets trading experience. The KNF justified the lower margin for certain customers who can get acquainted with the conditions necessary to get reclassified and make use of 100:1 leverage.

At the time, the financial regulator KNF said that both a retail and experienced client are two quite extreme types of clients. At the same time, ESMA's efforts to protect traders have done anything other than push business offshore. Specifically, it referenced the results of surveys showing that many Polish clients had opened accounts with brokers registered outside of the EU to access risky bets with higher leverage.

Admiral Markets AS had earlier three active branches in Romania, Poland, and the Czech Republic, and a representative office in Russia. The branches in Romania and the Czech Republic had also closed two years ago, and services in these countries are now provided on a cross-border basis.