BZ WBK descends from the Forex scene
In today's communication sent to its clients, Dom Maklerski BZ WBK declared that at the beginning of next year, it completely withdraws from the agency of trading on the Forex market. Nothing is said about the reasons for this, but it can be assumed that apart from high competition on the Polish brokerage market, the new guidelines of the Polish Financial Supervision Authority, which came into force on September, this year, significantly contributed to this.
More about the KNF guidelines:
https://forexclub.pl/minal-termin-wdrozenia-wytycznych-knf-sie-zmieni/
The full content of the DM BZ WBK message:
Ladies and Gentlemen,
We regret to inform you that BZ WBK Brokerage House has decided to stop providing brokerage services in the scope of OTC instruments (Forex / CFD). In connection with this, from November 14 November, it will no longer be possible to extend brokerage agreements with respect to these instruments. Existing customers will be able to enter into CFD contracts for currency pairs, stock indices and raw materials only until the end of this year. Later - until 20 January 2017 - they will only be able to close existing positions. If the client does not close open positions to 20 on January 2017, DM BZ WBK will be forced to regulate the above financial instruments and funds on OTC registers on their own, which means that open positions will be closed by DM BZ WBK at prevailing market prices, and free cash will be transferred to the client's brokerage account.
DM BZ WBK is another institution that has made such a decision in the last year. In chronological order, they were: DM ING, DM PKO BP and HFT Brokers. It can be assumed that only the largest brokers with an established situation for which Forex is a leading service or at least largely significant will remain on the domestic market. Additionally, two foreign companies - Saxo Bank and London Capital Group (LCG) closed their Polish offices. Who will be next?