GlobalConnect on the WSE - foreign shares on the Polish stock exchange

On November 4 this year. The Polish Stock Exchange has launched a new market segment, the so-called Global Connectwhere the shares of foreign companies will be available. The shares will be quoted in Polish zloty and they will be exactly the same shares that are listed on foreign markets. In other words, investors who acquire foreign shares on the Polish stock exchange will have the same rights (e.g. regarding dividends or participation in a general meeting) if they bought shares of the same companies on foreign exchanges.

GlobalConnect on the WSE

This is a very good initiative that can make it easier for Polish investors to invest around the world, which will automatically translate into the diversification of their portfolios. From the point of view of Polish investors, global investing was particularly important in the last decade, when rates of return on global or American equities turned out to be much higher than Polish equities. Polish stocks also fared worse than the Emerging Markets markets - to which we are still included (we are in the same "basket" as other Emerging Markets countries, so it is also important to compare the rates of return of Polish equity indices, for example to the MSCI Emerging Markets index).

The last decade is history, of course, but what might the situation look like in the coming years? Are generally high rates of return on US equities and lower rates on nations equities Emerging Markets can they happen again? The answers to these and other questions can be found in our report Global Investing. Is it worth investing outside of Poland? ".

Poles should not only diversify their investments in global markets (which will be helped by the new GlobalConnect market), but also increase the volume of savings, especially in terms of future funds available in their retirement. According to a report by the European Commission, the replacement rate in Poland in 2060 will be only 25%. The replacement rate is the amount of your pension expressed as a percentage of your last salary.

Does GlobalConnect have a chance for success?

Certainly yes. Similar solutions can be found on other European exchanges, e.g. in Austria, Germany or England. In Vienna, shares of foreign companies are listed in the so-called the "global market" segment. There are currently over 700 different stocks available from around the world. For example, we can invest in Mitsubishi Corp shares from Japan or Amazon shares from the USA. In addition to the main markets, there are also stocks from Canada, Israel, China, Argentina, India and Taiwan.

The Polish GlobalConnect market starts modestly, with only five German shares. Quotation will be available only from 9.05 am to 17.05 pm. The key to success will be not only the extension of the offer, but also its attractiveness compared to the currently available solutions for Polish investors.

Currently, Polish investors can invest in foreign shares both in a traditional way through a foreign securities account in brokerage houses and offices, and through modern investment platforms, also operating as brokerage houses, but offering a wider range of shares and ETFs with lower transaction costs.

Forex brokers offering ETFs and stocks

An increasing number of forex brokers have quite a wide offer of stocks, ETFs and CFDs on these instruments. For example on XTB we find over 300 ETFs today, a Saxo Bank almost 3000.

Broker
End	Poland	Denmark	Cyprus *
Number of exchanges on offer	16 exchanges	37 exchanges	24 exchanges
Number of shares in the offer	approx. 2300 - shares approx. 1800 - CFDs on stocks	19 - shares 8 - CFDs on stocks	approx. 3 - CFDs on stocks
The amount of ETF on offer	194 - ETF 112 - ETF CFDs	3000 - ETF 675 - ETF CFDs	approx. 100 - CFDs on ETFs
Min. Deposit	PLN 0 (recommended minimum PLN 2000)	2 000 EUR	PLN 500
Platform	xStation	SaxoTrader Pro Saxo Trader Go	Plus500 platform
	REVIEW	REVIEW	REVIEW
	CREATE AN ACCOUNT	CREATE AN ACCOUNT	CREATE AN ACCOUNT

* PLUS500 CY offer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. From 72% to 89% of retail investor accounts record monetary losses as a result of trading CFDs. Think about whether you understand how CFDs work and whether you can afford the high risk of losing your money.

About the Author

Jaroslaw Jamka - Experienced fund management expert, professionally associated with the capital market for over 25 years. He holds a PhD in economics, a license of an investment advisor and a securities broker. He personally managed equity, bond, mutli-asset and global macro cross-asset funds. For many years, he managed the largest Polish pension fund with assets over PLN 30 billion. As an investment director, he managed the work of many management teams. He gained experience as: Member of the Management Board of ING PTE, Vice-President and President of the Management Board of ING TUnŻ, Vice-President of the Management Board of Money Makers SA, Vice-President of the Management Board of Ipopema TFI, Vice-President of the Management Board of Quercus TFI, Member of the Management Board of Skarbiec TFI, as well as Member of Supervisory Boards of ING PTE and AXA PTE. For 12 years he has specialized in managing global macro cross-asset classes.

Disclaimer

This document is only informative material for use by the recipient. It should not be understood as an advisory material or as a basis for making investment decisions. Nor should it be understood as an investment recommendation. All opinions and forecasts presented in this study are only the expression of the author's opinion on the date of publication and are subject to change without notice. The author is not responsible for any investment decisions made on the basis of this study. Historical investment results do not guarantee that similar results will be achieved in the future.