Last update: 28 August 2020
6 min read

Guide to PFSA Regulated Forex Brokers

Do you need to find the very best PFSA regulated brokers? Read our expert guide to get a full understanding of what the PFSA is, what it’s main responsibilities are, and how you can safely trade in Poland at the best PFSA regulated brokers.

Those of you considering investing in forex trading would be wise to consider PFSA regulated brokers. Unfortunately, picking a regulated broker is rarely given the attention it deserves – but choosing a broker to facilitate your trading is one of the most important decisions you’ll have to make in your trading career. An unregulated broker is generally going to promise big profits, but there is little recourse available should things go wrong. So, read on to learn more about forex brokers in Poland.

If you can’t find many PFSA regulated brokers, try some of the best CySEC regulated brokers:

  • Hot Forex
  • XTB
  • HYCM
  • XM
  • Plus500
  • FXTM

Best and most trusted forex brokers in April 2024

What is the best PFSA regulated broker?

There are a number of things you should consider when looking for the best PFSA regulated brokers in Poland. First and foremost, you should be looking for one that has a valid license.

You’re in a fortunate position as Poland is one of the EEA member states. This is because a broker that has a license from another EEA country will also be able to offer its services in Poland too. This is called passporting rights, and provides you with a much wider choice of broker.

With that in mind, you may prefer a CySEC regulated broker such as XTB or Plus500. Or maybe one of the best PFSA regulated brokers would work better for you. It’s all about personal preference.

Are PFSA regulated brokers safe?

In general, the best PFSA regulated brokers are pretty safe. But to get a full picture, you should consider the following factors:
Customer service – Being able to trade forex is a blessing but the fact that it is internet-based is bound to cause a few problems. That’s why you need to have a point of contact 24 hours a day – during the trading week, at the very least – to help get you back on track. Being forced to wait until the following trading day could mean you miss an important trade.
Factor costs into your trading plan – There isn’t a broker in the world that offers a service for nothing. Some factor cost into the spread, while others charge a commission, either as a percentage or a flat rate fee.
Choice of trading platforms – you’re going to find a large majority of PFSA regulated brokers use MetaTrader 4. It is by far the most popular trading platform for brokers and traders. However, there are a number of others. And some brokers offer a trading platform of their own development. Choose the one which works best for you.
Withdrawals – There is no point in trading if you aren’t able to withdraw your profits. Your PFSA regulated broker may make depositing funds really easy, but what about taking it out again? It’s important you choose a broker offering easy access to your funds, preferably with as low cost as possible.
Social trading – This form of trading has become very popular recently. So why not consider a broker in Poland offering a social trading option?
Regulation – Choosing an unregulated broker will leave you at much greater risk of being scammed or falling victim of fraud. Or possibly losing all your funds, because the unregulated broker has disappeared with all the money. If you’re trading in Poland, definitely make sure you use a PFSA regulated broker or an EEA-authorized organization.

What is the PFSA?

Polish Financial Supervision Authority logoThe official regulator for financial markets in Poland is the Polish Financial Supervision Authority (PFSA). In Polish, it is known as the Komisja Nadzoru Finansowego (KNF). The organization is responsible for supervising banking, capital markets, pension schemes, insurance, and electronic money institutions.

It was established in 2006, following legislation which was passed in the same year relating to the supervision of the financial markets. It took over the work of the Insurance and Pension Funds Supervisory Commission and the Securities and Exchange Commission. These authorities were abolished as part of the provisions of the 2006 legislation.

What does the PFSA do?

Wherever you might live in the world, there will be local rules and regulations governing trading on the financial markets – along with all providers of related services. It’s important for you to understand the level of protection this regulation provides. And also to appreciate how the legislation serves to prevent fraudulent activities.

All the best PFSA regulated brokers must follow the organization’s rules. The rules of regulators worldwide are generally accessible, although for some regulatory bodies this doesn’t necessarily mean they will be in English. All regulatory bodies will also have a website you can use to check a broker’s credentials.

The roles of the PFSA (KNF) include:

  • Working to ensure regular operation of the financial market in Poland
  • Developing the financial market and improving its competitiveness
  • Informing and educating all participants in the financial market
  • Drafting acts in relation to financial market supervision
  • Enabling amicable and conciliatory settlement of disputes that may arise between consumers and PFSA regulated entities

What is a PFSA regulated broker?

The PFSA is an entity which is publicly funded and serves as the point of contact and watchdog for all areas of the financial market in Poland. All the best PFSA regulated brokers are simply brokers which follow the rules of the PFSA.

One of the PFSA’s more recent roles was to ensure Polish banks remained healthy during the global banking crisis. In July 2015, the PFSA decided to change the rules for PFSA regulated brokers in relation to leverage.

During the previous year, the supervisory authority spent considerable time looking at the way financial institutions conducted business. It was prompted to take this course of action following a review of customer performance in 2013. The review highlighted a problem, in that more than 81% of Polish forex brokers were realizing losses in their accounts. And a number of industry experts cited excessive leverage as the underlying cause.

The KNF at first thought about capping leverage at 50:1, but eventually ended up by restricting leverage to 100:1. Some PFSA regulated brokers are imposing this restriction on Polish residents, and overseas brokers are also applying the limit to Polish account holders.

How do I check if a broker is PFSA regulated?

The easiest way to find out if a broker is regulated by the PFSA is to simply look at their website. Usually, the company will make it very clear that they’ve been regulated by placing license numbers and details in the footer of the page. But there’s always the chance that the broker isn’t providing you with honest and accurate information.

To be fully sure, you can check the official PFSA website, where you can find out which brokers are currently regulated by the PFSA.

Frequently Asked Questions (FAQs)

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