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Forex‌ ‌Trading‌ ‌in‌ ‌Poland‌

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Poland is among the higher income-generating countries in the world based on gross national income (GNI) per capita data expressed in U.S. dollars after being converted from local currency at prevailing exchange rates. As a decent place to conduct business in Europe, the Polish zloty has become a popular foreign exchange (forex) currency that is being traded globally. Read on to find out how you can trade this currency and others in the online forex market. 

Get Started with Forex in Poland

By the beginning of the 1900s, the Polish mark was the official currency of the country. However, due to hyperinflation, the value of the Polish mark was diminished. In 1919, the Bank of Poland announced the introduction of a brand new currency called the zloty. 

After the Narodowy Bank Polski started its operations in 1945, it replaced the Bank of Poland as the primary financial authority. Narodowy Bank Polski has the sole right to issue the Polish currency. The Polish zloty (PLN) can be divided into 100 grosz. Banknotes of Polish zloty in circulation have denominations of 10, 20, 50, 100 and 200. 

Banknotes of Polish Zloty

Poland has the 6th largest economy in the European Union (EU). A large internal market (6th within the EU in terms of population) and a political climate friendly to businesses seem to have helped Poland avoid the global 2007-08 recession with minimal disruptions in business activity. Before joining the EU in 2004, Poland fostered trade relations through the Central European Free Trade Agreement (CEFTA), which included Hungary, the Czech Republic, Slovakia and Slovenia.  

Trading forex is legal in Poland. International forex markets are managed by the Polish Financial Supervision Authority (PFSA). The regulatory frameworks issued by the PFSA have helped maintain the value of the Polish zloty and protect the interests of local forex traders in Poland. The PFSA also supervises the capital markets, banking institutions, pension schemes and insurance companies.

Here’s a step-by-step guide to help you get started with forex trading in Poland.

Step 1: Get a digital device with fast internet connectivity. 

You can use your desktop, laptop, tablet or smartphone to trade forex. The value of the currency pairs listed frequently fluctuate. Having a personal device to constantly track these changes is essential to successful forex trading. 

Step 2: Find an online forex broker. 

There are several forex brokers available online. Go through their websites and choose a broker that lets you trade the currency pairs you want to speculate on.

Be sure to check the footer of their website for information on the regulatory bodies. If you can’t find any such information from the U.S. Securities and Exchange Commission (SEC), the UK Financial Conduct Authority or another reputable regulatory body, the broker can’t be trusted. 

Step 3: Sign up for an account. 

You can open a new account with the forex broker on their website. Some forex brokers require a minimum deposit amount to open an account. These brokers also offer different kinds of accounts based on your financial goals. Choose the one that’s right for you. 

Step 4: Transfer funds to your account.

Once you’ve signed up for an account, you need to transfer funds to start trading forex. Depending on the broker you’ve chosen, you can choose your accounting currency and fund your account using several options. Generally, these funding options include bank wire transfers, ewallet transfers and debit cards. 

Step 5: Download a forex trading platform.

You may need to download a forex trading platform supported by your broker on your computer or smartphone. Take the time to customize the look and feel of the platform to help you better identify forex trading opportunities. 

Step 6: Begin your forex trading journey. 

Before you start trading forex, you might want to trade in a demo account using virtual money. These practice accounts can help you get used to the interface of the forex broker without running the risk of taking actual losses. After you feel confident using the platform, you can start trading forex using real money.

Polish Forex Trading Strategies

Forex traders from all over the world rely on a few simple strategies to profit from exchange rate movements. You can consider using one or more of these forex trading strategies to trade currencies.

News Trading

Global economic news and events can have a strong impact on the forex market. Many traders stay on top of influential financial information to anticipate short-term exchange rate movements of affected forex currency pairs. 

You can research when information about inflation rates, trade policies and multinational deals made between countries will be released. News trading needs fast reflexes, a good broker with minimal order slippage and an understanding of how event outcomes might affect the currency pair traded. You also run the risk of missing the window of opportunity if you’re not fast enough with your trade executions. 

Day Trading

Day trading often involves closely monitoring the intraday exchange rate movements of forex currency pairs and generally only holding positions within a single trading session. These trades can take place anytime during the day, although all positions are typically exited on the same day. Some traders have adopted this method to reduce losses from overnight market volatility when they cannot watch the market. 

Day traders might adjust their positions several times during a trading session depending on how the market moves, so you will need to have sufficient free time available to operate the day trading strategy you select. 

Scalping

Scalping is a very short-term trading strategy that involves quickly entering and exiting the market aiming for small profits. The goal is to make many of those small profits add up to a sizable income. 

Rapid price movements during intraday trading sessions can cause slippage on your stop-loss trade executions. These losses can significantly erode any profits you might make scalping.  This method of trading requires a lot of time and focus to track exchange rate movements and high-risk events. Scalping will probably not be suitable for traders with a full-time job. 

Momentum Trading

Momentum trading or swing trading generally involves engaging in short to medium-term trading activities directed by reversals in market momentum signaled by technical indicators. 

This method of trading can be less stressful than day trading or scalping, although swing traders often do take overnight positions. You can adjust your long and short positions throughout the week to cut losses and take profits as your preferred indicator signals and/or your trading plan dictates. 

Forex Trading Example in Poland

The Polish zloty (PLN) is 1 of the various national currencies still in use within Europe in addition to the EU’s euro. Although Poland committed to adopting the euro in 2004 when joining the EU, many Poles still oppose that, and a firm date has yet to be set when that will happen. 

The EUR/PLN forex currency pair is currently trading at 4.4079. It will cost you 4.4079 zlotys to buy a euro. You could go long  €100,000 against the PLN based on the margin in your trading account. After 3 months, the EUR/PLN exchange rate might have risen to 4.6000. You can immediately sell your long €100,000 EUR/PLN position and show a profit of 19,210 zlotys in that time frame. Alternatively, if the market fell to 4.2500 instead, you would lose 15,790 PLN. 

Exchange rates of EUR/PLN over the last 5 years.

Making Money with Forex in Poland

The prospects of Poland’s economic future could be impacted by the other hard-hit markets in Europe. 

Last year, the average monthly forex trade volume for the zloty was $76 billion. Also, 44,000 active forex trading accounts were active in the first quarter of 2019 in Poland, which showed a decline from the 51,000 accounts open in Q1 2018. A record 48% of the forex traders holding these accounts either traded profitably or at least did not lose money in the market in Q1 2019.  

Polish forex traders typically do not focus on their own national currency and instead trade the major currency pairs like EUR/USD and GBP/USD, although the USD/PLN pair was the 10th most popular trading instrument, according to Poland-based broker XTB. 

Best Online Forex Brokers in Poland

Online forex brokers let you trade a variety of currency pairs in the market. You can easily manage your trading positions on the trading platforms the brokers support. Most of these forex brokers allow you the luxury of 24-hour trading commission-free, although you will typically need to pay away the dealing spread whenever you trade. You also generally trade currency pairs on margin using these online platforms. 

Take a look at these top forex brokers available online.  

Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
Get started securely through HYCM’s website
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
1 Minute Review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service. 

Best For
  • Investors who want a customizable fee schedule
  • Traders comfortable using the MetaTrader platform
  • Islamic traders who need swap-free accounts that don’t build interest
Pros
  • Wide range of currency pairs available
  • Excellent selection of educational tools
  • $0 deposit and withdrawal fees
Cons
  • Not currently available to traders based in the U.S.
Account Minimum
100 of your selected base currency
Pairs Offered
80+
Get started securely through FOREX.com’s website
Account Minimum
100 of your selected base currency
Pairs Offered
80+
1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account
Account Minimum
100 EURO
Pairs Offered
50+
Get started securely through AvaTrade’s website
Account Minimum
100 EURO
Pairs Offered
50+
1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
Account Minimum
$50 USD
Pairs Offered
47
Get started securely through eToro’s website
Account Minimum
$50 USD
Pairs Offered
47
1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade

Forex Terminology

You should be familiar with a few basic forex terms before you start trading. Many forex traders use these terms regularly during intraday trading sessions. 

Pip: The smallest unit of movement in a currency pair’s exchange rate. Most forex currency pairs are quoted to the 4th decimal point or 0.0001. 

Lot size: A standardized trading amount, which is usually 100,000 base currency units at most online forex brokers. You can trade smaller lot sizes as well at many brokers.

Orders: An order is a command made to your broker to execute a trade. When you want to go long on a forex currency pair, you enter an order to buy the base currency and sell the counter currency. When you want to go short on the pair, you enter an order to sell the base currency and buy the counter currency. 

Margin calls: A notification from a broker to deposit additional funds in your trading account. Most online forex brokers will automatically close out all trading positions if the available margin in your account is insufficient instead of issuing a margin call. 

Trading Polish Zloty Can Be Profitable

Despite being a small country, Poland has stood its ground as a thriving European economy. If you’re a trader from Poland looking to get involved in the forex market, trading currency pairs can be an opportunity to make some extra money. 

Thousands of traders in Poland are already operating in the forex market without losing money, although many Poles fail to make a profit from forex trading, so you should develop a good strategy before putting real money at risk.

Account Minimum
100 of your selected base currency
Pairs Offered
80+
Get started securely through FOREX.com’s website
Account Minimum
100 of your selected base currency
Pairs Offered
80+
1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account
Commissions
$10 value per pip
Account Minimum
$0
Get started securely through IG Group’s website
Commissions
$10 value per pip
Account Minimum
$0
1 Minute Review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.  

Best For
  • New forex traders who are still learning the ropes
  • Traders who prefer a simple, clean interface
  • Forex traders who trade primarily on a tablet
Pros
  • Easy-to-navigate platform is easy for beginners to master
  • Mobile and tablet platforms offer full functionality of the desktop version
  • Margin rates are easy to understand and affordable
  • Access to over 80 currency pairs
Cons
  • U.S. traders can currently only trade forex
  • Customer service options are lacking
  • No 2-factor authentication on mobile
Account Minimum
$50 USD
Pairs Offered
47
Get started securely through eToro’s website
Account Minimum
$50 USD
Pairs Offered
47
1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
Get started securely through HYCM’s website
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
1 Minute Review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service. 

Best For
  • Investors who want a customizable fee schedule
  • Traders comfortable using the MetaTrader platform
  • Islamic traders who need swap-free accounts that don’t build interest
Pros
  • Wide range of currency pairs available
  • Excellent selection of educational tools
  • $0 deposit and withdrawal fees
Cons
  • Not currently available to traders based in the U.S.
Account Minimum
100 EURO
Pairs Offered
50+
Get started securely through AvaTrade’s website
Account Minimum
100 EURO
Pairs Offered
50+
1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

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