Name
Global FinTech Guide
Country _ Name
Poland
SectionTitle
Trading platforms/social trading platforms/signal following
Body
FinTechs belonging to this category operate trading platforms or online marketplaces for investment opportunities or certain financial contracts – e.g. securities, factoring etc. and sometimes furthermore provide contact to financial experts and tools for the decision-making.

FinTech-signalling and social trading platforms provide users with the opportunity to exchange opinions on financial investments and offer signal providers and traders the possibility to make their securities portfolio publicly visible. This way the portfolios can be linked to and followed by other traders via the platform automatically, so that the trading and investment strategy of the followed traders can be copied.

The platform often cooperates with a financial services provider or a credit institution where both the trader and the follower hold their securities accounts, and which execute the orders both of the trader and the follower and to which the platform passes on the trading decisions.

Introduction

Attitude of the country towards trading, social trading or signalling platforms

The Polish Financial Supervision Authority is running nationwide campaigns aimed at promoting informed investing and increasing financial awareness among the general public.

Since 2023, KNF has been conducting the campaign “Not all that glitters is gold - invest consciously”. The campaign aims to promote financial education and encourage responsible investment decisions. The KNF has also launched a series of podcasts, including a podcast on topics like social trading, signal-following platforms, and the influence of financial influencers.

Moreover, on 3 June 2024, KNF issued its official statement on copy trading in brokerage services. The KNF’s position highlights that copy trading may fall under regulations related to reception and transmission of orders for the acquisition or disposal of financial instruments, execution of such orders on behalf of clients, portfolio management, where such portfolios include one or more financial instruments, or investment advice. Such activities constitute brokerage activities and require relevant license.

Thus, social trading and signaling platforms are gaining more popularity among both customers and financial regulators.


Legal affairs

Obligations and requirements to provide trading, social trading or signalling platforms described above

Whether a platform is regulated depends on what is being traded. For non-typical entities, an analysis is required each time.

Activities consisting in accepting and transmitting orders to buy or sell financial instruments; carrying out such orders; providing investment advice; offering financial instruments; operating an alternative trading system or an organised trading platform constitute brokerage activities regulated in the Act on Trading in Financial Instruments (Ustawa o obrocie instrumentami finansowymi).
Brokerage activities may be conducted on the basis of a permit granted by the Financial Supervision Authority (Komisja Nadzoru Finansowego).
The brokerage activities may be conducted, among others, by foreign investment firm conducting brokerage activities in Poland or brokerage houses. The amount of the fee for brokerage activity permits depends on the scope (types) of brokerage activity for which the permit is granted. The maximum amount of fees charged may not exceed EUR 4,500. The initial capital of a brokerage house for conducting brokerage activity is, as a rule, at least EUR 125,000. A brokerage house's own funds cannot fall below the required level of initial capital. In addition, investment firms are subject to the European Union's CRR regulation governing capital requirements.

Additional comments regarding the legal situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area

N/A


Economic conditions

Market size for trading, social trading or signalling platforms and biggest companies in this business area

The market for trading, social trading, and signalling platforms in Poland is experiencing significant growth, reflecting the rising interest among retail investors. Social trading itself is becoming increasingly popular, especially among younger investors looking for community and collaboration in decision-making.

Key players in this space include XTB, one of the largest brokers in Poland that also supports social trading features, and eToro, a well-known global platform popular in Poland for its social trading capabilities. Other notable firms are Binance, Gate.io, and MEXC, alongside domestic brokers such as mBank Brokerage and PKO BP Brokerage, as well as global services like Revolut and TMS Brokers.

Additional comments regarding the economic situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area

N/A

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