Polish bank WBK Bank abandons retail forex market

Polish bank WBK Bank abandons retail forex market

- in All News, Featured News, Forex Brokers

Retail forex broker DM BZ WBK, part of Poland’s WBK Bank, said on Wednesday it has decided to withdraw from offering over-the-counter (OTC) forex and contracts for difference (CFDs) services.

The decision is the result of a review of the bank’s business strategy agenda. Instead of offering forex services, DM BZ WBK will commence offering retail brokerage services provided to the regulated markets, both on foreign markets and on the Warsaw Stock Exchange. The reason for this is that these markets are expanding in terms of customer activity and trading turnover.

Starting 14 November, the broker will no longer accept new forex and CFD customers, but existing clients will be able to open orders on CFDs on forex, commodities and indices until the end of the year. After that, all opened positions will be in a close-only mode until 20 January, 2017, and if clients have not closed them by that time, they will be automatically closed at market price.

Poland’s forex market has been performing stable, according to data from the Bank for International Settlements (BIS). The combined forex trading volume in the country has been ranging between $8 billion and $9 billion in 2007-2016.

However, DM BZ WBK is not the only broker to exit the market. Just recently, HFT Brokers, one of the leading market participants, also announced it is to stop offering forex services.

X-Trade Brokers, trading as XTB, said in its latest financial report that its net profit dropped by an annual 92% to PLN 4.2 million in Q3 2016 from PLN 50.9 million a year earlier, while its operating revenue more than halved to PLN 42.8 million for the quarter.

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