Admiral Markets stands as a multi-regulated CFDs and FX brokerage firm. In recent times, this firm has been forced to deny reports from various financial media forms regarding its alleged exit from the Polish market. Even so, the company has confirmed that it plans to close down its subsidiary based in the country.

Switching From Estonian Regulation To Cypriot

The broker issued out a clarification that was going to switch the affiliations of its Polish branch. The branch, formally under the Estonian arm, “Admiral Markets AS Oddział w Polsce,” will be moved to the CySEC regulated subsidiary, “Admiral Markets Cyprus Ltd.”

Admiral Markets gave a further explanation regarding the decision, explaining that it was taken to provide its Poland-based clients with the “Experienced Customer” Status. This status is a unique categorization that the Polish Financial Supervision Authority had introduced last year. The Estonian regulator mandates a blanket application of leverage limits on CFDs across the entire EU. However, the Cypriot license gives room for Admiral Markets to re-categorize polish clients into an experienced level, instead of the retail client category, it now holds.

Revision Of Business Strategies In Light Of New Laws

Admiral markets explained that having the Cypriot regulator take the Estonian’s place allows for customers of Poland to have a unique opportunity. This opportunity can possibly allow Polish traders to change from being classified as a retail client, to be seen as an experienced client, according to Admiral Markets.  Besides explanations, the brokerage has reaffirmed its commitment to the Polish market, stating that it had served Poland for more than eight years, now.

It’s been almost a decade within Poland’s market, but Admiral Markets is making plans to stop its Polish branch’s activities by the 31st of May, 2020. Through the latest financial disclosure issued by Financial Markets, it explained that it would continue its services to both potentially new, as well as existing customers through the basis of a cross-border license.

Adding A Step In Between

Poland was hit with a relative amount of controversy when it introduced another level of trader. This level stands between retail and professional status, and is dubbed “experienced.” This status can only be applied to clients capable of proving their trading experience within the financial markets.

The KNF gave justifications for the lower margin given to certain customers, said customers were capable of acquainting themselves with the conditions necessary to be reclassified as experienced. Traders who can classify themselves as experienced are capable of using 100:1 leverage.