Where to Invest Money in Poland

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The best investments in Poland:

Bank deposits — Traditional and secure investment; offers guaranteed returns over a specified period with options like savings accounts, fixed deposits, and recurring deposits.

Real estate in Poland — Tangible asset with opportunities for passive income and capital appreciation; encompasses residential properties, commercial spaces, and land.

Large company securities — Investment in stocks, bonds, and ETFs of major companies; allows ownership stakes, potential dividends, and growth opportunities.

Copy trading — Digital investment strategy; replicate the trades of experienced traders with potential shared profits and a starting capital as low as $100.

Cryptocurrency — Digital currency investments; offers trading, staking, and long-term holding opportunities in a decentralized platform with potential high returns.

Poland’s growing economy presents numerous investment opportunities for both local and foreign investors. With a myriad of options available, understanding the nuances of each becomes paramount. One of the classic and trusted choices is bank deposits, particularly Fixed Deposits (FDs).

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Bank deposits

When considering secure and traditional investment avenues, bank deposits often top the list for many individuals. These deposits, which include savings accounts, fixed deposits, and recurring deposits, offer a safe harbor for funds, ensuring guaranteed returns over a specified period, making them a preferred choice for those seeking minimal risk.

👍 Pros of investing in FDs

Low risk. Unlike volatile market-linked investments, FDs are detached from market movements, making them a low-risk option. They offer guaranteed returns, appealing to individuals who prefer a conservative investment approach.

Defined tenure. FDs come with clear tenures, ranging from a minimum of six months to a maximum of five years. This offers clarity on how long your money is committed and the expected returns over that period.

Loan accessibility. Facing an unexpected financial crunch? FD holders have the advantage of availing a loan against their deposits, ensuring liquidity without having to break the FD prematurely.

Flexible interest payouts. With FDs, investors get to choose the interest payout frequency – be it monthly, annually, or at the time of maturity. Moreover, senior citizens often receive preferential, higher interest rates.

👎 Cons of investing in FDs

Comparatively low returns. While FDs guarantee returns, their rates tend to be lower than those from market-linked investments, potentially offering less growth over time.

Penalty for early withdrawal. Withdrawing your FD before its maturity incurs penalties. Moreover, early withdrawals might also yield a reduced interest rate, diminishing the expected returns.

Tax implications. Interest earned on FDs is taxable. While the initial INR 40,000 is tax-exempted as of Budget 2019, any interest exceeding this threshold attracts a 10% Tax Deducted at Source (TDS). Thus, for those seeking tax-free investment avenues, FDs might not be the top choice.

Investments in real estate in Poland

Venturing into Poland's real estate market offers investors a tangible asset with potential for both passive income and capital appreciation. Whether it's residential properties, commercial spaces, or land, real estate in Poland presents opportunities for consistent rental income and long-term value growth, especially given the country's expanding urban landscapes and economic development.

👍 Pros of real estate investments

Opportunities to buy undervalued. Every so often, chances arise to acquire properties below their market rate, especially when sellers are in a hurry to seal a deal. For investors with financial readiness and a keen eye on the local market, this can be a profitable venture.

Consistent revenue. By renting out the property, investors ensure a steady monthly income. Additional features like a parking spot can further enhance rental yields.

Tax benefits. The gradual wear and tear or "depreciation" of properties can be accounted for in tax deductions, potentially reducing the amount payable.

Appreciation in value. A well-chosen property can witness substantial value growth over the years.

Hedge against inflation. As general prices soar, so does the value of properties, making real estate a solid protection against inflation.

Leverage. A significant advantage of real estate is leveraging – acquiring high-valued properties with a minimal down payment, especially with the aid of mortgages. This allows investors to potentially gain returns exceeding their initial input.

Deferred taxation. The appreciation in property value remains untaxed until the asset is sold. There are also mechanisms to further postpone this taxation.

Increasing rents. If rental rates rise and your mortgage remains stable, the profit from the property can substantially increase as time progresses.

👎 Cons of real estate investments

Time-intensive. Real estate investments demand time and aren’t a quick path to wealth. It requires meticulous planning, research, and patience to reap substantial rewards.

Fluctuating income. There can be periods where finding tenants might be challenging, or the rent might not align with expectations, causing potential income inconsistencies.

Unforeseen expenses. Properties come with a set of wear and tear. From plumbing issues to roof repairs, ownership is often accompanied by unexpected expenses, which can sometimes be hefty. Planning for these eventualities is crucial for anyone venturing into real estate.

Investments in the business of large companies (Securities)

When diving into the financial world, one of the most common paths chosen by investors is investing in securities of large companies. The primary options to consider within this domain include stocks, bonds, and ETFs (exchange-traded funds).

👍 Pros of investing in securities:

Ownership stake. Purchasing stocks translates to acquiring a fragment of that company. This not only represents a slice of the firm's assets but, if you own a substantial amount, might give you a say in pivotal corporate decisions. It's akin to influencing the direction and decisions of an enterprise you believe in.

The flexibility of time. Unlike conventional jobs, investing in securities provides flexibility unparalleled. You can choose when to study your investments and make decisions. This flexibility ensures that you remain in control of your investment journey.

Potential for growth. If the company's strategies align correctly with the market and it prospers, the stock price can escalate. Selling your stocks at a higher value than the purchase price translates to profits, mirroring the fruits of a well-nurtured investment.

Dividends as a bonus. Many flourishing companies distribute a part of their profits to their shareholders in the form of dividends. This additional income serves as a reward for your trust and investment in the company.

👎 Cons of investing in securities:

Inherent risks. The world of securities is not always sunny. The investment landscape is riddled with unpredictability. While some stocks flourish, others might stagnate or even plummet, leading to potential losses. It's essential to acknowledge that every investment carries a risk quotient.

Emotional turbulence. The stock market's daily fluctuations can be analogous to a rollercoaster. Prices oscillate, sometimes subtly and occasionally dramatically. Witnessing the value of hard-earned money dancing to these tunes can be exhilarating for some but deeply unnerving for others. Thus, psychological preparedness is crucial for this investment journey.

Investing in successful traders (Copy Trading)

For those keen on tapping into the financial markets but lack the expertise or time, copy trading emerges as an innovative solution. By mirroring the strategies of seasoned traders, individuals can leverage the expertise of market veterans, allowing them to potentially reap profits without delving deep into the intricacies of trading themselves.

How to start copy trading:

Many traders ask: how to invest with little money and how to make money on Forex? You can invest and earn goods with little money through copy trading. Diving into the realm of copy trading can be likened to setting up a mentorship program in the financial market.

Step 1. Begin by selecting a proficient copy trader, not unlike choosing an adept teacher to learn a new skill. These traders' track records are crucial, much like an educator's credentials.

Step 2. The next step involves capital infusion, and fortunately, some platforms accommodate beginners with as little as $100.

Step 3. The essence of copy trading lies in its "copy-paste" methodology: the trader's decisions get mirrored in your portfolio automatically, ensuring synchronous actions.

Step 4. If the strategies are successful and yield profits, both the trader and you earn a share of the spoils.

👍 Pros of copy trading:

Harnessing expertise. Through copy trading, novices get a golden ticket to the strategies of seasoned market navigators. It's like reading directly from an expert's playbook, ensuring you're learning from the best.

Time-efficiency. Traditional trading can be time-intensive, necessitating constant market vigilance. Copy trading sidesteps this, reflecting the trader's decisions in your account, freeing up your time.

Safety net for newbies. Financial markets can be intimidating. By shadowing experts, beginners can minimize early-stage errors, deriving the benefits of a quasi-mentorship program.

Diverse choices. The digital arena is replete with platforms offering varied copy trading services, catering to diverse preferences in terms of strategy styles and expertise.

👎 Cons of copy trading:

Overdependence. Solely relying on strategy managers can lead to a skewed investment perspective. It's akin to perpetually using training wheels without ever learning to cycle independently.

Unavoidable market risks. Even seasoned traders are not immune to market turbulence. Investments, by their very nature, are subject to risks, and recognizing this is paramount.

Perception of losses. A loss for an established trader might be trivial but can be magnified for a newcomer with limited capital. It underscores the importance of understanding one's risk threshold.

Additional costs. While copy trading has its merits, it's not without costs. Some platforms levy fees, which should be factored into profit and loss considerations.

Investments in cryptocurrency

Cryptocurrency has morphed from a niche technology to a mainstream investment avenue. Trading in digital coins offers the potential for substantial profits, given the market's volatility and growth trajectory. Beyond mere trading, you can engage in staking, where you lock up a certain amount of your cryptocurrency to support network operations like transaction verification, in return for rewards.

Moreover, holding onto cryptocurrencies for long-term investments can yield significant returns as the crypto ecosystem continues to evolve and gain acceptance. Whether you're a day trader or a long-term believer, the cryptocurrency world offers diverse avenues to grow your wealth. However, as with all investments, it's vital to do your research and stay informed.

Best crypto exchanges in Poland

Bybit

Open an account
Your capital is at risk.

Bybit is a well-known cryptocurrency exchange that started in 2018. It's a platform for trading crypto in a special way, using instruments called derivatives. This means they allow trading contracts that are connected to the value of cryptocurrencies. Bybit also offers leverage, which can amplify the results of your trades. Their derivatives offerings include contracts connected to the value of Bitcoin, Ethereum, and other tokens. Bybit’s platform also has some advanced features like mutual insurance and a system to show how deep the market is.

Binance

Open an account
Your capital is at risk.

Binance is a renowned exchange offering cryptocurrency trading. Based out of Hong Kong, the exchange offers many features for traders, including its own special kind of money called a native asset. Traders can start trading on Binance with just $1, and they can further take advantage of leverage offered by the exchange. Moreover, the fee charged is also on the lower side – just 0.1% of what you trade.

OKX

Open an account
Your capital is at risk.

OKX, an international crypto exchange established in 2017, presents a hub for diverse trading experiences. With over 100 cryptocurrencies, OKX empowers users with margin trading and passive income generation through token storage. The exchange also emphasizes on continuous education, offering comprehensive resources for both new and experienced traders.

👍 Pros

Removing single points of failure. Traditional banking systems are centralized, and a glitch can disrupt the entire service. Cryptocurrencies, being decentralized, are more resilient to such failures, ensuring continuity and security.

Ease of fund transfer. Cryptocurrencies simplify the process of transferring funds directly between two parties, reducing transaction times and often eliminating fees associated with traditional banks.

Eliminating third parties. The peer-to-peer nature of cryptocurrency transactions means there's no need for intermediaries. This often leads to faster, more cost-effective transactions.

Generating returns. As an investment, cryptocurrencies offer potential profits from trading activities and market appreciation.

Streamlined remittances. Sending remittances across borders becomes easier, faster, and often cheaper, making it beneficial for those sending money back home.

👎 Cons

Pseudonymity of transactions. While not entirely anonymous, transactions can hide the identity of the parties involved, making it challenging to track activities.

Potential for criminal uses. The pseudonymous nature can be misused for illicit activities, drawing regulatory scrutiny.

Centralization concerns. Large mining pools now control significant portions of some cryptocurrency networks, moving away from the decentralization ethos.

Expensive participation. Engaging in mining or staking activities requires substantial investments in hardware and energy.

Off-chain security issues. While the blockchain is secure, other components like wallets and exchanges are susceptible to breaches.

Price volatility. Cryptocurrency values can swing dramatically in short periods, presenting both opportunities and risks.

Where to invest in Poland for a beginner?

For novices in Poland's investment landscape, copy trading stands out as a promising starting point. It requires minimal start-up capital, making it accessible. Furthermore, beginners need not be burdened by the complexities of the financial markets immediately. By mirroring the moves of seasoned traders, novices can effectively learn the ropes. This method provides a protective umbrella, allowing new investors to learn from others' experiences, and understand market dynamics without getting overwhelmed by the complexities. Beginners can also start with Forex investment and make profits.

Where to invest in Poland with a small budget?

Many people ask: how to invest with little money? For those in Poland with limited capital, there are still numerous fruitful avenues to explore:

Precious metals. A timeless asset, precious metals like gold and silver offer a hedge against inflation and market volatility. Even small quantities can be a worthy addition to an investment portfolio.

Securities. Investing in stocks or bonds of companies can be started with a modest amount. While there's an inherent risk, the potential for growth and dividends makes it an appealing option.

Copy trading. As previously discussed, copy trading is a great entry point. With minimal investment, one can ride on the coattails of expert traders, potentially reaping the benefits of their acumen without deep market knowledge.

Where to invest in Forex: The best brokers

RoboForex

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Your capital is at risk.

RoboForex is a brokerage company that was founded in 2009. It provides services to financial markets in 169 countries. More than 3.5 million users are RoboForex clients.

RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize.

RoboForex is a top Forex and CFD broker offering a wide choice of earning opportunities. Novice traders can copy the signals of professionals automatically. For professional traders, the broker offers a Forex bot constructor and individual trading in the Forex, cryptocurrency and stock markets.

Tickmill

Open an account
Your capital is at risk.

The Tickmill Group introduces a new standard in the provision of brokerage services. The focus on innovation is what the company is proud of and why traders choose it. The trading conditions of the broker are appreciated by scalpers and traders who use EAs because Tickmill provides minimal spreads. The minimum deposit amount you need to open an account with Tickmill is $100 for all account types. You can trade over 70 Forex pairs as well as CFDs on commodities, stocks, and indices. Tickmill's trading platforms include MT4 and MT5. Spreads start from 0 pips for Pro and VIP accounts, and 1.6 for a classic account.

XM

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Your capital is at risk.
77.74% of retail investor accounts lose money when trading CFDs with this provider.

Overall, XM can be summarized as a trustworthy broker that provides contracts for difference and low spreads on 1000+ trading instruments. XM Group is a community of regulated online brokers that has been offering their services since 2009.

It was registered as a service provider in 2015 under the company Trading Point of Financial Instruments Pty Ltd. However, XM is currently regulated by two securities commissions, the Cyprus Securities and Exchange Commission, and the Australian Securities and Investments Commission. The group founded XM Global in 2017, and the International Financial Services Commission now oversees it.

Benefits of investing in Poland

Poland stands as a beacon of economic growth and resilience in the European landscape. Here's why investing in Poland offers an advantageous opportunity:

  • Thriving market & growing economy. Poland has consistently showcased robust economic growth over the years, thanks to its diverse industries and adaptability in global markets.

  • Highly skilled workforce. The nation boasts a well-educated populace, making it a hotspot for talent, particularly in sectors like technology, finance, and manufacturing.

  • Supportive business environment. The Polish government has rolled out investor-friendly policies, ensuring that businesses, both local and foreign, thrive in the country.

  • Robust domestic market. With a significant population, Poland offers businesses access to a vast and dynamic consumer base.

  • Stable financial health. The nation's low private debt coupled with one of the lowest unemployment rates in the EU further solidifies its economic stability.

  • Diverse economy. Poland isn't overly reliant on any single export sector, shielding it from potential global market vulnerabilities.

  • Own currency. The złoty (PLN) allows Poland to have monetary policy independence, adding another layer of economic flexibility.

FAQs

Is Poland good for investment?

Poland is a good choice for businesses and traders who want to grow and invest in a growing economy for the long term.

How to invest in S&P 500 from Poland?

If you want to invest in the Polish stock market without much hassle and without spending too much money, you can do it easily by using something called ETFs.

What are the risks of investing in Poland?

Some things that might make investors hesitate are the relatively high taxes in certain areas, a more complicated tax system because of the Polish Deal, and worries about whether judges are truly independent.

Where is the best place for me to invest money?

Consider these investment options: corporate bonds, mutual funds, and index funds for stability. For potential growth, explore dividend and individual stocks, exchange-traded funds, and alternative investments like cryptocurrencies. Real estate offers another road for long-term wealth building.

Team that worked on the article

Alamin Morshed
Contributor

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).