Forex Brokers in Europe

Trading forex is popular among traders in Europe, which is one of the most active forex markets in the world. There are literally hundreds of forex brokers in the EU, each providing a unique range of forex trading services. If you are based in the European Union and looking for a trusted forex broker so that you can focus on your trading with peace of mind, then you have come to the right place. We will take a look at various European forex brokers and the things to be aware of when choosing one.

How to choose a forex broker in Europe?

With so many forex brokers in the EU, it can seem overwhelming at first. However, you can filter down suitable brokers using certain criteria. Firstly, I would want to make sure the broker is regulated in Europe to provide forex trading products and services. This can help to eliminate possible forex broker scams right off the bat. Once regulation has been established, you can look at the following points to make sure the broker has everything that you need:

  • Currency pairs and base currencies
  • Other financial instruments
  • Trading platforms and apps
  • Research and trading tools
  • Market analysis and news
  • Educational resources
  • Forex account types
  • Deposit/withdrawal options
  • Quality of their service

Best forex brokers in Europe

We have spent countless hours throughout the years, analysing and reviewing hundreds of forex brokers in the EU. During this process, we have taken into account what we consider to be the most important aspects of a broker and allocated each of them a rating. That being said, please see our best EU forex brokers from our findings in the table below.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.
AvaTrade Review

ADGM FRSA, ASIC, BVIFSC, CBI, FFAJ, FSCA, IIROC, JFSA

$100

2006

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
2.
IG Review

ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA

$250

1974

1:200

76% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
3.
Pepperstone Review

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

$200

2010

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
4.
IC Markets Review

ASIC, CySEC, FSA, SCB

$200

2007

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
5.
XM Group Review

ASIC, CySEC, DFSA, IFSC

$5

2009

1:888

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
6.
City Index Review

ASIC, FCA, MAS

$100

1983

1:200

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
7.
Forex.com Review

ASIC, CIMA, CFTC, FCA, FSA, IIROC, JFSA, NFA, SFC

$100

2001

1:50

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
8.
Markets.com Review

ASIC, BVIFSC, CySEC, FCA, FSCA

$/£/€100

2008

1:300

79.90% of retail investor accounts lose money when trading CFDs with this provider.
9.
FXTM Review

CySEC, FCA, FSC, FSCA

$10

2011

1:300

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
10.
FP Markets Review

ASIC, CySEC, FSCA, SVGFSA

$100

2005

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

What is ESMA and how does it impact European forex brokers?

The European Securities and Marketing Authority (ESMA) is a European Union-wide financial watchdog that regulates CFD and forex brokerages in Europe. They are an independent European Union (EU) Authority that contributes to safeguarding the stability of the EU’s financial system by enhancing the protection of investors and promoting stable and orderly financial markets.

Forex brokers that are operating in Europe must comply with ESMA directives, which can directly impact European traders and investors as well. Some of the most prominent ESMA rules include the following:

  • EU Forex Brokers are required to show how many traders lose money using their service
  • European Forex Brokers cannot promote or offer clients bonuses of any kind
  • Forex Brokers in the EU cannot offer high-risk products such as binary options
  • Forex Brokers in Europe must implement systems that prevent the user from losing more money than they deposit (Negative Balance Protection)
  • Forex Brokers in the EU must keep users’ money in segregated accounts
  • Forex Brokers in the European Union may only offer leverage of up to 1:30

How to verify if a forex broker is regulated in Europe?

One of the most important things to look for when choosing an EU forex broker is regulation. When you trade forex online with a regulated brokerage firm, you have some protection that can help if things were to go wrong. Regulated forex brokers must adhere to strict rules and procedures that have been put in place to protect investors.

On the other hand, if you were to use an unregulated forex broker, you might not have anywhere to turn if the worst was to happen. Whilst offshore brokers may be able to provide enticing trading conditions such as high leverage, they cannot give the same protection that regulated brokers can.

In order to check if an EU forex broker is regulated, you should look for any license number from a respected regulatory authority on their website. This is usually located within the footer area. Some of the most well-respected regulators in the EU to keep a look out for are the FCA, CySEC and BaFin. You should look up the license number on the relevant regulators website to make sure it is valid.

How to open an account with a forex broker in Europe?

Whilst it can take longer than opening an account with an offshore forex broker, it is still a relatively straight forward process to open a forex trading account in Europe. You will just need to complete short application form and submit some documents as part of the KYC procedures. This can be a passport or driver’s license for identification and utility bill as proof of address.

European forex brokers have to respect strict rules on profiling their clients in order to protect the less experienced, and at the same time fight money laundering. You might need to answer a questionnaire to make sure you have the suitable knowledge and experience required to trade online.

How do I start trading in Europe?

Once your account has been verified, you will be sent your account details so that you can make a deposit and start trading. You will be able to download the brokers trading platform so that you can analyse currency pairs on different chart timeframes and look for buying or selling signals.

If you are not quite ready to trade with real funds, you could always open a free forex demo account which can be a great way to practice your forex trading strategies before making any financial commitment.

Once you have built up enough confidence and start seeing some consistent results, you could always consider switching to a mini account with a low minimum deposit. This will allow you to get some experience trading in a real live environment but with minimal risk.

Is forex trading legal in Europe?

Yes, forex trading is completely legal in Europe. However, not all forex brokers are allowed to solicit European traders. While any forex broker authorised in Europe (EU) can accept clients from the European Union, it is an additional benefit if they are regulated by the financial regulatory body in your country.

European forex brokers pros & cons

Pros

  • Additional protection
  • Strict regulation
  • Plenty to choose from
  • Flexible trading conditions
  • Excellent support

Cons

  • Restricted leverage
  • Account limitations
  • Longer sign-up process

Conclusion: what EU forex broker is the best for me?

There is no one size fits all when it comes to choosing a forex broker. All traders are different, with various needs and trading styles. Some might want to trade forex only, whilst others may be looking for a stock broker that also provides currency pairs so they can diversify their portfolio. Then you have beginners who might prioritise a broker with lots of educational content, or professional traders who need an API forex broker. There are traders who might want a copy trading platform and others who are running automated scalping strategies that require an ECN broker.

As you can see, there are a lot of factors to consider if you are looking for a European forex broker. The priority for me is regulation, following on from that I always like to see what other traders who have experience with the broker have to say. I would always check to see how customer support responds when I ask them any question. If they pass these tests and have suitable features, I would start trading on a demo account and see how things go before making any commitment.


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