Europe is home to over 745 million citizens with a GDP exceeding $33 trillion. It is also home to the global Forex trading capital and primary global financial center, London, and 27 of the 50 sovereign countries in Europe are part of the European Union. This distinction has a significant impact on the competitiveness of the European Forex trading environment.
I analyzed dozens of Forex brokers for my European Forex brokers review to determine the best choices for European Forex traders.
Best Forex Brokers in Europe at a Glance
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FP Markets, ECN trading with leverage up to 1:500.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- eToro, Best broker for social traders and crypto traders : 74% of retail CFD accounts lose money.
- Pepperstone, Great ECN execution on MT4 platform.
Best Europe Brokers Comparison
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Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, FSCA | FMA, FSA | ASIC, CySEC, FCA, FSA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB |
Year Established | 2006 | 2005 | 2014 | 2007 | 2010 |
Execution Type(s) | Market Maker | ECN/STP | ECN/STP, No Dealing Desk | Market Maker | No Dealing Desk, NDD |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.9 pips | 1.1 pips | 1.3 pips | 1.0 pips | 1.1 pips |
Average Trading Cost GBP/USD | 1.5 pips | 1.4 pips | 2.0 pips | 2.2 pips | 1.6 pips |
Average Trading Cost Gold | $0.29 | $0.21 | $0.90 | $0.45 | $0.20 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Get Started Visit Website74% of retail CFD accounts lose money | Visit Website |
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade ranks among the European champions and is the Forex broker with the most trading platform choices from our European Forex brokers review. Besides MT4/MT5 for algorithmic trading, AvaTrade presents its proprietary WebTrader and mobile app AvaTradeGO with Trading Central and the specialized Ava Option and Ava Social platforms. Copy traders can also use DupliTrade, and the high-paying affiliate program with 145,000 registered partners and $300,000,000+ in commission payouts caters to passive income seekers.
Traders also benefit from reasonable commission-free costs and a well-balanced asset selection featuring options, ETFs, and cryptocurrencies. The Ava Academy provides beginners with industry-leading education.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets offers traders a well-balanced asset selection with competitive, commission-based trading fees. It has 24/7 multi-lingual customer support, and beginners receive a quality education. Licensed account managers can provide traditional account management services via MAM/PAMM. Copy traders can use the embedded services in MT4/MT5/cTrader, opt for the well-known Myfxbook Autotrade service, pay for fee-based Signal Start, or explore the proprietary FP Markets alternative.
Traders also benefit from the 12-plugin MT4/MT5 upgrade package, Trading Central, and Autochartist. It elevates FP Markets to one of the brokers with the most upgraded trading environment from our European Forex brokers review.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
eToro
In Summary Best broker for social traders and crypto traders : 74% of retail CFD accounts lose moneyWith 30M+ traders, eToro is the leading copy trading provider from our European Forex brokers review. Traders receive a well-balanced asset selection of 3,000+ trading instruments on the user-friendly web-based eToro platform and mobile app. CopyTraders forms the core of the eToro business model, encouraging community engagement. Smart Portfolios, custom-tailored products featuring thematic long-term buy-and-hold investments managed in-house by eToro, complement the passive eToro trading and investing business model.
Traders get ESG scores, the Delta Investment Tracker, physical crypto purchases and staking, and commission-free buy-only equity trading. It also features an in-house developed cryptocurrency wallet and mobile e-money account.
Pros & Cons
- Active investment community ideal for social trading
- Dedicated tools for social trading
- Broad cryptocurrency selection
- Expanding educational offering for beginner traders
- Internal withdrawal fees
Pepperstone
In Summary Great ECN execution on MT4 platformThe well-regulated trading environment and cutting-edge infrastructure make Pepperstone the best choice for algorithmic traders and scalpers from our European Forex brokers review. Pepperstone offers the 28-plugin Smart Trader Tools package and Autochartist for MT4/MT5. The most unique trading tool is Capitalise AI, which supports algorithmic trading in a code-free environment, separating Pepperstone from most competitors.
Social traders can connect their accounts to TradingView, where 50M+ traders interact and share ideas. It is also an ideal choice for copy traders, who can diversify via embedded services in MT4, MT5, cTrader, Myfxbook Autotrade, and DupliTrade. Pepperstone also offers same-day withdrawals.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
- Leverage of up to 1:30 and superb trade execution
- Demo accounts have 30-day time limits
What to Look for in a Forex Broker from Europe
I focused on the below criteria during my European Forex brokers review.
All competitive European Forex brokers must provide the following:
- Regulation - 10+ years of a clean regulatory track record.
- Low trading fees - Low trading costs and competitive swap rates, including positive ones.
- Trading platforms - Availability of algorithmic, copy, and mobile trading.
- Asset diversity - A diversified choice of liquid assets.
- Deposits/Withdrawals - No internal transaction fees and low minimum requirements.
Forex Trading Regulations in Europe
European Forex brokers fall into two categories: EU-based and non-EU-based. The classification dictates the competitiveness and security of the trading environment. The European Securities and Markets Authority (ESMA) is the super-regulator in the EU, while local regulators enforce the Markets in Financial Instruments Directive II (MiFID II).
Outside the EU, financial regulators apply their rules and regulations. While the ESMA has a good reputation, the most notable cases of retail fraud and scams originate from Cyprus, where CySEC regulates Forex brokers.
How Much is Forex Leverage in Europe?
European Forex brokers differ in leverage, which depends on their regulatory status. EU-based brokers offer a maximum retail leverage of 1:30 with a professional account that receives 1:500, the industry standard for non-EU brokers. Forex traders must always use proper risk management when trading leveraged accounts, and all brokers within my European Forex brokers review offer negative balance protection.
How to Start Forex Trading in Europe?
Traders should consider the following tips before funding an account with an European Forex broker.
- Invest sufficient time into quality education.
- Respect Forex trading as a highly skilled profession.
- Understand how trading psychology differentiates unprofitable traders from profitable ones.
- Study the relationship between leverage and risk management.
- Learn how leverage magnifies profits and losses.
- Ensure the risk management strategy and the trading strategy are given equal weight.
- Choose a suitable trading strategy that reflects your personality.
- Remember that low trading fees determine a competitive trading environment.
- Master suitable take profit and stop loss placement.
What is the Best Trading Platform in Europe
Since 80% of daily Forex trading volume is algorithmic, MT4 is the best trading platform in Europe. It also supports API and copy trading. Traders can upgrade it via 25,000+ custom indicators, and most European Forex brokers offer it. MT5 and cTrader come in as the second and third-best choices, as they lack the versatility of MT4.
Forex Trading Taxation in Europe
With 50 sovereign countries, applicable tax rates depend on tax residency. European Forex brokers provide detailed trading summaries. Forex traders in Europe must consult a legal professional to seek tax advice in Europe to ensure compliance with local rules and regulations, which will also optimize the tax rate. Some countries do not levy taxes for Forex traders, while others have high tax rates.
Pros & Cons of Forex Trading in Europe
Before funding a trading account with European Forex brokers, Forex traders should evaluate the pros and cons of Forex trading in Europe.
The pros of Forex trading in Europe are:
- 24/5 decentralized market
- Copy and social trading.
- Mobile trading
- PAMM/MAM accounts
- Low-latency algorithmic and API trading
- Passive income opportunities
- Lower capital requirements versus other assets
The cons of Forex trading in Europe are:
- No bonuses or incentives (EU-based brokers)
- Limited leverage (EU-based brokers)
- Uncompetitive trading conditions (EU-based brokers)
Bottom Line
Across the EU, European Forex brokers operate under ESMA rules and regulations that favor investor protection over competitive trading conditions. The success of this approach has not yielded favorable results, as CySEC-regulated brokers have a history of fraud and misleading business practices. European Forex brokers outside the EU can offer competitive trading conditions under capable regulatory environments.
Copy trading via mobile phones and social trading rank among the most popular retail trading strategies, followed by MAM/PAMM account management services. Algorithmic trading is widespread among profitable European traders, as Europe is home to industry-leading tech hubs and dozens of international brokerage powerhouses spanning the continent.
