Forex Trading in Italy - 5 Best Forex Brokers [year]
5 Best Forex Brokers in Italy
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Christopher Lewis
Forex trading in Italy has seen a new wave of domestic Forex traders begin revitalizing the Italian Forex market, regulated by one of the strictest and most active regulators, CONSOB. Although the Italian Forex market has a reputation for a challenging environment from a broker perspective, we have compiled a list of CONSOB-compliant brokers, allowing you to find the best online broker in Italy for your trading requirements. Read on to view our shortlist and choose the best Forex broker for you.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
Italian resident traders must open accounts with the CySEC subsidiary of FP Markets, where the upgraded MT4/MT5 forms the core platform offering, boosted by the 12-plugin enhancement, placing FP Markets among the best Forex brokers in Italy. Both trading platforms support algorithmic trading and have an integrated copy trading service. Euro accounts are available, and FP Markets has seven deposit options, including the EU-wide, German-based, Cyprus-regulated payment processors Sofort and Giropay, enabling swift processing times.
Forex traders get 60+ currency pairs, and FP Markets offers 650+ CFDs, including 125+ EU-listed CFDs, in MT5. The commission-free pricing environment is 1.3 pips or €13.00 per standard lot, while the commission-based alternative shows costs as low as €6.00 per lot.
Pros
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
Best all-around broker with high floating leverage and fast execution
FXTM remains one of the most competitive choices for Italian Forex scalpers with its Advantage account, available for a minimum deposit of €500. The commission-free cost structure lists costs of €15.00 per round lot, but the commission-based alternative lowers fees to between €0.80 and €4.00 per lot. The average execution speed and price improvement of 0.072 seconds of 0.29 pips, or €2.90 per lot, respectively, deep liquidity, and low costs make FXTM one of the best Forex brokers in Italy.
Besides 60+ currency pairs, Forex traders get 6 FX indices, while the proprietary FXTM Invest service offers Italian traders a high-quality copy trading alternative to the integrated MT4/MT5 solutions. It also provides quality education, research, and trading signals.
Pros
Excellent commission-based Forex pricing environment and transparency
Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
Quality market research and educational content for beginner traders
Proprietary copy trading platform, low minimum deposit, and high leverage
Cons
Limited choice of cryptocurrencies and commodities
Highly regulated, choice of fixed or floating spreads
Italian resident Forex traders looking for a choice of trading platforms will find a competitive selection at AvaTrade. Algorithmic traders get the upgraded MT4/MT5, and manual traders benefit from the proprietary web based AvaTrade WebTrader. The dedicated options trading and mobile app, AvaOptions and AvaTradeGO complete the offering, placing AvaTrade among the best Forex brokers in Italy. Social traders may use Ava Social, ZuluTrade, or DupliTrade.
AvaTrade offers the FTSEMIB40 Index, consisting of the 40 most liquid Italian companies, offering Italian traders access to their home market. It is also a well-trusted global broker, and its AvaTrade partnership program has 70,000+ partners from 150+ counties and 250M+ commission payouts. Another benefit is the commission-free cost structure, among the cheapest across the EU.
Pros
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
Best ECN trading environment, with scalping and hedging
BlackBull 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.
BlackBull Markets Pros & Cons
Pros
ECN/NDD execution model with deep liquidity
Institution-grade pricing for retail traders via proprietary price aggregation
The below table offers a snapshot of trading costs and minimum deposits for CONSOB licensed Forex broker comparisons, helping traders find the best online broker in Italy.
Forex trading in Italy is legal. The Commissione Nazionale per le Societa e la Borsa (CONSOB), otherwise known as the National Commission for Companies and the Stock Exchange, regulates the financial sector across Italy, the third largest economy in the European Economic Area (EEA). Since Italy is a European Union (EU) member, the European Securities and Markets Authority (ESMA) remains the ultimate financial sector regular, including the Forex market.
Despite being one of the leading European economies, demand for Forex trading waned since the Euro replaced the Italian Lira over two decades ago. Italy has initiated movements to reinstate the Italian Lira as a parallel currency, initially in 2005 by the Lega Nord per l'Indipendenza della Padania, or Northern League in English, and again in 2014 by the Movimento 5 Stelle or Five Star Movement. Before Italy adopted the Euro, it devalued the Italian Lira during recessions and created a high Forex trading demand.
Forex Trading Regulations in Italy
Since Italy is an EU member, it must follow ESMA rules and regulations, while the domestic regulator CONSOB ensures the stability of the Italian financial sector, enforcing ESMA policies on ESMA-regulated Forex brokers.
The three most essential regulatory rules Italian and EEA-based Forex brokers must follow are:
EU Financial Instruments Directive 2014/65/EU or MiFID II
EU 5th Anti-Money Laundering Directive
EU Directive 2014/49/EU, an Investor Compensation Fund (CIF) protecting deposits, which remain segregated from corporate funds, up to €20,000
The ESMA, and all its sub-regulators, the national regulators of member countries, such as CONSOB, rank among the strictest regulators globally. Cross-border regulations apply across all member countries. A drawback is a more restrictive environment, with limitations on maximum leverage.
Italian residents should open accounts with fully licensed CONSOB Forex brokers. These include EEA-based Forex brokers, as the single market and cross-border regulations apply. Therefore, a Forex broker licensed anywhere in the EEA can accept Italian resident Forex traders.
Italian Forex Brokers Regulated by CONSOB
While the ESMA remains the primary regulator for EEA financial markets, the Italian regulator CONSOB oversees domestic market participants, enforcing ESMA rules. Founded in 1974 and headquartered in Rome, CONSOB ranks among the most aggressive and active of all global financial regulators.
Since 2019, through Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies, and 2020, through Article no. 4, paragraph 3-bis, it may black out the websites of non-compliant financial companies. Since 2019, CONSBO has used its powers against 736 companies.
While Italy is home to the oldest bank in the world, Banca Monte dei Paschi di Siena, founded in 1472, it has no domestic Forex brokers of any note.
Forex traders should know the following about the CONSOB list of authorized brokers:
Most Forex brokers are international without a local presence in Italy, but remain regulated via cross-border regulations
Few international Forex brokers have a domestic office in Italy, home to several global banks, but retail Forex trading in Italy remains undeveloped compared to many other EU countries
How to Verify CONSOB Authorization
CONSOB maintains a detailed list of financial companies operating in Italy, and its website is available in both Italian and English. Forex brokers with a CONSOB license will list it on their websites, either in the footer of the homepage, on a dedicated page covering regulation, or in their legal section.
The most transparent Italian Forex brokers provide a link to the CONSOB listing, making it easy for Forex traders to check the existence and validity of the license. Otherwise, Forex traders should cross-reference the given license number with the CONSOB database.
CONSOB lists financial firms operational in Italy across the following sub-categories:
Register of Italian Investment Firms
Trust Companies
List of Investment Firms authorized in other EU states with branches in Italy
List of Investment Firms authorized in other EU states without branches in Italy
Companies of non-EU authorized in Italy with branches
Companies of non-EU authorized in Italy without branches
Forex Trading Tax in Italy
Italian Forex trading profits are taxable, but the detailed rules can be challenging to navigate. Italian Forex traders should consult a tax professional to ensure compliance with tax laws and file their income in the appropriate bracket.
Italy maintains one of the most complex tax laws in Europe. For example, since September 2013, the Italian Financial Transaction Tax (Tobin tax) has applied to all Italian derivatives. While Forex trading is derivative trading, the currency pairs are not Italian. Therefore, capital gains tax may apply, which depending on the classification, could be either a substitute tax of 12.5% or 40.0%. Other provisions for Forex traders could impact their tax liability, for example, a minimum account balance exceeding €50,000 for 24 hours during the tax year.
Given the complexity and provisions of the Italian tax law, Forex traders must seek professional advice to ensure compliance with the domestic tax code and the best applicable tax rate.
The Minimum Amount to Trade Forex in Italy
One of the most frequently asked questions in Forex trading is, how much money is needed to trade Forex effectively. Forex trading has lower capital requirements than other assets and is typically on a leveraged basis, but a certain minimum is necessary to manage Forex portfolios effectively.
Since Forex trading in Italy for retail traders restricts leverage to a maximum of 1 to 30, Forex traders might consider higher minimum deposits. Most Italian Forex brokers have minimum deposit requirements between €250 and €500. Forex traders ideally should plan on higher initial commitments, followed by monthly add-on deposits until their portfolio reaches the necessary balance to produce desired earnings.
Successful Forex traders understand the importance of scale, leverage, and risk management. They spend years building their portfolios before considering withdrawals.
How to Open a Forex Account in Italy
Italian Forex traders must open an account with a CONSOB licensed Forex broker or an EEA-based Forex broker.
The ESMA enforces a prolonged application process and collects personal information via mandatory questionnaires without seeking verification of answers. Therefore, the online application process usually takes notably longer.
Steps to open a Forex Account in Italy:
1. Research the best online broker in Italy, which you can source from our shortlist.
2. Complete the online registration form, which can take up to ten minutes due to ESMA-mandated data collection.
3. Italian resident Forex traders must verify their accounts. It is a mandatory step for all regulated brokers globally, and Forex trading in Italy is no exception. Traders should avoid brokers who do not ask for account verification, as it signals a scam. Sending a copy of the ID and one proof of residency document usually satisfies AML/KYC stipulations.
4. Account funding completes the process, and clients are ready to begin their Forex trading journey.
Final Thoughts
Italian resident Forex traders enjoy certain advantages, including lower capital entry requirements compared to other asset classes, 24/5 trading, and support for algorithmic, copy, and social trading.
Italy has no well-established domestic Forex brokers, and CONSOB requires Italian Forex traders to trade with the CONSOB list of authorized brokers, which includes EEA-based Forex brokers. Given the ESMA regulatory framework, which CONSOB enforces, Italian Forex traders manage portfolios in a secure trading environment.
The resurgence of social trading has breathed new life into the stagnant Italian Forex market, attracting a new generation of traders interested in Forex trading and the opportunities it brings for those who approach the Forex market with a proper mindset. Beginners should start with Forex education and ideally demo trading before opening a live account and depositing real funds with one of the best Forex brokers.
FAQs
Can I trade Forex in Italy?
Yes, Italian residents can open Forex trading accounts with many Forex / CFD brokers.
Is Forex trading legal in Italy?
Yes, Forex trading is legal in Italy, and is regulated by the Italian regulator CONSOB and the EU regulator ESMA.
Who regulates Forex trading in Italy?
The Italian regulator CONSOB regulates Forex trading in Italy, enforcing ESMA policies. CONSOB established itself as one of the toughest and most active global regulators.
How many Forex traders are currently active in Italy?
No precise data exists, but intelligent estimates range between 200,000 and 1,200,000 active Forex traders resident in Italy.
Can you make money trading Forex in Italy?
Forex traders can make money trading Forex in Italy, but data shows that 75%+ of Forex traders do not profit over the long term.
Which is the most used Forex broker in Italy?
No reliable data exists but given the relatively few choices due to strict CONSOB requirements, the most used Forex broker in Italy is very likely to be one of the leading international brokers on the CONSOB list of authorized brokers.
When is the Forex market available in Italy?
Forex trading is available 24/5 in Italy, usually from 11pm Sunday evening until 10pm Friday evening.
Who are the best Forex brokers for beginners in Italy?
The best Forex brokers in Italy are the ones which provide beginners with high-quality educational content, market research, actionable trading signals, low trading costs, and algorithmic trading capabilities.
Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.
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