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.
- Eightcap, Competitive pricing + excellent daily videos.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- Dukascopy, a Swiss Bank and a broker.
- FP Markets, ECN trading with leverage up to 1:500.
- Pepperstone, Great ECN execution on MT4 platform.
Best Italy Brokers Comparison
| | | | | |
Regulators | ASIC, CySEC, FCA, SCB | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | FINMA, JFSA | ASIC, CySEC, FSCA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB |
Year Established | 2009 | 2006 | 2004 | 2005 | 2010 |
Execution Type(s) | ECN/STP, Market Maker | Market Maker | ECN/STP | ECN/STP | No Dealing Desk, NDD |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.0 pips | 0.9 pips | 0.3 pips ($3.00) | 1.2 pips | 1.1 pips |
Average Trading Cost GBP/USD | 1.2 pips | 1.5 pips | 0.8 pips ($8.00) | 1.4 pips | 1.6 pips |
Average Trading Cost Gold | $0.12 | $0.29 | $0.32 | $0.16 | $0.20 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Trading View | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap established itself among the best Forex brokers due to its superb trading infrastructure, excellent order execution amid deep liquidity, competitive fees, and cutting-edge trading tools. Manual traders get a well-designed AI-powered economic calendar, and Eightcap upgrades MT4 via Capitalise AI, which enables algorithmic trading in a code-free environment. MT5 traders benefit from Flash Trader, while the dedicated cryptocurrency solution Crypto Crusher caters to cryptocurrency traders.
Copy traders get the embedded MT4/MT5 services, and Eightcap connects social traders to the active TradingView community. Beginner traders get an outstanding educational and research offering via Eightcap Labs and Eightcap Trade Zone.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsItalian 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 & Cons
- High quality educational offering via AvaAcademy
- 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
Dukascopy
In Summary a Swiss Bank and a brokerDukascopy shines with its STP/NDD/ECN environment, featuring the proprietor ECN technological solution, Swiss FX Marketplace (SWFX), connecting with 20+ banks for deep liquidity and ultra-fast order execution. Dukascopy also maintains a high-quality cryptocurrency infrastructure, including its Dukascoin, and traders get account management services from a €1,000 deposit.
Besides MT4/MT5, Dukascopy offers its in-house JForex alternative. Average Forex spreads are 0.2 pips for a minimum commission of $7.00 per 1.0 standard round lot, and the volume-based rebate program lowers trading fees for high-volume and high-frequency traders. It makes Dukascopy one of the best Forex brokers in Italy on my listing.
Pros & Cons
- Quality trading tools and in-house research
- Banking services and trading as a bundled service
- Competitive trading fees with volume-based discounts
- Excellent STP/NDD/ECN trading infrastructure
- Account verification requires a video call
FP Markets
In Summary ECN trading with leverage up to 1:500Italian 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 & 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
Pepperstone
In Summary Great ECN execution on MT4 platformPepperstone, founded in 2010 and headquartered and regulated in Australia, the U.K., and Dubai, is probably the most well-known ECN Forex broker in the world. As an ECN broker, Pepperstone offer raw spreads and low commissions. Taken together, Pepperstone’s “Razor” account offers one of the most competitive costs of trading in Forex that you will find anywhere. In addition to their global headquarters in Australia, Pepperstone also have presences in London, England, where they enjoy full regulation by the Financial Conduct Authority (FCA), and in Dubai, where they are regulated by the Dubai Financial Services Authority (DFSA).
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
CONSOB Licensed Forex Broker Comparison Table
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 Broker | Accepts Italian Traders | Average EUR/USD Standard Spread | Minimum Deposit | Overall Rating | Visit Site |
|---|---|---|---|---|---|
FP Markets | Yes | 1.3 pips / €13.00 per lot | €50 | 5.0 / 5.0 | |
NAGA | Yes | 1.2 pips / €12.00 per lot | €250 | 4.5 / 5.0 | |
CAPEX | Yes | 1.2 pips / €12.00 per lot | $100 | 4.0 / 5.0 | |
AvaTrade | Yes | 0.9 pips / €9.00 per lot | €100 | 4.5 / 5.0 | |
FXTM | Yes | 1.5 pips / €15.00 per lot | €50 | 4.5 / 5.0 |
Italian Forex Legalization
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.
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