Forex trading in Portugal, a member of the Eurozone, remains a niche activity but continues to follow positive global retail margin FX growth trends.
The domestic regulator Comissão do Mercado de Valores Mobiliários (CMVM) supervises firms operating in the Country dealing in the financial markets, while the European Securities and Markets Authority (ESMA) remains the super-regulator for the Eurozone. Trading with the right Forex broker in Portugal is essential, and my review highlights the core aspects for success and provides a quick guide for beginner Forex traders in Portugal.
- ActivTrades, ActivTrades, Fast order execution and a well-balanced asset selection.
- Eightcap, 1:500 maximum leverage and cutting-edge trading tools.
- Dukascopy, a Swiss Bank and a broker.
- FP Markets, ECN trading with leverage up to 1:500.
- Octa, A commission-free broker with a proprietary copy trading service.
Best Portugal Brokers Comparison
| | | |||
Regulators | CNMV, CONSOB, FCA, FSC Mauritius, SCB | ASIC, CySEC, FCA, SCB | FINMA, JFSA | ASIC, CMA, CySEC, FSCA | CySEC, FSCA, MWALI International Services Authority |
Year Established | 2001 | 2009 | 2004 | 2005 | 2011 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker | ECN/STP | ECN/STP | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | $10.00 | 1.0 pips | 0.3 pips ($3.00) | 1.2 pips | 0.9 pips |
Average Trading Cost GBP/USD | $14.00 | 1.2 pips | 0.8 pips ($8.00) | 1.4 pips | 1.3 pips |
Average Trading Cost Gold | $42.00 | $0.12 | $0.32 | $0.16 | $0.30 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Proprietary platform |
Islamic Account | |||||
Negative Balance Protection | |||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
ActivTrades
In Summary ActivTrades, Fast order execution and a well-balanced asset selectionActivTrades has a Portuguese website and enhanced client protection with funds secured up to $1M. It also provides a €20,000 investor compensation fund or compensation for up to 90% of deposits. Traders get MT4/MT5, the proprietary ActivTrader, and TradingView, which connects social traders with 50M+ peers. ActivTrades can execute 100K orders per second, delivers average order execution below 0.004 seconds, and has commission-free trading, placing ActivTrades among the best Forex brokers in Portugal.
The well-balanced asset selection includes four EUR bonds, 14 EUR currency pairs, and 14 Portuguese equity CFDs. Ultra-low swap rates make ActivTrades an excellent Forex broker for leveraged overnight strategies.
Pros & Cons
- Demo Account
- Highly Regulated
- Low Spreads
- No Choice of Trading Accounts
Eightcap
In Summary 1:500 maximum leverage and cutting-edge trading toolsEightcap EU LTD is the CySEC-regulated subsidiary of Australian-based Forex broker Eightcap, which passports its license to Portugal. Traders get the core MT5 trading platform and Euro accounts from a minimum deposit of €100. Eightcap has a more expensive commission-free account for casual Portuguese Forex traders and a competitive commission-based alternative for more demanding clients who require deep liquidity.
Traders can fund their accounts via bank wires, credit/debit cards, and Skrill. Available asset classes consist of Forex, commodities, indices, and shares, which include German-listed companies for EU-wide exposure. Beginner traders benefit from quality education, placing Eightcap among the leading Forex brokers in Portugal.
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
Dukascopy
In Summary a Swiss Bank and a brokerThe in-house Swiss FX Marketplace (SWFX), a proprietary technological solution, connects SWFX to 20+ banks via the FIX API. It ensures deep liquidity, fast order execution, and low fees, lowered via a four-tier rebate program. Dukascopy has its cryptocurrency coin, Dukascoin, and supports gold as a deposit currency. Traders get EUR-denominated accounts and fast Euro deposits and withdrawals via SEPA. Therefore, I rank Dukascopy among the best Forex brokers in Portugal.
Dukascopy offers a well-balanced asset selection, the MT4/MT5 platforms, and its proprietary JForex alternative. Thanks to its STP/NDD/ECN environment, Dukascopy is ideal for high-volume/high-frequency traders and algorithmic traders.
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 1:500FP Markets, a CySEC-regulated broker, provides its services to traders in Portugal through its recognized subsidiary, passporting its license into the local market. Therefore, traders get an ESMA, CMVM, and MiFID-compliant broker, including the €20,000 investor compensation fund covering up to 90% of client deposits. Euro accounts are available, and FP Markets offers a broad range of tradable instruments including 60+ currency pairs, such as the usual Euro crosses, placing it among the list of preferred Forex brokers in Portugal. It also lists 125+ EU-listed equities and twelve cryptocurrency CFDs.
Traders benefit from MT4/MT5, upgraded via twelve plugins, which fully support algorithmic and social trading. Funding options include bank wires, credit/debit cards, Skrill, Neteller, PayPal, Sofort, and Giropay, are available payment processors.
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
Octa
In Summary A commission-free broker with a proprietary copy trading serviceFounded in 2011, Octa is a “Straight Through Processing” (STP) broker, which means they do not have an internal dealing desk. They simply connect buyers and sellers directly. With this model, Octa aims to be more cost-effective than anyone else in the market. They offer low spreads and claim 97.5% of trades are executed without slippage.
Octa offers their clients a choice of three Forex trading platforms: the world’s most popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5). All of these can be traded as a desktop application, and on Android and iOS devices.
Octa is an unregulated broker but continues to earn the trust of traders around the globe, with more than 1,500,000 accounts opened. One reason for the ongoing success of this market maker is appealing bonus campaigns. This broker paid out almost $3,000,000 in bonus funds. Octa offers traders the MT4 and MT5 platforms, and a proprietary mobile trading platform. Octa additionally grants their clients Autochartist, but traders require a Silver Level in the Status Program. Traders have a choice between fixed and floating spreads, and the overall cost structure remains competitive.
Asset selection remains the distinct weakness at Octa, making it most suitable for new retail traders. A series of short educational articles offers a basic Forex introduction, and this broker maintains an excellent arsenal of research and analytics tools.
Pros & Cons
- Quick withdrawals and deposits
- 0% commission and no overnight charges
- Space with personalised trading ideas
- Customer Support 24/7
- Mobile copy trading services available only for Android
Get Started with Forex in Portugal
Consider the below steps before starting Forex trading in Portugal:
1. Forex trading is a highly skilled profession, making education the critical first step.
2. Trading psychology and the importance of leverage and its relationship to risk management are two primary areas to master to achieve success.
3. Trading with one of the Forex brokers in Portugal listed here can ensure a trustworthy environment and competitive edge.
4. Traders should understand the impact of trading costs, use leverage intelligently, and have realistic expectations. Therefore, defining and following a suitable strategy and an appropriate risk management profile are essential.
5. Market events can stimulate price action, break established trends, and cause volatility, meaning traders must follow the news and analyze the potential for a change in sentiment.
6. Using take profit and stop loss orders is important to control risk and achieve your objectives in trading. Placing them with each order ticket entry represents an example where traders should not let emotions cloud their decision making.
How to Choose a Forex Broker in Portugal
Portuguese-resident Forex traders should consider the following issues:
- Regulation - A 10+ year clean operational history will reduce counterparty exposure and the risk of scams or fraud.
- Local-currency accounts - Euro accounts are generally available, but Forex traders can save currency conversion fees by using US Dollar accounts.
- Local payment methods - Bank wires and credit/debit cards are available at all brokers. Some offer localized options like Klarna/Sofort or Giropay, and Portuguese Forex traders may consider cryptocurrencies as deposit options.
- Spread sizes - Traders should avoid brokers with commission-based spreads exceeding 0.1 pips during the most liquid trading periods for major currency pairs.
- Fees - Competitive fees remain at or below $6.00 per 1.0 standard lot with volume-based rebate programs.
- Products - A broad-based selection of 60+ currency pairs ensure diversification opportunities.
- Asset diversity - Forex traders can diversify via other asset classes such as commodities, index CFDs, and cryptocurrencies.
- Customer service in native language - Many brokers offer Portuguese customer support and have a Portuguese website.
- Account type diversity - The primary account types are commission-free, spread markup and commission-based on volume traded.
- Demo account - A crucial trading tool is unlimited demo accounts with customization options.
- Mobile trading - Most brokers offer MT4/MT5 mobile apps, while some have developed proprietary alternatives.
- Deposits/Withdrawals - Third-party processing and currency conversion fees are costs traders should consider.
The Pros & Cons of Forex Trading in Portugal
The pros of Forex trading in Portugal are:
- 24/5 decentralized trading.
- Euro-based currency accounts are widely available.
- Lower minimum capital requirements than other asset classes.
- Portfolio diversification via copy trading
- Passive income opportunities
- Frictionless financial transactions
The potential cons of Forex trading in Portugal are:
- A fundamental misunderstanding of Forex trading, its requirements, and possibilities/risks
- Potential language barrier
- False sense of accomplishment from demo trading
- Disrespect of Forex trading as a high-skilled profession
- A lack of sufficient margin trading capital mixed with unrealistic trading expectations could lead to overtrading, frustration, and inefficient trading.
- Inadequate risk management taking a casual approach to the potential for downside risk.
Forex Trading Licenses & Regulators in Portugal
As a Eurozone member, Portugal and its financial markets participants fall under the supervision of the ESMA and the MiFID II regulatory framework, enforced by the CMVM. Most Forex brokers catering to Portuguese traders’ passport their licenses from other EU jurisdictions, often Cyprus. There are no restrictions on Portuguese Forex traders to trade with offshore brokers, and most Forex brokers accept Portuguese clients, as Portugal has no dominant domestically regulated online brokers.
What Trading Instruments May be Traded in Portugal?
Portugal maintains an open-market economy and financial markets are not restricted for Portuguese traders. There are no currency exchange controls, and Portugal has adopted a welcoming stance on fintech firms, startups, and cryptocurrencies with its attractive tax regime. Traders have access to all trading instruments their brokers offer, with CFD trading the most popular asset form, followed by long-term investments.
Is Forex Trading Legal in Portugal?
Forex trading in Portugal is legal, and whilst the Portuguese Forex market is comparatively small, it emerged as one of the more competitive ones across the increasingly restrictive EU-regulated landscape. Cryptocurrency regulation is the latest example, and many Portuguese-resident Forex traders prefer brokers offering cryptocurrency CFDs. All Forex brokers active in Portugal must comply with MiFID II, provide negative balance protection, and an investor compensation fund.
Bottom Line
Despite its relatively small size the market for Forex in Portugal continues to lead innovation across the more restrictive and often counter-productive EU-wide regulatory environment, governed by the ESMA. The rules on cryptocurrencies and CFDs being the latest examples of regulatory burden. Portugal uses its autonomy to ensure a competitive Forex market, and Portuguese-resident Forex traders may choose between EU-licensed Forex brokers or ultra-competitive offshore Forex brokers.
You might also be interested in reviewing the below top brokers:
