Best Forex Brokers in Europe for 2021

logomark Filippo Ucchino calendar Last Updated: November 2021 timer 10 min read
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At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.

The forex market is undoubtedly one of the most liquid and fast-paced financial markets in the world. The market presents lots of exciting opportunities for traders and investors. Before now, the forex market was exclusively for institutional traders and financial institutions. Today, the narrative has changed. With as little as €50, you can trade different currencies of the world.

To access the forex market, you need a reputable online broker. This article was curated to help European traders and investors to make informed decisions when it comes to choosing the best european broker among the best forex brokers in the world, that meets their needs and trading preferences.

Table of contents

Is Forex Trading legal in Europe?

Absolutely. Forex trading is legal in Europe. However, it is highly regulated by ESMA in the EEA. Each country in the European sub-region also has a market regulator. For brokers to obtain the European ESMA passport, they need to register with at least one market regulator in the country they operate.

How to trade forex in Europe

Trading forex is simple and straightforward in Europe. The first step is to register a trading account with a regulated forex broker. The broker will require you to provide important information about yourself, including your ID or passport to confirm your identity, and a proof of residence.

According to MiFID II regulation published by ESMA, brokers are also required to group their clients into retail and professional categories. The broker you will work with will ask you certain questions regarding your trading experience and financial market knowledge. Once you scale through all these, you will then be asked to fund your trading account. Use any of the supported payment methods available to deposit funds into your account to start trading.

Top 10 Best Forex Brokers in Europe

Let’s now take a look at the top 10 best forex brokers in Europe so that you can make an informed decision.

Visit Broker
73.57% of retail investor accounts lose money

1. XM

XM is one of the best brokers in Europe and indeed in the world. XM is highly regulated in Cyprus by the CySEC with regulation number 120/110. This broker offers different trading accounts, including the XM Standard and XM Micro account. These two accounts come at a minimum deposit of $5.

In essence, with as low as $5, you can access the forex market to trade any currency pair of your choice. XM also offers very low spreads from 0 pips. What’s more? They also offer a great amount of educational resources. So, if you are a newbie, you can take advantage of the educational resources to learn the nitty-gritty of forex trading and other financial markets.

77
Rated: Excellent
Security 94
Cost 74
Trading 65
Education 68

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms Regulations: MIFID-ESMA, ASIC, CYSEC Minimum Deposit: 5
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68% of retail investor accounts lose money

2. eToro

eToro is a force to reckon with when it comes to the forex trading space. In fact, this broker is like a household name across all the European countries. eToro offers one of the best social/copy trading services in the world and is regulated by the CySEC with regulation number 109/10.

eToro offers a wide range of trading accounts. Within the EU, you can access the FX market via eToro with $200. eToro doesn’t charge a fee if you trade ETFs and Stocks. Plus, you have their opportunity of using their unlimited demo account to explore different trading skills. The demo account is user-friendly and comes with great features that will make you trade forex like a professional trader.

eToro also offers trading services in cryptocurrencies. Whether you want to trade Bitcoin, Ethereum, or BUSD, eToro has got you covered. On top of that, they have a responsive customer support team that will walk you through the process of buying or selling cryptocurrencies.

78
Rated: Excellent
Security 94
Cost 71
Trading 69
Education 63

Platforms: Proprietary Web Platform Regulations: FCA, CFTC, MIFID-ESMA, ASIC, CYSEC Minimum Deposit: 200
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79% of retail investor accounts lose money

3. AvaTrade

AvaTrade is another great broker for European forex traders. At its core, AvaTrade is an Irish broker that is heavily regulated by the Central Bank of Ireland (CBI) with the license number C53877. AvaTrade offers different trading platforms and accounts for different categories of traders. You can open a trading account with as low as $100.

Additionally, AvaTrade is one of the few well regulated brokers that offer fixed spreads from 0.9 pips. On top of that, this broker has AvaProtect service to protect your account from losses. That’s not all, they support a wide variety of payment methods, including PayPal, Skrill, and MasterCard, and much more.

82
Rated: Excellent
Security 94
Cost 78
Trading 75
Education 72

Platforms: Mirror Trader, ZuluTrade, MT4 Web, MT5 Web, Proprietary Web Platform, MAC Platforms Regulations: FSA, MIFID-ESMA, ASIC, IIROC, FSCA, Offshore, FSC (British) Minimum Deposit: 100
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73% of retail investor accounts lose money

4. XTB

XTB is one of the best online brokers on the market. It is based in Poland and regulated by the Polish Financial Supervision Authority (KNF). XTB has a great trading academy that offers free lessons from the lower to the higher level. With different accounts to work with, you can open any of the trading accounts for free. There is no minimum deposit requirement.

XTB has over 5,200 assets or financial instruments in its asset class. In addition, the broker supports over 25 cryptocurrencies. If you’re an active trader, you can take advantage of the XTB cash rebates program. Also, to mention that XTB has a highly responsive customer support team. You can rely on the team to navigate the forex market successfully.

82
Rated: Excellent
Security 95
Cost 76
Trading 75
Education 72

Platforms: Mirror Trader, Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: FCA, MIFID-ESMA, FSCA, CYSEC, Offshore Minimum Deposit: 0
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76% of retail CFD accounts lose money

5. IG Markets

IG Markets is a success-driven broker regulated by the Financial Conduct Authority (FCA) with the registration number 195355. With this regulation, IG Markets is able to offer forex trading services across the EU. To start trading on the IG Markets trading platform, you need a minimum of €300 to open a trading account.

IG Markets offers spreads from 0.6 pips. This is one of the lowest spreads you can find on a broker. What’s more? IG Markets is the only broker to offer Turbo24 Warrants within certain EU countries, including Germany, France, Spain and Italy. Turbo24 is an asset similar to Barrier Options.

90
Rated: Excellent
Security 98
Cost 62
Trading 100
Education 84

Platforms: Proprietary Web Platform, MAC Platforms Regulations: FSA, MAS, FINMA, FCA, CFTC, MIFID-ESMA, ASIC, FMA, FSCA, DFSA Minimum Deposit: 300
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76% of retail investor accounts lose money

6. Admiral Markets

Admiral Markets is a leading forex broker with educational resources for both newbie and experienced traders. It is an Estonian broker that is regulated by CySEC with the license number 201/13. To start trading, you need to open a trading account with at least $100. Plus, you need $1 for a stockbroking account.

Admiral Markets offers spreads from 0 pips and supports more than 3,500 assets, including cryptocurrencies. They have a highly intuitive trading interface and support a wide range of trading tools and indicators.

80
Rated: Excellent
Security 94
Cost 71
Trading 73
Education 78

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MAC Platforms Regulations: FCA, MIFID-ESMA, ASIC, CYSEC Minimum Deposit: 100
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72% of retail investor accounts lose money

7. Plus500

Plus500 is a broker with a difference. It is regulated by CySEC with the license number 250/14. The minimum deposit required to open a trading account on Plus500 is $100. Plus500 supports over 2,000 financial instruments offered as CFDs, including forex and cryptocurrencies. This broker is not only user-friendly, they have a highly intuitive trading platform to accommodate all your trading needs.

Additionally, Plus500 offers a great amount of educational resources. So, if you are a newbie, you can take advantage of the educational resources to learn the nitty-gritty of forex trading and other financial markets. One more thing. It has a zero-costs policy.

74
Rated: Excellent
Security 96
Cost 70
Trading 66
Education 37

Platforms: Proprietary Web Platform Regulations: MAS, FCA, MIFID-ESMA, ASIC, FMA, CYSEC, ISA, Offshore Minimum Deposit: 100
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75.7% of retail CFD accounts lose money

8. ActivTrades

ActivTrade is another great online broker for European traders. It’s a UK broker regulated by the Financial Conduct Authority (FCA) with the registration number 434413. This broker is very popular across the EU, especially in Italy. In fact, it is one of the few brokers that offer a demo trial without registration needed.

To start trading, you need a minimum of $1,000 to open a trading account. This is quite high compared to what other brokers request. ActivTrade supports over 500 assets or financial instruments with low spreads from 0.5 pips.

79
Rated: Excellent
Security 94
Cost 74
Trading 72
Education 58

Platforms: Mirror Trader, ZuluTrade, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: FCA, MIFID-ESMA, DFSA, Offshore Minimum Deposit: 1000
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76.69% of retail investor accounts lose money

9. NAGA Trader

Naga Trader is a German broker regulated by CySEC with the license number 204/13. Naga Trader is a perfect alternative to eToro because it also offers great social/copy trading services. Opening an account doesn’t require any minimum deposit.

Naga Trader supports 500 financial instruments, including pure metals, commodities, and cryptocurrencies. At its core, Naga Trader is best beginner traders.

78
Rated: Excellent
Security 93
Cost 79
Trading 68
Education 55

Platforms: Proprietary Web Platform Regulations: FCA, MIFID-ESMA, CYSEC Minimum Deposit: 0
Visit Broker
76% of retail investor accounts lose money

10. Trading 212

The last broker on this list is Trading 212. Trading 212 is based in the UK and is duly regulated by the FCA with the registration number 609146. Trading 212 is available within the EU. This broker is very popular among the youngest generations for its zero commission stock trading service.

Trading 212 supports a wide range of financial instruments, including CFDs and cryptocurrencies. Their minimum requirement is $1 for stockbroking and $10 for CFD trading. Plus, they have a user-friendly and unlimited demo account that you can use to practice and develop your trading skills.

80
Rated: Excellent
Security 94
Cost 80
Trading 70
Education 66

Platforms: Proprietary Web Platform, MAC Platforms Regulations: FCA, MIFID-ESMA, Offshore Minimum Deposit: 1

European trader? Here’s what to look for in a forex broker

If you are an European trader, there are some things you need to look out for to navigate the FX market successfully. European traders are free to choose any broker of their choice in the world as long as it is regulated by at least one European financial regulatory body.

Other tips to keep in mind as an European trader include:

1. Stick with ESMA compliant brokers

Stick with European brokers to be protected by the ESMA oversight. Brokers cannot offer their financial services within the EU without an ESMA regulation.

For brokers to get an ESMA license, they usually register in Cyprus with CySEC. They can also choose whichever country they prefer. ESMA brokers are safe and offer a great layer of protection.

2. Active Trader Programs may help

Another important tip is to leverage active trader programs. The benefit of using active trader programs is that they offer lower spreads and costs. It is only available to active trades that trade large FX positions. Experienced traders can also have great value leveraging active trader programs.

3. Choose a broker with a great demo account if you are a beginner

Next is to choose a broker with a great demo account if you are a newbie in forex trading. Using a demo account will help you to practice different trading strategies so that you know which one to adopt and which one works for you. Another advantage of using a demo account is that both earnings and losses are totally virtual.

So, before you open a trading account with a broker, ensure the broker operates a demo account. A demo account works exactly the same way like a live account. Once you have learned the nitty-gritty of the FX market, you can then request to upgrade to a live account where you will trade with real money.

How to verify if a forex broker is regulated in Europe

Determining the regulation status of a broker in Europe is simple. All you need to do is to go to the ESMA (EU) firms register, select the country the broker operates in, and hit the verification button. The result will display whether or not the broker is registered in the selected country.

Is forex trading taxable in Europe?

Generally, forex trading is taxable in Europe. However, you need to check the tax situation in your country of residence. This is because each country in the European sub-region is independent in the matter regarding taxes. At best, you should contact your local tax advisors for more information.

Conclusion

There you have it! You can see that the forex market is exciting and promising when you choose the right forex broker. To settle for a broker, you need to check a few things so that you won’t lose your trading capital. Some of the things to check are the brokers’ regulation status, the ease of deposit and withdrawal, the brokers’ trading platform, and financial instruments.

Once you check the boxes in these areas, you are good to go with any broker you finally choose. You can go through our guide on the 10 best European forex brokers to get a heads-up on the broker to choose.

Don’t forget to practice forex trading with a demo account before switching to a live account. It is risky to jump straight into the forex market as a beginner without first building up your trading skills using a demo account.


About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.
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