Selecting between the top forex brokers for any trader can always represent something of a challenge. This the same for traders in each and every country around the world.
To help you as a forex trader in Belgium though, we have compiled a listing to help you choose the best belgische forex broker for your forex trading future.
Alongside that, we will cover some of the key issues and questions that forex traders in Belgium face when they want to start trading.
Table of contents
Is Forex Trading legal in Belgium?
The simple answer here to this question is yes. Forex trading is legal in Belgium.
Being a member of the EU you would expect this to be a simple process, and it may well be that if you are a non-Belgium citizen. However, for Belgians, while forex trading is legal, you do have to be a professional trader to engage in the forex market as retail forex trading is banned.
The market in Belgium itself is regulated by the FSMA (Financial Services and Markets Authority). Under that regulation, some brokers can still offer trading in the likes of shares and non-leveraged products and be in line with the law. Also, as a European based in Belgium but with the passport of another nation, you will likely have no problem in trading forex.
How to trade forex in Belgium
Trading forex in Belgium first of all you will be asked for proof of two things. Namely that you have some proof of ID, this would ideally be your passport. Second, you have proof of residence.
Beyond this, if you are a Belgian forex trader and based in Belgium, there will be a few more things needed. Here you will have to show proof that you are a professional trader by providing 2 of the following 3 pieces of evidence:
- Proof of at least 1 year of experience within the finance field.
- A Financial portfolio of at least 500.000€ (excluding properties such as houses, cars, etc)
- Proof of having opened and closed at least 40 large leveraged positions in the last year (at least 10 per quarter)
Once you have provided this evidence, your forex broker verification will be completed and you will be free to start trading.
Top 10 Best Forex Brokers in Belgium
With some knowledge established, here are 10 of the top brokers to help you find the best forex broker in Belgium.
Belgian trader? Here’s what to look for in a forex broker
As a Belgian forex trader, now that you have seen some of the top forex brokers, lets cover a few points on things to look out for when trading forex in Belgium and how to make the best broker choice possible.
You should first keep note that in Belgium, there are a few elements of trading forex that are banned. This includes spread betting, binary options, leveraged products, and spot forex trading if you are not a professional trader. Also, forex brokers in Belgium can offer loyalty and active trader programs to help reduce your costs, but they cannot offer any kind of direct welcome or deposit bonus.
With these things in mind, here are three important tips for making sure you choose the best broker to fit your needs::
1. Choose ESMA/FCA brokers
Of course regulation is key. This applies whether you are a professional forex trader or not. The good point here though that can help you avoid unregulated offshore brokers, is that forex brokers are actually only allowed to offer services within the EU if they are well-regulated and ESMA compliant.
2. If you’re not a professional trader, choose Forex/Stock Brokers
As a non-professional trader in Belgium, you may find your trading opportunities limited to the likes of stocks. In this case, both eToro and Trading 212 are some of the best available in terms of what they can still offer you to trade with and at great prices.
3. Choose brokers that offer low commissions
Keeping the commissions and fees as low as you can is always something important to consider. This applies even more so in Belgium since you will likely be investing more in long-term assets such as shares.
With these kinds of assets, your profits may not be as fast to generate. Ultimately this means is may be even more important for you to minimize costs, commissions, and fees when trading forex in Belgium.
How to verify if a forex broker is regulated in Belgium
Every broker you come across in Belgium should be ESMA compliant first off. This is something that you can check out at the ESMA website. With that said, you will need to know the EU body that regulates that particular broker. In Belgium, this is likely to be the FSMA or CySEC (Cyprus).
You can also check the regulation here by going to the official FSMA website, and typing the business name of the broker on the search bar. This business name of your forex broker can typically be found in the small print information at the bottom of your broker homepage.
Is forex trading taxable in Belgium?
Yes. Forex trading is taxable in Belgium. With that said, since the authorities there tend not to actively promote forex trading, there is little information to advise on what the process and capital gains tax may be. Given that, and the fact that forex and leveraged trading is only available in Belgium to professional traders, we would recommend contacting the local tax authorities for more information on this issue since we are not professional tax advisors.