10 Best Forex Brokers in Bulgaria for 2023

Bulgaria, a Southeast European country, holds a distinctive position in the global financial markets, being a member of the European Union but not having adopted the euro as its currency.

Instead, it uses the Bulgarian lev (BGN) as its official currency, which is pegged to the euro at a fixed rate.

In terms of retail forex trading activity, the Financial Supervision Commission (FSC) is the primary regulatory body in Bulgaria. Established to oversee and ensure the integrity of the country’s financial markets, the FSC sets the standards and guidelines for forex brokers and protects the interests of Bulgarian traders.

In this article we has carefully evaluated a selection of some of the best forex brokers offering services in Bulgaria.

We have taken several factors into consideration, including:

• The overall quality of the broker
• The regulations of the broker
• BGN account availability
• Bulgarian language availability
• Physical presence in the country

What are the best forex brokers in Bulgaria?

Below is our curated list of the best forex brokers for traders living in Bulgaria, with details and information about the country laws, the features, and the characteristics.

Is forex trading legal in Bulgaria?

Forex trading is legal in Bulgaria. It is regulated by the Financial Supervision Commission (FSC). A broker who wants to offer services in Bulgaria just needs to be registered within any EU country to become authorized.

How to trade forex in Bulgaria

ESMA regulations mean there is a uniform structure across EU countries for what is required to trade forex. Within the EU a forex broker will require ID such as a passport to confirm your identity, and proof of residence from a bank statement or utility bill.

There are then some KYC questions that must be answered in relation to your product knowledge and also your current financial situation. With these steps complete, accounts are ready to be funded.

Where a broker offers a demo account, the above steps are not required for demo trading. Typically, demo accounts can be open with just an email and password since they are risk-free using virtual currency.

What should Bulgarian traders look for in a forex broker?

As a retail trader in Bulgaria and elsewhere in Europe, there are a few key limitations to note.

• You cannot trade with more than 1:30 leverage on Forex
• Spread betting is banned
• Binary Options are banned
• Welcome bonuses or deposit bonuses are not allowed but benefits to loyal/active traders are acceptable.

Here are three important tips when choosing a broker in Bulgaria:

1. Look for regulated forex brokers

Ensure you are choosing a well-regulated broker. Under ESMA rules, brokers are not allowed to offer services in any EU country if they are not ESMA regulated.

2. Choose brokers that offer low spreads and commissions

Choosing a broker with low spreads is important for most traders. This means below 1 pip on major forex pairs. Deposit and withdrawal fees if there are any, should also be minimal. Check these with the payment method you plan to use. Furthermore, a broker offering an active trader program with good rebates and other benefits is a positive.

3. If you want to keep your budget low, look for brokers with nano-lots

With a maximum leverage of 30:1 in Europe, it can be challenging to trade with less than €100. For this reason, standard minimum deposits are usually between €100 and €200. Trading with nano lots can provide flexibility and help in lowering risk. You can open positions on forex with just €0.33 and the usual minimum trade is just €33. Cent accounts are another good alternative with minimum deposits usually at €10 or less.

How to verify if a forex broker is regulated in Bulgaria

Broker regulation can be verified in Bulgaria through the ESMA official website. Here you should look for the listing of European national regulators. Many brokers are typically regulated in Cyprus which is also under ESMA. It is most likely that the broker will also hold the Bulgarian FSC license. This can be double-checked through the Financial Supervision Commission (FSC) website.

Is forex trading taxable in Bulgaria?

Forex trading is taxable in Bulgaria. Capital gains are taxed on an annual basis from 1 January to 31 December. Personal income in Bulgaria is taxed at a flat tax rate of 10%. Dividend income is taxed at 5%, and if paid by a Bulgarian company, this is withheld at source.