Europe is a major economic powerhouse, with many of its nations consolidated under the European Union (EU).
The primary currency used by 19 of the 27 EU member states is the Euro (€), which stands as one of the most traded currencies in the world, only second to the US Dollar.
To ensure the integrity and transparency of the vast forex market operating within its jurisdiction, Europe has the European Securities and Markets Authority (ESMA).
ESMA oversees financial markets and regulates retail forex trading activity, setting standards to protect investors, promoting stable and orderly markets, and working to foster coordination among member states. This regulatory body plays a pivotal role in maintaining the trustworthiness and robustness of the European financial market, ensuring that it remains competitive on the global stage.
In this article we have chosen the best ones for European traders. We took into consideration various factors, including:
- The regulation of the broker;
- Their physical presence of offices within Europe;
- The overall quality of the service;
- Forex trading commissions;
- Available base currencies.
What are the best forex brokers in Europe?
Below is our curated list of the best forex brokers for traders living in Europe, with details and information about the region laws, the features, and the characteristics.
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
eToro
best for social trading
eToro operates under CySEC regulation in Europe, offers USD-only accounts with a minimum deposit of $50, and maintains offices in Cyprus and the UK.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About eToro
eToro is a global multi-asset investment platform founded in 2007, offering trading on stocks, ETFs, Crypto CFDs, commodities, and forex. eToro provides a proprietary web and mobile platform with social trading features. eToro is regulated by multiple authorities including FCA, ASIC, and CySEC. eToro is known for its user-friendly interface, copy trading functionality, and commission-free stock trading. eToro serves over 30 million users worldwide. The eToro CEO and co-founder is Yoni Assia.
eToro Features
The features of eToro are listed below.
- Social/copy trading broker regulated in Europe by CySEC (109/10).
- eToro opens trading accounts in USD only. This means that European traders may be charged currency conversion fees when depositing money.
- The minimum deposit in Europe is $50 depending on the country.
- Offices in Cyprus (Limassol), UK (London).
- Leverage in the EU is up to 1:30 for forex pairs.
- Forex spreads are competitive but slightly higher than other european brokers.
- Average spread on EUR/USD: 1.0 pips.
eToro Pros and Cons
Advantages of eToro
The advantages of eToro are listed below.
- Great copy trading and social trading features
- Wide range of asset classes
- It allows to buy fractional stocks from $10
Disadvantages of eToro
The disadvantages of eToro are listed below.
- The eToro spreads can be high
- Offers only USD accounts
- Transferring cryptocurrencies to other platforms can be hard
XM
XM is regulated by CySEC in Europe, facilitates accounts in EUR, USD, GBP, and has offices in Cyprus and Greece.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About XM
XM is a global forex and CFD broker founded in 2009, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. XM provides MetaTrader 4, MetaTrader 5, and proprietary platforms. XM is regulated by multiple authorities including CySEC, ASIC, and IFSC. XM is known for competitive spreads, extensive educational resources, and multilingual customer support. XM serves over 5 million clients from 196 countries. XM offers various account types and a no-requote policy.
XM Features
The features of XM are listed below.
- XM is regulated in Europe by the CySEC (120/10).
- Open a trading account in EUR, USD or GBP.
- Offices in Cyprus (Limassol), Greece (Athens), Australia (Sydney).
- The European branch of XM offers three different account types: Ultra Low Micro, Ultra Low Standard, Zero.
- Access to 15 European markets for stocks on MT5.
- In the EU, the minimum deposit required is €5.
- Average spread on EUR/USD: 0.1 pips.
XM Pros and Cons
Advantages of XM
The advantages of XM are listed below.
- There’s a wide range of account types
- The demo account at XM is unlimited
- Wide range of educational resources
Disadvantages of XM
The disadvantages of XM are listed below.
- No social trading features available
- The account availability changes depending on the location of the trader
- High minimum deposit to invest in securities ($10000 for the XM Shares account)
AvaTrade
best for forex news traders
AvaTrade, headquartered in Ireland, holds regulation by the Central Bank of Ireland. It provides EUR and GBP accounts and offices in Dublin, Milan, and Warsaw.
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- Fixed spread forex broker (from 0.9 pips for retail traders).
- AvaTrade is an Irish broker, regulated in Europe by the Central Bank of Ireland (CBI) with license number C53877.
- You can open trading accounts in EUR and GBP.
- AvaTrade has opened offices in Ireland (Dublin), Italy (Milan), Poland (Warsaw).
- Average spread on EUR/USD: 0.9 pips.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
XTB
best for educational resources
XTB is a Polish broker regulated by KNF, with extensive office presence across Europe and diverse account currencies available.
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Regulations:
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Avg. EUR/USD Spread:
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About XTB
XTB is a global forex and CFD broker founded in 2002 and headquartered in Poland. XTB offers trading on over 2,000 instruments including currencies, stocks, indices, commodities, and cryptocurrencies. XTB provides the proprietary xStation platform and is regulated by multiple authorities including FCA, CySEC, and KNF. XTB is listed on the Warsaw Stock Exchange and serves over 897,500 clients worldwide. The XTB CEO is Omar Arnaout since March 2017.
XTB Features
The features of XTB are listed below.
- Polish broker regulated in Europe by the KNF.
- The broker has no minimum deposit in place for European traders.
- Spreads on forex start from 0.3 pips.
- Wide range of account currencies available: EUR, GBP, USD, CZK, PLN, HUF, RON.
- Huge physical presence in Europe with offices in Poland, Cyprus, Czech Republic, Slovakia, Portugal, Germany, France, Spain, and Romania.
- Average spread on EUR/USD: 0.1 pips.
XTB Pros and Cons
Advantages of XTB
The advantages of XTB are listed below.
- No minimum deposit
- Wide selection of assets
- Competitive trading costs
Disadvantages of XTB
The disadvantages of XTB are listed below.
- Small withdrawal fee
- No social or copy trading
- XTB demo account is limited to 30 days
IG Markets
wide range of trading platforms
IG Markets, with a BaFin license, operates in multiple European countries and provides trading in EUR, GBP, and USD.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- Regulated in Europe by BaFin with license number 148759.
- Wide physical presence with offices across Europe: France, Germany, Italy, Spain, Poland, Sweden, Switzerland.
- With IG Markets it’s possible to trade barrier options and vanilla options, as well as over 17.000 instruments as CFDs.
- The Minimum deposit in Europe is €300.
- IG markets opens trading accounts in EUR, GBP, and USD.
- Average spread on EUR/USD: 0.6 pips.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
Admirals
wide range account type
Admirals, regulated by CySEC, enables accounts in various European currencies and provides leverage up to 1:500 for professionals.
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Avg. EUR/USD Spread:
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About Admirals
Admirals, formerly Admiral Markets, is a global forex and CFD broker founded in 2001. Admirals offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader platforms. Admirals is regulated by multiple authorities including CySEC and FCA. Admirals is known for competitive spreads and extensive educational resources. Admirals recently halted onboarding of new EU clients to comply with regulatory standards. The co-founder of Admirals and CEO of Admirals Group is Alexander Tsikhilov.
Admirals Features
The features of Admirals are listed below.
- Estonian broker regulated in Europe by CySEC with license n° 201/13.
- With Admiral, European professional traders have access to a cashback program and higher leverage up to 1:500.
- Within the EU it’s possible to open accounts in different European currencies: EUR, GBP, CHF, BGN, CZK, HRK, HUF, PLN, RON, and SEK.
- Average spread on EUR/USD: 0.1 pips.
Admirals Pros and Cons
Advantages of Admirals
The advantages of Admirals are listed below.
- Extensive Forex Options
- Strong Regulatory Framework
- Advanced Educational Resources
Disadvantages of Admirals
The disadvantages of Admirals are listed below.
- Charges Inactivity Fee
- Mobile App Limitations
- Higher Average Spreads for Some Assets
Plus500
one of the best for CFD trading
Plus500, under CySEC regulation, offers accounts in EUR and maintains offices in the UK and Cyprus.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Plus500
Plus500 is a global fintech company founded in 2008, offering online Futures trading services in different markets such as Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy and Equity Indices. Plus500 provides proprietary web and mobile trading platforms. Plus500 is regulated by multiple top-tier authorities including FCA, ASIC, and CySEC. Plus500 is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The Plus500 CEO is David Zruia since April 2020.
Plus500 Features
The features of Plus500 are listed below.
- Professional EU traders have access to better spreads and leverage up to 1:300.
- Regulated in Europe by the CySEC, license n° 250/14.
- Offices in the UK (London) and Cyprus (Limassol).
- Plus500 offers trading accounts in a good range of currencies, including the EUR.
- Spreads on EUR/USD are variable.
Plus500 Pros and Cons
Advantages of Plus500
The advantages of Plus500 are listed below.
- Well-regulated CFD provider
- Over 2000 tradable CFDs
- Unlimited demo account offered
Disadvantages of Plus500
The disadvantages of Plus500 are listed below.
- Limited Regulatory Protections for Professionals
- Inactivity fees
- Limited deposit methods
ActivTrades
best for insurance coverage
ActivTrades is regulated by CSSF in Luxemburg, with EU client funds protection up to €1,000,000 and offices in Luxemburg, Italy, and Bulgaria.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About ActivTrades
ActivTrades is a global online broker founded in 2001, offering trading on forex, CFDs, indices, shares, commodities, and ETFs. ActivTrades provides MetaTrader platforms and its proprietary ActivTrader platform. ActivTrades is regulated by multiple authorities including the FCA. ActivTrades serves clients in over 140 countries and is known for competitive spreads and innovative trading tools. ActivTrades recently introduced zero commission on shares and fractional trading. The ActivTrades CEO and founder is Alex Pusco.
ActivTrades Features
The features of ActivTrades are listed below.
- Regulated in Europe by the CSSF in Luxemburg, license n° B232167.
- Offices in Luxemburg, Italy, and Bulgaria.
- Client funds in the EU are individually covered up to €1,000,000.
- ActivTrades provides a good range of account currencies: EUR, CHF, GBP, and USD.
- The broker requires a minimum deposit of $1000 in the EU. Deposits are liable to a 1,5% fee.
- Average spread on EUR/USD: 0.5 pips.
ActivTrades Pros and Cons
Advantages of ActivTrades
The advantages of ActivTrades are listed below.
- Low Trading Costs
- User-Friendly Platforms
- Regulatory Compliance
Disadvantages of ActivTrades
The disadvantages of ActivTrades are listed below.
- Limited Product Range
- Withdrawal Fees
Pepperstone
best for forex scalpers
Pepperstone holds regulation by CySEC in Europe, provides EUR accounts, and offers the Active Trader program.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- Pepperstone is a broker regulated in Europe by CySEC (388/20) and BaFIN.
- It provides very fast order execution.
- Pepperstone professional traders can access the Active Trader program to earn rebates depending on the volume traded.
- No minimum deposit required in the EU.
- You can open trading accounts in EUR.
- Average spread on EUR/USD: 0.09 pips.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,09 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
Interactive Brokers
best for professional traders
Interactive Brokers, regulated by CSSF and other bodies, supports European traders with no minimum deposit and access to numerous forex pairs.
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Regulations:
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Avg. EUR/USD Spread:
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Platforms:
About Interactive Brokers
Interactive Brokers is a global electronic broker founded in 1978, offering trading in stocks, options, futures, forex, bonds, ETFs, and cryptocurrencies across 150 markets in 33 countries. Interactive Brokers provides advanced trading platforms, low commissions, and access to a wide range of financial instruments. Interactive Brokers is known for its sophisticated technology and serves both retail and institutional clients. Interactive Brokers is regulated by multiple top-tier authorities worldwide. The CEO of the Interactive Brokers Group is Milan Galik.
Interactive Brokers Features
The features of Interactive Brokers are listed below.
- Regulated in the EU by three regulatory bodies: CSSF, CBI, and the Central Bank of Hungary.
- There is no minimum deposit for European traders, however, the broker may charge small fees when the equity is below $2000.
- Wide range of over 100 tradable forex pairs.
- IB is the broker of choice of many European professional traders, including the 4 times world champion Andrea Unger.
- Average spread on EUR/USD: 0.2 pips.
Interactive Brokers Pros and Cons
Advantages of Interactive Brokers
The advantages of Interactive Brokers are listed below.
- Low Trading Fees
- Advanced Trading Tools
- Wide Market Access
Disadvantages of Interactive Brokers
The disadvantages of Interactive Brokers are listed below.
- Not user-friendly
- No MetaTrader Support
- Additional Fees
How to open a forex trading account in Europe
In Europe, opening a trading account is slightly more complex than in other countries.
European brokers have to respect strict rules on profiling their clients in order to protect the less experienced, and at the same time fight money laundering.
Clients who want to trade with real money must complete the brokers’ profiling procedure, known as KYC (Know Your Customer). This consists of 5 steps:
- Answer questions about CFDs to let the broker know your level of expertise.
- Answer questions about your financial situation to verify the source of the money.
- Provide a proof of identity through an official document (such as a passport or ID card).
- Provide a proof of address with an official document (such as a bank statement or utility bill).
- Deposit money with an entity linked to the identity of the trader.
What should European traders look for in a forex broker?
If you are a European trader, there are some things you need to look out for to navigate the FX market. European traders are free to choose any broker in the world as long as it is regulated by at least one European financial regulatory body.
Other tips to keep in mind as a European trader include:
1. Stick with ESMA compliant brokers
Brokers cannot offer financial services within the EU without an ESMA regulation.
For brokers to get an ESMA license, they usually register in Cyprus with the CySEC. They can also choose whichever country they prefer. ESMA brokers are safe and offer a great level 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. These are only available to active traders that trade large FX positions.
Experienced traders can also get great benefits from active trader programs. One of the best rebates programs for European forex traders is offered by Pepperstone (74-89% of retail investor accounts lose money when trading CFDs).
3. Choose a broker with an unlimited demo account if you are a beginner
Next is to choose a broker with an unlimited demo account if you are new in forex trading.
Demo accounts are free accounts that brokers offer to let you test their service with virtual money.
They can be opened quickly without having to provide ID cards, bank statements, or other formalities.
4. Watch out for forex trading scams
European traders are often the target of online scams. These are carried out in many ways, but the main way scammers attract victims is by using telemarketing.
One should always be wary of call centers that offer to invest money in forex or other markets.
What is ESMA and what does it mean for forex traders?
ESMA (or European Securities and Markets Authority) is the body that oversees the European financial markets.
Brokers operating in Europe must comply with ESMA directives, which directly affect European traders as well. Among them, the most important are the following:
- Brokers are required to show how many traders lose money using their service.
- Brokers cannot offer bonuses of any kind.
- Brokers cannot offer high-risk products such as binary options.
- Brokers must implement systems that prevent the user from losing more money than they deposit (Negative Balance Protection).
- Brokers must keep users’ money in segregated accounts.
- Brokers may offer leverage of up to 1:30.
It should also be noted that these rules apply only to clients who are classified as “retail”, i.e. “non-professional”. If the trader meets the necessary requirements, they can apply to the broker for professional status who will be able to grant higher leverage, rebates based on the volume traded, and potentially even high-risk assets.
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. If you still have doubts, check our dedicated article on how to check the regulation of a broker.
Is forex trading taxable in Europe?
The EU does not have a single tax law, so each European state has its own policy.
Despite this, forex is usually taxable according to the local Capital Gain Tax rates.
If you are interested to know the tax trading laws in a particular European country, on InvestinGoal we have covered the top 10 best forex brokers for various European countries:
However, we strongly recommend contacting a professional tax advisor to file your taxes, seek help and receive tips.