Best Forex Brokers in Italy 2023

Summary

The best forex brokers in Italy are regulated and provide their services for easing the trading experience of Italian traders. Forex trading has gained huge popularity in Milan and other major cities, while creating ease for Italian traders. While it is so important to keep various factors in mind while choosing a forex broker and investing money with them, it is equally important to know the pros and cons of trading forex.

Traders look for brokers that provide a safe environment for the execution of their orders. Fees and commissions, trading platforms and instruments, spread and leverage are some of the mainstream factors that are taken into account when answering the question how to choose a forex broker in Italy. With tons of benefits for the traders, such as limited leverage and negative balance protection, forex trading is legit.

Forex Trading in Italy

A young generation of domestic forex traders has started reviving the Italian forex market. One of the strongest and most active regulators, CONSOB, regulates this market. Italy’s foreign exchange market is quite small, particularly if compared to other European nations like Germany and the UK. Also, there are many online brokers that deal in forex trading. At the same time, it appears that regulations are strict.

Forex trading is quite popular among Italian traders, and it is predicted that this popularity will only increase in the years to come. Italy is a contemporary, secure nation with a comparatively robust economy and a prime geographical location. After the introduction of the Euro, unlike the other economies in Europe, Italy paid a way to attract forex traders. Italy had significant economic difficulties and continued to face risks. Forex traders should be informed that while being one of the world’s most industrialized countries, Italy has sections that are plagued by subpar facilities, joblessness, and poverty. With all these challenges and risks, traders are allowed to freely choose Italian-based brokers or offshore brokers who have their offices in countries other than Italy but offer their services to Italian traders.

Factors to Consider When Choosing a Forex Broker in Italy

There are so many factors to be considered when choosing a forex broker in Italy. A few of them are discussed below.

Regulation

Traders are at a risk of losing their funds if they trade with an unregulated forex broker. A regulated broker ensures that the transactions are occurring with a secure and safe broker. In Italy, CONSOB is the efficient regulatory body that oversees the domestic brokerage services. However, many international brokers holding the license from other European regulatory bodies like CySEC, and FCA can also provide brokerage services to the residents of Italy. For Instance, eToro and Capital.com are CySEC and FCA regulated and can be used to buy stocks from Italy. Therefore, choosing a broker with multiple regulations is always advised to avoid any mishap in the future.

Trading Instruments

Before choosing a forex broker in Italy, traders need to be aware of the trading instrument the broker offers. After the confirmation that the broker offers to trade in forex, it is recommended to see other trading instruments offered in order to diversify the investment. Diversification can be done by investing in different instruments side by side, which also helps in managing risks. The forex brokers in Italy offer trading in shares, share CFDs, Cryptocurrency, Commodities, and Indices.

Trading Platforms

Many people have been encouraged to dabble in the FX markets in an effort to receive benefits. Online trading platforms have gained fame by enabling customers to make investments in the forex market without going through a financial advisor. Traders can invest in the most popular currencies, such as USD/GBP and JPY/USD, on desktop and mobile devices with market-leading platforms like MT4, MT5, and other proprietary platforms offered by online brokers.

Fees and Commission

Before making any trades in forex, traders need to make sure to compare the fees charged by the different brokers since it differs from broker to broker. For instance, many retail brokers add their fees to the spread rather than charging direct charges. The spread and commission fees that the broker charges for each trade are the two most typical trading expenses. The trader is responsible for these expenses. Retail traders would not be able to trade any currency in the foreign exchange market without a broker, and that’s why brokers charge commissions for facilitating access to and the ease of engaging in currency trading. Like the majority of brokers in the sector, Italian brokers simply charge their users a tiny spread on the trades they execute, which for the majors can vary from 0.1 pips to 2 pips. On the other hand, only traders using Italian forex brokers with ECN trading capabilities are subject to commissions, the rest mostly offer 0% commission trading such as Capital.com and eToro.

Spreads

Spread is known to be the difference between the bid and ask prices. The value differs from instrument to instrument as well as from broker to broker. For instance, eToro offers tight spreads on forex trading that enables newbies to enter the FX market easily. If the spread is not tight but wider, the forex transactions will get more costly for a trader. The trader will have to pay more when buying a currency pair, while he will get less when selling it.

Leverage

Leverage is the perk for a trader offered by a broker to reach the maximum potential of its trade with low initial capital. The maximum leverage for European clients offered by eToro is 1:30 for major currency pairs (such as EUR/USD). It also offers maximum leverage of up to 1:20 for major indices as well as for pairs like EUR/NZD. While traders are attracted to higher leverage, it also adds up more risk to their trade. So, one should choose a broker that has risk management features for its clients in addition to leverage offering.

Payment Method

Every broker allows different payment methods. Credit cards, debit cards, bank wire, Skrill, PayPal, and many more can be used to fund forex brokers in Italy. The funding in EUR € is also supported by many brokers. eToro, Capital.com, IG, and XM are a few of the brokers that support the local currency EUR €. The traders are facilitated by brokers who support the local currency of Italy, so it is always good to choose a broker who does so to avoid currency conversion costs.

Customer Service

Customer service plays a vital role in the smooth trading journey of a trader. With regards to choosing a forex broker in Italy, the traders must choose a broker that provides great customer service. The traders can be beginners or professionals. Depending on the status, they must encounter help and queries that need to be resolved instantly by the customer support team. It is necessary for a broker to be able to offer help in Italian if they are to serve the Italian forex trading market. Also, if the broker’s website is also available in Italian, that is a plus. It’s preferable if the broker, wherever they may be based, has an Italian-specific phone number.

Pros and Cons of Trading with Forex Brokers in Italy

Here are the pros and cons of the best Forex Brokers in Italy.

Benefits of Trading with Forex Brokers in Italy

Trading with brokers in Italy comes with a lot of benefits for the trader. The top of all is the zero spread account offered by some brokers. Some brokers do have a spread close to zero, such as Capital.com. Most brokers provide limited leverage in order to reduce the risks that come with leverage and limit the losses.

There is also a minimum deposit required to start trading forex with Italian brokers. The traders don’t need huge capital to enter the forex market. Aside from forex, Italian forex brokers are also offering a wide range of instruments such as shares, stock CFDs, commodities, indices, and cryptocurrencies. The Traders can diversify their portfolios considering their trading goals. Moreover, negative balance protection also exists for events when the account balance turns negative, and clients are protected against losses. Italian brokers such as eToro offer negative balance protection for their clients.

How to Start Trading with a Forex Broker in Italy?

Step 1: Open a Trading Account and Verify your identity.

1. First of all, select a broker and click on the Trade option at the upper right corner of the webpage to create a trading account.
2. Then provide your email address and password to sign up your account.
3. Then go to the Settings option in the bottom left of the screen to start verifying your account.
4. Now click on Verify Account.
5. A window will appear that requires you to upload a document for Identity verification. This could be an ID card, Residence permit, Driver’s license or a passport. A selfie is also required to detect a live face.
6. The verification process is complete with this window appearing next.
7. A notification will also appear when the verification of your documents is complete.

Step 2: Deposit Funds

1. Go to the Fund Account option in the right corner.
2. Select the payment method and amount to deposit. Confirm that you own the account you mentioned. Your account is then deposited.

Step 3: Search for Supported Trading Markets and place a trade

1. Now you can use the search bar to look for the forex pair you want to trade.
2. After choosing a pair, you can place an order.

Trading Instruments Available on the Best Forex Brokers in Italy

There are different kinds of trading instruments available on brokers in Italy, and they include the following:

Forex

A currency exchange, or forex, sometimes goes by the name foreign exchange or FX trading. With nothing but an estimated daily volume of trade of $5 trillion, it is among the most competitive markets in the world. The leverage available to trade EUR/USD is up to 1:30 on eToro. The most common pair that is traded is EUR/USD, followed by USD/JPY, GBP/USD, and USD/CHF pairs, in that order. Being the largest worldwide market and open 24/5 makes it incredibly liquid; traders can buy and sell right away, so you’re never locked in a deal. The daily currency fluctuations typically range between 1% and 100 pips movements.

Shares

By trading shares, traders speculate on changes in share prices without really becoming an owner. Those who want to place a temporary stake on a company’s share price, perhaps during times of increased fluctuation or market activity, typically prefer trading shares of that company. They can also trade using leveraged derivatives like CFDs. This implies that all of the market exposure can be obtained with just a deposit or “margin.”

However, one must keep in mind that using leverage might raise both gains and losses. A broker like eToro offers both real shares and share CFDs. The leverage offered to trade share CFDs is up to 1:5 on eToro. Apart from leveraged stock trading, Italian traders can also invest in real shares, where the ownership of the stock is taken.

Commodities

Commodities are naturally occurring materials that are gathered and manufactured for use in human activities. Like stocks, commodities are traded on exchanges. The New York Mercantile Exchange (NYMEX), Chicago Mercantile Exchange (CME), and London Metal Exchange (LME) are well-known commodity exchanges. By trading volume, the most popular commodities include gold, silver, US oil and Brent crude oil, copper, natural gas, and agricultural items, including coffee, wheat, and sugar. The leverage available on commodities is up to 1:10 on eToro.

Indices

Indices serve as a gauge for the price development of a collection of stocks from a market. The FTSE 100, for instance, keeps tabs on the 100 biggest corporations that are traded on the London Stock Exchange. Traders can gain exposure to a whole economy or industry at once by trading indices, and they only need to initiate one trade. The maximum leverage available on indices is up to 1:20 on Capital.com.

Cryptocurrencies

Cryptocurrency is a means of exchanging money along with other assets digitally without the involvement of any third parties, such as a bank or government. These transactions occur on the blockchain, a decentralized ledger system. Almost all brokers from Italy offer cryptocurrencies, including BTC, ETH, and XRP. Traders can trade cryptos with a leverage up to 1:2 on eToro.

The Different Account Types Forex Brokers in Italy Offer

The forex brokers in Italy offer a wide range of account types designed for traders to choose as per their experience and trading goals. The minimum deposit requirement differs for each account type.

Demo Account

The majority of the brokers offer a free demo account for traders to experience real-life trading before investing their hard-earned money into forex. The policies differ from broker to broker. The main distinction is that when using actual trading accounts, traders deal with real money, whilst Demo accounts employ virtual currency with no actual value. The market conditions involving Demo accounts are identical to those for real accounts, other than that, which makes them the perfect option for testing out their strategy.

Standard Account

The most popular trading account is the standard trading account. This account is recommended for beginner traders as it offers lower spreads and minimum deposit requirements. Most brokers offer additional services and greater benefits for retail investors who hold this form of account because it needs sufficient upfront capital to trade complete lots.

Raw/Zero Spread Account

Raw/zero spread account offers a direct connection between the brokerage and the market. It is recommended for experienced traders. This account results in cheaper expense per trade for traders as there aren’t any marked-up spreads or charges. Raw spread accounts are commonly available from forex brokers in Italy using ECN technology. ECN, or electronic communication network, is the most advanced trading platform currently accessible. It is extraordinarily quick and effective, and it gives traders access to the entire depth of the market. Traders can receive the greatest pricing on trades because they give them the opportunity to benefit from ideal trading conditions.

Islamic Account

Muslim traders in Italy who wish to trade in the forex market in accordance with Islamic finance can open an Islamic Forex account or a swap-free account with a broker. This is known to be a halal trading account that differs from conventional Forex accounts in a number of ways. Traders with Islamic accounts are exempted from paying or receiving interest since Sharia law forbids the accrual of interest. Additionally, transactions in Islamic accounts are completed instantly, which calls for immediate currency transfers between accounts as well as the simultaneous payment of transaction fees.

Professional Account

Almost all brokers offer professional accounts. Traders can choose to upgrade their account to professional status as long as they’re experienced traders and somehow prefer to operate with lower margin rates. Instant Execution is available with Professional accounts, although the required minimum deposit is higher. Be mindful that while this account allows traders more power over their intended pricing, it also increases the likelihood of requotes.

It’s crucial to remember that not everyone has the option of choosing to trade as a professional client. Only customers with relevant trading experience and market knowledge are permitted to do this. While maintaining the prior amounts of leverage may seem appealing to traders, changing their categorization has some unintended risks they need to be aware of.

Trading Platforms Available on Forex Brokers in Italy

Traders are always looking for a trading platform that best suits their trading goals. There are two forms of platforms usually available to traders if they wish to choose forex brokers in Italy; Proprietary trading platforms or third-party platforms.

Desktop Trading Platform

The desktop trading platform is available to Italian Forex traders in the form of proprietary trading platforms or third-party platforms. A proprietary trading platform is a kind of platform that is built up by a broker for its clients to trade instruments. The platform helps traders enjoy all of the unique features offered by a broker. Italian traders can use the broker’s proprietary trading platform to trade the forex market. Brokers such as eToro and Capital.com offer a proprietary trading platform.

On the other hand, traders from Italy can also opt for brokers that offer third-party platforms like MT4/MT5. The MT4 is available at brokers such as Capital.com. The MT5 online platform is also the best option when trading on a desktop terminal. Brokers such as FP Markets and IC Markets offer the MT5 platform. It allows forex trading using any browser. It functions on all operating systems, including Windows, Linux, and Mac. Traders can use all of MetaTrader 5’s online functionality to study forex markets and place orders.

Mobile App

Mobile Apps for trading offer a convenient way to track and execute trades. The MT4 and MT5 platforms can also be downloaded on mobile devices. They are the greatest versions of trading software by MetaQuotes. MT4/MT5 applications allow traders to do the full range of trading functions, including checking their trading history and conducting in-depth analyses, utilizing chart patterns and graphical objects. Similarly, some proprietary trading platforms are also available on mobile devices. For instance, eToro provides a mobile app that can be downloaded on both iOS and Android devices. They provide tools for navigating that prioritize user-friendliness as well as customizable capabilities, like detailed charting for experienced forex traders.

Payment Methods Accepted by Forex Brokers in Italy

Investors should think about the payment alternatives provided by brokerage companies while looking for a best forex broker in Italy. The best brokers are those that handle deposits and withdrawals using the most widely used payment options. Credit and debit cards serve as the most popular method of online payment in Italy, just like in the majority of Europe. Mastercard, Discover, Visa and American Express are all accepted worldwide. However, AMEX and Discover are less often used in Italy. While using a card to make a deposit is safe and nearly fast, traders should be aware that using a card to withdraw money may take up to five business days.

To make deposits and withdrawals, however, a lot of the best Forex brokers in Italy support bank transfers. Even though this method of online money transfer might be the quickest and most secure, there are greater costs involved. Also, traders need to be aware that it can take longer for their withdrawals to arrive at their bank accounts. Naturally, bank wire transfers, SEPA payments, and Western Union transfers are additionally available. Traders can also fund their accounts quickly, securely, and conveniently by using an e-wallet. Italian traders have access to the majority of the prominent digital wallets, including Neteller, Skrill, PayPal, etc. Also, traders who decide to go with a digital wallet will have 48 hours to withdraw their funds.

Traders can fund their account in Euro (€). Most of the brokers allow the traders from the European Economic Area to enjoy the base currency of their account as Euro (€).

Forex Trading Regulation in Italy

The brokerage firms that are regulated in the EU by CySEC (Cyprus Securities and Exchange Commission) are permitted to provide their services in Italy. Brokers such as eToro and Capital.com are regulated by both CySEC. Italian traders can trust these brokers. There is also a domestic official organization in Italy named Commissione Nazionale per le Società e la Borsa (CONSOB), often known as the Italian National Commission for Companies and the Stock Exchange, in charge of overseeing the financial markets in Italy. It gives licenses to participants and approves the operations of financial markets. It also keeps an eye on how business is done, checking to see if financial intermediaries act fairly and transparently, and punishes any unfair behavior, such as fraud, scams, etc. All of the services and activities of financial intermediaries are governed by the ESMA (European Securities and Markets Authority). Italian forex traders can feel confident that their protection is taken seriously since there is significant regulatory control over brokers providing forex trading in Italy.

Is Forex Trading Legal in Italy?

Yes, forex trading is legal in Italy. The Italian forex brokers are regulated by major regulatory authorities mainly CySEC, CONSOB and others, whose objectives include investor protection, market efficiency, transparency, and growth. They supervise their activities to be aligned with the laws set forth by the country and the regulatory authorities such as European Securities Markets Authority (ESMA). The regulatory authorities determine any unusual trading patterns and take all other necessary steps to confirm any contraventions of insider trading and abuse of market laws.

Are Italian Forex Brokers Safe?

The brokers regulated by CySEC are safe and protect the investor funds. Italy is a member state of the European Union. Italy is governed by the rules and guidelines set forth by ESMA, which are intended to improve investor protection and support a secure and efficient forex market in the EU. Given the international requirements of ESMA, Italian citizens have two alternatives when it comes to picking a forex broker: they can choose a broker licensed by CONSOB or they can choose a European broker regulated by a prominent financial regulator such as CySEC. Forex brokers who currently hold licenses must adhere to regulations like the minimum capital requirement and depositing customer cash in a segregated account.

Italian forex brokers are additionally subjected to the Markets in Financial Instruments Directive (MiFID). This ensures that all brokers can compensate their clients in the event of a broker’s insolvency, which serves to protect forex traders. Investment compensation of up to 20,000 € is provided by the Cyprus Investor Compensation Fund (“ICF”) for claims involving goods and services that are approved by eToro (Europe) Ltd. The Italian brokers are made to offer negative balance protection for their clients to make sure the traders don’t suffer losses in times of high volatility. For instance, eToro offers negative balance protection if the available balance turns negative. All of the open trades by the trader will be closed, and equity will be reset to zero.

The Italian Forex Market is seen as being quite secure. The brokers that have registered with and are governed by CySEC are frequently chosen because of their security and reliability.

What Reddit & Quora Say About Italian Forex Brokers

Reddit and Quora have a few conversations going with regard to Italian Forex Brokers. So, in this section, we will discuss the reviews or queries on brokers in Italy.

Reddit

Reddit is a platform to rate and review products and services, hold discussion on any topic as well as for publishing content. There are not enough reviews regarding forex brokers in Italy on Reddit. But a member from Reddit came up with the question of whether or not he should use the broker IC Market EU in Italy. The whole review revolved around the fact that IC markets offer high leverage such as in Austria and Germany but not in Italy. That’s why he wanted to open an account with IC Markets.com and not with its EU group to avail of high leverage.

Quora

Quora is a platform for asking questions related to any topic and getting answers and opinions from the public. One of the members from this website was interested to know the broker in Italy suitable for a newbie with low commission and spread. The question got limited answers, and one of the members, in turn, stated to try Coinex, as it has low spread and commission, in his opinion.

Bottom Line

The traders in Italy can choose a forex broker from a list of regulated brokers that have license from CySEC. With forex trading gaining fame in Italy, it is important to have a look at the best forex brokers in the country with their pros and cons. Traders can follow a three-step method to open an account with any of these brokers.

Before the best forex brokers in Italy, it is best to keep in mind various factors such as the instruments, spread, and leverage offered by a broker. Moreover, one should verify if the brokers are regulated or not.

In addition to a wide range of instruments, forex brokers in Italy also offer many kinds of trading accounts. Also, they accept various payment methods and support the local currency, Euro. Both desktop trading platforms and mobile apps are offered by Italian brokers. They also prioritize the safety of its customers and ensure it by securing licenses from EU as well as domestic regulatory bodies.