Top list of Forex and CFD brokers in Estonia

Located in the Northern part of Europe, this Baltic state has long been showing accelerated growth and development, ever since it gained its independence from both the Soviet Union and Germany.

The country has achieved high level of democracy and economic development. Estonia is well-known for its digital innovations and advanced e-government services. The driving force for the Estonian economy includes: information technology, telecommunications, manufacturing, logistics, and tourism.

It is, therefore, unsurprising that Forex trading in Estonia is quite popular – and the local FX market is both sufficiently developed and regulated in accordance with the standards put forward by the European regulatory bodies.

List of the best Forex brokers in Estonia

Finding a broker that best suits your needs is difficult. There are so many brokers out there, and they all have different trading conditions, To find the one, first you need to know what you are looking for. Many Forex brokers also offer CFDs (Contracts for Difference) on stocks, crypto, and other asset classes. In addition, you have to compare fees, regulations, customer service and more. To make the selection easier for you, we’ve created the top list.

Forex trading regulations in Estonia

Financial trading in the country is regulated by the Estonian Financial Supervisory Authority (EFSA). EFSA is an independent entity. The body was created in 2001, with the main purpose of reinforcing customer protection and safety across various markets within the financial sector of Estonia.

It should be mentioned that Estonia is an EU member-state and the country is strictly following the recommendations issued by the Markets in Financial Instruments Directive (MiFID) and the European Securities and Market Authority (ESMA), and, despite having a relatively relaxed approached towards the licensing of brokers, does manage to maintain a significant level of security for the local traders.

Ban on bonuses and promotions

According to the MiFID and ESMA, brokers are prohibited to attract traders through bonuses and promotions. In the countries where such promotions are allowed, brokers typically offer welcome bonuses that can be withdrawn after meeting predetermined trading volume requirements. Which can lead to developing a wrong attitude towards trading. Traders should be focused on proper risk and emotional management, developing trading strategies, and not on getting bonuses.

Brokers operating in Estonia are required to:

• provide negative balance protection
• be a part of trader’s compensation scheme
• offer trading instruments with a tight leverage. Under ESMA regulations, maximum available leverage for major pairs is 30:1. As for the equities, the maximum available leverage that the brokers can offer is 5:1

Popular payment methods in Estonia

Estonia is highly developed digitally, and it’s no surprise that most people use Credit/Debit cards, online banking, mobile payment methods, and digital wallets. In addition, bank wire transfers are also popular. However, it should be noted that when making a deposit to your broker using a bank wire method, transactions can take a couple of days, while most other methods are instant.

Summary

Overall, we can say that Forex and CFD trading in Estonia is well regulated, both internally and by the European Union. Trading Forex is tax-free for the residents of Estonia and is becoming increasingly popular. Most international reputable brokers such as XM, Plus500, AvaTrade and others from the list provide services in Estonia and offer better trading conditions than the local brokers.

FAQs on the top list of Forex and CFD brokers in Estonia