What to know when selecting the best Forex broker in Italy

Italy is the birthplace of one of the world’s largest ancient civilizations. From the Roman Empire to the Renaissance, this country has given us some of the most astonishing achievements of art, architecture, philosophy, and literature, as well as world-renowned fashion, and one of the most loved cuisines in the world. On top of that, Italy is one of the most significant players in the international arena, which continues to have a significant impact on the state of the region and the entire world. It is not, therefore, a surprise that Italy is also a proud home to one of the strongest economies. With a total population of approximately 60 million people, Italy has a vibrant economy.

While it is common knowledge that Italy’s tourism and fashion industries are flourishing, not many people know that so is the local Forex trading market. FX trading is becoming increasingly popular in the country due to improved accessibly and convenience. In this guide, we’ll discuss all you need to know to find the best broker in Italy.

Full list of the best Forex brokers in Italy

It is no mystery that finding the Forex broker that is right for you is not an easy task. The process takes a lot of time, dedication, and research, which, coincidentally, is often the reason why a lot of people are discouraged from getting into trading Forex altogether. When searching for a broker, it’s important to consider fees, account types, trading platforms, regulations, available assets, and customer service. The selection process is especially difficult for beginners. To aid you in this task, we have created the top list. You can click on the brokers logos from the list to read more detailed reviews on each.

Forex trading regulations in Italy

The main body that is responsible for the management and regulation of various sectors of the Italian financial sector is the Commissione Nazionale per le Società e la Borsa or the National Commission for Companies and the Stock Exchange (CONSOB). Established in 1974, this body originally assumed a number of responsibilities that were previously performed by the Italian Ministry of Treasury. As of today, the CONSOB is performing a vast variety of functions, such as the overseeing of the smooth and transparent functioning of various entities and organizations, introducing regulatory measures, as well as investigating and penalizing illicit activities, and, of course, the management of the country’s Forex market.

Italy is a part of the European Union, which means that it falls under the regulations and guidelines issued by the Markets in Financial Instruments Directive (MiFID) and the European Securities and Market Authorities (ESMA). According to those regulations, if the broker is based in the European Economic Area (EEA), and possesses a license from one of the regulatory bodies located within the EEA, they do not need to obtain an additional license from every single country they wish to operate in.

Brokers operating in Italy are required to keep traders funds in segregated bank accounts. The account segregation improves the level of safety, as even if the broker gets bankrupt and gets liquidated, traders will have access to their money.

In addition, being part of an investor compensation fund is a requirement from the regulator. Compensation funds are very similar to insurance companies. They settle disputes between traders and brokers and compensate funds when required.

Leverage restrictions in Italy

As already mentioned, Italy is an EU member country and in the European Union, maximum available leverage is strictly regulated. Beginner traders often misuse high leverage by opening oversized orders, that often leads to high losses. To prevent this from happening, EU countries have a cap on leverage.

• Maximum available leverage for trading major pairs is 30:1
• For non-major currency pairs, gold and major indices, the leverage cap is 20:1
• For commodities other than gold and non-major equity indices – 10:1
• for individual equities and other reference values – 5:1
• For cryptocurrencies – maximum available leverage is 2:1

Popular trading platforms in Italy

When searching for a broker, it’s important to make sure your broker can offer a desired platform. Platforms help conduct technical analysis, help in copy trading and automation, in addition, they need to be reliable and offer various order placement capabilities. The most popular platforms in Italy are:

• MetaTrader 4 (MT4) – best used for trading currencies
• MetaTrader 5 (MT5) – highly popular multi-asset platform, that is used for not only Forex, but for stocks, futures, and options trading
• cTrader – modern and user-friendly platform that is used for trading Forex

Summary

Forex and CFD trading is well regulated in the country. Both local and EU regulators guarantee that traders are safe from fraudulent brokers. Residents of Italy are free to choose from locally regulated and international brokers. Our top list includes both Italian, and international brokers, that offer great trading conditions, such as Plus500, XM, exness, and others.

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