A comprehensive list of top trading Forex brokers 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 over 60 million people, Italy showcases an astonishing GDP of over 2.443 trillion USD, which, without a doubt, makes it one of the strongest economic players in Europe.

While it is common knowledge that Italy’s tourism and fashion industries are flourishing, but not many people know that so is the local Forex trading market. Although it is not necessarily as strong as the FX markets of other European countries, such as Germany or the UK, it does, nevertheless, offer a lot of opportunities for profits to the traders that end up joining it. In the guide that you are about to read we will provide you with a list of Forex brokers in Italy, its regulatory environment, and the requirements for becoming a broker there.

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. It is true that the mistake made during this stage does come at a great cost. Choosing the wrong broker can ultimately cost you your profits, or, in the worst-case scenario, result in significant financial losses. So how does one go about choosing the brokerage that is the right fit for their trading needs? Well, there is no simple answer to that, as different things work for different people. However, for the purpose of easing some pressure off your shoulders, we have created a complete list of the best Forex brokers in Italy. We would like to note that this list is in no way a substitute for the duly research that each trader should conduct, but should rather be used as a point of reference and guidance. That being said, we stand by the reputability and trustworthiness of the traders that we have listed down below.

XM Group

XM Group Forex Review

Minimum deposit

5 USD

Licences

CySEC, IFSC, ASIC

Maximum leverage

1:30*

US Clients

No

Forex.com

Forex.com Review

Minimum deposit

100 currency units

Licences

CIMA, FCA, NFA

Maximum leverage

1:200

US Clients

Yes

IQ Option

IQ Option Review – can the broker be trusted?

Minimum deposit

10 USD

Licences

CySEC

Maximum leverage

1:1000

US Clients

No

Who is eligible for trading with Italian brokers?

First things first, let’s talk about who exactly can get started with the top Forex brokers in Italy.

For starters, it is completely free to start trading Forex in Italy. What we mean by that is that you will not be asked for any fees or additional costs when joining the brokerage. You will, however, be required to make the deposit, and the minimum amount will depend heavily on the broker that you end up choosing. You should note that the size of the minimum deposit is in no way an indicator of how good or bad the broker is, as in the list of the top Forex brokers in Italy you will find that equally qualified and reputable brokers will be asking for anything between and the equivalent of 5 USD and all the way up to 500 USD.  We do, therefore, recommend investing some into the research to find the broker whose requirements suit you best.

When it comes to the question of who is eligible to start trading in Italy, the answer is pretty simple. Anyone of the age of 18 or older, and anyone who is capable of meeting the requirements set by the brokerage of their choice can start trading in no time, and hassle-free.

Italy’s financial regulator protecting your financial safety

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.

We often claim that the proper regulatory environment is very important for the sustainable growth and welfare of the country’s FX market. However what proper regulatory environment can be regarded as a good one? Many believe that it should encompass a variety of regulatory measures that reduce illicit activities to virtually non-existent. Others claim that less is more, and a big number of regulations are actually harmful to the market’s growth. Nevertheless, most of the regulatory bodies across the world are striving to achieve the perfect balance between the two. Similarly, the Italian CONSOB aims to regulate Forex trading brokers in Italy in a way that both reinforces customer protection and does not hinder the reasonably rapid development of the Italian Forex market.  We will now assess the specific measures that the regulatory body imposes upon the brokers, and whether or not they benefit the state of Forex trading in Italy.

Who gets licensed by the CONSOB?

If the broker wishes to offer their service in Italy, they will be required to obtain an official license from the CONSOB. The procedure for that is definitely not an easy one, however, it does a great job making sure that only the top brokers in Italy are permitted to operate in the country. There are a number of requirements that the brokers seeking the CONSOB license need to meet in order to become eligible for it, and we will discuss them at length below. One last thing to mention here is that the overall licensing procedure is beneficial to both the traders and the brokers alike, as the former can be confident in the security of their funds, while the latter can build their reputation upon being officially recognized by the government authority.

However, are all the Forex trading brokers in Italy physically based in the country and licensed by the CONSOB? Well, they most certainly are not. 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. This is hardly a security concern, as most of the EU-based regulatory bodies are very reputable and demanding towards their licensees. It, therefore, means that you can easily go for a foreign broker in Italy, if they are licensed by one of the European regulatory entities, such as CySEC or FCA.

Legal clauses under this regulation

Brokers need to maintain minimum operational capital

As mentioned earlier, the standards that the Forex trading brokers in Italy need to meet in order to obtain the license from the CONSOB are quite high. Among them is the requirement for the minimum trading capital. The broker wishing to become the official licensee of the CONSOB will have to prove and maintain a certain amount of operating capital at all times. This is done to ensure that the broker is not operating on the verge of bankruptcy, and thus, is not putting the funds of its trades at risk.

One should also note that not all of the brokers operating in Italy are licensed with the CONSOB, and, thus, will have to meet the standards of the minimum operating capital issued by the body that they have obtained their respective license from.

Requested fund protection mechanisms

Segregated accounts at top Italian Forex brokers

The first regulatory measure that we are going to discuss here is the one that can often be observed in many countries across Europe. The purpose of this measure is to ensure that the traders have an additional layer of security and peace of mind when it comes to their funds. To be more specific, this regulation requires brokers to keep their operational funds in a separate account, clearly segregated from the accounts where the traders’ money is kept.

There are two main reasons behind this measure. First of all, by keeping the clients’ accounts separated from the account of the broker, the regulatory body ensures that in case the broker goes bankrupt, traders do not end up with their funds frozen, or, in the worst-case scenario, lost for good. Secondly, by enforcing the segregation of funds, regulatory bodies reduce the possibility of the traders’ funds being misused, whether on purpose or by accident.

When it comes to Italy, the regulated Forex brokers there are also demanded to strictly abide by this requirement, as the failure to do so might cost them the official CONSOB license.

A compensation fund for broker-client disputes

This particular measure is a very clear demonstration of just how dedicated are the regulatory bodies across the world, and the Italian CONSOB in specific, to the customer protection and security of the Forex trading market. An investor compensation fund is a requirement according to which the broker is obliged to compensate for the losses that the trader might be subjected to in the unfortunate event of the broker going bankrupt. This is yet another way in which the regulatory body shows the market participants that its primary concern is protecting consumers from unnecessary risks and losses, especially those that they have little control over.

However, it has to be noted that like in many other European countries, there is a cap on the maximum compensation that the Forex trading brokers in Italy can provide to its traders. Moreover, a trader will only be eligible for the compensation if the loss was entirely a fault of their respective broker, rather than resulting from an unsuccessful trading session.

Is it safe to trade with Italian brokers?

You most definitely should! Having examined the Italian FX market in detail, we can easily recommend both the beginners and the experienced traders alike to give it a go. The regulatory environment there is completely in line with both the standards of customer protection and the guidelines issued by the relevant regional organizations. On top of that, Forex trading brokers in Italy are highly reputable and qualified, and joining them could ultimately elevate both your overall trading experience and your profits.