Find a top Forex broker in Monaco using our guide

The microstate of Monaco is located on the shore of the Mediterranean Sea, in Western Europe, and it borders with France almost on every side. The entire territory of this country only amounts to 2.1 square km, which means that Monaco is the world’s second-smallest country in the world, succeeded only by the Vatican. Nevertheless, with a population of just over 36 thousand inhabitants, the country has some of the lowest levels of unemployment. However, this should not come as a surprise, as Monaco has long been a traditional home to the world’s top 1% earners.

There are two main sectors of the national economy that have proven to be most profitable. Tourism industry is quite big in Monaco, and ever-developing to accommodate for the growing influx of visitors from all over the world who come flooding to Monaco every year – attracted by its sightseeing, rich history and luxurious way of life.

The second sector of the economy that one should not overlook is gambling. Casinos in Monaco have become legendary long before Las Vegas came to be, and have been the preferred way to pass time for the world’s most influential people.

Financial trading and investing is how the wealthy individuals manage to preserve and increase their wealth. Below, we will explore everything you need to know if you are starting your trading journey from Monaco.

A full list of the best Forex brokers in Monaco

Finding the best Forex and CFD (Contracts for Difference) brokerage is never an easy task. Especially as a beginner, you need to first create a list of our own priorities. For instance, if you are a swing or position trader, it’s best to look for a broker with low commissions. While for intraday trading, brokers with low spreads are more desirable. As a trader, you need to compare regulations, platforms, customer service, tradable instruments and more. To make the selection process easier for you, we’ve reviewed a huge amount of Forex and CFD brokers and created a top brokers list that accept traders from Monaco.

FX regulatory environment in Monaco

The main regulatory body that oversees the smooth functioning of the countries’ financial sector is the Commission de Contrôle des Activités Financières or the Financial Activities Supervisory Commission (FASC). Established in 2007, this body performs a variety of functions that include overseeing the smooth functioning of various markets in the financial sector, issue of licenses to financial brokers, receiving complaints, and implementing relevant administrative sanctions where necessary. There are no financial trading related taxes in the country, and the overall environment is favorable and very friendly to Forex and CFD traders.

However, it should be mentioned that the FASC is not a highly experienced regulator. And there are not many local brokers to choose from. On the upside, residents of Monaco can open accounts with reputable and globally regulated international brokers.

The national currency of Monaco

The national currency of Monaco is Euro, although the country is not officially a part of the European Union (EU). Euro (EUR) is the most commonly traded currency when paired with the US Dollar. EUR/USD pair has the highest liquidity, which means that traders can enjoy the lowest market spreads possible. In addition, the currency pair is actively traded, and market participants can get multiple trading opportunities compared to other currencies. EUR/USD is actively traded by all types of traders, be it short, medium or algorithmic traders.

Costs and requirements to start trading Forex in Monaco

The main requirement that the trader will have to meet in order to start trading with the regulated Forex brokers in Monaco is being 18 or older. This particular measure ensures that minors are kept away from what can definitely be described as a risky financial enterprise, with a potential for some devastating losses and a lifetime of debt. On top of that, traders need to provide proof of identity and proof of residency during the registration process.

When it comes to the costs of getting into trading Forex in Monaco, it is mostly free. Demo accounts are free to open, and most brokers have very low or zero minimum initial deposit requirements for opening live accounts. In addition, as already mentioned, there are no Forex taxes in Monaco.

Popular trading platforms in Monaco

Selecting the right trading platform is crucial for successful trading. Many brokers offer custom-built platforms while others offer popular software made by third party companies, such as:

• MetaTrader 4 (MT4) – this platform was released in 2005 and has instantly become a hit. Even today, MT4 is the number one platform when it comes to trading currency pairs. MT4 is highly reliable, offers access to the largest pool of custom-made trading robots, and has a user-friendly interface.
• MetaTrader 5 (MT5) – MT5 is an improved version of the MT4, however, has added functionality and is a bit more complex. In addition to Forex and CFDs, MT5 is used for trading bonds, futures, and stocks.
• cTrader – this platform enables ECN (Electronic Communications Network) trading, which enables day traders to enjoy raw spreads. cTrader is mainly used for Forex and CFD trading. You will not find stocks on this platform.
• TradingView – this platform offers highly advanced charting capabilities. TradingView was first created as a charting tool and recently added trade execution to its offerings.

Summary

Overall, we can say that Monaco is a great place for investors and financial traders. There are no taxes, and Forex trading is both legal and regulated. However, the local regulator is not highly experienced and the there are not many local brokers to choose from. For these very reasons, we recommend you to consider international brokers such as XM, AvaTrade, EagleFX, and others from our top list.

FAQs on finding a top Forex broker in Monaco