Top Forex brokers in Romania, and how to find them

What is the first thing that comes to mind when you think about Romania? Our guess is its history, notorious Countr Dracula, unique culture, and tourist attractions. Our other guess is that the last thing you are thinking about is the country’s national economy, or, more specifically, the opportunities for profit that it has to offer. This is no surprise at all – Romania is definitely not listed among Europe’s strongest economies, however, what many are not aware of is that it is one of the most promising ones. Upon joining the European Union in 2007, Romania has come a long way to boost its economy and financial sector to meet the standards of the EU.

As of right now, the country has a population of over 20 million people and a GDP exceeding 235 billion USD. Romania has long become and still remains to be one of the regions’ most attractive destination for investors from all over the world. Such significant economic progress did not leave out the country’s Forex trading market, which, simultaneously with the Romanian economy, has been developing at a rapid speed. If you have already been thinking about trying out Forex trading in Romania, then this guide is definitely for you. Below you will find a list of best Forex brokers in Romania, a breakdown of the country’s FX market regulatory environment, and some information on how to get started with Forex trading there.

Our recommendations for top Romanian Forex brokers

There is no doubt that the rapidly developing national economy, such as the Romanian one, can offer a lot of opportunities to the Forex traders. However, in order to fully benefit from the market, one needs to find a broker that is both right for their trading needs and is dedicated to security and customer protection. For most traders, this process is extremely stressful and time-consuming, since the price of making the wrong choice can be anything from unprofitable trading sessions to devastating financial losses. To make this process of selecting a trading broker a little easier for you, we have compounded a comprehensive list of best Forex brokers in Romania, their success rates, and the tools and services that they offer to the traders.

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

Regulation makes sure you’re getting the safest features

When it comes to the developing economies in general, and Forex trading markets in specific, the presence of efficient and all-encompassing regulations is crucial to sustaining the growth of both. When it comes to Romania, it is clear from the rapid speed of its FX market growth that the local regulatory body is doing a great job at performing its functions. Below, we will have a closer look at Romania’s main regulatory entity, some specific regulatory measures in place, and the ultimate impact that they have on the local FX market.

The ASF license and how brokers get it

The main regulatory body that oversees the smooth functioning of the entire financial sector of Romania is the Romanian Financial Supervisory Authority or the Autoritatea de Supraveghere Financiară (ASF). The body was created as a result of the merging of a number of outdated bodies – Private Pension System Supervisory Commission (CSSPP), National Securities Commission ( CNVM), and the Insurance Supervisory Commission ( CSA). The main functions of the ASF include ensuring security, smooth functioning, and development of the insurance, pensions, investment, and Forex trading market in Romania.

The body is completely autonomous and reports directly to the Romanian Parliament. Moreover, it operates in a way that incorporates both the standards issued by the European Securities and Markets Authority (ESMA), as well as the regulations specifically for the specifics of the Romanian FX market. It is clear that the body is functioning in the most efficient way possible, as trading Forex is becoming more and more popular in Romania. We will now provide you with a detailed assessment of what are the specific regulations imposed upon the Forex trading brokers in Romania.

In order to be able to offer their services in Romania, local brokers need to obtain their license from the ASF. The process of doing that is quite complex and time-consuming, however, in the long run, it is extremely beneficial both to the brokers and traders alike. When it comes to the former, having a license from the official body automatically elevates the brokers’ prestige and attractiveness to the potential traders, as the license clearly shows that the brokerage is both qualified and suitable to operate on the market. In turn, traders that choose licensed brokes automatically acquire that additional layer of security, and confidence that in case of something not going well, they will have the ASF step in on their behalf.

Bur are all the brokers operating in Romania both locally licensed and based in Romania? The short answer to it is no, they are not. Romania is a member of the EU which means that is also subjected to the regulations issued by the Markets in Financial Instruments Directive (MiFID). To be more specific, the MiFID permits brokers that are based in any of the European states and licensed by any of the official Europe-based regulatory bodies to offer their services freely in the Eurozone. This is hardly a reason for concern, as reputable bodies such as CySEC or FCA are more than capable of ensuring that only the best of the best are permitted to obtain a license. Moreover, you will most definitely find that some of the best Forex brokers in Romania are not licensed by the ASF.

Regulatory requirements on Contracts for Difference and leverage

CFDs and leverages are some of the most elements of Forex trading. Both of them can ultimately result in amazing profits or devastating losses. Thus, it is not surprising that many regulatory bodies across the world felt the need to impose some regulations upon them, in order to prevent trades from being subjected to high financial risks. Nevertheless, leverages and CFDs’ advocates claim that policymakers do need to act as a moral compass, and traders as legal adults can make their own decision on whether or not to incorporate such tools into their trading sessions.

When it comes to Romania, the ASF, like many other regulatory bodies in Europe, does provide some regulation on leverages. However, before diving deep into what those regulations are, let us provide you with a brief explanation of how the leverages work. Using this tool allows traders to elevate their potential profits without having to invest more funds. In the hands of an experienced trader, leverages can, indeed, be very efficient, but beginners, who lack the knowledge and skill can end up losing more than they have invested. In an attempt to facilitate the security of trading, the ASF limits the maximum leverage that the Forex trading brokers in Romania can provide. The limit is 50:1, and it only extends to popular pairs such as USD/EUR, which are relatively low on volatility. Strong commodities, such as gold, have their maximum leverage at 20:1, highly volatile CFDs are allowed 10:1, while cryptocurrency, that is considered the riskiest of them all, will see its leverage at 2:1.

When it comes to CFDs, the situation is quite similar in Romania. Although the country did not go as far as banning CFDs altogether, the ASF did, nevertheless, implement some strict regulatory measures. As with leverages, CFDs also have the potential to bring their traders some very lucrative profits, however, they are also responsible for most of the losses made during the trading sessions. In Romania, brokers are not allowed to actively promote CFDs, for example, by offering traders bonuses on them.

It is necessary to reiterate that despite being seemingly strict, those measures are implemented with a single goal of ensuring the traders’ security and benefit in the long-run.  Nevertheless, if you are an experienced trader who is confident in their skills with leverages, you might yourself frustrated by the caps introduced by ASF. But don’t you worry! As mentioned above, Romania-based traders can pursue brokers based in other European countries with less strict regulations – such as the Cyprus-based brokers licensed by the liberal and relaxed CySEC.

Financial safety measures with Romanian brokers

If you are still not convinced that the ASF goes the extra mile to reinforce customer protection, then have a look at this additional requirement that the Forex trading brokers in Romania are demanded to meet. Negative balance protection exists to ensure that the traders, especially those willing to use leverages, do not end up losing more than they have invested. Using leverage, in a nutshell, means that you can earn more profits by depositing less, however, more often than not, in case of an unlucky trading session, the trader would end up indebted to their broker. Fortunately, with the ASF keeping the best interests of traders in mind, this is not going to occur if you trade  Forex in Romania.

This particular measure is quite common both across the world and within the Eurozone in specific. Put simply, this measure requires brokers to keep their operational funds separately from the funds of their respective traders. This is done of the primary for the purpose of making sure that traders do not end up with their funds being frozen or lost for good, in case the broker goes bankrupt. On top of that, segregation of funds is a great preventive measure against the traders’ funds being misused – accidentally or otherwise.

Forex trading brokers in Romania are required to abide by this regulation at all times if they wish to obtain and maintain the ASF license at all times. What this ultimately shows is that the ASF is very dedicated to both customer security and the growth of the FX. Although such a balance is often hard to achieve, should you choose to start trading with Romanian Forex brokers, you can be confident that your security is well looked-after.

At what cost can you start trading with Romanian brokers?

Getting started with Forex trading in Romania is much easier than it seems at the first sight. Anyone who has reached the age of legal adulthood and managed to meet the requirements of the broker of their choosing is eligible to become a Forex trader in Romania.

Moreover, getting started with Forex trading in Romania is completely free. What we mean by that is that there is no need to pay any additional fees for the actual joining of the brokerage. You will, however, be required to make the deposit that will then be used for your consequent trading sessions. The minimum required deposit varies depending on the broker you choose. Some of the top Forex brokers in Romania will require a minimum of 5 USD, while others will put forward a minimum requirement of 500 USD – and the minimum deposit is in no way an indicator of how good or bad the brokerage is. We do, therefore, recommend that you invest some time and effort into researching and choosing the broker that is right for you.

Our final verdict on Forex trading in Romania

So, you have read our guide thoroughly and wondering – should you commit to the Forex trading brokers in Romania? Well, our final verdict is  – it is definitely worth a try, and let us remind you why.

Mirroring the state of the national economy, the Romanian FX market is developing and expanding at a rapid speed. The Romanian policymakers’ dedication to making the country attractive for the foreign and domestic investors alike is very much echoed in the efficient and balanced regulatory environment that the local Forex trading market is subjected to. The local regulatory body does a terrific job of performing its functions and is both reinforcing customer support, as well as facilitating the market’s growth. We strongly believe that Romanian citizens have a lot to benefit from if Forex trading is something that they have been considering to do for a while.