| Updated: June 20, 2025While not quite widespread enough to be considered mainstream, forex has become an important part of many Italian traders’ journeys. If you are considering giving forex trading a try as well, this article offers a detailed overview of some of the most reliable brokers that cater to Italians. We have thoroughly examined each broker by creating live accounts, with their trading costs, instrument selection, and regulatory status being among the many factors we focused on.
Fusion Markets74-89% of retail's CFD accounts lose money
ActivTrades72% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Global Prime74-89% of retail CFD accounts lose money
Pepperstone75.5% of retail investor accounts lose money
AxiThe vast majority of retail client accounts lose money
Plus50082% of retail investor accounts lose money
FxPro74% of retail investor accounts lose money
XM Group72.82% of retail investor accounts lose money
eToro61% of retail investor accounts lose moneyItalian Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. BlackBull Markets | 1,876 | 4.8 ⭐ |
| 2. Forex.com | 2,069 | 4.7 ⭐ |
| 3. Fusion Markets | 3,162 | 4.7 ⭐ |
| 4. Global Prime | 247 | 4.6 ⭐ |
| 5. Pepperstone | 3,022 | 4.4 ⭐ |
| 6. FxPro | 1082 | 4.4 ⭐ |
| 7. Vantage FX | 7,440 | 4.3 ⭐ |
| 8. eToro | 27,550 | 4.2 ⭐ |
| 9. Admirals | 1,978 | 3.9 ⭐ |
| 10. XM Group | 2,115 | 3.8 ⭐ |
Italian Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. BlackBull Markets | 0.9 | 1.2 | 1.7 | 1.2 |
| 2. Admirals | 0.9 | 1.2 | 1 | 1.1 |
| 3. Fusion Markets | 1.01 avg (Classic) | 1.17 avg (Classic) | 1.29 avg (Classic) | 1.14 avg (Classic) |
| 4. Global Prime | 0.96 avg (Standard) | 1.47 avg (Standard) | 1.19 avg (Standard) | 1.12 avg (Standard) |
| 5. FxPro | 1.43 | 1.60 |
| 2.03 |
| 6. XM Group | 0.8 | 0.8 | 1.5 | 0.8 |
| 7. Pepperstone | 1.00 (min) | 1.0 | 1.2 | 1.00 (min) |
| 8. Vantage FX | 0.0 (Raw ECN) | 0.4 (Raw ECN) | 0.3 (Raw ECN) | 0.5 (Raw ECN) |
| 9. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
| 10. Forex.com | 1.0 min (Standard) | 0.9 min (Standard) | 1.3 min (Standard) | 1.3 min (Standard) |
Italian Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. Forex.com | $0 for Standard accounts; $5 per standard lot per side for Raw accounts |
| 2. Vantage FX | $3 per side on Raw; $1.50 per side on Pro |
| 3. eToro | $1 or $2 (stocks only) |
| 4. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 5. Admirals | $3 per lot |
| 6. BlackBull Markets | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| 7. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 8. XM Group | $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account |
| 9. Pepperstone | $0 (Standard Account), $7 round-turn (Razor Account) |
| 10. FxPro | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
Important Note: Italy is somewhat unique in its approach to licensing when it comes to forex brokers. The Italian regulator named La Commissione Nazionale per le Società e la Borsa (CONSOB) does require that brokers be authorized to operate in Italy, which is nothing out of the ordinary. However, a broker does not need to be licensed specifically by CONSOB for it to be a legitimate option for Italian traders as long as it bears the seal of approval of the European Securities and Markets Authority (ESMA) or another reputable regulator in the European Economic Area (EEA).
Top 10 FX Brokers in Italy
Fusion Markets Broker Details Supports Italian No Italy Currency (EUR) Yes Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.7 out of 3,162 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 1.01 avg (Classic)
USDJPY: 1.17 avg (Classic)
EURGBP: 1.29 avg (Classic)
GBPUSD: 1.14 avg (Classic)Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
Global Prime Broker Details Supports Italian No Italy Currency (EUR) Yes Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4, MT4 Webtrader, MT4 Android; for VFSC clients MT4, MT5, and GP Copy Trustpilot Rating 4.6 out of 247 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.96 avg (Standard)
USDJPY: 1.47 avg (Standard)
EURGBP: 1.19 avg (Standard)
GBPUSD: 1.12 avg (Standard)Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
ActivTrades Broker Details Supports Italian No Italy Currency (EUR) Yes Regulators FCA (UK), CMVM (Portugal), CVM (Brazil), SCB (Bahamas), FSC (Mauritius) Min Deposit $0 Trading Platforms ActivTrader, TradingView, MT4, MT5 Trustpilot Rating 4.5 out of 1,460 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:30 (1:400 Bahamas)
Index CFDs: 1:20 (1:200 Bahamas)
Cryptocurrencie CFDs: 1:2 (1:20 Bahamas)Spread EURUSD: 0.50
USDJPY: 0.50
EURGBP: 0.80
GBPUSD: 0.80Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Google Pay, Skrill, Neteller, Bank Transfer, Cryptocurrencies Withdrawal Methods Visa, Mastercard, PayPal, Skrill, Neteller, Bank Transfer, Cryptocurrencies Key Pros
- Holds an FCA license since 2009
- Safeguards all traders with negative balance protection
- Stores customer funds at first-tier banks like Barclays and Lloyd’s
- Supports free PayPal deposits and withdrawals
Key Cons
- Additional fees on deposits with cards
- Charges administrative fees after 50 weeks of inactivity
XM Group Broker Details Supports Italian Yes Italy Currency (EUR) Yes Regulators CySEC (license no. 120/10), (ASIC) (ref. no. 443670), FSC Belize (license no. 000261/27), FSC of Mauritius (GB23202700), FSA Seychelles (SD190), DFSA (ref. no. F003484), FSCA (49976), Registrations for EU passporting: - BaFin, CNMV, MNB, CONSOB, ACPR, FIN-FSA (Finland), KNF, AFM, FI Min Deposit $5 Trading Platforms MetaTrader4, MetaTrader5, MT4 WebTrader, MT5 WebTrader, MT4 Multiterminal, XM App Trustpilot Rating 3.8 out of 2,115 reviews Number of CFD Forex Pairs to Trade 50+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.8
USDJPY: 0.8
EURGBP: 1.5
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Ultra Low Micro and Ultra Low Standard Accounts; $3.50 per side XM Zero Account Deposit Methods Visa, Mastercard. Skrill, Bank Transfer, Neteller, Apple Pay, Google Pay, UnionPay, Maestro Withdrawal Methods Visa, Mastercard, China Union Pay, Skrill, Neteller, Bank Transfer Key Pros
- Traders can choose from over 10 platforms
- Covers a great number of currency pairs
- Regulated by major authorities
- Offers smooth trading on the go
- Supports different account types with tight spreads and low fees
Key Cons
- Trading platform’s design seems outdated
- Not listed on stock exchange
- Charges an inactivity fee
Pepperstone Broker Details Supports Italian Yes Italy Currency (EUR) Yes Regulators ASIC (No. 414530), UK FCA (No.684312), CySEC (No. 388/20), BaFin (No.151148), DFSA (F004356), CMA (128), SCB Bahamas (SIA-F217), FSA (SD108) Min Deposit $0 Trading Platforms MetaTrader 4, MetaTrader 5, cTrader, TradingView Trustpilot Rating 4.4 out of 3,022 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.0
EURGBP: 1.2
GBPUSD: 1.00 (min)Forex Commission per Lot per Trade $0 (Standard Account), $7 round-turn (Razor Account) Deposit Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill, Apple Pay, Google Pay, UnionPay, BPay, POLi, USDT, MPESSA Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Key Pros
- Winner of multiple industry awards
- Commission-free FX trades via standard accounts
- Over 1,200 instruments across all major asset classes
- Competitive spreads on FX trades via Razor accounts
- Seamless withdrawals within 1 to 3 workdays
Key Cons
- A somewhat limited range of deposit and withdrawal options
- High swap rates on overnight positions
eToro Broker Details Supports Italian Yes Italy Currency (EUR) No Regulators FCA, CySEC, ASIC, MFSA, FSRA, FSA, FINRA/FinCEN, AMF, SEC, GFSC Min Deposit $50 or $100 based on country ($10 for the UK, $1 in the US) Trading Platforms eToro Investing, eToro App, TradingView, eToro CopyTrader, Proprietary Trustpilot Rating 4.2 out of 27,550 reviews Number of CFD Forex Pairs to Trade 55 Leverage Forex & Metals CFDs: 1:30 (1:400 advanced leverage at Seychelles entity)
Index CFDs: 1:20 (1:100 advanced leverage at Seychelles entity)
Cryptocurrencie CFDs: 1:2 (UK, CySEC, ASIC), 1:5 (Seychelles)Spread EURUSD: 1.0
USDJPY: 1.0
EURGBP: 1.5
GBPUSD: 2.0Forex Commission per Lot per Trade $1 or $2 (stocks only) Deposit Methods eToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDeal, Klarna, Bank Transfer, Trustly, Przelewy24 Withdrawal Methods PayPal, Skrill, Visa, Mastercard, Neteller, Trustly, Bank Transfer Key Pros
- Offers trading with over 6,000 instruments
- Ideal for social and copy trading
- No commissions on forex trades
- Effortless registration process
- Offers negative balance protection
Key Cons
- Withdrawals are subject to additional processing fees ($5)
- USD is the only base account currency
- Charges inactivity fees on dormant accounts ($10 per month)
Admirals Broker Details Supports Italian Yes Italy Currency (EUR) Yes Regulators CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311), EFSA (No. 4.1-1/46), CMA (No. 178), CIRO, FSA (No.SD073) Min Deposit $100 ($1 for Invest MT5 Account) Trading Platforms MetaTrader4, MetaTrader5, WebTrader, MT Supreme Edition, StereoTrader Trustpilot Rating 3.9 out of 1,978 reviews Number of CFD Forex Pairs to Trade 82 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.9
USDJPY: 1.2
EURGBP: 1
GBPUSD: 1.1Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Mastercard, Skrill, Klarna, Bank Transfer, PayPal, Neteller, iDeal, POLi, Perfect Money, Cryptocurrencies Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Neteller, Skrill, Perfect Money Key Pros
- Over 8,000 markets available
- 80 forex pairs tradable through CFDs
- Swap-free forex accounts for Islamic customers
- Offers forex trading in micro lots
- No fees on deposits
Key Cons
- Only one free withdrawal per calendar month
- Does not trade publicly on a stock exchange
BlackBull Markets Broker Details Supports Italian Yes Italy Currency (EUR) Yes Regulators FSA (Seychelles) (No. SD045), FMA (No. FSP403326) Min Deposit $0 (Standard)$2,000 (Prime)$20,000 (Institutional) Trading Platforms MetaTrader4, MetaTrader5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade Trustpilot Rating 4.8 out of 1,876 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:500
Index CFDs: 1:500
Cryptocurrencie CFDs: 1:500Spread EURUSD: 0.9
USDJPY: 1.2
EURGBP: 1.7
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Standard; $6 per lot Prime; $4 per lot Institutional Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Key Pros
- Uses proprietary copy-trading platform
- Swap-free trading via ECN Standard and Prime accounts
- Multi-platform support
- Provides a 24/7 customer support service
- Great Education Hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 fee on withdrawals
FxPro Broker Details Supports Italian Yes Italy Currency (EUR) Yes Regulators FCA (No. 509956), CySEC (No. 078/07), FSCA (No.45052), SCB (No. SIA-F184), FSA (SD120) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, cTrader, FxPro Edge (proprietary) Trustpilot Rating 4.4 out of 1082 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.43
USDJPY: 1.60
EURGBP:- 0.1 (MT4)
- 1.3 (MT5)
GBPUSD: 2.03Forex Commission per Lot per Trade $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts Deposit Methods Visa, Mastercard, Maestro, Domestic Bank Transfer, International Bank Transfer, Neteller, PayPal, Skrill, Union Pay, Broker-to-Broker Transfer Withdrawal Methods Bank Transfer, Mastercard, Visa, Union Pay, Maestro, PayPal, Skrill, Neteller Key Pros
- Over 2,100 CFDs across six asset classes
- Zero fees on deposits and withdrawals
- Floating spreads with no commissions on MT4 FX trades
- Winner of over 100 industry awards
- Fills orders within less than 13 milliseconds
Key Cons
- FX spreads are slightly higher than industry averages
- Charges maintenance fees after six months of inactivity
Forex.com Broker Details Supports Italian No Italy Currency (EUR) Yes Regulators ASIC, MAS, FCA, CIRO, JFSA, CFTC, CySEC, CIMA, CySEC Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, WebTrader, NinjaTrader Trustpilot Rating 4.7 out of 2,069 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.0 min (Standard)
USDJPY: 0.9 min (Standard)
EURGBP: 1.3 min (Standard)
GBPUSD: 1.3 min (Standard)Forex Commission per Lot per Trade $0 for Standard accounts; $5 per standard lot per side for Raw accounts Deposit Methods Visa, Mastercard, Skrill, Neteller, Wire Transfer, PayPal Withdrawal Methods Visa, Mastercard, Wire Transfer, Neteller, Skrill, PayPal Key Pros
- Supports a great selection of trading platforms
- Enables easy mobile trading
- Offers over 80 currency pairs
- Provides a vast variety of over 6,000 products
- Forex spreads can be very competitive
Key Cons
- Navigating the platforms can be difficult for beginners
- Instruments on MT4 are significantly fewer than other platforms
- Charges monthly fee after 12 months of inactivity
Is forex trading legal in Italy?
If you are Italian and wish to dabble in the forex market or make it your main source of income, we can assure you that forex trading is perfectly legal in Italy. Brokers do need to be regulated if they plan on targeting Italian traders. As established, however, this does not mean that they have to be licensed by CONSOB specifically. Instead, the local regulator will also recognize a broker as eligible to operate in Italy if it is supervised by another EEA watchdog.
In either case, this means that Italy-facing forex brokers will need to adhere to the rules of the supervisory entity they are licensed by as well as CONSOB’s own regulations. Compliance with the Markets in Financial Instruments Directive II (MiFID II) is also mandatory. Thus, negative balance protection must be provided to retail Italian traders, and leverage needs to be capped at certain thresholds.
CONSOB Regulation Information
Established in 1974, the Commissione Nazionale per le Società e la Borsa (CONSOB) is the entity in charge of licensing companies that offer financial services in Italy. CONSOB also supervises all authorized trading brands and makes sure that they adhere to Italy’s financial regulations. To ensure the stability and integrity of the Italian financial market, CONSOB has joined powers with authorities like The Bank of Italy, The Pension Fund Regulatory Authority, and The Insurance Industry Regulatory Authority.
As for brokers that do commit actions that are in breach of Italian laws, CONSOB has the power to impose penalties and, when needed, revoke their licenses. Like other regulators, CONSOB also strives to better educate clients on the financial sector along with the risks associated with it, and it frequently issues warnings on scams that target Italian investors and traders.
Forex brokerages that wish to cater to Italy-based clients must comply with the regulatory measures introduced by CONSOB as well as ESMA’s Markets in Financial Instruments Directive (MiFID). To be eligible to offer forex financial services to Italian residents, brokers are required to meet the following conditions:
- Be registered as a legal entity according to local laws
- Own a sufficient share capital
- Provide proof of professional liability
- Be fully compliant with CONSOB’s regulatory measures, meeting requirements regarding the company accounting system, financial statements, risk management and anti-money laundry policy, and investor protection.
How Can I Verify CONSOB Authorization?
Typically, information regarding a broker’s licensing and regulation will be provided on the footer of its home page, so this is the first place to check. If you find that no licensing details have been provided there, the next option is to look for a page dedicated specifically to regulation. There, all licenses will be listed and clarification will be given on which jurisdictions they apply for. Some brokers might also provide this information in their terms and conditions or FAQ sections. If you are struggling to find the broker’s licenses, feel free to contact the broker’s customer support.
You can also check if your broker’s company is included in CONSOB’s register of licensed firms. To do so, you will first need to navigate to the “CONSOB and its Activities” page and click on “Participants and Markets.” Next, make sure to use the shortcut CTRL + F and write your broker’s license number in the field. Then, click the “Investment Firms” button on the left and see if the number appears on any of the following pages:
- List of Investment Firms authorized in other EU states with branches in Italy
- List of investment Firms authorized in other EU states without branches in Italy
- Companies of non-EU authorized in Italy without branches
- Companies of non-EU authorized in Italy with branches
As you can see, the process can be somewhat of an ordeal. Nonetheless, the peace of mind of knowing that your broker is licensed can be well worth the effort. If this does seem like too much trouble, however, there is no need to worry: Our publication lists a range of reputable brokers that are authorized to operate in Italy.
Are My Funds Safe with Forex Brokers in Italy?
As per Italian and European laws, forex brokers need to segregate client money in order to comply with the local licensing requirements. What this means is that your own funds will not be mingled with the money belonging to your broker of choice. Instead, your capital will be segregated into separate bank accounts at trusted and regulated financial institutions.
In addition, if you make sure to go with a broker that has CONSOB authorization or that is licensed by another European watchdog, the said broker is guaranteed to offer negative balance protection to all retail clients. To learn more about this safeguard, we encourage you to continue reading.
Do Italian Brokers Provide Negative Balance Protection?
Negative balance protection is among the most important tools that retail forex traders have access to. Its purpose is relatively self-explanatory: It prevents the client’s balance from falling below zero, seeing as this is a real threat when it comes to forex trading. This safeguard used to be relatively rare, but the 2015 Swiss Franc crisis underscored just how crucial negative balance protection is for retail traders.
You will find it difficult to find an Italy-facing broker that does not provide negative balance protection when it comes to retail trading. As established, all forex brokers in Italy need to be regulated either by CONSOB or other supervisory entities in the European Economic Area (EEA). In either case, the rules mandate that licensees protect client funds via negative balance protection if the users in question are not professionals.
Note that thus far, we have mentioned retail clients specifically. The negative balance protection requirements of Italy’s forex regulators do not apply to individuals who have made forex trading their career. Therefore, whether professionals will be offered this service is at the sole discretion of the brokers themselves.
Do You Pay Tax on Forex Trading in Italy?
If you are looking to trade forex and you reside in Italy, the profits that you make from trading currencies may be subject to taxes. Specifically, you will need to pay the capital gains tax (CGT), and in the case of CFDs, the Italian Financial Transaction Tax (IFTT) may also apply. The latter was introduced in 2013 and applies to derivative instruments (CFDs). The nominal value of the IFTT on CFDs depends on the volume of trades as well as the class of the underlying instrument being traded. As for the exact amount of the CGT in Italy, at the time of writing, the CGT rate stands at 26% on gains from forex and other tradable assets.
As tax laws are updated regularly, the CGT rate applied to forex gains may eventually be changed by Italian lawmakers. That is why we recommend that traders who reside in Italy consult professional tax agents within their country to make sure they are fully compliant with local tax laws and requirements.
How Does The Available Leverage of Italian CONSOB-Regulated Brokers Compare to the Leverage at Brokers Regulated Offshore?
The leverage that Italian traders can utilize is limited, regardless of whether they trade at a broker regulated by CONSOB or another European watchdog. Essentially, the leverage limit that brokers enforce on major forex pairs is 1:30, while minor forex pairs involve a 1:20 leverage limit. Of course, these caps are specifically reserved for retail traders. Professional traders are not forced to adhere to these limits, and Italian forex brokers give them much more freedom when it comes to leverage.
Traders from Germany and plenty of other European countries will be more than familiar with the aforementioned limits, seeing as leverage is regulated in the same manner. In contrast, individuals who can trade at brokers regulated by offshore entities can often enjoy far less restrictive limits of 1:200, 1:500, or even 1:1000.
What do you need to qualify to be designated as a professional trader in Italy?
In general, your forex broker will require that you meet at least two of three criteria in order to upgrade your account to a professional status, starting with your trading experience. In short, to qualify for a professional account, you will need relevant work experience in the finance field, your trading activity in the last four quarters must have been prominent, and you will have to meet a wealth criterion. Below, we offer further details on the three requirements Italians must meet to qualify for professional trading:
- Traders must have significant trading activity in the past four quarters, with at least 10 substantial trades per quarter; some brokers require that each of the said transactions be valued at no less than €50,000
- If you have one year (or more) of professional experience in the financial sector, this will also count as one qualifying factor
- Having a portfolio of over €500,000 is another way you can secure one of two requirements
In order to ensure that you are indeed suitable for a professional account, make sure to check your respective broker’s page on pro trading. If you believe you need further clarification regarding the specific terms or other information, you can also contact the broker’s support staff via the available communication channels.
Finally, before you apply for a professional account, take a look at exactly what changes this will entail. Some brokers do not offer negative balance protection to professionals, for example, which might have an impact on how you approach trading once you upgrade your account status.
What Trading Platforms Are Available to Italian Traders?
All in all, Italians are not deprived of choice when it comes to trading platforms. There are plenty of forex brokers that support the full MetaTrader suite, which will be great news for anyone who enjoys either of these classic platforms. Some brokers also offer newer third-party platforms that have gained a substantial audience.
We should also note that some forex brokers have made the decision to create their own trading software and provide it to their clients. These platforms are usually suitable for desktop computers and mobile devices.
MetaTrader 4: Known as MT4, this platform is a staple among online forex trading communities. It was launched in 2005 and is known for being relatively easy and intuitive to get the hang of, although the user interface is starting to show its age in terms of visuals. MT4 is suitable for trading fiat and digital currencies, commodities, and CFD products, although direct stock trading is not supported. It boasts Expert Advisor (EA) integration for automated trading as well and can be used on Windows, Mac, Android, and iOS machines.
MetaTrader 5: MT5 is MT4’s successor, and it boasts even greater capabilities along with a wider selection of instruments. Namely, MT5 is also suitable for the direct trading of stocks. The software offers 80+ technical indicators, is excellent for users interested in copy trading, and can be downloaded on PC devices and smartphones. The web version is also of note, as it grants access to the platform without the need to install anything.
cTrader: cTrader made its online debut in 2011 and has served as the platform of choice for many forex enthusiasts since. Both copy and algorithmic trading are possible with this software, and users are also provided with a range of analysis tools. Just like the platforms we mentioned above, cTrader is compatible with a range of devices and can thus cater to the needs of many Italian traders.
Below, we provide links where Italian traders can find more detailed information about regulations, licensing requirements, and the forex brokers authorized to legally accept customers from the country. Some brokers serve Italian traders with licenses issued by other EU regulators, so we have included links to their registries as well.
- CONSOB (Commissione Nazionale per le Società e la Borsa) monitors and licenses all companies participating in the local securities market. This includes investment firms, financial intermediaries, stock exchanges, and forex brokerages, among others.
- Verify the regulatory status of your broker by checking CONSOB’s Participants and Markets page.
- Protect yourself against scams by frequently checking CONSOB’s warnings page. The Italian regulator maintains a detailed archive of companies it has issued warnings against for violating local regulations. Warnings from other EU regulators are also included here.
- Lodge complaints with CONSOB’s Consumer Protection Office by fax, email, or contact form. Be sure to include a contact number in the case of written complaints.
- Browse the registers of other EU financial watchdogs like CySEC, BaFin, and Banque de France. Brokers licensed by these regulators can serve the Italian market legally through a passporting system.