Choosing a forex broker to meet your personal needs in Europe can be overwhelming as the choices are broad, and there are numerous brokerages seeking your patronage. Europe, and especially London, is the centre of the foreign exchange market. How do you select the right broker as your financial partner? Our list below is the first step.
Europe has over 1.5 million active forex traders in Europe, roughly 15% of the global community of traders and equivalent to North America. Ten million forex traders worldwide are a testament to the popularity of forex trading and how it has quickly spread across the globe.
Risk Warning: Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
78.8% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Investing involves risks. You can lose (a part of) your deposit. We advise you to only invest in financial products which match your knowledge and experience.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Trading CFDs involves substantial risk of loss and may not be suitable for all investors. Trading such high-risk financial contracts may result in the loss of all the client's invested capital. 77.7% of retail investors lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. UK: 68.61%, EU: 77.99% of retail investor accounts lose money when spread betting or trading CFDs with OvalX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.
RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading derivatives with this provider. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high degree of risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can result in losses larger than your initial stake or deposit.
XM Broker Review
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choosing a European forex broker can be straightforward. First, you want a broker that is regulated and offers the assets that you wish to trade. You also want a trading platform that is easy to learn and intuitive and that appeals to your personal trading style. Do the costs meet your expectations? Is the customer service prompt, professional and courteous? Here are a few essential tips:
Fees and commissions: For online retail traders in Europe, the primary cost factor is the ‘Bid/Ask’ spread. Focus on the averages for your favoured currency pairings and compare each broker’s website postings.
Regulation – are they safe? To avoid the possibility of fraud, it is best to stick to regulated forex brokers in Europe. Forex brokers that wish to operate in the EEA (European Economic Area) must comply with regulations promulgated by the European Securities and Markets Authority (ESMA). Regulators can only police their respective jurisdictions, and in today’s virtual world, several bad actors thrive because unsuspecting victims are attracted to their get-rich marketing schemes.
Forex trading platform: Without a doubt, MetaTrader 4 (MT4) platform solutions are the industry standard for excellence and ease of use. There is also a host of other competitors and proprietary platforms to choose from. Give each a spin on their respective demo systems to find the one that suits you best.
Customer service: Do not discount customer service. There will be times when you need help, and you want the staff on the other end to be responsive and competent. Try out your candidate’s live chat, telephone, and email services. The right answer at the right time can translate into a winning strategy where there was none.
Forex trading is legal in Europe, though some regulatory regimes are stricter in what they permit and how they restrict high-risk elements in the industry from impacting their respective citizenries. There are bans on CFD trading in some markets, as the casualty rates in this trading modality can range from 50% to 90% and higher. In some markets, foreign-based brokers are not allowed to market to residents.
Generally speaking, you can trade forex currency pairs in Europe, as long as your broker permits access to your account. If access is denied, there may be local regulations that restrict the broker from performing, based on your country of residence or another deciding factor. Check with your broker for clarification if you are denied access.
Current estimates suggest that there are over 1.5 million active traders in Europe. When compared to a base of over 650 million active Internet users, this figure equates to one forex trader out of every 434 Internet users.
