The best forex brokers in Europe use a European forex regulator, our experts review 8 of the top forex brokers in EU with regulation such as FCA, CySEC and BaFIN. Find out what trading platforms and spreads these broker’s offer in our review.
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The best ESMA regulated forex brokers in Europe based on spreads and features are the following.
The low spreads, no-dealing desk ECN pricing, low trading costs, top tier trading platforms, CFDs offered, execution speed and range of funding methods combine to make Pepperstone the best forex broker in Europe. Although headquartered in Melbourne, Australia, Pepperstone is regulated by various financial authorities around the world.
The broker serves the needs of European forex traders through its UK branch that is regulated by the Financial Conduct Authority (FCA). The broker is also regulated in Germany and Austria by BaFin in Cyprus by CySEC. Outside of Europe and the UK, Pepperstone is overseen by the DFSA in Dubai, CMA in Kenya and the SCB in the Bahamas.
Using a broker with tier-1 regulation means you are using a broker that has measures to protect the integrity of their trading operation of their clients and systems in place to ensure clients’ funds are safe.
At Pepperstone, European traders can benefit from forex trading with spreads starting from 0.0 pips. The average spread on the most popular currency pairs is 0.16 pips on EUR/USD respectively 0.4 pips on GBP/USD – found on the Razor trading account. The table below compares European forex brokers with the lowest spreads.
On top of the charged spread, Pepperstone has a rock-bottom commission rate from USD 3.50 for one standard lot traded or EUR 2.61 for the EUR-based trading account.
Data taken from broker website. Accurate as at 04/06/2021
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Pepperstone offers over 180 financial markets and their CFDs include:
MetaTrader 4, MetaTrader 5 and cTrader make up the suite of trading platforms offered by Pepperstone. The trading terminals are supported across multiple devices including desktop, browsers and mobile Apps. The unique trading features and tools included helps beginner traders and professional traders to eliminate the market noise and make decisions on the spot.
The range of trading tools includes:
Also, the trading platform boasts a reliable high order execution speed of 85ms. The graph below compares the best forex brokers in Europe and the tested order execution speed using MT4 market orders.
If you want to trade on the foreign exchange market, you need a brokerage trading account. At Pepperstone, you can choose between two account types – the Standard account and Razor account.
The Standard account charges no commission, meaning the main trading cost you’ll run into is the bid-ask spread.
This account is a safe choice for beginner traders as traders don’t need to concern themselves with commission costs which can be confusing when calculating costs.
The Razor account comes with commission costs of USD$3.50 side-trip or $7.00 round-turn for each standard lot (100,000 units) you trade on top of the spread. If you are looking for lower fees, then this account is the best choice. While all traders can use this account, this account is most popular with experienced traders.
Pepperstone tops all European forex brokers and stole the first place. The top-notch financial services offered by this FX broker include low spreads, a good selection of trading platforms, lightning-fast order speed, low entry barrier and a dedicated trading account with zero commissions. Claim your free demo account by clicking the button below.
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The overall rating is based on review by our experts
The top broker to buy stocks is Markets.com because of its large selection of share dealings (+7,500 stocks). Markets.com is a trading name of TradeTech Group, a subsidiary of London Stock Exchange-listed Fintech company Playtech.
Tradetech Markets (Australia) Pty Ltd is authorised and regulated in Australia by the ASIC, while Safecap Investments Limited is authorised to offer financial services to residents in Europe, where it is regulated by the CySEC, and also in South Africa, where it is regulated by the Financial Sector Conduct Authority (FSCA).
Markets.com’s Marketsi investing platform offers European clients an opportunity to deal in thousands of Stocks and build a portfolio of their own with the use of a full suite of data and analytics tools. Clients are granted direct access to 16 major stock exchanges and nearly 7,500 Stocks and IPOs in Europe, Australia and the United States. The broker allows access to the following exchanges:
Markets.com has a plain, low-cost fee model for trading Shares. Regardless of clients’ investment amount, the broker will charge one and the same percentage fee. European clients can benefit from three months of commission-free trading when they open a share dealing account with Markets.com. After that, they can take advantage of competitive commission rates:
Additionally, there is no inactivity fee, no fee for setting up an account and no charge for holding cash.
Markets.com’s Marketsi platform offers a range of tools, market news, and research aimed to aid clients in making better investment decisions. The platform allows access to:
Overall, Markets.com has the best share dealing accounts in Europe. Markets.com offers EU residents outstanding trading services by combining over 7,500 international shares without paying a trading commission for the first three months.
View Markets.com Review >>Visit Markets.com >>
IC Markets is one of the best ECN forex brokers in Europe. With a trading volume of $830 billion (as of September 2020) and over 150,000 clients internationally, IC Markets is the largest CFD and FX broker worldwide in terms of Forex volume (according to Finance Magnates Q2 2020 Intelligence Report).
IC Markets is an Australia-based brokerage that complies with strict regulatory standards of two of the most reputable regulatory bodies internationally – the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC). IC Markets are authorised to conduct online trading business in the following jurisdictions through its subsidiaries:
Since IC Markets has a diverse, proprietary liquidity mix coming from over 25 top-tier liquidity providers, the brokerage is able to ensure raw pricing with no re-quotes and no restrictions on limit orders across its entire Forex and CFD product list for its Europe-based clients.
This means the broker can offer ultra-low spreads of 0.0 pips, 24 hours a day, 5 days a week for major currency pairs with the MetaTrader and cTrader Raw Spread account types. IC Markets deep liquidity ensures that spreads remain tight during periods of heightened market volatility such as central bank announcements and political elections.
The average spread on EUR/USD remains at 0.1 pips on the broker’s Raw Spread trading account, which is one of the most competitive among top Forex brokers worldwide.
Along with deep liquidity and low spreads, European clients can take advantage of low latency and ultra-fast order execution. According to the Australian online broker:
In addition, with IC Markets, European Forex traders can enjoy an average order execution speed of 36.5 ms.
Another notable advantage includes no restrictions on trading on all three platforms offered by IC Markets – MetaTrader 4, MetaTrader 5 and cTrader. This means trade orders, including Stop-Loss orders, can be placed anywhere near the current market price.
IC Markets MetaTrader 4 also allows for position hedging, because of no “first in first out” rule.
The minimum deposit required is $200, with all three account types (Standard, Raw Spread, cTrader Raw Spread) supporting ten base currencies (EUR, USD, AUD, GBP, SGD, NZD, JPY, CHF, HKD and CAD). The broker allows account funding via a wide range of payment options, including PayPal, Neteller, Skrill, bank wire transfer, or Credit/Debit Cards.
Overall, the broker offers some of the best ECN Forex trading conditions, which may suit a variety of trading styles, including scalping, high-frequency trading and day trading. We should also not forget that IC Markets offers a free demo account, which is configured to support all account types, all trading platforms and all Forex and CFD products.
IG was selected as the best forex brokers for beginners in Europe based on a combination of factors, including educational tools, expert tips and tutorials, trading courses, easy-to-use platforms and 24/5 customer support service.
IG is a multi-regulated broker, authorised by BaFin and Deutsche Bundesbank to offer online trading services in Europe. As a global leader with over 46 years of trading experience, IG is also licensed in the following tier-one jurisdictions:
IG offers an extensive set of Forex trading education materials, which beginners may find useful before they start trading on a live account.
IG Academy offers free high-quality education content aimed to help clients improve their knowledge of the market and trading skills. It contains a variety of trading courses, seminars and webinars with infographics, video explainers and quizzes.
Trading courses are structured into three levels – beginner, intermediate and advanced.
At the same time, IG’s webinars and in-person seminars enable clients to familiarize themselves with a range of topics and to access knowledge and insight from the broker’s team of experts.
Beginners can also browse through IG’s extensive glossary to find an in-depth explanation of terms related to financial markets and trading. The brokerage also has a robust news and analysis section on its website covering all the relevant market-moving events as well as analysts read on the latter.
Last but not least, IG offers a good trading strategy and planning section with experts’ insight into various techniques to capitalise on market movement.
We should also note that clients can contact IG’s dedicated customer support team 24/5 on matters such as trading CFDs and charges associated with them, trading platforms, accounts and statements, deposits and withdrawals, etc.
Thanks to its vast educational resources, trading tools and research, IG is the perfect place for beginners who want to build their trading skills. The one downside of IG is the high average spreads (1.13 pips on EUR/USD), but overall IG remains beginner trader friendly.
View IG Markets Review >>Visit IG Markets >>
XTB is a winner in our best forex brokers in Europe list due to its diverse and large selection of CFDs. Headquartered in London, XTB is a stock exchange-listed, award-winning Forex and CFD broker with more than 15 years of business history. XTB complies with the regulatory standards of the UK’s Financial Conduct Authority (FCA).
With this provider, Europe-based clients are able to access more than 1,500 financial instruments across a range of six markets.
Disclaimer: CFDs are complex instruments associated with a high risk of losing capital rapidly, as leverage is used. 79% of retail investor accounts lose money when trading CFDs with this brokerage. Consequently, retail clients need to be fully aware of how CFDs work before they start placing trades on a live trading account.
With XTB, the client has a number of options they can choose from the CFD asset class:
Due to XTB’s negative balance protection policy, retail investor accounts cannot lose more than the initial deposit. European retail clients are also able to test these high-risk products on XTB’s demo account for four weeks.
Overall, this CFD broker offers a good selection of financial instruments with support for forex pairs, commodities, indices, ETFs and shares. Trading CFDs with XTB it’s ideally suited to skilled traders. The one downside of XTB is the high shares CFD fees and the lack of currency pairs available (48 FX pairs).
XTB Review >>Visit XTB >>
FXCM is an online broker that offers commission-free trading for EU residents. Established in 1999, FXCM is among the leading CFD and Forex brokers authorised and regulated in the following jurisdictions:
FXCM serves the needs of its EU clients through its branch registered in the UK and France. More, FXCM is part of Leucadia, a holding company listed on the New York Stock Exchange.
By opening a single trading account with this broker and depositing as little as $50, Europe-based clients can access five different markets through platforms such as MetaTrader 4 and Trading Station.
Our review has found that FXCM offers competitive average spreads across its entire Forex and CFD product list. The average spread on major currency pairs such as EUR/USD is 1.4 pips, while on minor pairs such as EUR/AUD – 3.1 pips. The average spreads offered on all Forex pairs are presented below.
The brokerage offers decent spreads also on its Stock Index, Shares, Commodities and Crypto CFDs. The average spread on Spot Gold is $0.81, while that on Ethereum – $0.90.
FXCM offers discounts on spreads for active traders who meet its minimum notional volume requirement of USD 10 million per month. Forex traders will receive different tier rebates depending on their trade volume. The rebate program is valid only for instruments such as Forex pairs, Stock Indices, and Commodity CFDs.
Overall, FXCM is a great fit for EU traders that want to cut cost associated with commission trading. Since FXCM is compensated by adding a mark-up to spreads, or to rollover fees, it will not charge clients any commissions for trading Forex, Shares, Crypto and Commodity CFDs. For a full FXCM review, click the button below.
View FXCM Review >>Visit FXCM >>
FP Markets claims the first spot for the best MetaTrader 4 broker. Established in 2005, FP Markets is among the most reputable ECN brokers globally with over 40 industry awards. FP Markets is the trading name of:
Similar to leading brokers such as Pepperstone or IC Markets, FP Markets operates a pricing model based on Electronic Communications Network (ECN) technology, which allows clients to take advantage of deep liquidity, the highest level of price transparency, ultra-low spreads as well as exceptional order execution with minimal slippage. The broker offers its clients an opportunity to benefit from institutional-grade liquidity without any manipulation of prices, dealing desk or re-quotes.
FP Markets’ deep pool of liquidity providers enables the brokerage to offer the lowest possible Forex spreads on its MetaTrader 4 trading platform, accessed through its Raw account.
Another notable advantage of FP Markets’ MetaTrader 4 software is its order execution speed. Since the broker’s MT4 server is located at the Equinix NY4 data centre, clients can take advantage of ultra-low latency and order execution speed of 37 ms. FP Markets was awarded as the Best for Quality of Trade Execution 2019 by Investment Trends.
Trading Forex pairs and Spot Metals on FP Markets’ MT4 Raw account is associated with a small commission ($6.0 per round turn for 1 Standard Lot), while the minimum deposit required is $100 or currency equivalent.
Finally, what FP Markets’ MetaTrader 4 software offers in terms of features and functionality includes:
Overall, FP Markets is making its mark among MetaTrader 4 brokers offering trading services to EU residents. The main advantages of FP Markets include ECN pricing, great value trading accounts, no requotes, fast order execution speed, small commission and a great selection of MT4 trading tools. Click the button below and drive test FP Markets’ benefits with a demo account.
View FP Markets Review >>Visit FP Markets >>
eToro is a winner in the best social trading platform category. Established in 2007, eToro is among the well-regulated CFD and Forex brokers worldwide, renowned for its social trading platform. eToro and its corporate divisions are authorised and regulated in the following jurisdictions:
With this brokerage, European clients who have insufficient trading experience in the Forex market, as well as those who simply are short of time to follow all market developments, are granted the opportunity to earn a passive income by using eToro’s copy trading feature. The latter enables them to follow and replicate the trading activity of any other user on the broker’s platform by depositing as little as $200.
Traders, whose positions are to be copied, can be selected by using several criteria such as risk score, return for the past 12 months, number of copiers and so on. Once a top-performing trader is detected and selected, clients will have to allocate part of their free account balance to that trader to start copy trading. The trader being copied will actually “work” for them, while this process will not result in any management fees or other hidden costs.
We should note that clients can replicate the activity of up to 100 other users simultaneously, while the minimum value of each copied position is $1.
Meanwhile, traders with a proven strategy can also benefit, if copied by others. They can sign up for eToro’s Popular Investor program and earn a second income. To join the program, traders need to have at least $1000 in equity and at least two full months of stats on eToro’s platform. They also need to keep a low-risk score (6 or below) for two full months and comply with the imposed leverage restrictions by the ESMA.
There are four different tiers of the Popular Investor program – Cadet, Champion, Elite, and Elite Pro. Requirements for each tier are listed below. Logically, each tier comes with a set of benefits.
To become eligible for a Cadet rank, every trader needs to ensure minimum equity of $1,000 and minimum value of allocated funds by copiers (assets under management) of $500. Note that only Champion, Elite, and Elite Pro-ranking traders will receive a monthly payment by the broker for their participation in the program.
In conclusion, we should point out that what eToro actually offers is not just a social trading platform, but also access to one of the largest communities of traders and investors globally, where European clients share their ideas and expand their trading knowledge.
After carefully reviewing different aspects of top regulated Forex brokers in Europe, our team of industry experts came to the conclusion that Pepperstone is the best bang for your buck. Pepperstone offers you extensive resources, advanced charting tools combined with low spreads starting from 0.0 pips, ECN pricing, 3 powerful trading platforms, fast order speeds and +180 CFD instruments that can help you grow your account quicker.
Other European forex brokers like Admiral Markets, AvaTrade, Forex.com, City Index, FxPro, Oanda and Vantage FX didn’t meet our requirements and were not included in our review.
Risk Warning: Whether you’re a beginner trader or a professional trader, forex trading remains a high-risk endeavour. The one rule every investor need to abide by is to never invest money you can afford to lose.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.