Forex and CFD (Contracts for Difference) trading enjoys widespread popularity in Europe. Financial trading on the continent is regulated by individual countries as well as EU financial institutions such as the European Securities and Markets Authority (ESMA) and MiFID II (Markets in Financial Instruments Directive II). The strict regulations in the European continent were designed to promote fairness, transparency and efficiency in the financial markets.
Forex and CFD trading is associated with high leverage, which can be damaging, especially for beginner traders. Leverage is often referred to as a double-edged sword due to its nature. It helps increase potential returns by increasing purchasing power, but on the downside, potential losses also get increased. In order to protect traders in the European Union, ESMA has set limitations on maximum available leverage brokers can offer to their clients. Leverage cap is different for each asset class.
Maximum available leverage in Europe for retail traders
- Maximum available leverage for trading major currency pairs is 30:1
- Maximum available leverage brokers can offer for trading non-major pairs, gold CFDs, and major indices is 20:1
- For commodities other than gold, available leverage is up to 10:1
- 2:1 leverage is available for trading crypto derivatives
Maximum available leverage in Europe for Professional traders
- Up to 500:1 leverage is available for trading major currency pairs, non-major pairs, some of the most liquid indices such as S&P 500, Dow Jones Index, etc., and commodities such as gold, silver, and oil
- Up to 100:1 leverage is available for remaining indices and company and government bonds
- Up to 25:1 leverage is for exotic currency pairs
- Maximum available leverage for cryptocurrencies is 20:1
In order to find the best Forex and CFD brokers in Europe, there are multiple things to take into account. To begin with, traders need to be sure that their broker can be trusted, secondly, it’s crucial to have access to trading assets and platforms that you wish to trade. In addition, customer support, trading fees, and overall experience are also very important topics. In this guide, we’ll delve into the best Forex and CFD brokers in Europe and compare their offerings with one another to make the selection process easier for you.
A quick comparison of the best Forex brokers in Europe
Selecting the right broker can be exhausting for many people, as there are so many to choose from, and each has their own trading conditions and offerings. The best broker is the one that fits your personality and trading style the most. Before going through various brokers and the selection process, it’s best to first make a list of your preferences and include what type of strategy you plan to use, which assets and trading platforms you like the most. For active traders, it’s best to find low spread brokers. For passive traders and beginners, it makes more sense to look for brokers with the least commissions. Often, brokers offer different account types to attract various trader types, and in this guide, we’ll also cover account types offered by industry leaders in Europe. You can check our top picks for European traders below.
Pepperstone
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Visit broker 8.2 7.75 Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.7% 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.
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Tickmill
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Visit broker 7.6 6.29 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 Tickmill UK Ltd. You should consider whether you understand how CFDs or our other products work and whether you can afford to take the high risk of losing your money.
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XM
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Visit broker 8.4 8.34 CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.03% 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.
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AvaTrade
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Visit broker 8.8 7.63 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.
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FP Markets
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Visit broker 6.88 4.98 Trade Responsibly: Derivative products are highly leveraged, carry a high level of risk and are not suitable for all investors. Features of our products including fees and charges are outlined in the relevant legal documents available on our website. The legal documents should be considered before entering into transactions with us.
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| Risk Notice | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.12% 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. | 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. | Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% 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. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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. | Trade Responsibly: Derivative products are highly leveraged, carry a high level of risk and are not suitable for all investors. Features of our products including fees and charges are outlined in the relevant legal documents available on our website. The legal documents should be considered before entering into transactions with us. |
| Operates in Europe under | The Cyprus Securities and Exchange Commission (Licence Number 388/20) | The Cyprus Securities and Exchange Commission | The Financial Services Commission (FSC) (license number 000261/397); Cyprus Securities and Exchange Commission (CySEC) (license number 120/10 | AVA Trade EU Ltd is regulated by the Central Bank of Ireland. (No.C53877) | The Cyprus Securities and Exchange Commission (CySEC License number 371/18) |
| Standard account spreads on EUR/USD pair start from | From 1 pips | From 1.6 pips | From 1 pips | From 0.9 pips | From 1 pips |
| Minimum initial deposit | 0 USD | 100 USD | 5 USD | 100 USD | 50 account base currency (USD, GBP, or EUR) |
| Desktop trading platforms | MetaTrader 4, MetaTrader 5, cTrader, TradingView | MetaTrader 4, MetaTrader 5 | MetaTrader 4, MetaTrader 5 | MetaTrader 4, MetaTrader 5, DupliTrade, ZuluTrade | MetaTrader 4, MetaTrader 5 |
| Offered asset classes | Forex, Cryptocurrencies, shares, ETFs, Indices, Commodities, Currency Indices | Forex, CFDs on Stocks, Indices, Commodities, Bonds, Cryptocurrencies | Forex, Cryptocurrencies, Stock CFDs, Commodities, Equity Indices, Metals, Energies, Shares | Forex, Stock CFDs, ETFs, Commodities, Indices, Cryptocurrencies | Forex, Commodities, Shares, Metals, Cryptocurrencies, Indices, Bonds |
Pepperstone
Pepperstone is an Australian Forex broker founded in 2010. The broker is trusted by over 300,000 traders worldwide and is strictly regulated in multiple jurisdictions. The European branch of Pepperstone is managed by Pepperstone EU Limited.
The Pepperstone EU Limited is authorized and regulated by the Cyprus Securities and Exchange Commission (Licence Number 388/20). Regulatory bodies make sure that brokers follow rules and guidelines set for protecting traders and investors.
Pepperstone offers two account types to its clients. Razor account charges traders with commissions and offers raw spreads, which is why it’s ideal for active traders such as intraday traders, scalpers, news traders, arbitrage traders, algorithmic traders, and high frequency traders.
Standard account charges zero commissions, instead trading fees are included in spreads. Standard spreads on EUR/USD is 1 pip. The Standard account is best suited for beginners, position traders, and swing traders due to the fee structure. For more details about each account, let’s take a look at the comparison table.
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8.2
7.75
| Razor | Standard | |
|---|---|---|
| Trading Platform | cTrader, TradingView, MetaTrader 4&5 | cTrader/MetaTrader 4&5 |
| Commission (FX Only) | 2.60 EUR (per lot, per side) | No commission |
| Spreads | Raw (from 0) | Variable (typical spread on EUR/USD is 1 pip) |
| Max Leverage for Retail Clients | 30:1 | 30:1 |
| Max Leverage for Professional Clients | 500:1 | 500:1 |
| Account currencies | USD, EUR, GBP, CHF | USD, EUR, GBP, CHF |
| Instrument Offered | Over 1200 | Over 1200 |
| Stop Out Level (Retail) | 50% | 50% |
| Stop Out Level (Professional) | 20% | 20% |
Tickmill
Tickmill is a group of well regulated Forex and CFD brokers founded in 2014. The broker provides financial services to more than 270,000 clients globally. At Tickmill traders can access almost every market such as Forex, stock indices, commodities, bonds, and cryptocurrencies through MetaTrader 4, and MetaTrader 5 trading platforms.
European traders are served by the broker’s European branch, Tickmill Europe Ltd, which is regulated by the Cyprus Securities and Exchange Commission (Registered Office: Kedron 9, Mesa Geitonia, 4004 Limassol, Cyprus). Tickmill follows the regulations set by ESMA and follows MiFID guidelines in the Eurozone. And as already stated, maximum available leverage for retail traders is 30:1, and for professionals, it’s 500:1.
The broker offers 3 account types to its clients. Commission free, and spread markup free accounts are available which is great for both active and less active traders. The Pro and VIP accounts are best for active traders. The Classic account is created for novice traders, position traders, and swing traders. In order to learn more about each account type, let’s take a look at the account comparison table below.
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7.6
6.29
| Pro Account | Classic Account | VIP Account | |
|---|---|---|---|
| Minimum Deposit | 100 account currency | 100 account currency | Not required |
| Minimum balance | Not required | Not required | 50,000 account currency |
| Available Base Currencies | USD, EUR, GBP | USD, EUR, GBP | USD, EUR, GBP |
| Spreads From | 0.0 pips | 1.6 pips | 0.0 pips |
| Min Lots | 0.01 | 0.01 | 0.01 |
| Commissions | 2 per side per 100,000 traded | Zero Commissions | 1 per side per 100,000 traded |
| Swap-free Islamic Account Option | Available | Available | Available |
XM
XM is a highly reputable brand in the financial industry. The broker is well-regulated globally. XM is licensed in various jurisdictions, however European traders are only able to open live trading accounts with XM Global.
XM Global is authorized and regulated by two highly respected regulators:
- Cyprus Securities and Exchange Commission (CySEC) (license number 120/10)
- The Financial Services Commission (FSC) (license number 000261/397)
XM Group was founded in 2009 and since then has managed to attract more than 5 million active traders from 190 countries. The broker is truly international and provides customer support in over 30 languages. Customer support agents are online 24/7. And existing and potential clients of the broker can contact XM via live chat, over the phone, or via email. There are over 1000 tradable instruments at XM, and traders are offered a full set of highly popular MetaTrader platforms.
There are various trader types, and to meet the needs of different traders, XM offers 3 account types dedicated to Forex and CFD trading, and 1 account type for investing. The major difference between trading CFDs and underlying assets is that CFDs are utilized for market speculations while real, physical assets are for making long term investments. Let’s take a closer look at the account types offered by XM to help you find the most suitable one for your trading style.
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8.4
8.34
| Micro Account | Standard Account | XM Ultra Low Account | Shares Account | |
|---|---|---|---|---|
| Base currency available in European currencies | EUR, GBP, PLN, CHF, HUF | EUR, GBP | EUR, GBP | None |
| Base account currency available in USD | Yes | Yes | Yes | Yes |
| Contract Size | 1 Lot = 1,000 | 1 Lot = 100,000 | Standard Ultra: 1 Lot = 100,000 Micro Ultra: 1 Lot = 1,000 | 1 share |
| Spread on all majors | As Low as 1 Pip | As Low as 1 Pip | As Low as 0.6 Pip | As per the underlying exchange |
| Commission | No | No | No | Yes |
| Maximum open/pending orders per client | 300 Positions | 300 Positions | 300 Positions | 50 Positions |
| Minimum trade volume | 0.1 Lots (MT4) 0.1 Lots (MT5) | 0.01 Lots | Standard Ultra: 0.01 Lots Micro Ultra: 0.1 Lots | 1 Lot |
| Maximum leverage | 30:1 for retail traders, 500:1 for professionals | 30:1 for retail traders, 500:1 for professionals | 30:1 for retail traders, 500:1 for professionals | Leverage is not available |
| Hedging allowed | Yes | Yes | Yes | No |
| Islamic account | Optional | Optional | Optional | No leverage, no swaps, Share account is swap-free naturally |
| Minimum deposit | 5 USD | 5 USD | 5 USD | 10,000 USD |
| Best suited for | Strategy testers, traders with limited funds | Regular traders, beginners, position traders, swing traders | Scalpers, intraday traders, news traders, algorithmic traders | Investors looking for long term investment opportunities |
AvaTrade
AvaTrade is a group of global, highly reputable and well-regulated brokers providing financial services worldwide. Clients of AvaTrade can access more than 1250 tradable instruments including currency pairs, cryptocurrencies as CFDs, shares as CFDs, commodities, and indices.
The broker provides traders with a dedicated team of professional customer support agents available via live chat, over the phone, and via email. The customer service is provided in more than 20 languages.
The European branch of the broker, AVA Trade EU Ltd, is regulated and licensed by the Central Bank of Ireland. (Registration No.C53877). Negative balance protection, and account segregation are provided by the broker.
AvaTrade offers only one Standard account to its clients. Traders can choose between MetaTrader 4 and MetaTrader 5 trading platforms. It should be noted that there are no commissions with this broker. Instead, trading fees are included in spreads. Spreads on Euro against US Dollar start from 0.9 pips. AvaTrade’s Standard account is not intended for high frequency traders and algorithmic traders. Instead, the account type can attract position traders, and swing traders due to its fee structure.
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8.8
7.63
FP Markets
FP Markets is a group of well regulated brokers operating globally. The broker was established in 2005, and the European branch joined in 2018. The broker offers access to over 10,000 tradable instruments from various asset classes. Available trading platforms are MetaTrader 4, and MetaTrader 5. Desktop, mobile, and web trading terminals are also provided. Traders have no trading strategy restrictions and are free to use hedging and Expert Advisors (EAs) to automate their trading.
The broker provides multilingual customer support available 24/5. Existing and potential clients of FP Markets can contact the broker from the live chat window, over the phone, or via email.
The broker is highly reputable among traders and industry professionals. FP Markets have received 38 industry awards, and the list increases every year.
In order to meet the needs of different traders, FP Markets offers Standard, and Raw trading accounts to European traders. Maximum available leverage on both accounts is 30:1 due to ESMA and MiFID regulations. Minimum initial deposit required to open a live trading account is 50 base currency. Traders can open live accounts in EUR, USD, or GBP. Keep in mind that by opening an account in a currency that you use the most, you can save money on currency conversions when depositing and withdrawing funds from your trading account.
- Standard account: Charges traders zero commissions, however, there are spread markups from 1 pips on EUR/USD. The account type is best suited for regular traders, beginners, swing traders, and position traders due to the fee structure.
- Raw account: as the name suggests, the raw account offers traders raw spreads. The broker charges traders with commissions instead, There is 3 USD commission per lot per side. The raw account is perfect for day traders, news traders, scalpers, high frequency traders, and algorithmic traders.
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6.88
4.98
Best choice of the broker in Europe per category
Each broker has its own strengths and weaknesses. When selecting a broker based on available instruments and trading fees, comparison tables are the best methods to find the best one.
Best Broker in Europe for Forex Trading
For the comparison, we picked Standard account trading fees because these accounts have no commissions, which makes the comparison fair and easier. Brokers typically have spread markup free, and commission free accounts. When you make a comparison, make sure to avoid comparing apples to oranges.
| Pepperstone | Tickmill | XM | AvaTrade | FP Markets | |
|---|---|---|---|---|---|
| Number of Forex pairs | 62 | 62 | 57 | 64 | 63 |
| Standard account trading fees of EUR/USD | From 1 pips | From 1.6 pips | From 1 pips | From 0.9 pips | From 1 pips |
In terms of the number of currency pairs, all 5 Forex brokers have great offers. But when it comes to trading fees, AvaTrade is the winner.
Best Broker in Europe for Share CFD Trading
Share CFDs are different from physical shares. CFDs enable traders to buy and sell contracts without owning underlying assets. CFDs can be traded using leverage, traders can go long or short, and enjoy high liquidity. On the downside, CFDs are not for long term investing due to overnight rollover fees that are low but can accumulate over the long run. For long term investing, investors purchase real stocks.
| Pepperstone | Tickmill | XM | AvaTrade | FP Markets | |
|---|---|---|---|---|---|
| Number of Stock CFDs | 1000+ | 494 | 1261 | 629 | 10,000+ |
| Commissions | From 0.7% | From 0 | No commissions | From 0.13% | From 0.08% |
FP Markets offers the widest selection of shares as CFDs. The broker offers a dedicated platform for share trading and low trading fees.
Best Broker in Europe for Crypto CFD Trading
| Pepperstone | Tickmill | XM | AvaTrade | FP Markets | |
|---|---|---|---|---|---|
| Number of Crypto CFDs | 23 | 9 | 31 | 19 | 11 |
| Commissions | From 0 spreads | From 0.2 pips | No commissions | From 0.20% | From 0.002 |
When it comes to trading cryptos as CFDs, XM offers the widest range of instruments. Be noted that crypto CFDs are not the same as crypto coins. CFDs are contracts for difference, and they enable traders to speculate on asset prices without physically owning them.
