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6 Best MiFID Regulated Forex Brokers for 2024

Looking for the top MiFID-regulated broker? Based on our hands-on analysis, we’ve identified 6 best options tailored to various trading needs. Practical tips from our experts are included.

By:
Plamen Stoyanov
Reviewed By:
Ola Alder
Updated: May 20, 2024

List of Top MiFID-Compliant Forex Brokers

Regulated by the CBI in Ireland. Vast offering of platforms and tools. 840+ instruments. AvaProtect Tool for risk management.

Listed on the SIX Swiss Exchange. Over 3 million trading and investing instruments. Execution speed of 9 milliseconds. Professional-grade trading platform.

2800+ tradable instruments. Fast price quotes. Multi-regulated. Feature-rich proprietary platform. Versatile mobile app. Fast and precise order execution.*

Listed on the Warsaw Stock Exchange. Versatile and intuitive xStation 5 platform. Over 5000 trading and investing instruments. Competitive spreads.

Raw spreads and low trading commissions. Choice of CFDs and options contracts. Versatile proprietary platform. MT4 and MT5. Suitable for high-frequency trading.

Globally trusted brand. Over 2000 trading instruments. Investing opportunities. Broad range of educational materials. Beginner-friendly proprietary platform.

*80% of retail CFD accounts lose money.

MiFID Explained: The Pillar of EU Financial Regulation

MiFID, an acronym for the Markets in Financial Instruments Directive, is a pivotal regulatory framework by the European Union, primarily focusing on financial markets within the EU and the European Economic Area (EEA). Originating in 2004 and subsequently updated with MiFID II in 2018, this directive is key in promoting transparency, safeguarding investors, and fostering competition in the financial sector.

Central to MiFID’s role is the regulation of forex and CFD brokers. It acts as a regulatory guardian, enforcing fair trading, client protection, and market integrity. MiFID’s stringent standards offer traders reassurance against fraud and malpractice, enhancing trust in financial activities.

Regarded by European regulators as a fundamental element of financial legislation, MiFID sets a high bar for market conduct. Key regulatory bodies, including the UK’s FCA, Germany’s BaFin, and Italy’s CONSOB, not only endorse but rigorously implement MiFID’s principles, reinforcing its status as the gold standard in financial regulation.

How Did FX Empire Select the Best MiFID Regulated Forex Brokers?

FXEmpire's Methodology

  • EU Regulation. We only selected brokers that are authorized by a national regulator of an EU member state and complied with MiFID II as mandated by ESMA.
  • Trustworthiness. We checked each broker’s legal documents and evaluated its transparency based on whether important information was readily available on the website.
  • Trading Software. We picked brokers with user-friendly and feature-rich trading platforms and a wide range of analytical and supporting tools.
  • Trading Costs. We looked for brokers that offer low floating spreads and round-turn commissions per traded volume.
  • Trading Instruments. We picked brokers that offer a wide selection of tradable instruments from different asset classes.
  • Account Types. We only considered brokers with a good choice of account types that can serve traders with different preferences, experiences, and trading strategies.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s dive into the selected brokers.

Best Overall

Trading CFDs and FX Options entail risk and could result in the loss of your capital.
  • Min Deposit
    $100
  • Tradable Instruments
    853
  • Fees
    Medium

Founded in 2006, AvaTrade is a multiple-regulated broker. In Europe, it operates under the entity authorized by the CBI in Ireland, which adheres to all essential safety requirements, including segregated funds, negative balance protection, and a compensation scheme.

Key Features:

  • European Entity: Ava Trade EU Ltd, regulated by CBI (Ireland)
  • Trading Platforms: MT4 and MT5 (+ Guarding Angel Suit), Ava Web Trader, AvaSocial, DupliTrade, AvaOptions, AvaTradeGO
  • Spreads and Commissions: Floating spreads from 0.9 pips, $0 commissions

I was impressed by AvaTrade’s selection of over 840 tradable instruments, which can be traded as CFDs and vanilla options. This diversity allows traders to manage their trading risk better and exploit various trading opportunities in different ways.

The broker also stands out with its impressive range of platforms and tools. Ava Web Trader accommodates deep technical analysis and easy order execution. Meanwhile, fans of MetaTrader would be happy to learn that AvaTrade incorporates the Guarding Angel suite for enhanced performance.

Additionally, the broker offers several platforms for social trading (AvaSocial and DupliTrade). The broker also allows automated trading. Finally, AvaTrade provides free VPS hosting for low-latency trading.

I opened a Standard account with the broker, which features commission-free trading and floating spreads starting from 0.9 pips. This combination generally meets the industry average. I assessed that it is suitable for both day trading and swing trading.

Pros
  • Tightly regulated and MiFID-compliant
  • More than 840 tradable instruments
  • CFDs trading and vanilla options contracts
  • Wide range of platforms and tools
Cons
  • Only one account type

Best for Professional Traders

Trading involves risks. Products and services of Swissquote are only intended for those permitted to receive them under local law.
  • Min Deposit
    $1000
  • Tradable Instruments
    506
  • Fees
    Medium

Swissquote is a Swiss-based broker founded in 1996 and headquartered in Geneva. It holds multiple top-tier brokerage and banking licenses from some of the most trusted regulatory bodies. Swissquote has been a member of the SIX Swiss Exchange since 2000, which is yet another indication of its safety and reliability.

Key Features:

  • European Entity: Swissquote Bank Europe Ltd, regulated by CSSF (Luxembourg)
  • Trading Platforms: Advanced Trader, MetaTrader 4&5
  • Spreads and Commissions: Floating pips from 1.1 pips, $0 commissions

I consider Swissquote the best choice for professional traders because of its excellent execution standards. The broker achieves an average execution speed of 9 milliseconds, ranking it among the top 5 brokers in the world. It also averages a 98% fill ratio, with only 18% of all trades being executed with negative slippage. Based on these numbers, I assessed that Swissquote’s offering is tailored for high-frequency trading, specifically intraday trading and scalping.

I opened a Standard Forex & CFDs account with Swissquote. It affords commission-free trading except for share CFDs. The commission rate starts from $3 cents per share, which is lower than the industry average and goes down with a higher account balance. As regards Swissquote’s spread rates, I measured a 2.0 pips EURUSD spread, which is quite elevated.

Where Swissquote shines is with regard to its excellent proprietary platform. Advanced Trader is versatile and affords an intricate outlook into price action behavior, making it suitable for seasoned chart artists. The platform also incorporates complex order types like OCO and IF-Done, which suit the needs of professional scalpers and intraday traders. In addition, Swissquote offers market analyses and trading ideas from Trading Central and Autochartist, which are among the best such services in the industry.

Pros
  • Multiple top-tier regulations
  • Listed on SIX Swiss Exchange
  • Wide range of trading tools
  • Excellent execution standards
  • Versatile trading platform
Cons
  • High spreads

Best Trading App

CFD Service, 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
  • Min Deposit
    $100
  • Tradable Instruments
    2047
  • Fees
    Medium

Plus500, founded in 2009, is a leading name in the trading sector with global regulations. It acts as a market maker, setting buy and sell prices and directly handling client positions. From my experience, market makers like Plus500 offer more precise trading and a reduced risk of negative slippage. I thus found Plus500 quite suitable for high-volume trading.

Key Features:

  • European Entity: Plus500CY Ltd, regulated by CySEC (Cyprus)
  • Trading Platform: Plus500 Web Trader and mobile app
  • Spreads and Commissions: Floating spreads from 0.7 pips, $0 commissions

Plus500 has developed an excellent proprietary platform WebTrader which incorporates over 100 analytical tools for examining price action behavior. This is made easier by the platform’s extremely versatile chart windows. The platform also consists of multiple chart and order types.

What stood out to me was the guaranteed stop-order option, which is another great feature for high-volume trading. On the other hand, the platform does not have a strategy tester and one-click trading options and does not permit automated trading.

I checked Plus500’s trading fees and discovered that it affords commission-free trading and floating spreads starting from 0.7 pips. The broker’s prices meet the industry average.

Pros
  • Precise execution
  • Choice of tradable instruments
  • Versatile web platform and mobile app
  • Competitive fees
Cons
  • No alternative platforms

Best Trading Platform

4.5
CFDs are complex instruments and come with a high 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.
  • Min Deposit
    $0
  • Tradable Instruments
    2134
  • Fees
    Low

Founded in 2002, XTB is a multi-regulated Polish broker that is publicly traded and listed on the Warsaw Stock Exchange. XTB serves retail and professional traders and offers over 5,000 trading and investing instruments across multiple markets. And its excellent proprietary platform complements this diversity.

Key Features:

  • European Entity: XTB Limited, CySEC (Cyprus)
  • Trading Platforms: xStation 5 for web, desktop, and mobile
  • Spreads and Commissions: Floating spreads from 0.8 pips, $0 commission

XTB’s xStation 5 platform offers an extensive range of over 60 technical indicators and drawing tools. These features are valuable for analyzing both ranging and trending market conditions, as well as for pinpointing optimal entry and exit points for trades. The platform allows for price action to be displayed in five distinct formats—including candlestick, line, and area charts—and supports multiple timeframes for versatile analysis.

I evaluated xStation 5’s usability by evaluating its chart scaling features for analyzing price action. The platform provides detailed insights into complex price movements and is versatile enough to support both short-term and long-term trading strategies.

I also measured XTB’s trading costs and recorded floating spreads starting from 0.8 pips on FX majors, meeting the industry average. Additionally, the broker affords commission-free trading.

Pros
  • Multi-regulated
  • Feature-rich platform for desktop and mobile
  • Listed on Warsaw Stock Exchange
  • Over 2,200 trading instruments
Cons
  • No alternative platforms

Best Low Spreads

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.1% 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.
  • Min Deposit
    $100
  • Tradable Instruments
    327
  • Fees
    Medium

Founded in 2012 and headquartered in Cyprus, Libertex is a tightly regulated forex and CFD broker with competitive fees and instruments from every major asset class. It is authorized by CySEC in Cyprus and adheres to all MiFID II safety requirements. With its low fees and choice of contract types, I determined that Libertex is suitable for traders wanting to hedge trading risk most cost-effectively.

Key Features:

  • European Entity: Indication Investments Ltd, regulated by CySEC (Cyprus)
  • Trading Platforms: MetaTrader 4&5, Libertex platform
  • Spreads and Commissions: Raw spreads from 0.1 pips, EUR 3 commission per traded lot

I measured Libertex’s EURUSD spread at 0.2 pips. I also evaluated a round-turn commission for trading 1 lot of the pair at around $3.20. I was thus able to calculate that to execute a full-sized EURUSD position, you must pay around $5-6 (0.2 pips x $10 pip value + $3.2), which is way below the industry average of $10. Hence, I concluded that Libertex’s pricing mechanism suits high-frequency trading.

The broker incorporates MetaTrader 4&5 and also has a proprietary web trader platform. The Libertex platform is easy to navigate with intuitive design and versatile charts. It supports one-click trading and automated trading, has a rich collection of over 90 analytical tools, supports all three major order types, and has 6 chart types.

Pros
  • Very competitive prices
  • Tightly regulations
  • Options trading
  • Choice of platforms
Cons
  • Limited educational content

Best for Beginners

51% of retail CFD accounts lose money.
  • Min Deposit
    $50
  • Tradable Instruments
    3705
  • Fees
    High

eToro is a globally recognized broker founded in 2007 and has since then grown into one of the most trusted and safest companies in the trading industry. I went over eToro’s offering and found it the best option for beginners because of its high trust level, competitive pricing mechanism, and well-balanced trading services and supporting tools.

Key Features:

  • European Entity: eToro (Europe) Ltd, regulated by CySEC (Cyprus)
  • Trading Platforms: eToro Web Trader and mobile app, Copy Trader
  • Spreads and Commissions: Floating spreads from 1 pips, $0 commissions

I opened a Standard account with eToro, which supports commission-free trading and floating spreads on FX Majors starting from 1.0 pips which meets the industry average. With a minimum deposit requirement of just $50, the account type is accessible even to traders with more modest means.

eToro stands out of its diverse educational content. Beginners can learn a variety of topics, including the difference between trading and investing, the peculiarities of margin trading, the basics of technical and fundamental analysis, the intricacies of the psychology of trading, and so much more. Overall, I assessed eToro’s educational materials to be a great starting point for first-time traders, giving them a solid basis.

The broker has also developed a beginner-friendly proprietary platform with a wide array of analytical tools and simplified order execution. Its intuitive design makes it easy to study price action behavior and get in and out of the market.

Pros
  • Globally recognized brand
  • Suitable for trading and investing
  • Robust educational content
  • Beginner-friendly platform
Cons
  • High spreads on some asset classes

How to Choose a MiFID Regulated Forex Broker?

Now, it’s time to go over the specific considerations traders in Italy must make when choosing a forex broker:

What does MiFID compliance mean for a trader?

Below, I have broken down the most important safety mechanisms for retail traders under MiFID II:

  • Clear Disclosure: MiFID requires brokers to disclose all associated trading costs, terms, and potential conflicts of interest. This ensures that traders are well-informed before making any trading decisions.
  • Segregated Accounts: MiFID mandates brokers to separate client funds from their own operational funds. This measure is in place to protect traders’ capital in case the broker faces financial difficulties.
  • Negative Balance Protection. MiFID-regulated brokers are often required to offer negative balance protection which ensures that traders cannot lose more money than they’ve deposited into their trading account.
  • Maximum Leverage Caps: MiFID imposes restrictions on the amount of leverage that brokers can offer. This is aimed at reducing the high risk associated with leveraged trading. For example, for major currency pairs, the maximum leverage might be capped at 1:30 for retail traders.
  • Investors Compensation Fund (ICF). MiFID-regulated brokers often participate in an Investor’s Compensation Fund. Should the broker become insolvent, traders could be entitled to compensation, up to a certain limit, through the ICF.
  • Best Execution Policy: Brokers must execute client orders under the most favorable conditions available, which can mean better prices and more efficient trades for traders.

Read more about Best regulated forex brokers.

What is the role of ESMA in protecting a trader?

The European Securities and Markets Authority (ESMA) is the legislative body responsible for setting the rules under which market participants, financial institutions, brokers, and others interact. That is why your first task is to determine whether the broker you are interested in is listed in the Markets in Financial Instruments Directive (MiFID) register. You can check that here. This is the only way to confirm its compliance with the most rigorous safety policies in the industry.

By imposing MiFID II upon national regulators, ESMA seeks to increase transparency and investor protection in financial markets. Adhering to MiFID II guidelines standardizes broker practices across Europe, thereby boosting market participants’ confidence in the system. Additionally, it makes it easier for brokers to offer their services to traders from all EU member states.

Check out our guide on Best European-regulated brokers.

Which European regulators enforce MiFID II?

National regulators in the European Union work in tandem with ESMA to ensure MiFID II compliance within their respective jurisdictions. Some of the notable national regulators include:

How to verify if a broker is regulated?

  • Check the Broker’s Website: Legitimate, regulated brokers typically display their license number and the name of their regulator on their website, often in the footer or “About Us” section.
  • Visit the Regulator’s Website: Every country’s financial regulator has a website that lists all the brokers they regulate. Search for the particular broker’s name to see if they’re authorized.
  • Contact the Regulator: If you can’t find the information you’re looking for, you can contact the regulator with the broker’s name and any other identifying information you have.

What is the difference between retail and professional traders in Europe?

Under the MiFID II regulatory framework, brokers must categorize traders into two groups: professional and retail. These classifications significantly affect trading conditions, leverage, and risk management.

Leverage Differences

  • Professional traders can access higher leverage up to 1:200, enabling them to amplify their profits or losses on the same trades. This comes with a heightened risk of experiencing more substantial financial setbacks.
  • Retail traders face a maximum leverage cap of 1:30, reducing their potential for outsized gains but also limiting their exposure to high losses.

Explore Best forex broker with high leverage.

Risk Management

  • Professional traders are not entitled to negative balance protection, making them solely responsible for stringent risk management practices to avoid incurring negative balances.
  • Retail Traders benefit from negative balance protection, safeguarding them from owing more money than they have deposited in their accounts.

Eligibility Requirements

  • To be classified as professional, traders usually need several years of experience in trading leveraged products and must be prepared to deposit a minimum of €100,000 into their accounts.
  • Retail traders can open an account with little to no trading experience, often with a minimum deposit as low as a few hundred euros.

Check out our list of Best forex brokers for professional traders.

How to check if a broker’s fees are competitive?

Choosing the right broker account type, such as STP or ECN, can impact your trading costs significantly. While STP accounts often offer commission-free trading with floating spreads, ECN accounts charge a fixed commission but offer raw spreads, usually starting from 0.1 pips. Some brokers inflate the spreads on STP accounts, making them less competitive than they appear.

Read more about Best STP forex brokers and Best ECN forex brokers.

To evaluate which account is better for you, consider the total trading cost. Take the EURUSD pair as an example. If the STP account has a spread of 0.9 pips and the ECN account has a spread of 0.1 pips with a $6 commission per 1 lot, you can calculate the overall cost with the formula: value of a trade = spread x pip value + commission. In this example, an ECN account would have a net cost of $7, compared to $9 for the STP account.

In conclusion, always do your due diligence to understand the cost structures when choosing an account type. Our comprehensive broker reviews can also help you make an informed decision.

Check out our list of Best lowest spread forex brokers.

Why does liquidity matter?

The deeper the liquidity pool that a broker has access to, the better the order execution conditions it can serve its clients. That is why high-frequency traders should always check the speed and quality of order execution. The easiest way to do that is to see whether the broker has a ‘best execution policy.’ It means that the company is committed to providing the best price quotes, given the underlying market conditions, when an order is placed.

Precision and speed of order execution are also likely to be enhanced when a broker provides Virtual Private Server (VPS) hosting. As a rule of thumb, look for brokers that can accommodate ultra-fast order execution speeds of no more than 50 milliseconds.

Check out our guide on Best forex brokers with VPS hosting.

You can confirm a broker’s performance by going to the Legal Documents section of its website and opening its latest execution statement/review. Keep in mind that not all brokers are mandated by their regulators to post such reviews yearly. However, the ones that do are more likely to afford you precise order execution and diminished risk of negative slippage.

How to choose a trading platform?

A trading platform is your window into the market. It allows you to observe price action behavior and study potential opportunities for placing orders. Technical traders use a platform’s array of indicators, drawing tools, and other features to examine various price patterns, changes in volatility, liquidity, and so on in order to gauge the most favorable times to enter or exit the market.

The best platforms are also the most versatile ones. They include a wide spectrum of technical indicators, such as Fibonacci retracement levels, oscillators, trend-based and range-based indicators, and others, as well as drawing tools, such as trend lines, channels, wedges, etc. They are also the ones that allow you to easily scale price action up and down.

In addition to these components, when looking for a suitable platform, you must also look for efficiency. Ask yourself: Does the platform facilitate easy and rapid order placement through one-click trading? Does it support algorithmic trading via Expert Advisors (EAs)? Can it handle market, limit, and stop orders? These factors, and more, contribute to a platform’s overall effectiveness.

The two most popular retail platforms in the industry are MetaTrader 4&5. Over the years, the two have become the benchmark for simplicity and reliability. The two entries in the popular franchise have a decent range of technical indicators and drawing tools and afford multi-timeframe analysis.

Read more about best MT4 brokers and best MT5 brokers.

However, despite MetaTrader’s easy learning curve, its rugged design becomes apparent when contrasted against newer and sleeker platforms. In my estimation, MetaTrader is a good choice for newbies wanting to learn the ropes, but to take your trading to the next level, you may need something more sophisticated.

The answer of some brokers is to develop their proprietary platforms. The advantage of most such platforms is their convenience. The ability to search for instruments by asset class, scale price action up and down with ease, or execute complex box orders are benefits you cannot find in MetaTrader. To summarise, the question of choosing the best platform for you is one of simplicity vs. practicality.

Check out our dedicated guide on Best forex trading platforms.

What to Avoid When Choosing a Forex Broker?

Here is a quick rundown of what traders must avoid:

  • Unregulated Brokers. Trading with an unregulated broker exposes you to a higher risk of fraud or unethical business practices, as they are not bound by any regulatory standards or rules. Additionally, in case of any disputes or if the broker goes bankrupt, there might be no legal recourse or compensation schemes available to recover your funds.
  • Lack of Client Protection. Avoid brokers that cannot ensure more than two of the following: segregated funds, negative balance protection, compensation scheme, and maximum leverage for retail traders no bigger than 1:100.
  • Low Execution Quality. Try to avoid brokers that cannot ensure more than two of the following: best execution policy, regular quality execution statements, and average execution speed under 50 milliseconds.
  • High Spreads and Commissions. Sidestep brokers with floating spreads from 1.8 pips or above on STP accounts and with round-turn commissions above $7 on ECN accounts.

How to Avoid Forex and CFD Scams?

Scammers rely on the gullibility of traders. A common tactic fraudsters employ is to promise quick and easy profits at no risk to the trader. Often scammers would use labels that closely resemble the brands of real and legitimate companies. That is why regulators like the FCA have registers where traders can read about such fraudulent companies pretending to be others.

The best and easiest way to protect yourself is to make sure you work with a trustworthy and transparent broker. You can find a comprehensive list of reliable brokers by jurisdiction here.

Another important consideration is online safety. Be cautious about where you leave your personal information. Registering your details on suspicious pop-ups that promise enormous profits could lead to your contact information landing on a scammer’s dialing list. Remember, no licensed broker would make unsolicited cold calls.

The next time you get contacted out of the blue with promises of becoming the next Warren Buffet, you must remember that you are most likely speaking to a scammer. I am of the opinion that nowhere is the “if something sounds too good to be true…” saying more accurate than in the world of trading. That is why you should do your due diligence before opening an account with any broker.

Our Methodology

Here at FXEmpire, we have pioneered a unique methodology for evaluating forex and CFD brokers worldwide. Our goal is to provide a comprehensive picture of a broker’s pros and cons so that our readers can make informed decisions. We understand their need to choose the best partner for their particular goals and needs.

Our team of dedicated professionals is working continuously to improve our system and keep it up-to-date with current market trends. We test each broker systematically by employing over 250 variables across nine categories:

  • Trust
  • Fees
  • Account Types
  • Tradable Instruments
  • Platforms and Tools
  • Deposits and Withdrawals
  • Customer Support
  • Research
  • Education

We strive to be as objective as possible, which is why our rigorous examinations are devoid of any personal bias as much as possible. We review the licenses of all the subsidiaries of a broker and check the fine print in the Client Agreement. The reliability of a broker is further determined based on the website’s regulations, fees, and general transparency.

We collect essential information by opening a live account with a broker entity and testing its services in real time. We measure the spreads, swaps, and commissions on its most popular account type and compare our findings to the industry average. We also test the functionality of the available platforms, the number and types of tradable instruments, the reliability of customer support, and the quality of the research and educational materials.

For this guide, we only considered EU-regulated brokers that adhere to ESMA’s MiFID II and are authorized to provide financial services to traders who reside in Europe. We assessed each broker’s adherence to safety regulations and its maximum leverage. We measured spreads and commissions, comparing them to the industry average, and selected the brokers with the most competitive pricing.

We evaluated the usability of brokers’ platforms and confirmed whether they are integrated for implementing longer-term strategies, such as swing and day trading, or shorter-term, like intraday trading and scalping.

We abide by our strict guidelines for editorial integrity based on the objective standards we have set for our reviews. You can read more about our review process here.

Meet Our Writers

The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Get to Know Our Authors

Dan BlystoneBroker Analyst

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Jitan SolankiBroker Analyst

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Vladimir ZernovBroker Analyst

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

MiFID (Markets in Financial Instruments Directive) is a regulatory framework established by the European Union to oversee financial markets within the EU and the European Economic Area (EEA). Introduced in 2004 and updated in 2018 with MiFID II, this legislation aims to increase transparency, enhance investor protection, and promote competition among service providers in the financial industry.
MiFID and MiFID II are both EU regulations aimed at standardizing and regulating financial markets. However, MiFID II, implemented in 2018, is an enhanced version that builds upon the original MiFID framework by introducing stricter investor protections, increased transparency requirements, and broader scope. While the first MiFID focused primarily on equity markets, MiFID II extends its reach to cover a larger array of financial instruments and trading venues.
Yes, forex trading is permissible in Europe under ESMA regulation.
The European Securities and Markets Authority (ESMA) is the primary EU-level body responsible for ensuring consistent application and enforcement of MiFID II rules across the European Union. National regulators in each EU member state handle day-to-day enforcement within their jurisdictions and work in coordination with ESMA to maintain standardized financial markets across Europe.
As the EU-level regulatory body, ESMA is responsible for overseeing the implementation and enforcement of MiFID II regulations across European member states. ESMA works in coordination with national regulators to ensure that MiFID II rules are consistently applied, aiming to standardize financial markets and enhance investor protection across the EU.
To ensure a broker complies with MiFID rules, first verify that the broker is registered with and regulated by a national financial authority within the EU, which works in coordination with ESMA. You can usually find this information on the broker's website or directly through the national regulator's online register. Additionally, check for transparency in trading terms, disclosure statements, and investor protection measures, as these are mandates under MiFID regulations.
Yes, European residents can technically trade with brokers regulated outside the EU, but doing so comes with its own set of risks. Trading with an offshore broker means you may not be covered by the stringent investor protection mechanisms mandated under MiFID or MiFID II regulations.
Brokers regulated by MiFID are subject to stringent regulations designed to protect investors, such as mandatory participation in an Investor Compensation Fund (ICF), negative balance protection, and maximum leverage at 1:30. Offshore-regulated brokers may not offer the same level of protection, and oversight is generally less rigorous, which can result in increased operational risks for traders.
Yes, non-EU residents can often trade with MiFID-regulated brokers, but eligibility may depend on the broker's policies and the regulations of the trader's home country.
Yes, you generally have to pay taxes on trading profits when trading in Europe, although the specific tax obligations can vary by country and the type of trading activity. Capital gains tax is commonly applicable to trading profits, and some countries also levy financial transaction taxes. It's crucial to consult a tax professional or advisor familiar with the tax laws in your specific jurisdiction to fully understand your tax obligations when trading.
Brexit has led to the UK's departure from the European Union, and as a result, the country is no longer under the jurisdiction of EU financial regulations like MiFID II. However, the UK's Financial Conduct Authority (FCA) has incorporated many MiFID II principles into its own regulatory framework, commonly referred to as "UK MiFID." While the core investor protections and transparency requirements remain largely similar, firms operating in the UK and EU now have to navigate two separate regulatory regimes, which could lead to increased compliance costs and complexities.

About the Author

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Why you can trust FX Empire

At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.

Why you can trust FX Empire

FXEmpire was founded in 2011, making us one of the first forex broker review sites. You can trust FXEmpire because of our thorough and unbiased review process. With over a decade of experience, we have a team of industry experts who conduct rigorous tests to ensure our reviews are accurate and unbiased. Our reviews are designed to bring clarity and confidence to the process of choosing a broker, and are based on objective criteria and measurable data. Our editorial team is composed of trading industry professionals and seasoned financial journalists, who ensure that our reviews are accurate and unbiased. Additionally, our review system is based on 9 core categories and over 250 distinct variables, which ensures that all aspects of a broker are considered before giving a final rating. So, you can trust FXEmpire to provide you with honest and informative reviews that will help you make an informed decision on which broker will best enable you to reach your financial goals.