Best Forex Brokers Italy 2023

While a few reputable online forex brokers have offices in Italy, most prefer to be situated elsewhere in the EU in less restrictive jurisdictions such as Cyprus, due to CONSOB’s very strict reputation as a regulator. Fortunately, Italian traders can deposit money to trade on margin with almost any foreign online broker that will onboard them as a client.

Overall the numerous online brokers that allow forex and contract for difference (CFD) trading will accept clients from Italy. Moreover, having an EU-based broker could be preferable since traders would be able to litigate within the EU should an issue develop. Furthermore, EU brokers have an additional onus to uphold their reputation with their national regulators, as well as the need to abide by the EU’s markets in financial instruments directive (MiFID). Such requirements under MiFID include that client funds be segregated from broker funds, with the aim to protect the client’s margin deposit should the broker face financial difficulties.

When selecting a broker there are a couple of aspects to bear in mind, such as access to demo accounts and the type of deposit required. For example, virtually all online brokers provide demo accounts with virtual funds that traders can use to practice and test strategies and the broker’s system. Brokers could also offer funded accounts that require a minimum initial deposit to use as margins when trading live.

There are also variables to consider in both asset class and stock trading. For example, in regards to asset classes that can be traded online, options differ considerably among brokers. Most of the online brokers allow forex trading of some type, and CFD trading is also fairly common as it tends to be beneficial for brokers due to the wider set of tradable assets usually offered.

With respect to stock trading, Borsa Italiana aims to provide fair and transparent trading in Italian stocks, as well as a range of additional asset classes. Trades on the exchange are in euros and are executed in real-time using a fully electronic dealing system. Borsa Italiana also offers an after-hours trading facility called Trading After Hours (TAH).

According to information compiled by the US Department of Commerce, 99% of Italian businesses are small and medium sized firms (SMEs), which together produce 68% of the nation’s GDP.

Italy also provides a number of additional opportunities for businesses such as:

• The country imports a wide variety of goods that may be of interest for either investing purposes or for exporting. These goods include advanced manufacturing, aviation and airport support equipment; automotive parts; biotechnology; medical devices; smart grid technologies and cybersecurity products.
• Other key products imported into Italy include pharmaceuticals, machine tools, food and wine, travel and tourism services, automobiles, auto parts, and electrical appliances.
• Italy is also a net importer of raw materials and ingredients since the country’s strength lies in the processing and manufacturing of the final product in SMEs and family-owned companies.

With respect to trading across borders, Italy achieved the top ranking among countries surveyed by the World Bank. Italy also ranked favorably in resolving insolvencies and registering property, with ranks of 22nd and 23rd respectively.

EU countries, such as Germany, France, the UK, and Spain, were Italy’s top and closest trading partners in 2017 according to the World Bank Group. This may mean that Italy’s trade with the UK may experience challenges in any post-Brexit situation.

For example, if a no-deal Brexit occurs on October 31st, 2019, the UK will have no trade agreement with either the EU or any individual member countries, including Italy; although the EU’s Most Favoured Nation terms would apply to the UK exports to Italy since they arise from mutual membership in the World Trade Organization (WTO).

According to the World Bank, Italy had a relatively low 31.2% ratio of its trade to GDP numbers in 2017, which could potentially mitigate its economy’s exposure to trade disruptions.

The World Bank also ranked Italy 51st in overall ease of doing business, while the country had considerably lower ranks with respect to paying taxes, obtaining credit, enforcing contracts, and dealing with construction permits, with the county coming in at 118th, 112th, 111th, and 104th respectively.

Traders and businesses should generally find Italy a relatively safe place to operate since it remains regulated under CONSAB. Moreover, as part of the EU, not only does the country enjoy the currency stability that comes with being a member of the Eurozone, but Italian financial institutions must comply with the EU’s MiFID regulations.

When looking for an online broker to trade through from Italy, traders will want to check that they offer the right asset classes, have a good reputation with their clients, and separate their money from their clients. In addition, brokers should have a full-featured trading platform and be subject to competent regulations in order to offer a safe place for the client’s margin deposit.