List of Brokers with CONSOB (Italy) Regulation
The Commissione Nazionale per le Società e la Borsa (CONSOB) is the public authority responsible for regulating the Italian securities market. They aim to protect the investor community by regulating, authorizing, monitoring and controlling Italian financial markets while ensuring the efficiency, transparency and development of the securities markets. To achieve these objectives, the Commission, through regulation, regulates its own organization and operations with the sole limitation of legitimacy checks carried out by the Presidency of the Council of Ministers.
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Ever since the Euro regulation was implemented in Italy, many brokers choose to avoid the country and open their business in more agreeable jurisdictions like the UK. Such condition is made worse by the fact that Italy has been plagued by a series of economic crises over the last few years; another reason for forex brokerage to operate outside of Italy,
Despite not having a huge market in Italy, forex trading is still a quite popular and absolutely legal activity. Traders may buy or sell currency pairs, hypothesize upcoming changes in price, and gain some profit out of it. High unemployment and poor infrastructure are also the reason why Italians choose forex trading. As many traders know, this is not a magical way to earn money and risks lurk everywhere, but this is still a viable option to make a living since the forex market is decentralized and not affected by conditions in their home country.
Although forex trading can be legally practiced, binary options brokers are deemed to be too risky by the Italian government. Therefore, CONSOB regulated brokers are mostly forex brokerage companies that have acquired the necessary licenses to operate and offer their service in the country.
Commossione Nazionale per le Società e la Borsa (CONSOB) or National Commission for Companies and the Stock Exchange was founded in 1974. At that time, the government decided that they needed an agency to watch over the securities market which was handled by the Italian Ministry of Treasury. Sometimes later, they were also given authority to become autonomous.
As mentioned previously, they are tasked to watch over brokerage companies, issuing licenses for the forex brokers, supervise trading activities, and conduct disciplinary action to the brokers that are proven to have been doing insider trading, financial fraud, scams, and more.
CONSOB requires all forex brokers to be licensed in order to operate in Italy. The requirement can be obtained either by CONSOB or other regulatory bodies within the European Economic Area. Only then the forex brokers may open an office and operate in Italy.
In addition, Italian forex brokers also fall under the Markets in Financial Instruments Directive (MiFID). The directive helps protect forex traders by ensuring that all brokers can give compensation to their clients if they happen to fall into bankruptcy.
Forex brokers that are already licensed must fulfill certain requirements such as the minimum capital amount and placing clients' funds in a different bank (segregated account). In return, forex brokers usually charge around 0.1 to 0.2 pips of spread for major pairs.
To fund their forex account, Italian traders usually use Visa and Mastercard, sometimes they also use American Express and Discover. Sending deposits through those cards is often processed instantly, but the withdrawal may take up to 5 business days.
Aside from cards, e-wallet such as Paypal, Skrill, and Neteller are used quite often as well because withdrawals via these e-wallet accounts generally only take up to 48 hours.
Forex brokers also offer direct bank transfer options. This option is a little bit expensive but it is proven, dependable, and secure. The last one is a local payment option such as Sofort, Postepay, and Neosurf.
Everyone that has spent some time in this forex trading world knows how volatile the market is, how risky this business is, and how confusing it is to find a suitable forex broker. At the very least, Italian forex traders require good software to work on.
MetaTrader 4, released in 2005 by MetaQuotes Software in Cyprus, is now used by more than 90% of forex traders. This platform is suitable for newcomers or more experienced forex traders because it is made with forex trading in mind. So, it's not a surprise that MetaTrader 4 is also popular among Italian traders. Another platform that is popular in Italy is cTrader, an award-winning platform that is said to be more sophisticated, offers better charting, and provides pricing transparency data.
Many Italian forex traders also like to conduct trade on the go, they often download trading apps for free in Apple Store or Google Play. After installing the app on their device, they can log in or create a new account, deposit some trading fund, or test the water using a demo account.
If you are interested to open an account in one of the brokers in the list above, make sure to try the forex demo account before proceeding to register in the live account.
Here are some of the best offshore trading regulations which attract forex traders worldwide:
- Tax Benefits: By offshore forex trading, a trader can be exempt from paying taxes in their country of residence.
- High Leverage: Offshore brokers are not being strictly controlled by their financial authorities. Due to this, they're able to offer riskier leverages up to even 1000:1 in order to attract more clients to invest with them.
- Assets Availability: Most countries have banned quite a few financial assets like cryptocurrency due to how volatile it is. Offshore forex trading is therefore extremely popular as traders don't have to worry about some assets not being available to them for trading.
Continue Reading at Your Simple Guide to Offshore Trading
The Capital Markets Authority (CMA) is the financial regulatory body in Kenya. Although the CMA was established in 1989, it was not until 2016 that the government granted the CMA the power to monitor forex trading. Before this, the market was full of scams committed by unregulated brokers. Today, thanks to the Financial Act of 2016, forex trading is more secure and transparent in Kenya.
Continue Reading at Is Forex Trading Legal in Africa?
Online trading in Nigeria is currently unregulated, while offline forex trading is well-regulated. This regulatory contrast is due to the differences like these two markets.
Continue Reading at Is It Safe to Trade Forex in Nigeria?
African countries are forex-friendly, but naturally, there are minor restrictions from the government. Forex brokers must hold a license before running their business in any of these countries. The status of forex trading in these countries is still unclear; it is not yet legalized but not against the law.
The South African Financial Sector Conduct Authority (FSCA), previously known as Financial Services Board (FSB), is one of the most well-known forex regulatory bodies.
Continue Reading at Is Forex Trading Legal in Africa?