What forex brokers/dealers do you trust and recommend for residents of Italy? If it’ll make a difference to certain brokers/dealers, I’m a US citizen legally residing in Italy and can be authenticated as such. I don’t have a US residence, and haven’t resided in the US for years.
I’d be interested in STP/ECN brokers for spot forex; does such a thing exist? Otherwise, anyone having a fairly consistent long-term experience with market makers that serve this region?
I’m also interested in CFDs, but I have limited knowledge of them; is it correct that CFDs are within the exclusive purview of market makers? These are bucket shops, yes? Anyone doing consistently well with any?
Many thanks in advance for your kind consideration…
Hi, basically Italy citizens didn’t have problem with open live account. Brokers are always second part transactions for retails traders, it is only difference in risk management. CFD’s are brokers product, they create it and manage it. Regards Greg
Other than the usual diligence, starting with a small live account to test the waters, and exercising the usual caution, would you have any reservation working in CFDs? I’m attracted to the ease with with one can go short with CFDs, in addition to dispensing with overnight interest. Many thanks again in advance for your insight…
Update: I feel Pippo may have pointed to a misunderstanding on my part re forex ECN. See this link: Real ecn brokers - #27 by Pippo
If so, I’d not like to waste your time any further; it seems I forgot my Pipsology Brokers 101 training; been spending all my time papertrading since I finished the course. Will review again!
I told you the same as pippo, but maybe too general. As I told you before, cfd’s are 100% broker product, so when will you want to change broker, your strategy could not working in other trading environment.
CFD are traded in OTC markets, i.e. you will likely trade against some dealer/dealers mediated by a broker. Sometimes brokers take another side in your trading being a market maker. An upside for this is reduced fees (very cheep trading, zero spreads), faster execution the downside is potential conflict of interest. I would suggest to check Hotforex or Tickmill they are both ECN brokers, i.e. strive to avoid conflict of interest by aggregating liquidity from the pool of their delaers.
I see a lot of US base traders going for this option to trade off shore, I guess most EU regulated broker would allow it such HFM, for certain clarification just inquire through the brokers live chat they should help answer some of the more detailed question.
As far as I can tell from the UK, brokers operating in the EU are very tightly regulated, and this applies equally to CFD brokers.
In the UK we can also trade via spread betting. The EU and UK treat this as another form of CFD trading. But in the UK spread betting is tax-free. I have heard a while back spread betting is also legal in Italy but I can’t comment on the tax situation there.
I lived in Asia for some years prior to relocating to Italy. Was going to go to Italy in any case, because I didn’t want to return to the insane United States. But the attraction of trading in CFD was definitely an additional incentive.
There are few brokers whose headquarters or main offices located in Italy, most of them reside in Cyprus, UK or some offshore island. If you want safe place for trading, choose UK regulated brokers this should be sufficient to ensure the level of protection you’d get from the local broker, since UK watchdog is pretty strict.
This is a great point; many thanks for chiming in!
FXCM has an office in Legnano, Italy. I’m presently corresponding with a member of their development team about the prospects. He’s a kind and helpful gent. At some point, I hope to visit their office in advance of establishing an account with them. It would feel reassuring to confirm their office looks well-established and not positioned to quickly pack up and leave, though of course that wouldn’t be conclusive. And as you mentioned, they’re registered in Cyprus.
Would most UK brokers require that I be a resident of UK in order to do business with them? If not, it seems definitely worth examining!
HUGE mistake … one of the worst mistakes you can make (sorry!!)
This page also tells a story: it’s what just the NFA listed about FXCM (it only goes up to 2017, of course, when FXCM were finally kicked out of the US) - other regulators have said similar things and taken some similar actions, too!
What broker would you recommend for someone residing in the EU; would be grateful for your thoughts : )
About FCXM:
As far as I’ve been able to confirm, FXCM was deregulated only in the US (2017). Have they been banned anywhere else? As far as I can tell, the company is listed and regulated by the FCA, CySEC, FSA and FMA. FXCM founder and CEO Drew Niven was out by 2017, when the CFTC ban occurred. I gathered they’re largely owned by the Jeffries Financial Group (JEF on the NYSE).
Assuming all that’s correct, is it safe to say that they’re a very different operation from the one that got kicked out of the US? Or is there something more to consider?
they were regulated in all those other places before they were kicked out of the US - and many of those regulators have also fined them for dishonest malpractice
i wouldn’t touch them, myself
(anyway, what matters isn’t “where else they’re regulated”: it’s “where your account is regulated”)