Best Italian Forex Brokers
The Italian Forex markets is one that stands out, and its development hasn’t been very rapid. There are strict laws, regulations and requirements set by the relevant governing bodies. The Italian government actually makes it rather hard for traders by limiting certain trading activities. Forex trading isn’t currently one of those forbidden forms of investment, and should this happen we will make sure our readers are kept informed.
Before Italy joined the European Union, the official currency was the Italian Lira. After joining the Union in 1999, it became one of the first countries to adopt the Euro. Euro banknotes and coins were introduced in 2002, following three transitional years when the Euro only existed as ‘book money’, even though it was the official currency.
The rules and regulations for Forex Brokers in Italy
CONSOB, otherwise known as the Commissione Nazionale per le Societa e la Borsa, or the Italian Securities and Exchange Commission, is responsible for the regulation of Forex brokers in Italy. CONSOB has always held a firm view with regards what it sees as high risk investment. And this can be seen by their stance on binary options brokers. Currently it seems that Forex aren’t set to suffer the harsh actions taken against binary options brokers, but who knows what will happen in the future.
There are a number of good Forex brokers in Italy, but business has not developed as well as in other countries. Many Italian Forex traders prefer to use Forex brokers registered in other countries rather than a broker who is locally based.
Why has Forex trading been slow on the uptake in Italy?
The main reason is the introduction of the Euro, which served to push other currencies into the deep recesses of history. When the Lira was Italy’s official currency Italy was a force to be reckoned with, which meant conditions were much better for the development of Forex market business in Italy. Once the Euro was adopted as the official currency it meant that Forex brokers in Italy had to compete against other European markets where conditions were much more favorable.
Recently, the Italian economy had to receive some help from the European Central Bank, in the form of a bailout, which further added to the woes of Forex brokers in Italy. Trade conditions are much better in other European countries and Italy seems unable to compete.
However, this doesn’t mean there aren’t some excellent Forex brokers in Italy. Some companies have decided to stay and weather the storm. A few of these Forex brokers in Italy are locally based companies, but there are also companies which are branches of bigger offshore Forex brokers, who only have a base in Italy.
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Different types of Forex broker in Italy
Basically, there are two different types of Forex broker operating in Italy. The first are homegrown Forex brokers. Some are simply a customized brand based Forex broker based on the offerings of a foreign company. While others operate with their own proprietary platform.
The second type of Forex broker in Italy includes branches of other established brands who have chosen to operate in Italy. Most of these brands will already be operating in countries with more favorable conditions for Forex trading such as the UK, Germany, and Cyprus.
Is the future rosy for the best Forex brokers in Italy?
Many experts are saying that Italy looks set to regain some of its former glory. One reason is because a number of Forex brokers are realizing Italy has a lot to offer. It is likely that the big brand names will enter the Italian Forex market in order to pick up more Italian business. The unfriendly attitude of CONSOB towards binary trading also means that Italian investors can only invest in stocks or Forex, which should make a difference to the number of Italian traders.
Investors will be pleased to know that CONSOB is keeping a close eye on Forex brokers who are operating in Italy. Full investor protection is at the top of their agenda. There is also a new initiative taking place between CONSOB, AMF in France, and the FCA in the UK, which is working to identify unregistered companies operating in either of the three countries. A Forex broker doesn’t have to be based in Italy, in order to advertise its products to the Italian public online. Some less trustworthy brokers are claiming to be licensed in either the UK or France and using the regulators logos, in order to hoodwink unsuspecting traders. The new initiative means they can no longer hide, as traders can inform one of the contributing regulators of the false claims.
We hope you’ve now got enough information to consider a dip in the ocean that is Forex trading. There are plenty of options to try the experience for free, so why not try this option before risking your own hard earned cash?