Best Forex Brokers in Spain
Forex trading in Spain is now well-established, and choosing the right broker comes down to drawing up the right criteria to get the best fit for your circumstances and personal approach to investing.
Short-term and long-term strategies can be applied whether you are looking to trade a price move that occurs over hours or minutes or take a position on a longer-term trend. News events and political change can influence the value of a currency; however, the general rule is that the currency of an economy outperforming its peer group will increase in value, and vice versa.
Opening an account with one of the many forex brokers in Spain is a straightforward process. It allows you to speculate on the prospects of the Eurozone economies by trading euro-based currency pairs. You can also trade non-euro currency pairs such as dollar-yen (USDJPY), with the value of each currency fluctuating in line with global events.
Is it Legal to Trade Forex in Spain?
Forex trading is legal in Spain, and investors can trade a comprehensive combination of currency pairs. That could be the euro against the dollar (EURUSD) in what is known as the euro-dollar currency pair, which is the world’s most actively traded currency pair. Or it is possible to trade price moves in other markets, such as the US dollar against the British pound (GBPUSD).
Brokers offer a range of different types of accounts. Islamic or swap-free accounts are Shariah compliant, and Demo accounts are also widely available free of charge. Demo accounts allow traders to practise trading using virtual funds – a risk-free approach which can be a valuable tool for beginners or those looking to test a new strategy.
Forex Regulation in Spain
As Spain is a member of the European Union, the regulatory protection provided by Spanish authorities is a blend of local and EU-wide protocols.
The local regulator is the Comisión Nacional del Mercado de Valores (CNMV), or the National Securities Market Commission. This government agency is responsible for regulating the Spanish securities markets, with its mandate extending to monitoring currency markets. As a stand-alone independent agency, its aim is to ensure markets are efficient and safe. It is overseen by the Ministry of Economy and Finance of Spain, which can change the CNMV’s mandate if necessary.
All Eurozone financial markets, including Spain, also fall under the umbrella of the EU-wide regulator, the European Securities and Markets Authority (ESMA). ESMA is based in Paris and is one of the three new European Supervisory Authorities set up within the European System of Financial Supervisors. It has responsibility for securities and capital markets supervision and works on converging the rules and regulations of the different regulators of the EU.
Brokers with a licence from one EU regulator, such as the CNMV, can accept clients from other EU countries. This ‘passporting’ of regulations has, for legacy reasons, resulted in several brokers establishing their core business operations in Cyprus, where they are regulated by CySEC. From there, they can offer ESMA-compliant regulated trading services to Spanish and other EU clients.
The CNMV’s policies can be expected to continue to fall into the EU-wide consensus being developed by ESMA. One example is that leverage on forex trading in Spain and across the Eurozone is already capped at 1:30.
How to Start Forex Trading in Spain
Setting up an account with a forex broker in Spain is a straightforward and user-friendly experience. The solid regulatory umbrella provided by the CNMV and ESMA is designed to protect but not hinder traders.
The onboarding process with a broker is carried out online and starts with new clients providing basic personal information. That allows the broker to create a user profile and ensure client accounts are secure. It also helps brokers comply with KYC (Know Your Client) protocols, ensuring investors are treated in a way appropriate to their experience level.
After completing the form filling, new clients are taken to the broker’s trading dashboard. They find easy-to-use functionality with powerful software tools designed to help investors spot trading opportunities. It’s possible to access free research to assist investors in studying price charts and picking the best time to buy or sell currencies.
It’s technically feasible to trade any currency against another, but the most popular markets are the currencies of the world’s largest economies. The vast amounts of currency transactions made by corporations, importers, exporters, and financial institutions make those markets highly liquid. That liquidity also makes them ‘efficient’ and ensures the spread between the bid and offer prices is kept small enough to make trading them cost-effective.
Currency pairs are broken down into three categories depending on the nature of the market. ‘Major’ currency pairs include Euro-dollar (EURUSD), ‘minor’ currency pairs include the euro priced against the British pound (EURGBP), and ‘exotic’ currency pairs include the currencies of smaller, less developed economies, including the Turkish lira.
Different brokers will offer a number of currency pairs to trade, with the average being in the region of 50. It’s worth checking the brokers on your shortlist offer markets in the currencies you want, and these best Spanish broker reviews offer guidance on the additional services and pricing schedules provided by the different firms. Finding the best fit for your approach will help get your trading off to the best possible start.
Best Forex Brokers in Spain
Some of the biggest and best brokers in the world provide forex trading services in Spain. They’re set up to allow their clients to trade any currency market they want to and offer various additional services to attract traders. These well-regulated brokers have impressive track records and focus on making the trading experience as good as possible.
| Broker | Features | Regulator | Platforms | Next Step | |
|---|---|---|---|---|---|
 Between 74-89% of CFD traders lose
Founded: 2010Between 74-89 % of retail investor accounts lose money when trading CFDs |
|
ASIC, FCA | MetaTrader 4, MetaTrader 5, cTrader | ||
 Your capital is at risk
Founded: 2006Europe* CFDs ar... |
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ASIC, FSA, FSB, MiFID | MetaTrader4, Sirix, AvaOptions, AvaTrader, Mirror Trader | ||
 77% of CFD traders lose
Founded: 200777 % 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. |
|
ASIC, CySEC, FCA | eToro Platform | ||
 Your capital is at risk
Founded: 2014 |
|
FSPR | MT4 | ||
 Your capital is at risk
Founded: 2009, 2015, 2017 |
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ASIC, CySEC, IFSC | MT4 Terminal, MT4 for Mac, Web Trader, iPhone/iPad Trader, Droid Trader, Mobile Trader, MT5 | ||
Final Thoughts
The impressive regulatory protection the CNMV and ESMA offers makes Spain one of the safest places to trade forex. Add in the considerable role played by the euro in the global economy, and it’s easy to see why online forex trading has become so popular. The strong foundation is complemented by Spanish forex brokers continuously upgrading their service levels, offering convenient trading by desktop and handheld devices.