Online Brokers In Europe 2024 (2024)

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Retail trading in Europe has surged in recent years, creating a vast range of online brokers. This wealth of choice means selecting the right broker can be a difficult task. In this guide, we help investors navigate the top online brokers in Europe, highlighting the key factors to consider when choosing between platforms.

Online Brokers In Europe

  1. AvaTrade
  2. XTB
  3. CMC Markets
  4. Eightcap
  5. FXCC

#1 - AvaTrade

Online Brokers In Europe 2024 (2)

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Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

  • The broker offers reliable 24/5 multilingual customer support with fast response times during testing
  • AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more
  • Day traders can access stable spreads and zero commissions with no hidden fees

Cons

  • A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
  • It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here

Visit AvaTrade

#2 - XTB

Online Brokers In Europe 2024 (3)

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Why We Chose XTB

XTB is one of the largest stock exchange-listed forex and CFD brokers in the world, offering access to over 5800 day trading markets on their xStation platform. They boast 700,000 active traders, 20 years experience and authorization from tier-one regulators, including the UK's FCA.

"XTB is a great option for beginners with a user-friendly platform, no minimum deposit and low short-term trading fees. The free education center is also a bonus, as well as the straightforward account opening process."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
  • Regulator: FCA, CySEC, IFSC, KNF, DFSA
  • Platforms: xStation
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30

Pros

  • The broker offers same-day withdrawals if requested before 1pm
  • The UK branch pays interest up to 5% on uninvested balances
  • High-volume traders who trade over 15 lots per month can access cashback rebates

Cons

  • There are no third-party research tools available, such as AutoChartist or Trading Central
  • Withdrawals below $50 incur a $30 fee at the international entity
  • The broker's single platform offering is very limiting compared to the multiple terminals offered by many competitors

Visit XTB

#3 - CMC Markets

Online Brokers In Europe 2024 (4)

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Why We Chose CMC Markets

Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.

"With advanced charting tools and an extensive range of tradable CFDs, including an almost unrivalled selection of currencies and custom indices, CMC Markets provides a fantastic online platform for traders of all levels. "

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting
  • Regulator: FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA
  • Platforms: Web, MT4
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

Pros

  • The brokerage continues to stand out with its wide range of value-add resources, including pattern recognition scanners, webinars, tutorials, news feeds, and research from respected sources like Morningstar.
  • The web platform delivers a fantastic user experience with advanced charting tools for day trading and customizable features, catering to both beginners and experienced traders. MT4 (but not MT5) is also supported.
  • CMC Markets is heavily regulated by reputable financial authorities and maintains its stellar reputation, helping to ensure a secure and trustworthy trading environment.

Cons

  • Trading stock CFDs incurs a relatively high commission, especially compared to the cheapest brokers like IC Markets.
  • An inactivity fee of $10 per month is applied after 12 months of inactivity, which may deter casual investors.
  • While CMC offers an above-average suite of assets, there is no support for trading real stocks and UK clients can’t trade cryptocurrencies.

Visit CMC Markets

#4 - Eightcap

Online Brokers In Europe 2024 (5)

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Why We Chose Eightcap

Eightcap have a global presence and are FCA regulated. They boast low day trading fees and are the highest rated brand by TradingView users - and users can trade directly from TradingView. New traders can also sign up for a live account in just a few minutes with £100.

"Eightcap is great for day traders familiar with MT4 and MT5 and looking to trade forex and CFDs in a secure environment. The brand is also a great pick for crypto traders with 100+ derivatives, a sophisticated market scanner, plus Bitcoin and Tether deposits."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities
  • Regulator: FCA, ASIC, CySEC, SCB
  • Platforms: MT4, MT5, TradingView
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30

Pros

  • Crypto Crusher market scanner with sentiment indicators, news and short term trading signals for global clients
  • AI-powered economic calendar with top-level insights, in partnership with Acuity
  • Raw spreads from 0.0 pips and a low $3.5 commission will appeal to active traders

Cons

  • The demo account can only be extended upon request
  • There are only four commodities available, which may disappoint experienced day traders looking to diversify their portfolios
  • There are several frustrating jurisdictional restrictions - for example, the Crypto Crusher tool is not available for UK or Australian clients

Visit Eightcap

#5 - FXCC

Online Brokers In Europe 2024 (6)

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Why We Chose FXCC

FXCC is an established broker that’s been offering low-cost online trading since 2010. Registered in Nevis and regulated by the CySEC, it stands out for its ECN trading conditions, no minimum deposit and smooth account opening that takes less than 5 minutes.

"FXCC continues to prove itself an excellent option for forex day traders with an extensive range of 70+ currency pairs, ultra-tight spreads from 0.0 pips during testing, and high leverage up to 1:500 in the ECN XL account. "

- DayTrading Review Team
  • Instruments: CFDs, Forex, Indices, Commodities, Crypto
  • Regulator: CySEC
  • Platforms: MT4
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:500

Pros

  • As an MT4 broker, FXCC offers advanced charting tools and excellent support for algo traders, especially when combined with the free VPS
  • There are no deposit fees except industry-standard mining charges on cryptos, which is advantageous for active traders
  • Competitive and transparent ECN spreads from 0.0 pips with zero commissions, making FXCC one of the cheapest forex brokers

Cons

  • There is a threadbare selection of research tools like Trading Central and Autochartist, value-add features available at category leaders like IG
  • Although MetaTrader 4 continues to shine for technical analysis, the subpar design dampens the trading experience, especially compared to modern alternatives like TradingView
  • FXCC’s single platform offering is a major drawback compared to many alternatives, notably AvaTrade which provides 5 platforms to suit different trader preferences

Visit FXCC

How To Compare Online Brokers In Europe

With a population of over 700 million, Europe is one of the biggest trading markets in the world. Plus, in recent times, increased time at home has meant that more traders are looking to explore trading the markets. This increased demand has meant the pool of online brokers in Europe has broadened.

Finding the right online broker is more important than ever with so many options in the market. But it’s not just about choosing the right asset at the right price, there are many other factors to consider. We’ve listed the top things to look out for below.

Assets & Markets

European Stocks

Nearly every country in Europe has a stock exchange. Five of these are considered major and have a market capitalization of over $1 trillion. European stock exchanges make up two of the top 10 major global stock markets.

Europe’s largest stock exchange is Euronext; connecting seven economies based in Amsterdam, Brussels, Dublin, Lisbon, London, Oslo, and Paris with the 1,870 companies listed.

The London Stock Exchange (LSE) is the second-largest in Europe, listing around 2,000 companies.

Both exchanges have the same trading hours and are open from 8 AM to 4:30 PM (GMT) Monday to Friday.

Cryptocurrency

Within the EU, crypto assets are classified as qualified financial instruments (QFIs) and are therefore are legal to trade.

Exchanges that deal in QFIs are regulated at a regional level. Firms that hold a QFI licence are permitted to sell cryptocurrency-related products.

Online brokers in Europe must comply with EU legislation to obtain this licence.

Retail traders within the UK are also restricted from trading cryptocurrencies via CFDs.

Forex

The London trading session accounts for around 35% of the total average forex turnover globally.

During this session, currency pairs including EUR/USD and GBP/USD are traded with tighter spreads due to the high market liquidity.

Every country has its own regulator, but European law allows firms to operate financial services within any country in the EU as long as they are regulated by at least one European authority.

The EU legislation that governs these bodies is known as MiFID.

Commodities

The majority of online commodity trading in Europe takes place in either spot markets or futures markets.

The most recognised commodity exchange in Europe is the Intercontinental Exchange (ICE), an electronic commodity exchange with no physical trading floor.

Many of the top online brokers in Europe will offer futures and commodity trading. Popular assets include gold, silver, crude oil and brent oil.

Indices

Well-known indices from Europe include the FTSE 100 (UK), the Euro Stoxx (Europe), and the DAX 40 (Germany). The best online brokers in Europe will offer the ability to trade CFDs or ETFs on at least one of these.

Tools & Platforms

Successful trading requires top execution speeds, real-time data and convenient charting and analysis tools.

Pepperstone and eToro and DEGIRO are considered some of the best online stock brokers in Europe for their platform features. Both provide simple navigation and comprehensive analysis tools.

They also offer mobile app compatibility with the full suite trading features available on desktop and web browser. Online Brokers In Europe 2024 (7)

Fees

The best online brokers in Europe will be transparent about their fee structure.

Since these can vary between platforms dramatically, it’s vital that traders shop around to be confident the fees being promoted are competitive in the market.

Fees generally come in the form of commissions (per trade) or spreads (mark-up). The top online brokers in Europe for commission-free trading include:

  • Degiro – Offering one commission-free ETF trade per month, regardless of size. After that, international ETF trading costs €2 plus 0.03% of the order value. Stock trading charges vary but investment on the London Stock Exchange is charged at £1.75 plus 0.022%
  • XTB – Commission-free stocks and ETF trades in selected European countries. CFDs on stocks and ETFs are charged from 0.08% per lot
  • eToro – EU investors can benefit from zero commissions on stocks and ETF trading. Commodities, crypto, forex, and indices are offered at competitive spreads

Other charges to consider are inactivity fees, account maintenance, plus withdrawal and deposit fees. Sometimes there are third-party costs passed on to clients from the broker. These could include exchange access fees, bank transfer fees and currency conversion fees.

Leverage

The European Securities and Markets Authority (ESMA) introduced industry-wide limits on leverage for spread betting, forex, and CFD products offered to retail clients in 2018. The maximum leverage by asset is listed below.

  • 1:30 for major currency pairs
  • 1:20 for non-major currency pairs, gold and major indices
  • 1:10 for commodities other than gold and non-major equity indices
  • 1:5 for individual equities
  • 1:2 for cryptocurrencies

Demo Account

The majority of the best online brokers in Europe offer demo accounts. These are a great way to navigate platform features, practise day trading strategies and understand available assets.

You can access virtual funds in simulated live market conditions. The majority of the top online brokers in Europe offer these, including XTB, eToro, and IG.

Regulation

Regulated brokers are governed by rules that aim to protect retail traders. Although not mandatory, it is highly recommended to select online brokers in Europe that comply with regulations.

Unregulated stock brokers in Europe could mean a lack of trader protection, financial harm, plus poor customer and platform services. Traders can verify a broker’s licence number on the respective financial authority database.

The European Securities and Markets Authority (ESMA) is an independent European Union financial regulatory body.

The main functions of the authorisation are to encourage information transparency, promote efficient and stable financial markets, and to safeguard retail traders. This is an established body formulating guidelines for the trading brokers in Europe since 2001. The ESMA authority provides:

  • Supervision – Directly overseeing financial bodies and trade repositories
  • Standardisation – Sharing best practices and improving efficiencies
  • Rules – Providing a rulebook for EU financial markets, aiming to create equal opportunities for investors and EU bodies by advising on legislation and developing technical standards
  • Risk – Managing investor hazards, including market stability. Anticipatory action can be taken to avoid problems that threaten these

The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases transparency across the European Union’s financial markets and standardises regulation requirements for firms operating in the area. It has been functioning since 2007.

MiFID sets only basic requirements so regulator restrictions can vary between countries. Some countries, such as Bulgaria and Malta, only meet the basic requirements while others, including the United Kingdom and Switzerland, operate above these.

However, transparency, segregation of funds, and investor compensation rules are all mandatory.

Some examples of MiFID protections include the restriction of bonuses and promotions to retail traders and the mandatory provision of negative balance protection on margin accounts.

This stringent financial regulation creates a safe environment for those who invest with an EU-based broker.

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Specific Regulators

Above we have described regulation that applies to brokers in Europe. In the EU, if a financial services firm is regulated by a European authority that applies MiFID, they can practice in any member state.

This is no longer the case for the UK, which since Brexit, sits outside of the the EU. In this section, we explore the most common regulators and their respective countries.

The Financial Conduct Authority (FCA) – The UK

The FCA was established in 2013 to protect UK consumers, enhance the integrity of the British financial system, and serve the interests of clients by encouraging healthy competition between financial services companies.

FCA regulation is mandatory for online brokers in Europe selling their services to UK clients. The FCA will ensure that those offering investments can make sensible decisions in their clients’ interests and will also be held accountable for their actions.

However, this is not the same for cryptocurrencies. Even if they hold FCA regulation, crypto exchanges will not be held accountable for fluctuations in the value of assets and the loss this can cause.

The Cyprus Securities and Exchange Commission (CySEC) – The EU

The CySEC was launched in 2001 and is the largest regulator of forex and binary options brokers in the world. Its main responsibilities are to supervise brokers and distribute licenses to platforms while protecting customers.

The CySEC promotes freedom of trading, allowing retail traders to implement various strategies, such as using high leverage and hedging.

Customer Support

Customer support is vital when reviewing online brokers in Europe. Common issues include platform installation problems, account opening queries, or deposit and withdrawal issues. The best online brokers in Europe offer 24/7 multilingual customer support methods, including email, live chatbots and telephone.

Security

It’s also important to consider the security of an online broker in Europe before investing, particularly with regard to payments, personal data and account privacy. A broker’s years of service can also be a good gauge for safety, indicating the maturity of services and operations.

Plus, online brokers in Europe that are recognised by a top-tier regulator (such as the CySEC and FCA) should provide sufficient levels of security protection. Look out for PC and mobile data encryption, payment method protection, and 2-factor authentication (2FA).

Trading Taxes In Europe

It is a trader’s responsibility to file their own taxes based on investment activity. The amount owed varies by European country, averaging around 19.5%. Denmark levies the highest tax of all European countries at 42%.

A withholding tax is deducted from any bank interest and income from bonds earned by European residents on investments made in other member countries.

This applies to 28 European member states including Spain, Germany, Greece, and France. This ensures residents of one country do not evade tax by depositing funds outside the jurisdiction.

The majority of European countries comply with the EU Savings Directive, disclosing account holder names and earned interest. The EU withholding tax is not applicable on trading returns, dividends from shares or profits realised on investments.

Note, this information should not be taken as tax advice. Consult an expert to find out more about paying tax on your earnings.

Final Word; Online Brokers In Europe

Online brokers in Europe tend to provide a reliable and secure trading environment for retail traders thanks to the stringent regulation and guidelines.

We’ve listed some of the key factors when choosing the best online brokers in Europe. Consider which assets you want to trade first and in what volume, as this could impact your search and limit your choices.

FAQs

Which Assets Can Be Traded With Online Brokers In Europe?

The most popular day trading markets include forex, commodities, stocks, futures, and cryptocurrencies. Products such as CFDs and ETFs are also common.

Who Regulates Online Brokers In Europe?

The European Securities and Markets Authority (ESMA) is an independent European Union financial regulatory body. Its main aims are to promote information transparency, efficient and stable financial markets, and to safeguard retail traders.

What Are The ESMA Maximum Leverage Limits For Online Brokers In Europe?

All online brokers in Europe are subject to ESMA leverage caps. These were introduced to protect retail investors from undue risk and include a maximum leverage rate of 1:30 for major currency pairs, 1:20 for major indices, and 1:2 for cryptocurrencies.

Do Online Brokers In Europe Offer Paper Trading?

Yes, the best online brokers in Europe offer demo accounts. These are a good way to understand platform navigation, access real-time market simulation, and practise trading strategies with virtual funds before opening a live account.

What Are The Main Features To Review When Choosing Online Brokers In Europe?

Retail clients should consider the following: fees, regulation, market access, security, customer support, and tools. It’s important to evaluate which factors you require based on your personal trading volume, assets, and investing style.

Online Brokers In Europe 2024 (2024)

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