5 Best Forex Trading Platforms in Europe with Top-notch Features 

To empower European traders in making the most informed decisions, I’ve conducted an exhaustive analysis of forex brokers available to European traders. My research zeroes in on factors like spreads, execution speed, and trading platforms, and reveals that by choosing the right forex broker, traders can benefit from spreads that are up to 78% less than the industry average. 

Based on my findings, I’ve narrowed down 5 of the best forex brokers:

• 1.     Eightcap – Best Forex Trading Platform 
• 2.     Pepperstone – Best Broker for ECN Trading
• 3.     IC Markets – Best No Commission Spreads
• 4.     IG – Best Range of Currency Pairs and CFDs
• 5.     eToro – Best Social Trading Platform

Best Forex Brokers and Trading Platforms for European Traders

Navigating European forex markets can be challenging, especially with the regulatory framework set by the European Securities and Markets Authority (ESMA). Yet, the cornerstone of a successful trading journey is selecting the right broker. 

Through my analysis, I’ve pinpointed five top forex brokers that cater to a diverse set of European traders.

1. Eightcap – Best Forex Trading Platform

In the crowded landscape of forex trading, Eightcap stands out thanks to its competitive Raw Account and robust trading platforms.

·       Raw Account with Low Commission Fees

·       Competitive Forex Spreads

·       Versatile Trading Platforms 

Raw Trading Account

Eightcap offers two trading accounts – a Raw account with tight spreads and €5.50 round-turn commission, and a Standard, no commission account with wider spreads. The Raw account fee structure is well-suited for those trading in larger volumes, as it offers more competitive pricing.

Forex Spreads

When I analysed the standard spreads of 40 different forex brokers, Eightcap emerged as the best broker, consistently offering lower spreads compared to its competitors and the industry average.

When I looked at the Euro vs US Dollar, Eightcap’s average spread was 0.06 pips, which is 40% lower than Pepperstone’s 0.1 and a staggering 62.5% lower than IG’s 0.16. 

Compared to the EUR/USD industry average of 0.22 pips, Eightcap is 72.7% cheaper.

Forex Broker	EUR/USD	AUD/USD	USD/CAD	EUR/GBP
Eightcap	0.06	0.27	0.2	0.42
Pepperstone	0.1	0.3	0.6	0.4
IG	0.16	0.29	N/A	0.54
Axi	0.44	0.42	0.83	0.4
Industry Ave	0.22	0.46	0.66	0.57

Eightcap consistently offers spreads that are lower than the industry average, making it a cost-effective broker. With the EUR/USD and USD/CAD forex pairs, Eightcap’s spreads are nearly 70% lower than the industry norms.

On average, Eightcap offers spreads that are 52.5% lower than the industry norms.

Currency Pair	Eightcap	Industry Average	Difference (%)
EUR/USD	0.06	0.22	-72.73%
AUD/USD	0.27	0.46	-41.30%
USD/CAD	0.2	0.66	-69.70%
EUR/GBP	0.42	0.57	-26.32%
Average Difference			-52.5%

Trading Platforms 

When I signed up with Eightcap, I had to choose between MetaTrader 4 (MT4) and MetaTrader 5 (MT5). MT4 is the go-to for most traders, offering essential features like Expert Advisors for automated trading and various charting tools. MT5, on the other hand, offers more pending orders and timeframes. Both platforms are available as desktop and mobile apps (iOS and Android), but only MT5 provides WebTrader. 

Additionally, Eightcap recently introduced Capitalise.ai, an automated trading tool that uses AI and NLP, allowing me to create trading strategies in plain English.

Demos

The demo account at Eightcap is an excellent way to practice trading without the high risk. It comes with $50,000 in virtual funds and can be extended beyond its default 30-day period.

Opening a Trading Account

Eightcap has low trading costs across the board with a low minimum deposit requirement of $100 and zero withdrawal fees. When I opened my trading account, I could choose from a range of deposit methods such as Credit Card, Neteller, Skrill, PayPal, crypto wallets, or wire transfers. I had seven base currencies to choose from including the Euro. 

Regulation 

Though not regulated by a European regulator like CySEC (Cyprus Securities and Exchange Commission), Eightcap is still a viable choice for European traders and regulated by ASIC (Australia) and SCB (Bahamas).

Verdict

Eightcap offers a compelling package for forex traders, combining competitive pricing in its Raw Account. While not regulated by European authorities, its ECN spreads and ASIC regulations make it one of the best brokers for European traders.

2. Pepperstone – Best Broker for ECN Forex Trading 

Pepperstone stands as a top-tier broker for European traders, offering a unique blend of speed, reliability, and trading conditions.

·       No Dealing Desk Intervention 

·       Fast Execution Speeds and VPS

·       MetaTrader 4, MetaTrader 5, or cTrader

ECN Trading Conditions 

The broker provides a unique blend of trading conditions that are particularly beneficial for European traders. 

Justin Grossbard from CompareForexBrokers.com explains further:

“While not a pure ECN broker, Pepperstone operates as a No Dealing Desk (NDD) broker using Straight Through Processing (STP), which essentially mimics an ECN environment. No dealing desk execution means that your trades are routed straight to liquidity providers, ensuring no dealer intervention.”

This is excellent for traders who employ strategies like hedging. Pepperstone also utilises Equinix data centres in London, this high-speed infrastructure is ideal for European traders, offering nano-second pricing and reducing slippage. 

Execution Speeds

During my research, I analysed the execution speeds of 20 leading regulated brokers to establish an industry average, providing a benchmark against which to measure the performance of individual brokers like Pepperstone.

Pepperstone’s limit order speed is 41.7% more than the industry average of 20 top forex brokers and market order execution is 25% quicker than the industry average.

Broker	Limit Order (ms)	Market Order (ms)
Pepperstone	77	100
Eightcap	143	139
IC Markets	134	153
IG	174	141
Industry Average	132	133

VPS

Pepperstone offers a VPS with fast limit and market order speeds. No set minimum deposit is required to utilise Pepperstone’s VPS. The VPS is free and requires no minimum balance or lots per month. It is a stark contrast to IG, which requires a hefty $5,000 minimum balance and costs $50 a month. 

Forex Broker	Pepperstone	IC Markets	IG
VPS Limit Order Speed	158	233	209
VPS Market Order Speed	168	168	182
Min Balance	$0	$0	$5,000
Lots/Month	0	15	0
VPS Cost/ Month	$0	$20	$50

Pepperstone’s VPS limit order speed is 32% faster than IC Markets and 24% faster than IG, while Pepperstone and IC Markets are tied in market order speed at 168 ms. 

Account Types 

Pepperstone offers two trading accounts:

• ·       Raw Account: Low ECN spreads plus £4.50 round-turn commission. 
• ·       Standard Account: Wider spreads with no commission fees. 

Trading Platforms 

European traders can choose from three platforms: MetaTrader 4, MetaTrader 5, and cTrader. Each excels in speed, reliability, and tools.

Trading Platforms	MetaTrader 4	MetaTrader 5	cTrader
Advanced Charting	✔️	✔️	✔️
Indicators	30+	38+	50+
EA Functionality	✔️	✔️	❌
Algorithmic Trading	✔️	✔️	✔️

Regulation

For European traders, Pepperstone’s operations are overseen by CySEC (Cyprus) and BaFin (Germany).

Verdict 

Pepperstone’s execution speeds and platform choices make it a standout choice for those seeking ECN forex trading conditions.

3. IC Markets – Best No Commission Spreads

IC Markets excels in offering commission-free spreads, making it a top choice for cost-conscious traders.

• ·       Industry-Beating Spreads
• ·       EUR/USD from 0.62 Pips Commission Free
• ·       MT4, MT5, or cTrader

Commission Free Spreads

When I compared 46 brokers average standard spreads, IC Markets stood out, consistently offering lower spreads than its competitors and the industry average.

For the GBP/USD, IC Markets offers spreads that are 47.1% lower than the industry average and at least 17% cheaper than any other individual broker in the comparison.

Forex Broker	EUR/USD	GBP/USD	AUD/USD	EUR/GBP
IC Markets	0.62	0.83	0.77	1.27
Eightcap	1.0	1.0	1.2	1.0
Pepperstone	1.12	1.69	1.22	1.4
IG	1.13	1.66	1.01	1.71
XTB	0.9	1.4	1.3	1.4
Industry Average	1.24	1.57	1.54	1.66

As for the EUR/USD pair, the online broker offers a spread that is 50% lower than the industry average. It’s also 38% cheaper than Eightcap, 44.6% cheaper than Pepperstone, and 45.1% cheaper than IG.

Our research reveals that IC Markets consistently offers lower spreads compared to the industry average. On average, the brokers spreads are 42.7% better than the industry norm. 

Forex Broker	IC Markets	Industry Average	Difference
EUR/USD	0.62	1.24	-50.0%
GBP/USD	0.83	1.57	-47.1%
AUD/USD	0.77	1.54	-50.0%
EUR/GBP	1.27	1.66	-23.5%
Average			-42.7%

Trading Platforms

IC Markets offer three trading platforms: MT4, MT5, and cTrader. MT4 is particularly favoured by many European traders, but MT5 offers multi-asset trading and advanced features. cTrader, on the other hand, provides an institutional-grade trading environment with a personalised interface and direct access to liquidity pools.

Regulation

In Europe, CySEC is the regulatory body that ensures IC Markets adheres to ESMA rules. 

Verdict

IC Markets stands out for its tight spreads and diverse platform offerings, backed by robust European regulation.

4. IG – Best Range of Currency Pairs and CFDs

When it comes to diversity in trading options, IG offers unparalleled access to thousands of financial instruments.

• ·       17,000+ CFD Products
• ·       82 Major, Minor and Exotic Currency Pairs
• ·       Four Trading Platforms

Forex Pairs and CFDs

IG stands out for its extensive range of CFDs, offering access to over 17,000 financial markets including 82 currency pairs. 

Additionally, IG provides a unique feature allowing share CFD trading across global stock exchanges like the NASDAQ and LSE, as well as commodities and indices. 

Trading Platforms

IG offers four options each suited to different CFD trading styles: 

• ·       IG Proprietary Platform: Browser-based platform for beginner traders. 
• ·       L2 Dealer: ECN trading conditions with direct market access.
• ·       ProRealTime: Automated trading and backtesting.  
• ·       MetaTrader 4: Expert Advisors and fast execution speeds for experienced traders. 

Regulation

For European traders, IG is stringently regulated by Germany’s BaFin, ensuring adherence to high standards of conduct and transparency.

Verdict

For European traders seeking a versatile trading experience, IG’s extensive CFDs and stringent BaFin regulation make it an ideal choice.

5. eToro – Best Social Trading Platform

eToro offers a robust platform that provides access to a range of copy and social trading tools. 

• –        Social Trading Platform and Community 
• –        CopyTrader and CopyPortfolio
• –        Good for Beginner Traders 

Social and Copy Trading Platform

What sets eToro apart as the leader in social trading is its CopyTrader and CopyPortfolio features, allowing traders to replicate the strategies of successful investors. 

Ross Collins from CompareForexBrokers.com explains: 

“With traders in over 140 countries and millions of users, eToro provides a pool of trading talent to follow. The social trading platform provides a community experience with real-time social feeds where traders can share insights and discuss market trends.”

Regulation

eToro is regulated by CySEC and adheres to stringent compliance standards.

Verdict 

eToro’s community engagement and trading tools, backed by top-tier regulation, offer a user-friendly social trading experience.

Best European Forex Broker and Trading Platform 

My in-depth research highlights Eightcap for its tight spreads, Pepperstone for its ECN trading conditions, and IC Markets for its no-commission spreads as the top picks. Each broker offers a range of features and benefits that can significantly enhance your trading experience.

Can I Trade Forex in Europe?

Yes, you can trade forex legally in Europe. The ESMA governs financial services in European Union jurisdictions, setting trading rules alongside local regulators like CySEC and BaFin. EU-regulated brokers must offer retail investor accounts:

• ·       Negative balance protection
• ·       Margin close-out
• ·       Leverage caps
• ·       Disclaimers 

While ESMA regulation is similar to the UK’s Financial Conduct Authority (FCA), it varies from jurisdictions such as Canada and Australia.

How Big are Forex Markets?

Foreign exchange markets are the largest in the world, with a daily turnover of $7.5 trillion as of April 2022. The main participants in these markets are central banks, institutional investors, and financial institutions such as hedge funds, with retail trading accounting for only 6% of the total foreign exchange market worldwide. 

How Do European Forex Traders Start Trading?

Starting to trade forex in Europe doesn’t require years of experience. Simply choose a regulated brokerage, select a trading platform and account type, and set your base currency. Meet the minimum deposit and you’re ready to trade. Look for brokers offering low spreads and trading fees, user-friendly platforms, diverse CFDs (i.e. forex, cryptocurrency, ETFs), strong customer support, and regulatory compliance. 

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