Forex trading in Greece is legal and relatively safe. Since Greece is part of the European Union (EU), however, online brokers often restrict your access to high leverage ratios to the lower 30 to 1 ratio specified in the Markets in Financial Instruments Directive (MiFID) and its recent revision known as the MiFIR.
If you’re an investor looking for the best forex broker that provides services in Greece, then make sure to choose one that operates under strict local regulatory oversight. Also, since forex brokers can differ substantially in the products and services they offer, make sure to consider your trading needs carefully before opening an account with them.
Quick Look – Best Forex Brokers Greece
Trading Forex in Greece: What You Need to Know
Forex trading in Greece used to be dominated by the Greek drachma. This national currency was replaced by the EU’s euro (EUR) that started circulating in January 2002 after its exchange rate was fixed on June 19, 2000 at 340.75 drachmas to the euro.
The Bank for International Settlements (BIS) noted that the euro ranked 2nd in 2016 among all actively traded currencies. The euro also accounted for 31.4% of forex market turnover that year. According to the International Monetary Fund (IMF), the euro ranked 2nd among central bank reserve currencies and made up 19% of central bank reserves in Q3 2018.
Although the euro is managed by the European Central Bank (ECB), the Bank of Greece is the Greek central bank tasked with implementing monetary policy in Greece, issuing euro banknotes and protecting the stability of the Greek financial system.
Financial regulation in Greece is handled by the Hellenic Capital Market Commission (HCMC) that protects and ensures orderly and efficient capital markets in Greece to promote economic growth and protect investors. All financial institutions, intermediaries and forex brokers need to be authorized by the HCMC before taking on clients from Greece.
Things to Consider Before You Open a Forex Account
When shopping around to find the best forex broker, keep in mind that the broker you choose is just as important as how you trade. Make sure to find a reputable one you feel safe depositing money with and take into account the list of key considerations below.
Probably the most important thing to look for when choosing an online forex broker is the quality of their local regulatory environment. Any decent online broker should be overseen by a major financial regulator. Also, the majority of regulators insist that brokers keep client funds segregated from their own funds, so keep an eye out for that protective feature in any broker you consider.
Online forex brokers typically let traders operate via proprietary trading software and/or popular 3rd-party platforms like MetaTrader 4 or 5 (MT4/5). Such software should allow trading directly from charts and include comprehensive technical analysis functions, a flexible interface and a news feed. Additional desirable features include custom indicator creation and automated trading.
Leverage determines the size of trading position you can control with a given amount of margin. Greater leverage raises the risk of a position and therefore affects the size of both gains and losses. EU-regulated forex brokers typically offer a low leverage ratio of 30 to 1, while U.S.-based brokers offer a 50 to 1 ratio. Brokers operating outside of such highly regulated jurisdictions can offer leverage ratios beyond 1000 to 1.
You should be able to open up a free demo account to test out the platform and services of any online broker. Most brokers also offer micro accounts to those who want to trade in small sizes to practice in. Standard accounts are best for medium-size traders, while VIP accounts are aimed at traders with substantial funding. Most brokers will gladly accepts euro deposits, if you do not have U.S. dollars or pounds sterling to open up an account with.
Brokers should provide easy access to support staff to protect your account from costly errors or to support you in using their systems. You should be able to contact your online broker via live chat, phone, email and fax. If you prefer to speak or read Greek, look for a broker that has their website translated into Greek and has customer service staff who speak the language.
Those new to forex trading might want access to educational resources, as well as fundamental or technical research from financial experts. Look for a broker’s offerings such as e-books, blogs, webinars, online courses, social media feeds, videos and articles.
The Best Forex Brokers in Greece
Choosing one of the best online brokerage houses to trade forex with from Greece will be impacted by your personal trading requirements. Each of the top brokers in the following list measure up well.
Broker 1: FOREX.com
FOREX.com is the leading U.S.-based forex broker with respect to client assets and makes an excellent choice to trade through. It is well regulated in the U.S. by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and it also submits to oversight by regulators in Australia, the UK, Canada, Japan, Singapore, the Cayman Islands and Hong Kong.
You can trade micro lots via this broker, although you will need a minimum deposit of $250 to open a FOREX.com trading account. Due to U.S. regulations, only a rather low 50 to 1 leverage ratio is available.
FOREX.com provides its proprietary trading platform, although you can use 3rd-party trading software like MT4/5 and NinjaTrader. Versions for mobile, web and desktop are available.
Broker 2: FBS Markets
FBS Markets Inc. was established in 2009 as a straight-through processing (STP) broker that uses an electronic communication network (ECN). It is regulated by the Cyprus Securities and Exchange Commission (CySEC) within the EU and by the International Financial Services Commission (IFSC) in Belize.
This online broker offers 4 account types to suit your needs, and you can open an account with only $1. FBS charges a commission of $6 per traded lot, and the maximum leverage is very high at 3,000 to 1 due to the Belize office where that is permitted.
FBS supports the MT4/5 platforms and offers a trading service in currency pairs, contracts for difference (CFDs), stocks, precious metals and cryptocurrencies. The broker has its website translated into 18 languages.
Broker 3: FXTM (ForexTime)
FXTM was founded in 2011 and is another STP/ECN broker that offers trading in a wide range of forex pairs and CFDs.
This well-regulated broker is overseen by the Financial Conduct Authority (FCA) in the UK, as well as by CySEC in Cyprus where its headquarters are based in Limassol.
FXTM broker lets you trade 250 assets and requires a minimum deposit of just $10. The broker also supports the popular MT4/5 platforms.
Broker 4: Plus 500
Plus500 is an online forex broker founded in Israel in 2008. It operates under 4 separate subsidiaries in the UK, Australia, Singapore and Cyprus that each provide clients with online forex and CFD trading services. The broker is well regulated by the FCA and CySEC, as well as by other national regulators where it operates.
The broker also has an unusually broad range of more than 2,500 tradable assets you can trade via its proprietary online platforms, although it does not support MT4/5. Plus500 requires a minimum deposit of $100 to start trading.
Broker 5: FXCM (Forex Capital Markets)
FXCM was founded in 1999 and operates as an international online CFD and forex broker that is based in London and regulated by the FCA, although it also submits to regulation elsewhere in the world, including in Australia and South Africa.
You’ll need a minimum deposit of $50 to starting trading via this broker that supports the MT4 platform.
If you live in Greece, most international brokers will accept you as a client because you reside within the EU, although your ability to trade with substantial leverage may be hampered as a result. You will, however, enjoy relative currency stability because you live in a country that is a member of the Eurozone.
All online forex brokers offer services and websites in English, although some will also provide you with customer support and website text in Greek. When selecting a forex broker to trade via from Greece, it is paramount to choose a reputable and well-regulated broker that keeps its own funds distinct from its clients’ money.