Spain is a developed economy at the heart of the EU and provides Forex traders with excellent technological infrastructure.
Forex trading in Spain is widespread, and Spain often leads Latin American ventures and advancements in the finance space.
My Forex Brokers in Spain review analyzed dozens of brokers that provide services popular with Spanish Forex traders to determine the most competitive providers.
Best Forex Brokers in Spain at a Glance
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- XM, Exception range of assets + negative balance protection.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
Best Spanish Brokers Comparison
| | | | | |
Regulators | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB | ASIC, CySEC, DFSA, FSC Belize | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | FMA, FSA |
Year Established | 2005 | 2009 | 2009 | 2006 | 2014 |
Execution Type(s) | ECN/STP | ECN/STP, Market Maker | Market Maker | Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.2 pips | 1.0 pips | 0.1 pips | 0.9 pips | 1.3 pips |
Average Trading Cost GBP/USD | 1.4 pips | 1.2 pips | 0.2 pips | 1.5 pips | 2.0 pips |
Average Trading Cost Gold | $0.16 | $0.12 | $0.19 | $0.29 | $0.90 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosTraders at Eightcap benefit from access to Capitalise AI for MT4, enabling algorithmic trading in a code-free environment. It places Eightcap among our Forex Brokers in Spain list with the most advanced trading tool. The FlashTrader plugin upgrades MT5, and the dedicated cryptocurrency solution Crypto Crusher ensures crypto traders have an edge, while the AI-powered economic calendar is an excellent feature for news traders.
Eightcap provides quality educational content and research for beginner traders via Eightcap Labs and Eightcap Trade Zone and offers 24/5 customer support. Copy traders get the trusted, embedded MT4/MT5 copy trading services, and Eightcap also connects social traders to TradingView.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
XM
In Summary Exception range of assets + negative balance protectionI rank XM among the best Forex brokers for beginners as it provides exceptional education, with the live education room available Monday through Friday between 06:00 and 15:00 GMT at its core. Beginners also receive actionable trading recommendations, and the $5 minimum deposit ensures accessibility to all traders, boosted by deposit bonuses.
XM rewards active traders with a four-tier loyalty program and supports algorithmic traders with VPS hosting. The well-balanced asset selection exceeds 1,000 assets, and the proprietary copy trading service pays signal providers up to 50% profit share. Swap-free trading and low trading fees ensure a competitive edge.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade is one of the largest Forex / CFD brokers and well-known for offering their clients a choice of fixed or floating spreads. They have a very high and strong level of regulation. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava offers maximum leverage on Forex currency pairs as high as 400 to 1. AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. 2 bonds and 6 ETFs are also on the menu.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
What to Look for in a Forex Broker from Spain
All competitive Spanish Forex brokers should offer the following:
- Regulation - 10+ years of a clean regulatory track record.
- Low trading fees - Competitive trading fees and swap rates, including positive swaps paid out on relevant overnight positions/
- Trading platforms - Algorithmic, copy, and mobile trading capabilities.
- Asset diversity - A choice of liquid trading instruments.
- Deposits/Withdrawals - No internal transaction fees and low minimum requirements.
Forex Trading Regulations in Spain
The Comisión Nacional del Mercado de Valores (CNMV) regulates the domestic Forex market but operates under the European Securities and Markets Authority (ESMA) framework, enforcing the Markets in Financial Instruments Directive II (MiFID II). The CNMV does not require Forex brokers to obtain a license from the CNMV, and most brokers within my Forex Brokers in Spain review serve Spanish Forex traders from an EU-based subsidiary.
How Much is Forex Leverage in Spain?
Retail Forex traders in Spain get a maximum Forex leverage of 1:30, in compliance with ESMA regulations. A professional account upgrade exists for qualifying traders who can increase this to 1:500, the industry standard for retail traders in competitive jurisdictions. All brokers within my Forex Brokers in Spain review offer negative balance protection. Forex traders should always use proper risk management when trading leveraged accounts.
How to Start Forex Trading in Spain?
Traders can shorten their learning curve by considering the tips below before funding a live account with a broker from my Forex Brokers in Spain list.
Here are tips on how to start Forex trading in Spain:
- Begin with quality education.
- Respect Forex trading as a highly skilled profession.
- Trading psychology separates up to 90% of unprofitable traders from profitable ones.
- Study the relationship between leverage and risk management.
- Leverage magnifies profits and losses.
- Risk management is an important factor in any successful trading strategy.
- Choose a suitable trading strategy that reflects your personality and strengths.
- Low trading fees determine a competitive trading environment.
- Master the use of take profit and stop loss order placement.
What is the Best Trading Platform in Spain
Most brokers within my Forex Brokers in Spain review offer MT4, the leading algorithmic trading platform in Spain, as 80%+ of daily Forex trading volume is algorithmic. MT5 and cTrader come in as the second and third-best choices, as they lack the versatility of MT4. Traders can upgrade MT4 via 25,000+ custom indicators, templates, and EAs, and MT4 supports API connectivity and copy trading.
Forex Trading Taxation in Spain
During my Forex Brokers in Spain analysis, I uncovered that Forex traders are liable for a capital gains tax or income tax, dependent on an individual's situation, but the rates are identical. Spain differentiates between trading income from Forex trading and speculative income from asset sales. Traders may also claim a €2,000 yearly allowance covering costs.
Potential Forex trading taxes in Spain consist of the following:
- 19% capital gains tax/income tax on the first €5,999.99
- 21% capital gains tax/income tax from €6,000.00 to €49,999.99
- 21% capital gains tax/income tax from €50,000.00
Forex traders in Spain should consult a legal professional to seek tax advice in Spain to ensure compliance with local rules and regulations.
Pros & Cons of Forex Trading in Spain
Before opening an account with a broker within my Forex Brokers in Spain review, traders should evaluate the pros and cons of Forex trading in Spain.
The pros of Forex trading in Spain are:
- Lower capital requirements versus other assets
- Low-latency algorithmic and API trading
- Passive income opportunities
- Copy and social trading
- PAMM/MAM accounts
- 24/5 decentralized market
- Mobile trading
The cons of Forex trading in Spain are:
- Disrespect for Forex trading as a high-skilled profession
- Emotion-based decision-making
- Unrealistic trading expectations
- Manual trading in an algorithmic trading environment
- Disconnect between leverage and its relationship to risk management
- False sense of accomplishment from demo trading
- Uncompetitive trading conditions
- Restrictive retail leverage
- No bonuses or incentives
Bottom Line
Spain is home to an active Forex market despite falling under the restrictive ESMA environment, algorithmic trading and mobile copy trading rank among the most popular strategies. Spain is also a core influencer of Latin American Forex trading, making traditional account management via PAMM/MAM accounts another dominant approach, with many Spanish account managers serving the global, Spanish-speaking population. Most brokers within my Forex Brokers in Spain review cater to Spanish Forex traders via EU-based subsidiaries.
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