Best FOREX Brokers in Spain for 2024

Best FOREX Brokers in Spain in 2024

Top Tips for Choosing the Best FOREX Brokers in Spain

Best FOREX Brokers and Platforms for Beginners in Spain for 2024

With so many choices out there, it's tough to select the right broker. In this case, we've done the work for you. Here is a summary of each broker according to specific criteria, along with their pros and cons

1. ICM - Capital 91.10: Best Deposit and Withdrawal Broker

2. Tradeview - 90.00: Trusted broker that offers very low trading costs as well as comprehensive financial literacy materials for its clients.

3. XTB - 85.55: Best Customer Service Broker

4. IG - 85.45: Best Regulations Broker plus Convenient Platform

5. Saxo Bank - 80.09: Excellent Private Trading Platform

6. CMC Markets - 80.07: More than 9,000 Assets

7. ThinkMarkets - 80.05: Aimed at the Audience of Traders

What Is FOREX and Why Do We Need a Broker to Trade?

The foreign exchange market is a decentralized marketplace where global currencies are bought and sold. Currency trading is conducted electronically over the counter (OTC). This means that all transactions occur via computer networks between traders all over the world rather than on one centralized exchange. The FOREX market operates 24 hours a day and five days a week (Monday to Friday), except for international holidays. The FOREX market is the largest financial market in the world with some six trillion dollars changing hands daily. FOREX brokers in Spain play a key role in this marketplace by enabling clients to buy and sell through a trading platform. Most trading platforms are accessible in web and mobile format. 

How Do I Choose the Best FOREX Broker in Spain?

Regulation and Licensing in Spain

Ensure your chosen broker is regulated by a reputable authority. FOREX brokers must be regulated by the same regulators that regulate other financial assets, such as crypto, commodities, and indices. Remember that you do not have to use a broker with international regulation if your local broker is regulated by a solid local regulator. In the case of Spain, being regulated by the CNMV is enough.

The choice of a regulated broker isn't merely a matter of preference—it's a protective measure. When a broker is regulated, it undergoes stringent assessments to ensure transparency, fair trading practices and your financial security. Opting for an unregulated broker brings with it significant risks.

To ensure that your broker is legit, you can follow these steps:

• Ask if the broker is licensed to sell you FOREX

• Check if the broker is registered with a top-tier regulator or at least the applicable regulator in your area

• Ask if your broker is part of a compensation scheme

• Check your statements regularly to ensure that everything is in order

Remember that it's important to comply with all applicable requirements, including any self-regulatory organizations to which brokers belong, and not just those mentioned here.

On the matter of regulations, a vital part of the trading landscape, we present the five most important FOREX market regulatory bodies from around the world.

1. The FCA, UK;

2. The Swiss Financial Market Supervisory Authority (FINMA);

3. The Australian Securities and Investments Commission (ASIC);

4. The Financial Markets Authority, New Zealand; and

5. The National Futures Association (NFA), US.

While FOREX market regulatory bodies exist in almost every country, these five key regulators also happen to be some of the strictest.

Leverage

There are numerous significant regulators worldwide. Depending on how your broker operates within the regulatory system, you'll come across different rules regarding leverage. Several major regulators have set out specific guidelines to protect individual traders.

Besides being regulated by the CNMV, brokers in Spain must fall in line with the European Securities and Markets Authority (ESMA) guidelines and the Markets in Financial Instruments Regulation (MiFIR). Let's look at selected leverage rules around the world:

The CNMV in Spain:

30:1 for major currency pairs 

20:1 for non-major currency pairs

2:1 for cryptocurrencies 

The ASIC in Australia:

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major stock market indices

10:1 for commodities other than gold and minor stock market indices

5:1 for equities (stocks) and other underlying assets

2:1 for cryptocurrencies

FINMA in Switzerland:

FINMA doesn't specify leverage limits like ASIC. However, Swiss brokers must strictly adhere to robust capital and risk management requirements, ensuring that they do not offer excessively high leverage that could endanger their financial stability or their clients' funds.

The FCA in the UK:

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major indices

10:1 for commodities (excluding gold) and non-major equity indices

5:1 for individual equities and other reference values

2:1 for cryptocurrencies

It's worth mentioning that these rules mainly target regular individual clients. If you're a professional trader, your access to leverage might vary depending on both the rules in place and the policies of your broker. As you can tell, diligent regulators keep a close eye on how much leverage is allowed. Nevertheless, you can still use a regulator from your own country, even if it doesn't fall under the category of a top-tier regulator.

Stop out

As a FOREX trader, it's crucial to understand the most important terms you'll encounter to avoid going into a negative balance. One of these terms is "stop out," which refers to a situation where a broker automatically closes some or all of your open positions to prevent your account from going into a negative balance. 

This is especially relevant for traders using leverage. The stop-out level is typically expressed as a percentage, representing the margin level at which the broker starts to close out open trades.

Here are the three most common stop-out levels:

0% Stop-Out Level: 

At this level, when the margin level of the account drops to 0%, the broker will automatically close all open positions. This is the most aggressive stop-out level, and it gives no room for your positions to recover, even if the market turns in your favor immediately after reaching this level.

Here's how it works:

Imagine you have a trading account with a balance of $10,000, and you've opened several positions in the market. Your broker has a 0% Stop-Out Level policy, which means that if your margin level drops to 0%, they will automatically close all your open positions to prevent further losses.

• You start with a $10,000 trading account balance

• Using 30:1 leverage, you can control $300,000 worth of currency with your $10,000 account

• You open a position in EUR/USD with a notional value of $300,000, and the margin required for this trade is $10,000 (3.33% of the notional value)

• The market moves against your position, causing your account balance to drop to $9,000

• If your losses accumulate, your account balance decreases and your margin level (account equity divided by used margin) drops accordingly 

• When it reaches 0%, the broker's 0% Stop-Out Level policy comes into play

50% Stop-Out Level: 

Here, if the margin level drops to 50%, the broker will start closing out positions. It offers a bit more flexibility compared to the 0% level. The broker will typically close the most unprofitable positions first, and if that's not enough to bring the margin level back above 50%, more positions will be closed until it's achieved.

100% Stop-Out Level: 

A 100% stop-out level means that when a trader's equity equals the margin required for the open positions, the broker will start closing those positions. It's important to know that this is similar to the 0% level but might be worded differently based on broker terminology.

It's worth noting that while stop-out procedures are meant to protect traders from negative balances, they can lead to significant losses in volatile markets if positions are closed automatically, especially if the market quickly reverses after the stop out. As such, using protective measures like stop-loss orders and not over-leveraging is always a good idea. Additionally, the specific percentage and the order in which positions are closed can vary among brokers, so it's essential for traders to be aware of their broker's policy on stop-out levels.

Commissions and Fees

Trading fees can sometimes be hard to understand. Be sure to check how these fees compare with industry standards:

Spreads: There are two main kinds of spread, one is fixed and the other is variable. Generally, the spread refers to the gap between two prices, such as the bid/ask rate in a currency exchange rate. If you are getting a spread of 1.4 pips for the EUR/USD, you can rest easy that you are getting a good deal at present market rates. The narrower the better; this means that a spread of 1.4 pips is better than a spread of 2 pips. This article explains more about this important concept.

Commission: This is nothing more than the service charge that brokers require for carrying out transactions on behalf of their clients.

Rollover fees: When you leave a trade open overnight, the broker normally charges a rollover fee for the facility of holding your trade open for that period. This is because they assume the risk of the market changing adversely.

Withdrawal and Deposit Fees: Some platforms might charge fees for depositing or withdrawing funds. Pay attention to this. It's important to be aware of these and any associated limits or conditions.

Subscription or Inactivity Fees: Certain platforms have monthly charges or fees for inactive accounts. Ensure you're aware of these potential costs.

To keep track of trading fees, you can follow these steps:

• Research different brokers and trading platforms.

• Compare the fees and charges of each platform.

• Choose a platform that offers competitive fees and suits your trading needs.

Remember that trading fees can have a significant impact on your trading profits, so it's important to choose a platform that offers competitive fees and suits your trading needs.

Payments, Deposits, and Withdrawals in Spain

FOREX Trading Customer Service

Technical Aspects of the Broker’s Website

When it comes to sharing sensitive personal information online, such as a credit card, cyber security is paramount. You should, therefore, always be on the alert for SSL certification and two-factor authentication (especially when registering with a new site). For your own safety, make sure that you use a strong password to secure your account. 

Trading Platforms, Tools, and Features

When picking a trading platform, it's crucial to consider what works for both beginners and experienced traders. Here are some things to think about:

Technical Analysis Tools: Look for a platform that has solid technical indicators. They are useful for making smart trading decisions.

Customization and User-Friendliness: You should be able to tweak the platform to match your style. Within the MetaTrader product family, both MT4 and MT5 are known for their excellent customization features. Here’s a comparison between the two.

Platform Accessibility: Whether it's web-based or downloadable, a good platform should give you options.

Risk Management Tools: Trading is risky. A top-notch platform should allow you to set stop-losses and take-profits to manage those risks.

Performance and Reliability: As a newcomer, you should be looking for a platform that runs smoothly when called upon.

Learning and Help Resources: It's a boost if the platform is not only visually pleasing and customizable, but also comes with guides and support to help you when you're stuck.

To find the perfect platform, here's what you can do:

Figure Out Your Style and Needs: First, decide how you want to trade and what you need from a platform.

Research Different Platforms: Look at what's out there and compare what they offer.

Test with a Demo Account: Try the platforms by using a demo account. This gives you the chance to trade in a risk-free environment with virtual money.

Check Reliability and Reputation: Make sure the platform is known for being dependable and trusted in the trading world.

Remember, the platform you choose can make a significant difference in how successful your trading is, so take your time picking the right one.

Ask Other Traders on Our Network

Arincen has gone to great lengths to forge a receptive environment where traders of all backgrounds come to meet. After all, Arincen’s goal is to simplify the world of trading. Our Website provides an unrivaled slate of tools, like our market-leading signals, rolling news, and a thriving community where traders from all sides of the experience spectrum can learn from each other.

FOREX Trading Scams and How to Avoid Them

Will Your Money Be Protected if Your Broker Becomes Insolvent?

The Dos and Don’ts of FOREX Brokers

1. The FOREX brokerage firm cannot recommend a buy or sell;
2. The FOREX brokerage firm must not provide price or market expectations (rise/fall);  
3. The FOREX firm cannot control your financial dealings (deposit/withdrawal);
4. The FOREX brokerage firm should not “manage” your portfolio under any circumstance.
5. The FOREX brokerage firm cannot grant a client a bonus unless there are clear terms guiding it beforehand.
6. The brokerage firm must not use bank accounts not under its name; and
7. FOREX brokerage firms cannot have or offer the service of account managers.

Tradable Assets and Instruments

Which FOREX Broker Has the Best Platform?

Which FOREX Broker Charges the Lowest Fees?

After conducting thorough research, we can say with confidence that ICM’s ECN account offers the best low fees for any kind of trader.

Which FOREX Broker Offers the Most CFDs?

Which FOREX Broker Offers the Most Assets?

Which FOREX Broker is Best for Professionals?

Who is Arincen and What Do We Do?

Conclusion

Arincen’s Review Methodology

The team at Arincen collected more than 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways:

 Companies’ Websites.

1. Other Websites that have ranked FOREX companies.

2. A survey questionnaire (referred to here as Survey “1”) was sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets, etc.     

Afterwards, we validated the data by:

Registering with FOREX companies as a secret shopper and/or as Arincen.

1. Survey number “2,” in which we asked these companies’ customers for important feedback and experience.

The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including considering different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung, etc.

To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more about how we came up with the evaluation, please click here.