The economy and FX market of Italy: general information

Italy ranks 4th in the list of economically developed countries in the European Union and 8th in the world in 2021-2022. The Italian economy is a post-industrial mixed model that continues to increase its strength. Due to its traditionally strong economic position, Italy is a prominent member of the G8, the G7, the World Trade Organization, and the OECD. Also, one of the world’s exporters: Italy’s closest trading partners are other EU countries (59% of trade) and The United States, accounting for 6.8% of the total market share.

If we consider the sectoral structure of the Italian economy, then agriculture will occupy approximately 2%, industry 26%, and services 71%. Due to the large number of food products known all over the world and actively supplied to Europe, agriculture occupies a leading position in the Italian economy, consisting of small private farms. The production of the so-called Mediterranean-type food prevails: citrus fruits, olives, olive oil, and wine. 

70% of the mined mineral and energy resources are imported to Italy, sustaining the development of mechanical engineering, the production of agricultural machinery, and the automotive industry. In addition, the leading positions in the world markets are occupied by Italian manufacturers of ceramic tiles, furniture, and textile production. The tertiary sector is a service sector, taking up a large place in the country’s GDP. 

As already mentioned, the Italian economy is closely connected with other countries of the world, in particular with the EU members: their relations are mutually beneficial since the country’s industry uses imported fuel, semi-finished products, raw materials, and various goods that are constantly exported from Italy. 

The standard of living of Italians is quite high and stable. Residents have access to new and modern financial instruments, as well as online ways to earn money in a secure environment. Young people are increasingly trying their hand at Crypto, and those who are older have been successfully making deals in the traditional financial markets for a long time. The latter, in turn, has ceased to be a place for the elite and is now open to everyone. The Forex market has become the most popular for retail traders in recent years. 

Forex market and regulations in Italy

Technological development, a leading position in world exports and imports, free access to financial markets, and strict government regulation make Italy boost the attractiveness of the Forex market for local traders. In addition, the national currency Euro is easily convertible, encouraging trading in currency pairs. All this allowed the Forex market to develop in the country, and international brokers to offer their services to local residents: the demand for them is growing year by year as Forex opens up plenty of opportunities to earn money.

If we talk more about Forex brokers in Italy and their regulation, then most financial companies registered in Europe are subject to the EU Markets in Financial Instruments Directive or MiFID. Members of the European Union, under the supervision of the MiFID directive, are allowed to legalize the authorization received from the European Regulatory Authority in order to be able to work in the European Union as well as in the European Economic Area, opening for brokers’ entire territory of European countries. 

Along with MiFID, the European Securities Market Supervisory Authority, called ESMA, has been operating in Europe since 2011. ESMA audits and controls the work of the national regulators of the Eurozone. The Italian stock regulator is called CONSOB. It is responsible for governing financial markets, investment companies, Forex brokers, the securities market, and the Italian Stock Exchange. CONSOB doesn’t contradict the European ones and works in close cooperation.

In general, the Forex market in Italy is well-regulated, and there is a huge list of financial instruments provided by reliable brokers for sophisticated local traders to choose from. In addition, if you are just starting your journey, or you don’t have time to constantly monitor the market or wish to diversify your trading risks, brokerage companies provide you with a Copy Trading. This feature allows copying the moves of professional traders and learning about successful financial strategies. And for experienced traders, there is an option to earn additional monetary bonuses by providing access to their portfolio.

Popular trading instruments in Italy

Online earning methods such as Forex are increasingly attracting Italians, not only because of their great independence from superiors or subordinates, but also because of their variety of instruments in the case of trading. Compared to the past when Italian residents mainly traded in stocks, bonds, and investment funds, the situation has changed. Along with the usual securities and currency pairs, Italians have access to trading in commodities, CFDs, and Crypto. Let’s take a closer look at all the popular instruments in Italy.

Currency pairs trading in Italy

Since Italy entered the Eurozone, the pivot of the Forex currency market has been the EUR/USD exchange rate. The pair is considered an excellent trading asset not only for experienced traders but also for those who are just mastering the Forex market. In addition to EUR/USD, brokers also provide access to major, minor, and exotic currency pairs. The first are considered the most traded currency pairs on the market, so they are usually the most liquid and have the lowest spreads. The main ones are EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY, USD/CAD, USD/CHF. Minor pairs are formed from major pairs, but excluding the US dollar. In general, these pairs are also well-liquid. An example of such is EUR/GBP, EUR/AUD, EUR/NZD, EUR/JPY, EUR/CAD and others. Exotic pairs such as EUR/TRY and CAD/SGD sometimes show such a wide range of quotes per day that they can be used in short-term trading. The characteristics of both majors and minors with exotics are different. The choice of them depends only on the strategy of each trader.

Plus500 is a brokerage company providing CFDs trading in more than 60 currency pairs as well as commodities, stocks, indices, and Crypto (availability subject to regulations) with the help of tools like “stop-loss” and “stop-limit”. The first is used to prevent losses on the transaction and the second will instruct the broker to sell assets if their quotes fall to the level that the trader predetermined. 

Opening an account is pretty straightforward, it only takes a couple of minutes. Besides, you can practice trading strategies with a free and unlimited demo account and take it to the next level after. Deposit and withdraw funds from your account can be done in several ways such as bank and credit/debit card transfers through Visa and MasterCard, Paypal, Bank Transfers, BPay, Skrill, etc.

The trading terminal offered to clients was developed by the broker individually. It is available in several versions: a web terminal for PCs and laptops and a mobile app for Android and iOS.

Plus500 strictly follows the requirements of such regulatory bodies as CySEC, FCA, ASIC, Seychelles FSA, Dubai FSA, and more.

Stock trading in Italy

Borsa Italiana S.p.A. (ISE) is the main Italian Stock Exchange based in Milan, owned by Euronext since 2021. The exchange is distinguished by serious players, powerful segments of the economy and a capitalization exceeding 500 billion euros. The first lines of the rating are occupied by companies involved in such industries as energy, telephone communications and finance. 

The advantages of the stock trading for Italian traders over other assets on the exchange are that they are not limited in terms of profits, are quite liquid, reliable and accessible. The latter means that you can become the owner of a stock at any time after opening a brokerage account.

eToro is one of the most globally trusted brokers and a social network platform for traders, where they can trade not only stocks with 0% commission but also more than two thousand financial instruments such as currency pairs, commodities, contracts for difference, as well as Cryptos. 

Clients can make transactions on two account types: Retail and Professional Client. Each account has its own conditions: full access to all trading instruments and a CopyTrader tool with negative balance protection for the first one and unrestricted leverage for the second. Besides, the company has its own trading platform available in personal account options and as a mobile application for Android and iOS.

The broker’s activity is regulated by such bodies as FCA (UK), CySEC (Cyprus/Europe), and ASIC (Australia) which gives him the opportunity to work legally both in Europe and in the international arena and win the trust of millions of new customers.

Commodities trading in Italy

Italian traders are very active in using commodities as financial instruments for trading. This can be explained by the ability to use complex strategies and diversify risk while trading this type of asset. 

Besides, there is no need to physically trade real goods. Instead, Forex provides the opportunity to trade commodity contracts. Traders can access the futures market and use futures contracts without actually accepting a physical commodity. As for Italy, the country produces and exports oil and mineral fuels, iron and steel, precious stones and metals, gold, and coffee. All these commodities can be used for trading, one has only to open an account with a broker.

HF Markets is a broker based in Europe under the branch name HF Markets (Europe) Ltd, regulated by the CySEC and FCA. These regulatory bodies are members of the committee of the European Securities and Markets Authority (ESMA), which is important for legal work in Italy. 

The company provides trading in all known financial instruments out of more than a thousand in total. In addition, it is worth paying attention to Forex Gold trading with competitive low spreads and no hidden fees. Check our article and find more information about this trading instrument.

Traders can find an account that suits them best among Micro, Premium, Fixed, VIP, and Zero Spread to work on MT4 and MT5 platforms which are available on desktop, web, and mobile versions for Windows, iOS, MacOS, and Android. In addition, clients can protect their automated strategies and earn income even during periods of reduced trading intensity with the HF VPS service.

Indices trading in Italy

Index trading is gaining more and more popularity both worldwide and among Italian residents in particular. The biggest advantage of trading indexes is that, unlike trading certain stocks, you can profit from the net efficiency of stock collections with indies. This means that if one company fails, the price of the index can still rise, due to the work of other companies as this asset provides instant diversification compared to the stock market.

In Italy, the Italy 40 or FTSE MIB is the most important index for traders. Covering approximately 80% of domestic market capitalization, the Italy 40 (FTSE MIB) includes highly liquid Italian companies. Some of the most well-known constituents of the index are Ferrari, Fiat Chrysler Automobiles, Pirelli, Intesa Sanpaolo, Salvatore Ferragamo, and Moncler. Traders are attracted to MIB 40 because it is subject to significant volatility and daily fluctuations. It also serves as the underlying asset for a wide range of financial derivatives.

NAGA Markets – originally a German broker – offers a wide range of trading instruments: indices and currency pairs, as well as Cryptocurrencies, ETFs, CFDs, commodities, and real stocks without commission. Clients have access to a single multi-currency account for all markets with 5 base fiat currencies to choose from – USD, EUR, GBP, PLN, CHF and a Cryptocurrency account. If you don’t have enough experience, then you can practice on a demo with a virtual balance of $ 10,000.

Moreover, for both beginners and experienced traders, NAGA Autocopy is available with a special function that lets you automatically copy leading traders on the platform and learn from their experience.

For quick access to more than 950 trading instruments, the broker, in addition to MetaTrader 4 and MetaTrader 5, introduced the company’s own development – the NAGA web platform with mobile apps for continuous access.

The broker operates completely legally in Europe as NAGA complies with multiple authoritative regulations around the world. Some of them are the FCA, the CySEC, the MiFID II, and the MiFIR.

CFD trading in Italy

A contract for difference provides Italian traders and investors with the opportunity to profit from price movements without having to actually buy any underlying assets. This is a relatively simple instrument scored by prices of entry and exit from a trade, taking into account only the change in price and not taking into account the underlying value of the asset. This is achieved through a contract between the client and the CFD broker, where no stock, currency, commodity, or futures exchanges are used. CFD trading has several main advantages that have led to the growth of the instrument’s popularity over the past decade: higher leverage (don’t forget, leverage in trading comes with the risk of losing more than you invest), no special requirements for internal trading, and a variety of trading opportunities. Italian traders can choose CFDs on the aforementioned index, stocks, and others by opening an account with international reliable brokers.

Plus500 is a broker that offers not only a variety of CFDs but also a trader guide and e-book, where you can find comprehensive explanations about this financial instrument. Apart from CFDs, traders can diversify their portfolio of more than 2800 financial instruments using auxiliary tools such as stop-loss and stop-limit.

In addition to the main account, which is quite simple to open with a couple of clicks, beginners can practice their strategies on an unlimited demo account. The platform for work is available not only in the web version but also on Apple and Android devices.

Among other advantages of the broker, we can also highlight that the Bid/Ask spreads are among the tightest. Besides, clients can deposit and withdraw funds using any of the convenient methods such as bank and credit/debit card transfers through Visa and MasterCard, Paypal, Bank Transfers, BPay, Skrill, etc.

The company monitors the security of client’s transactions and strictly complies with local legislation. Plus500 received such licenses from CySEC, FCA, ASIC, etc. regulators, which allows the broker to work freely both in Italy and around the world.

Cryptocurrency trading in Italy

Italians, who before for the most part preferred traditional financial instruments, are now looking for alternatives in the form of digital currencies. According to research, Cryptocurrencies are especially popular in Northern Italy. For some time now, Lombardy, located in this region, has become the center of Cryptocurrencies. 149 companies located in Lombardy accept payments in Cryptos. Also in the country there are many Cryptocurrency ATMs, most of which are located in Milan, the capital of Lombardy. 

As for Crypto regulations, at the beginning of 2018, the Italian Ministry of Economy and Finance published a bill on the regulation of Cryptocurrencies, which called for a mandatory registration procedure for Crypto companies. According to the new document, digital coins are recognized as a medium of exchange for services and goods. However, as not issued by the central bank, they are not necessarily considered as a means of payment.

As for taxation, those for bitcoin and the like are not entirely clear as the tax authorities haven’t yet been able to tax these investments. However, holding and investing in Cryptos is treated as stock market transactions and is taxed at 26%. But only transactions above EUR 51.6 thousand are subject to tax, which must be declared in the RT panel of the tax return form (modello Redditi PF).

In general, Italy does not lag behind other countries in the use and implementation of Cryptocurrency, although the law doesn’t always keep pace with innovations. If you want to try trading this financial instrument, then international licensed brokers will be an excellent solution for Crypto deals with minimal commissions and favorable conditions.

AvaTrade is a broker that in addition to traditional financial instruments has the widest list of Cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ripple, Dash, Litecoin, etc. which can be traded on the main real account, and practiced on a demo with 100 thousand virtual dollars.

The company has both the usual MetaTrader 4/5 terminals and WebTrader, as well as a list of more interesting offers such as AvaOptions, AvaSocial – a CopyTrading platform, AvaTradeGo – mobile trading platform, Autotrading – platforms for automatic trade, including ZuluTrade and DupliTrade.

The broker is widely known all over the world and has the right to work legally both in Europe and in other jurisdictions as it obtained licenses of MiFID, ASIC, Japan FSA and FFA, FSB, IIROC and FSCA.

Trading Forex with VPS in Italy

For successful trading both on the Italian Forex market and on the international one, it is necessary to be constantly connected to brokerage servers, and not experience problems with either Internet connection, or other interrupting factors. This is actually what a VPS server is used for. Particularly it is a dedicated server running in a virtual environment: using your computer, via the Internet, you connect to the server, install programs, Forex advisors, hang indicators on the charts, and simply disconnect from the VPS, but all Expert Advisors and programs installed by you on the server continue their work. Whether your home PC is turned on or not.

In general, if you are going to seriously work with trading experts, you cannot do without a VPS for a number of reasons. Firstly, it is inconvenient to keep many running terminals on one PC, and secondly, any interruptions in the Internet connection will not bother you if your VPS is on, and, besides, you can run robotic programs for round-the-clock trading.

To start using VPS, there are two ways to do so: contact a company that provides servers or turn on a VPS provided by the broker. Luckily, there are reliable brokers that provide VPS completely for free or for a small fixed fee.

XM Group allows to remotely connect to a virtual private server (VPS) in London. With its help, traders can turn on advisors for uninterrupted and non-stop operation and save themselves from having to constantly monitor them. Clients can also not turn on their computers – advisors will continue to perform their functions.

As for the terminals themselves, the broker offers MT4 and MT5. Both are available for PC, Mac, iPhone, iPad, Android, and Android Tablet.

Italians can trade more than 1000 financial instruments on three types of accounts: Micro, Standard, XM Ultra Low, and Shares with negative balance protection, leverage available, and tight spreads.

The main regulator of the broker can be called the Cyprus Securities and Markets Commission, in addition, the company owns ASIC, IFSC, and DFSA licenses.

Top Forex brokers in Italy

Italian Forex market has many opportunities for earning if you’ve got a regulated reliable broker fitted for your needs. To choose right, you need to analyze all the factors in the complex: the broker’s reputation among traders, reliability, lifespan, rules, convenience of payment systems, trading platforms used, etc. A good intermediary will have a license of the highest category, convenient platforms, a minimum of commissions, and a wide range of financial instruments for their clients.

Considering all the criteria, we have prepared for you a list of brokers offering the best conditions and security for online trading in Italy:

Plus500 in Italy

Plus500 is one of the best FX and CFD brokers on the market. Users can enjoy trading CFDs for a wide range of financial instruments, including currency pairs, indices, commodities, Cryptocurrencies (availability subject to regulations), stocks, and ETFs.

The broker’s trading terminal is available on the web version for PCs and laptops, as well as a mobile app for Android and iOS. In addition, deposits and withdrawals can be made using bank transfers, credit and debit cards, and e-wallets.

The broker is well-regulated and licensed by CySEC, FCA, ASIC, and other authorities, which allows it to accept clients not only from Italy but from all over the world.

eToro in Italy

eToro is a well-known brokerage company with favorable trading conditions, namely, the presence of more than two thousand financial instruments, including CFDs, stocks, and 101 Cryptocurrencies, as well as the ability to use CopyTrader – Social trading tool, which allows you to automatically copy deals of other eToro users. You just need to subscribe to the trader and indicate the amount you want to invest in the portfolio.

The working terminal is quite easy to use and allows you to work both in the web version and on the mobile app for Android and iOS. Besides, two account types will give you to choose the suitable conditions.

The broker also boasts of its licenses. For example, it is regulated by the FCA (UK), ASIC (Australia), and CySEC (Cyprus/Europe), which has helped it earn the trust of millions of traders around the world.

HF Markets in Italy

HF Markets is a popular broker in Europe with several types of accounts for a variety of purposes namely Micro, Premium, Fixed, VIP, and Zero Spread. You can trade in more than a thousand trading instruments, of which Forex Gold Trading stands out with the most competitive spreads and no hidden commissions.

To make financial deals, there are the well-known terminals MT4 and MT5 which are available on desktop, web, and mobile versions for Windows, iOS, MacOS, and Android. Also, a huge advantage will be the presence of a VPS service and HFcopy trading platform. The latter will allow beginners to succeed following the professionals, and the experienced traders to get paid for it.

In terms of regulation, HF Markets is present in the EU and operates there in full compliance with CySEC, as well as in the UK under the direction of the FCA and in Dubai under a DFSA license.

NAGA Markets in Italy

NAGA Markets is a broker licensed by the FCA, CySEC, MiFID II, and MiFIR with over 950 trading instruments that you can trade on a single multi-currency account and practice your skills on a demo with a virtual balance of $10,000.

Terminals for work include MT4, MT5, NAGA Web App, and a mobile app for iOS and Android. For both beginners and professionals, the broker offers Copy Trading with which you can trade and invest, learn from them, copy the best traders, or become a trading pro yourself.

To top up trading accounts clients can use several ways: bank transfer, payment cards, through the electronic payment systems Giropay, Skrill, Neteller, Paysafe Card, and Klarna, as well as using Cryptocurrencies (Bitcoin, Ethereum, Dash, Litecoin, Bitcoin Cash and NAGA Coin).

IQ Option in Italy

IQ Option shows its customers the total list of more than 400 trading instruments that consists of Forex, stocks, Crypto, commodities, ETFs and CFDs. The broker’s minimum deposit is $10, and you can top up and withdraw your money through a variety of numerous payment methods that include bank and card transfers, UPI, RuPay, GlobePay, Skrill, Neteller, and others.

The company’s trading terminal is available on desktop for Windows/MacOC, as mobile version iOS/Android, and through the web. Also, it allows practicing through an impressive free Demo account with a virtual fund of $10,000

The broker complies with European legislation and has FCA, CySEC, and cooperating MiFID licenses, which allow traders to protect their funds.

AvaTrade in Italy

AvaTrade is a broker that unites more than 20 thousand private traders from 150 countries. To date, the broker’s regional centers exist in France, Australia, Japan, and Italy, and the main office is located in Dublin, Ireland. The broker complies strictly with the laws and has licenses of MiFID, ASIC, Japan FSA, and FFA, FSB, IIROC, and FSCA.

Traders can choose between 1250 instruments to buy and sell on various trading platforms including MT4, MT5, Proprietary, AvaSocial, AvaTradeGo, AvaOptions, and WebTrader. If you are an active trader who doesn’t want to be tied to a PC, then Avatrade mobile trading is for you.

XM Group in Italy

XM Group is an ASIC, CySEC, IFSC, and DFSA-regulated Forex broker that provides MT4 and MT5 terminals with a VPS server for non-stop trades and advisors.

The list of broker’s instruments contains all known assets such as currency pairs, commodities, stocks, CFDs, and many more over 1000 in total. Clients can enjoy multiple types of accounts with the advantage of negative balance protection, as well as tight spreads: Micro, Standard, XM Ultra Low, and Shares. For novice traders who lack practice, the broker provides a demo account that exactly repeats all the functions of real ones.

It may appear to be a lot, but the good news is that you are not limited to choosing just one broker. Most of the reputable Forex brokers we mentioned above provide demo accounts, so you can sign up with a few and see whether their platforms are right for you. It will enable you to test a variety of trading strategies and make the most of advanced features currently available on the market.

It could also be a useful part of your portfolio diversification strategy: You can trade on your own with one broker while funding Social trading with another, earning some passive money.