MiFID Regulated Forex Brokers

Markets in Financial Instrument Directive known as MiFID is a European Union regulatory legislation that governs the financial markets in the European Economic Area. Twenty-eight EU member countries, including Iceland, Norway, and Liechtenstein, follow the regulation.

MiFID Forex Trading Platform

MiFID operates in member states of the European Union (EU) and European Economic Area (EEA). It was introduced in 2004 by the European Commission and has been implemented by all EU member states since then.

  • MiFID platforms provided by the Brokers must comply with the regulatory requirements set out in MiFID, including rules on pre- and post-trade transparency, best execution, and the protection of client assets.
  • They are subject to regulatory oversight by national regulators in each EU member state, responsible for enforcing the rules and ensuring that financial firms comply with the regulatory requirements.
  • Overall, MiFID Brokers considered a safe choice being EU established firms, also MiFID imposes advantages and factors affecting both traders and companies with the main goal of the MiFID is to enhance and control investment services within the EU.

Read more about MiFID via Wikipedia.

🏦RegulatorThe Markets in Financial Instrument Directive
🛡️Is it Safe to Trade with MiFID Broker?Yes
📊Max. Leverage30:1
🔒Negative Balance ProtectionYes
💰Compensation SchemeYes

Forex Regulation by MiFID

MiFID was officially put into force in 2006. However, later the updated version of the original law was approved, known as MiFID II which serves as an accompanying regulation and covers larger groups of companies and products.

Check the European Commission Official website for more information on MiFID – www.finance.ec, and we recommend following the regulator on Twitter for latest releases –@EU_Commission.

Read some of our notes about Trading with MiFID Brokers and its framework below:

  • MiFID strives to establish transparency across EU financial markets therefore each Broker has to be fully regulated by local authorities like CySEC, BaFIN, CONSOB, AFM, etc. which are aligned with ESMA and MiFID set off rules rules
  • All European Brokers with local license establishments are allowed to accept traders from across the EU
  • MiFID II is an updated version of MiFID, which was introduced in 2018. It strengthens and extends the regulatory requirements of MiFID and includes additional rules aimed at promoting transparency, investor protection, and competition in the EU financial markets.
  • EU Broker provides enhanced protection for investors’ assets along with Compensation Funds and Negative Balance Protection for all accounts
  • MiFID is famous for promoting competition in financial markets. The directive allows investment firms to operate throughout the EU, and it requires trading venues to provide non-discriminatory access to market participants. This promotes competition and helps to reduce trading costs for investors.
  • For the restriction, only mostly European Brokers can accept clients from the EEA zone and Europe, offshore and unregulated brokers are not advised due to high risks
  • Leverage levels have been decreased to 1:30 for retail traders, and 1:500 for professionals
  • The UK previously implemented MiFID I in 2007 and later transposed MiFID II into its domestic law in 2017, as a member state of the European Union (EU). However, following the UK’s withdrawal from the EU on January 30, 2020, the MiFID II regulation no longer applies to UK Traders.

Top 5 Best Forex Brokers MiFID

Below, we have compiled a list of brokers that offer excellent trading conditions and operate under MiFID regulation, accepting clients from across Europe.

Our rankings are based on a thorough evaluation of various factors, including trading fees, platform features, customer service quality, and regulatory compliance. We recommend considering these brokers for a rewarding and secure trading experience:

  • HFM – Best Overall MiFID Broker 2024
  • BlackBull Markets – Best Lowest Spread MiFID Broker 2024
  • FP Markets – Best MT4 MiFID Broker in Cyprus 2024
  • Eightcap  – Best MiFID Broker for Beginners Broker 2024

What is MIFID II?

In 2008, the market faced a specific shift, which prompted the protection of the investors, thats why MIFID regulation and the original law were updated to harmoniz all FInancial firms within EU. Thus, MiFID II is an accompanying regulation fully implemented in 2018, which is the enhanced and improved variant of the initial MiFID law, 

What are MIFID Firms?

MiFID laws and regulations apply to investment firms, wealth managers, broker-dealers, and credit institutions, and also spread to trading venues, market operators, investment intermediaries, alternative investment fund managers, etc. Besides, MIFID laws imply third-country firms providing investment services in the European Economic Area.

What is the difference between MiFID and MiFID II?

MiFID was introduced in 2007 to establish rules governing the operation of investment firms and improve client protection. MiFID II, introduced in 2018, expanded on MiFID by introducing new measures aimed at enhancing market transparency, improving investor protection, and promoting market efficiency.

List of Forex Brokers with MiFID License

These are the regulated brokers that hold MiFID licenses, while in fact, all European Brokers are MiFID regulated since is a rule for EU FInancial Regulation:

Broker Detail
Octa
Min. Deposit: $25
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, Octatrader
Regulation: CySEC, SVGFSA, FSCA
Octa Review
SquaredFinancial Review Logo SquaredDirect | SquaredFinancial
Min. Deposit: $250
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, Mobile App
Regulation: CySEC, FSA
SquaredDirect | SquaredFinancial Review
Saxo Bank
Min. Deposit: $5,000
Max. Leverage: 1:30
Trading Platforms: SaxoTraderGo, SaxoTraderPRO
Regulation: DFSA, FCA, ASIC, CBUAE, JFSA, MAS, SFC
Saxo Bank Review
XM
Min. Deposit: US$5
Max. Leverage: 1:30 to 1:1000
Trading Platforms: MT4, MT5, XM WebTrader
Regulation: CySEC, ASIC, FSC, DFSA
XM Review
Instaforex Review InstaForex
Min. Deposit: 0 $
Max. Leverage: 1:30 | 1:1000
Trading Platforms: MT4, MT5, WebTrader, MobileTrader
Regulation: CySEC, FSC BVI, FSC
InstaForex Review
Exness Review Exness
Min. Deposit: 10 US$
Max. Leverage: 1:30 | 1:1000
Trading Platforms: MT4, MT5
Regulation: FCA, CMA, CySEC, SFSA, CBCS, FSC BVI, FSC Muritius, FSCA
Exness Review
Fxview Review Logo Fxview
Min. Deposit: $50
Max. Leverage: 1:30 | 1:500
Trading Platforms: MT4, MT5, ActTrader, ZuluTrade
Regulation: CySEC, FSCA, FSC, SEBI
Fxview Review
GKInvest Review Logo Trive Invest | GKInvest
Min. Deposit: $50
Max. Leverage: 1:30 | 1:400
Trading Platforms: MT5
Regulation: BAPPEBTI, FCA, ASIC, MFSA, FSCA, FSC
Trive Invest | GKInvest Review
avatrade review AvaTrade
Min. Deposit: $100
Max. Leverage: 1:30 | 1:400
Trading Platforms: MT4, MT5, WebTrader, AvatradeGO, AvaOptions, DupliTrade, ZuluTrade, AvaSocial, Capitalise.ai
Regulation: Bank of Ireland, ASIC, JFSA, FSCA, CySEC, BVI FSC, FRSA, ISA
AvaTrade Review
Conotoxia Review Logo Conotoxia
Min. Deposit: $100
Max. Leverage: 1:30
Trading Platforms: MT5, cTrader
Regulation: CySEC
Conotoxia Review