| Updated: September 3, 2024Bulgaria has become an attractive destination for forex brokers in recent years, largely due to the low costs of acquiring and maintaining a broking license. An increasing number of brokers are turning their gaze to the Balkan country as it has some of the lowest corporate tax rates in all of Europe. Setting up a company here is relatively cheap, not to mention professionals earn some of the lowest average salaries in the EU.
The country has been witnessing an influx of forex brokers as of late, making it progressively harder for Bulgarians to identify the best companies operating on the local market. Best Brokers makes this process easier with an unbiased list of the top broking firms catering to Bulgarian forex traders. We tested dozens of forex brokers with live accounts to single out the companies with the highest trust scores, tightest spreads, and the fastest order execution.
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
BlackBull Markets
IC Markets70.64% of retail investor accounts lose money
easyMarkets71% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Trade Nation86% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
Libertex74.91% of retail investor accounts lose money
IG70% of retail client accounts lose moneyBulgarian Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. FP Markets | 7,092 | 4.8 ⭐ |
| 3. IC Markets | 39,709 | 4.6 ⭐ |
| 4. BlackBull Markets | 808 | 4.6 ⭐ |
| 5. easyMarkets | 1,667 | 4.5 ⭐ |
| 6. Trade Nation | 961 | 4.4 ⭐ |
| 7. Global Prime | 161 | 4.4 ⭐ |
| 8. eToro | 25,095 | 4.2 ⭐ |
| 9. Libertex | 9,456 | 4.0 ⭐ |
| 10. IG | 7,200 | 3.7 ⭐ |
Bulgarian Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. FP Markets | 1.1 | 0.30 | 0.20 | 1.2 |
| 2. BlackBull Markets | 0.1 | 0.2 | 0.7 | 0.4 |
| 3. Libertex | 0.1 | 0.3 | 0.3 | 0.4 |
| 4. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 5. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 6. IG | 0.85 | 0.9 | 0.9 | 1.40 |
| 7. Trade Nation | 0.6 | 1.9 | 1.8 | 1.9 |
| 8. easyMarkets | 0.7 | 1.0 | 1.0 | 0.9 |
| 9. IC Markets | 0.8 | 0.8 |
| 0.8 |
| 10. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
Bulgarian Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. easyMarkets | $0 |
| 2. eToro | $0 |
| 3. IG | $0 |
| 4. Trade Nation | $0 |
| 5. Libertex | $0 |
| 6. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 7. FP Markets | $0 Standard Account; $6 round turn on Pro Account |
| 8. BlackBull Markets | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| 9. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 10. IC Markets | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
Top 10 FX Brokers in Bulgaria
Fusion Markets Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade Trustpilot Rating 4.9 out of 1,862 reviews Number of Forex Pairs to Trade 90+ Leverage Forex & Metals: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencies: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.07
USDJPY: 0.13
EURGBP: 0.23
GBPUSD: 1.01Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
Global Prime Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.4 out of 161 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencies: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
FP Markets Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators ASIC, CySEC, FSA (Seychelles), FSCA Min Deposit $50 (AU$100) Trading Platforms MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView Trustpilot Rating 4.8 out of 7,092 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 1.1
USDJPY: 0.30
EURGBP: 0.20
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Standard Account; $6 round turn on Pro Account Deposit Methods Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal Key Pros
- Offers plenty of educational trading tools
- Broker with competitive spreads
- Allows easy trading on the go
- Regulated by reputable authorities
- Offers a decent number of currency pairs
Key Cons
- Supported trading platforms are a tad outdated
- Could expand selection of products
- No negative balance and investor protection for clients under ASIC
easyMarkets Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135). Min Deposit $100 Trading Platforms easyMarkets, MetaTrader 4, MetaTrader 5, TradingView Trustpilot Rating 4.5 out of 1,667 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.7
USDJPY: 1.0
EURGBP: 1.0
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Withdrawal Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Key Pros
- Offers tight spreads and low fees
- Supports trading of over 60 currency pairs
- Regulated by several reputable authorities
- Supports a wide range of payment methods
- Offers a proprietary platform
Key Cons
- Number of supported products is somewhat limited
- Does not offer copy trading platform
- Traders from certain countries may have access to fewer payment methods
eToro Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN Min Deposit $50 or $100 based on country ($10 for the UK) Trading Platforms eToro Investing, eToro App, TradingView, eToro CopyTrader Trustpilot Rating 4.2 out of 25,095 reviews Number of Forex Pairs to Trade 55 Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: Up to 1:2 (European and Australian Retail traders) Up to 1:5 (Pro and FSA traders)Spread EURUSD: 1.0
USDJPY: 1.0
EURGBP: 1.5
GBPUSD: 2.0Forex Commission per Lot per Trade $0 Deposit Methods eToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDeal, Klarna, Bank Transfer, Trustly, Przelewy24 Withdrawal Methods PayPal, Skrill, Visa, Mastercard, Neteller, Trustly, Bank Transfer Key Pros
- Offers trading with over 5,000 instruments
- Ideal for social and copy trading
- No commissions on forex trades
- Effortless registration process
- Offers negative balance protection
Key Cons
- Withdrawals are subject to additional processing fees ($5)
- USD is the only base account currency
- Charges inactivity fees on dormant accounts
IG Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda) Min Deposit $50 Trading Platforms MT4, L2 Dealer, ProRealTime, IG proprietary software Trustpilot Rating 3.7 out of 7,200 reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.85
USDJPY: 0.9
EURGBP: 0.9
GBPUSD: 1.40Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal Withdrawal Methods Visa, Visa Electron, Mastercard, Discover, Bank Transfer Key Pros
- Towering selection of over 17,000 tradable markets
- Listed on the FTSE 250 index
- Competitive pricing and low forex spreads
- No fees on deposits or withdrawals
- Demo accounts for risk-free forex trading practice
Key Cons
- Payment options are a bit limited
- Customer support is slow to respond during busy hours
BlackBull Markets Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators SFSA (No. SD045), FMA (No. FSP403326), FSA Min Deposit $0 (Standard)$2,000 (Prime)$20,000 (Institutional) Trading Platforms MT4, MT5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade Trustpilot Rating 4.6 out of 808 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 1:500
Index CFDs: 1:500
Cryptocurrencies: 1:500Spread EURUSD: 0.1
USDJPY: 0.2
EURGBP: 0.7
GBPUSD: 0.4Forex Commission per Lot per Trade $0 Standard; $6 per lot Prime; $4 per lot Institutional Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Key Pros
- Uses proprietary copy-trading platform
- Swap-free trading via ECN Standard and Prime accounts
- Multi-platform support
- Provides a 24/7 customer support service
- Great Education Hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 fee on withdrawals
IC Markets Broker Details Supports Bulgarian Yes Bulgarian Currency (BGN) No Regulators FSA (Seychelles), CySEC, ASIC Min Deposit $200 Trading Platforms MetaTrader4, MetaTrader5, cTrader, ZuluTrade Trustpilot Rating 4.6 out of 39,709 reviews Number of Forex Pairs to Trade 61 Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 0.8
USDJPY: 0.8
EURGBP:- 0.00 (Raw)
- 1.00 (Standard)
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT Deposit Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, FasaPay, Poli, RapidPay, Klarna Key Pros
- Offers a large number of forex pairs to trade
- Great for forex traders due to low spreads
- Supports all industry-standard trading platforms
- Supports a wide range of payment solutions
- Low forex trading commission
Key Cons
- Non-EU customers have no investor protection
- Not listed on stock exchange
- List of products can be further expanded
Trade Nation Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators FCA (ref.no 525164), SCB (SIA-F216., ASIC (AFSL No. 422661), FSA (license no. SD150), FSCA Min Deposit $0 Trading Platforms TN Trader, MetaTrader 4 Trustpilot Rating 4.4 out of 961 reviews Number of Forex Pairs to Trade 30+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.6
USDJPY: 1.9
EURGBP: 1.8
GBPUSD: 1.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bitcoin, Skrill, Bank Transfer, GrabPay Withdrawal Methods Visa, Mastercard, Bitcoin, Skrill, Bank Transfer, GrabPay Key Pros
- Regulated by multiple trustworthy authorities
- Suitable for trading beginners
- Offers proprietary trading platform
- Easy trading on mobile app
- Supports various payment solutions
Key Cons
- Number of forex pairs is underwhelming
- Some payment methods are available only in specific markets
- Chat service available only 24/5
Libertex Broker Details Supports Bulgarian No Bulgarian Currency (BGN) No Regulators CySEC (CIF Licence number 164/12), BaFin (BaFin ID: 10161686 / Bak No.: 161686) Min Deposit $10 Trading Platforms Libretex Trading Platform, MT4, MT5 Trustpilot Rating 4.0 out of 9,456 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.1
USDJPY: 0.3
EURGBP: 0.3
GBPUSD: 0.4Forex Commission per Lot per Trade $0 Deposit Methods PayPal, Visa, Mastercard, Sofort, iDeal, Trustly, Skrill, Giropay, Sepa International Bank Wire, Multibanco, P24, BLIK, eService, Neteller Withdrawal Methods SEPA International Bank Wire, PayPal, Visa Mastercard, Skrill, Neteller Key Pros
- Great variety in terms of markets
- Users have a range of deposit and cashout solutions to pick from
- Available in English, Spanish, French, Portuguese, and other languages
- Negative balance protection
- Traders can contact the customer support staff via live chat
Key Cons
- No longer available for UK traders
- Does not accept traders from the US
- Somewhat lacking in terms of educational resources
Is Forex Trading Legal in Bulgaria
Bulgarians can legally trade spot forex and currency derivatives like futures, options, and contracts for difference (CFDs) on condition they do so with brokers authorized by the Bulgarian Financial Supervision Commission (BFSC). Broking firms are considered investment intermediaries in Bulgaria and can apply for one of two types of licenses.
Standard broker licenses come with minimum capital requirements of €125,000 (BGN 250,000). Such permits enable approved companies to execute orders on customers’ behalf, provide investment advice, and manage their portfolios. Applicants must deposit 25% of this amount in a Bulgarian bank before submitting their application forms. The remaining 75% is payable within two weeks after gaining approval.
Companies applying for market maker licenses must meet a minimum capital threshold of €750,000 (approximately BGN 1.5 million). This type of permit enables approved broking firms to trade on their own account. License issuance fees are considerably lower than those in other EU member states, averaging €2,200 for standard broker permits. The companies must participate in investor compensation schemes, a standard requirement for all EU-regulated brokers.
Each broking firm should have two or more directors with permanent domicile in the EU. Said directors must provide high-education certificates or employment records to prove they are knowledgeable enough about the financial industry. The entire process takes between four and seven months from the date of sending the necessary documents to the BFSC. Approved forex firms undergo regular audits and file financial reports with the Bulgarian watchdog. They must set up registered offices and have a physical presence in the Balkan country.
Forex Trading Regulators in Bulgaria
The Bulgarian Financial Supervision Commission (BFSC) oversees all nonbank financial companies operating on the local market, including forex brokerages, insurance firms, pension schemes, and electronic payment gateways. The regulatory body came to be in 2003 under the provisions of the Financial Supervision Commission Act. It functions independently from the executive branch of the government and reports directly to the National Assembly.
Ensuring the stability and transparency of the local financial markets is the primary objective of the BFSC. To this end, the watchdog drafts regulations and issues guidelines for all market participants. It conducts on-site and off-site inspections to ensure licensees uphold high regulatory compliance.
Protecting the interests of consumers is another responsibility of Bulgaria’s financial regulator. Non-compliant licensees suffer sanctions in the form of fines, permit suspensions, or complete revocation in cases of severe transgression. We should point out that the BFSC operates under the umbrella of the Markets of Financial Instruments Directive II (MiFID), introduced by the European Securities and Markets Authority (ESMA) in 2014.
The directive aims to synchronize financial regulations across the European Union and the European Economic Area (EEA). Bulgaria acceded to the EU at the turn of 2007. BFSC-authorized brokers comply with the MiFID regulatory framework and enjoy passport rights, allowing them to conduct business in other member states. Conversely, broking firms regulated by other EU watchdogs like Cyprus’ CySEC can legally serve Bulgarian traders without necessarily applying for licenses from the BFSC.
How to Identify Forex Brokers Authorized in Bulgaria
When choosing a broker, forex traders from Bulgaria should, first and foremost, look for the seal of approval of the BFSC or another notable financial regulator based in the EU. Trading with a locally regulated firm is always preferable, as BFSC brokers adhere to strict fairness, transparency, and investor protection guidelines.
Locally approved companies post information about their permits in the footer section of their websites, including their license numbers. Another option is to check the website of the BFSC or contact the information center on the toll-free number 0800-40-444. The BFSC maintains an up-to-date warning list of companies providing trading and investment services to Bulgarians without authorization. We highly recommend you check this out if you think a broker you are interested in lacks a proper operating license.
Security at Bulgarian Forex Brokers
BFSC-authorized brokers actively work to prevent undesirable outcomes for retail traders from Bulgaria. All retail clients undergo obligatory tests for financial literacy to ensure they possess sufficient knowledge and experience in trading with complex derivative instruments like currency CFDs, futures, and options. Retail traders are denied access to leverage in the event of failing this test.
Authorized brokers operating in line with MiFID must impose leverage caps on derivative positions to mitigate risk and limit the potential losses of retail clients. Customers trading on margin have access to negative balance protection to prevent them from running up debt. Brokers must liquidate all rapidly declining leveraged trades when a retail account’s balance falls below the minimum margin required to keep the CFD positions open.
MiFID-compliant forex brokers automatically start closing out positions when the equity in retail accounts drops to 50% or less. Standardized disclosures are prominently featured on their websites, warning unversed traders about the risks of trading with CFDs and other leveraged products. Each broker must publish information about the percentage of its retail customers losing their balance when margin trading. Regulated broking companies update these loss percentages on a regular basis.
It is not unheard of for a forex firm to find itself in financial trouble. The good news is you have nothing to worry about when trading with reliable, adequately regulated brokers. The BFSC requires all authorized brokerages to join an investor compensation scheme to protect clients in the unlikely event of insolvency.
Retail traders from the Balkan country are eligible for a maximum compensation of BGN 40,000 (around €20,000) per client, corresponding to 90% asset protection. Brokers can access client funds only to conduct trades on their behalf. They keep customers’ money in segregated accounts at approved Bulgarian or European banks.
Negative Balance Protection at Bulgarian Forex Brokers
Let’s elaborate on what negative balance protection is and how it works. This safety mechanism applies to each account and provides guaranteed limits on the losses retail customers can incur. It goes hand in hand with obligatory margin calls, resulting in automatic closeouts of losing CFD positions when a trader’s account no longer meets the minimum capital requirements to keep them open.
Margin closeouts enable you to manage your risk and prevent additional losses. Access to negative balance protection is a statutory right of all retail clients trading with brokers regulated in the EU. If your balance goes negative, your broker will restore it to zero at no extra cost without requiring you to deposit additional funds to your account.
Taxes on Forex Trading Profits in Bulgaria
The Balkan country is a desirable destination for new forex brokers as businesses are subject to lower corporate taxes than those levied in other EU member states. Brokers regulated in the country pay a 10% corporate tax, one of the lowest rates in Europe. To provide context, Cyprus levies a 12.5% corporate tax on forex broking firms regulated by CySEC.
Bulgarian residents are levied personal income taxes at a fixed 10% rate. Profits resulting from transacting with most financial instruments go untaxed. However, earnings from trading currencies on the forex market incur 10% taxes. As usual, we urge you to contact a professional tax consultant if you are unsure how to file your annual tax returns.
Comparing Maximum Leverage at Bulgarian and Offshore Forex Brokers
Using leverage involves borrowing capital from your forex broker to artificially boost the size of your CFD positions and increase your market exposure. It can be great for seasoned traders since it can magnify their gains when exiting CFDs on profit. Unfortunately, leverage is often the arch-enemy of inexperienced retail traders just making their first steps in derivative trading.
When implemented without due caution, unreasonably high leverage can considerably inflate one’s losses or cause them to part with their entire balance. MiFID-compliant brokers operating in Bulgaria partially offset the risk of racking up enormous losses by limiting the maximum leverage available to retail customers. Leverage is capped at 1:30 for major forex pairs and 1:20 for crosses and exotic pairs. The maximum leverage ratios for other financial instruments decrease proportionately to their volatility, dropping to a meager 1:2 rate for cryptocurrency derivatives.
Many brokers licensed outside Bulgaria and the EU have considerably higher leverage caps since they operate from jurisdictions like the Cayman Islands, whose regulatory frameworks are far more lenient. Their clients can access leverage of up to 1:500, sometimes even more. We recommend Bulgarian forex traders stick to BFSC and EU-regulated broking firms due to their superior investor protection policies.
Professional Trader Requirements in Bulgaria
Depending on their classification, Bulgarian traders can gain access to leverage rates as high as 1:400 or 1:500. They must upgrade to professional accounts for this purpose and meet several requirements that largely overlap across EU-regulated brokers. One of the conditions is to have conducted ten or more large-scale transactions in over-the-counter derivatives per quarter over the last year. We are talking about five-figure amounts here, usually €50,000 per transaction or the equivalent in Bulgarian levs.
Another common requirement in the EU stipulates that applicants must have investment portfolios exceeding €500,000. Before you start flinching, we should warn you there is no need to actually deposit this amount in your trading account. You must simply provide your broker with bank statements or certificates from other broking firms you invest with to prove your portfolio is large enough.
The last requirement is having sufficient work experience in the financial services industry. Applicants must have occupied professional positions in this field for one or more years. By switching from retail to professional status, you relinquish your rights to negative balance protection.
Forex Trading Platforms at Bulgarian Brokers
The software your broker runs on is crucial whether you are a seasoned trader or new to the forex markets. It can directly impact your trading results and performance. All trusted forex brokers catering to the Bulgarian market utilize reliable trading platforms that facilitate seamless order execution at the most accurate prices possible. Their platforms, either proprietary or third-party, are packed full with charting and analytical tools designed to improve customers’ overall performance.
Novice traders looking for a beginner-friendly platform should consider choosing brokers working with MetaTrader 4. MT4 combines user-friendliness and straightforward navigation with a healthy range of charting tools and expert advisors for algorithmic trading. Its successor MetaTrader 5 is a viable option for well-versed traders looking to perform more advanced technical analysis.
DupliTrade is another great alternative for Bulgarians who wish to engage in algorithmic trading, although it is less broadly supported than MT4 and MT5. The platform is equipped with a free simulator, allowing users to backtest their past forex trading strategies. DupliTrade users can additionally outsource trading techniques from experienced strategy providers, as the platform is also suitable for copy trading. Another piece of third-party software you can do this with is cTrader, which also has more limited support at Bulgarian-friendly forex brokers.
We recommend Bulgarian traders do their own research by visiting the pages linked below where they can find more detailed information on local regulations, licensing requirements, and entities overseen by the Bulgarian Financial Supervision Commission (BFSC).
- BFSC provides extensive information about local financial laws, investment regulations, and recently issued ordinances. Follow this link to learn more about financial regulations in the Balkan country.
- The official registry of the BFSC contains the names and contact information of all investment firms supervised by the local financial watchdog.
- Steer clear of financial fraud by reading the warnings published by the Bulgarian regulator. You can also consult the list of unauthorized companies upon suspicion a broker targets Bulgarian traders without due authorization.
- Check out the CySEC registry of brokers licensed to provide cross-border services in Bulgaria and other EU member states.
- File complaints with the BFSC by filling out the complaint form, sending an email at delovodstvo@fsc.bg, or sending a snail mail to the address provided by the regulator.