| Updated: November 22, 2024As one of the most prosperous countries in Europe, Austria has plenty to offer to traders looking to tap into the highly liquid forex markets. Retail forex trading has been witnessing steady growth in the country, with more and more residents engaging in such activities. While Austrians face no shortage of broking firms to trade with, finding a reliable forex broker is often laborious and time-consuming.
To simplify this process, we compiled a list of what we consider the best forex brokers that cater to retail traders from Austria. Our research team invested much time and effort into identifying the most trusted broker firms operating in the country.
We thoroughly tested all brokers recommended below with live trading accounts to ensure they offer the best possible trading conditions. Our team assessed the brokers across multiple parameters, including regulatory compliance, software, range of tradable currency pairs, bid-ask spreads, and overall financing costs.
Fusion Markets74-89% of retail CFD accounts lose money
AxiThe vast majority of retail client accounts lose money
Global Prime74-89% of retail CFD accounts lose money
BlackBull Markets
AvaTrade76% of retail investor accounts lose money
Markets.com74.2% of retail investor accounts lose money
Swissquote61% of retail investor accounts lose money
Tickmill70% of retail investor accounts lose money
IG70% of retail client accounts lose money
XTB80% of retail investor accounts lose moneyAustrian Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. Axi | 2,371 | 4.8 ⭐ |
| 3. Global Prime | 161 | 4.5 ⭐ |
| 4. BlackBull Markets | 808 | 4.5 ⭐ |
| 5. Markets.com | 1,198 | 4.4 ⭐ |
| 6. AvaTrade | 8,855 | 4.4 ⭐ |
| 7. Swissquote | 2,877 | 3.8 ⭐ |
| 8. IG | 7,200 | 3.7 ⭐ |
| 9. XTB | 1,311 | 3.7 ⭐ |
| 10. Tickmill | 835 | 3.7 ⭐ |
Austrian Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Tickmill | 0.1 | 0.1 | 0.4 | 0.3 |
| 2. BlackBull Markets | 0.1 | 0.2 | 0.7 | 0.4 |
| 3. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 4. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 5. Markets.com | 0.6 | 0.7 | 0.9 | 0.9 |
| 6. IG | 0.85 | 0.9 | 0.9 | 1.40 |
| 7. AvaTrade | 0.9 | 1.3 | 1.2 | 1.3 |
| 8. XTB | 0.9 | 14 | 1.3 | 2.2 |
| 9. Axi | 1.2 | 1.4 | 1.1 | 1.2 |
| 10. Swissquote | 1.0 | 0.6 | 1.2 | 1.0 |
Austrian Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. AvaTrade | $0 |
| 2. IG | $0 |
| 3. Markets.com | $0 |
| 4. XTB | $0 |
| 5. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 6. Tickmill | $0 on Classic Account; $3 per side on Raw Account |
| 7. BlackBull Markets | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| 8. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 9. Axi | $0 on Standard Account; $7 round trip on Pro Account |
| 10. Swissquote |
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Important Note: Forex brokers must acquire licenses from Austria’s Financial Markets Authority (FMA) to legally conduct trades on behalf of Austrian residents. Brokerage firms authorized by the local financial watchdog operate in full compliance with Austrian and European financial laws. They are subject to stringent regulations and maintain some of the highest levels of investor protection in the world.
Top 10 FX Brokers in Austria
Fusion Markets Broker Details Supports German No Austrian Currency (EUR) Yes Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.9 out of 1,862 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 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, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay 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 German No Austrian Currency (EUR) Yes Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.5 out of 161 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: 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
AvaTrade Broker Details Supports German Yes Austrian Currency (EUR) Yes Regulators FFAJ (License No.1574),CySEC (No. 347/17) ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC (No.406684), JFSA (No. 1662) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial, AvaOptions, DupliTrade Trustpilot Rating 4.4 out of 8,855 reviews Number of CFD Forex Pairs to Trade 53 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 for EU residents 1:25 for non-EU residentsSpread EURUSD: 0.9
USDJPY: 1.3
EURGBP: 1.2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Withdrawal Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Key Pros
- Regulated by 9 jurisdictions in 6 continents
- Offers various trading platforms suitable for beginners and expert traders
- Enables smooth mobile forex trading via dedicated app
- Offers 55 forex options and numerous CFDs
- Easy copy trading via the AvaSocial platform
Key Cons
- Retail account pricing trails behind top brokers’ offerings
- Desktop platform may seem a tad outdated
- Many payment solutions are country-specific
Tickmill Broker Details Supports German Yes Austrian Currency (EUR) Yes Regulators CySEC (No. 278/15), FCA (733772), CONSOB (No.4310), BaFin (No.146511), ACPR (No.75473), CNVM (No.4082), FSA Seychelles (SD 008), FSCA (FSP 49464), DFSA (F007663) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, ZuluTrade Trustpilot Rating 3.7 out of 835 reviews Number of CFD Forex Pairs to Trade 62 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.1
USDJPY: 0.1
EURGBP: 0.4
GBPUSD: 0.3Forex Commission per Lot per Trade $0 on Classic Account; $3 per side on Raw Account Deposit Methods Bank Transfer, Skrill, Mastercard, Visa, PayPal, Przelewy24, Neteller, Trustly Withdrawal Methods Mastercard, Visa, Skrill, Neteller, Przelewy24, PayPal, Bank Transfer Key Pros
- Offers swap-free accounts for Islamic customers
- No commissions on FX trades via Classic accounts
- Global presence in over 180 countries
- FX spreads from zero pips on Raw accounts
- Swift order execution with no requotes
Key Cons
- Could use more base account currencies
- Bank-transfer deposits below $5,000 incur extra fees
IG Broker Details Supports German Yes Austrian Currency (EUR) Yes 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, TradingView Trustpilot Rating 3.7 out of 7,200 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 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, Apple Pay, BPAY 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 German No Austrian Currency (EUR) Yes 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, BlackBull Invest, ZuluTrade Trustpilot Rating 4.5 out of 808 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:500
Index CFDs: 1:500
Cryptocurrencie CFDs: 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
Axi Broker Details Supports German No Austrian Currency (EUR) Yes Regulators ASIC, FCA, CySEC, DFSA, FSA (Saint Vincent and the Grenadines) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 WebTrader, Axi Mobile Trustpilot Rating 4.8 out of 2,371 reviews Number of CFD Forex Pairs to Trade 80 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.2
USDJPY: 1.4
EURGBP: 1.1
GBPUSD: 1.2Forex Commission per Lot per Trade $0 on Standard Account; $7 round trip on Pro Account Deposit Methods Visa, Mastercard, Bank Transfer, Neteller, Skrill, AstroPay, Fasapay, Przelewy24, Boleto, Pix, Bitcoin, Ethereum, Ripple, Litecoin, Tether, Stellar, POLi, iDEAL, Sofort, Giropay Withdrawal Methods Mastercard, Visa, Bank Transfer, Przelewy24, Fasapay, Skrill, AstroPay, Pix, Boleto, Neteller, Bitcoin, Ripple, Ethereum, Litecoin, Tether, Stellar Key Pros
- Provides multilingual customer support
- Standard and Pro accounts available in 10 base currencies
- No minimum deposit requirements on Pro and Standard accounts
- Over 70 FX pairs tradable from zero pips
- Swift order execution and tight spreads
Key Cons
- A limited choice of trading platforms
- Below-average number of tradable symbols
Swissquote Broker Details Supports German Yes Austrian Currency (EUR) Yes Regulators FCA, MFSA, FINMA, DFSA, MAS, CySEC, FSC, FSCA Min Deposit $1,000 Trading Platforms CFXD, MetaTrader 4, MetaTrader5 Trustpilot Rating 3.8 out of 2,877 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.0
USDJPY: 0.6
EURGBP: 1.2
GBPUSD: 1.0Forex Commission per Lot per Trade - $/€0 on Premium and Prime Accounts;
- $/€2.5 per side per lot for Elite Accounts
Deposit Methods Visa, Mastercard, Bank Transfer, Online Banking Withdrawal Methods Visa, Mastercard, Bank Transfer, Online Banking Key Pros
- Publicly traded reputable brand
- Broker with extensive experience in trading
- Offers competitively low spreads
- Supports various trading platforms
- Forex traders can choose from over 80 currency pairs
Key Cons
- Traders must pay an inactivity fee
- Desktop trading platform looks a bit outdated
- Trading fees tend to be higher
Markets.com Broker Details Supports German Yes Austrian Currency (EUR) Yes Regulators ASIC (license no. 424008), FCA (license no. 481853), CySEC (license no. 092/08), FSCA (license no. 46860), FSC (license no. SIBA/L/14/1067), FSA (license no. 27030 BC 2023) Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, WebTrader, Mobile App, TradingView Trustpilot Rating 4.4 out of 1,198 reviews Number of CFD Forex Pairs to Trade 54 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.6
USDJPY: 0.7
EURGBP: 0.9
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer Key Pros
- Offers tight spreads and low fees for FX traders
- Traders can choose from over 50 currency pairs
- Supports a wide range of payment methods
- Mobile trading available through dedicated app
- Supports popular trading platforms
Key Cons
- Offers only CFD and FX products
- Charges inactivity fee
- No dedicated platform for copy trading
XTB Broker Details Supports German Yes Austrian Currency (EUR) Yes Regulators FCA (License No. FRN 522157), CySEC (License No.169/12), FSC (FSC License No.: 000302/438), IFSC (License No.: 000302/46.), KNF (N/A), CNMV (N/A), BaFin (registered), FSCA (N/A), FSA Norway (registration ID - FT00118162) Min Deposit $250 Trading Platforms xStation 5, xStation Mobile Trustpilot Rating 3.7 out of 1,311 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.9
USDJPY: 14
EURGBP: 1.3
GBPUSD: 2.2Forex Commission per Lot per Trade $0 Deposit Methods Visa, Maestro, Mastercard, Bank Transfer, Neteller, Skrill, PayPal, Ecommpay, PayU Withdrawal Methods Bank Transfers, Visa, Mastercard, Skrill Key Pros
- Bears the seal of approval of both the FCA and the KNF, along with other regulators
- Mobile-friendly platform
- Offers negative balance protection
- Standard users are not charged commission when it comes to forex
- Low fees
Key Cons
- Traders from the US cannot register and trade at XTB
- No support for MT5 and other popular platforms
- Withdrawals under certain thresholds are accompanied by fees
Is Forex Trading Legal in Austria
Forex trading is a regulated activity in Austria and requires authorization from the Austrian Financial Markets Authority (FMA). Residents of the country can legally trade spot forex and currency derivatives like CFDs, options, and futures as long as they do business with licensed brokers. Broking firms must satisfy certain criteria to gain authorization, starting with minimum capital requirements ranging from €75,000 to €750,000.
This ensures that approved companies can maintain sufficient liquidity throughout their operations in the country. Applicants must additionally provide detailed information about their business plan and corporate structure. Their managing directors and other key personnel must have clean criminal records, sufficient knowledge and experience in working in the financial sector.
Companies seeking authorization from the FMA must also have a physical presence and registered offices in the country. Approved broking firms submit regular financial reports to the FMA and adhere to strict policies against anti-money laundering and terrorist financing. All licensed brokers participate in investment compensation schemes, a common requirement in all European jurisdictions.
The FMA prohibits licensed brokers from marketing, distributing, and selling binary options to retail customers in Austria. Offering promotional incentives for high-risk derivatives to retail clients is also a violation of FMA rules. FMA licensees can offer CFD to retail traders but certain restrictions are in place to protect inexperienced investors from suffering losses they cannot foresee.
Forex Trading Regulators in Austria
The legal provision of forex trading services falls within the regulatory remit of Austria’s Financial Markets Authority (FMA). The regulatory body was established in 2002 after the passage of the Financial Market Authority Act. The Vienna-based watchdog oversees the operations of all investment services providers, pension funds, insurance companies, and credit institutions in the country. Local stock exchanges and the companies listed on them are also subject to FMA oversight.
Beyond licensing and regulation, the FMA actively works to preserve the integrity and stability of the local financial markets. The regulator closely monitors licensed financial service providers to ensure they fulfill their contractual obligations to Austrian customers at all times. Non-compliance with the regulator’s rules results in harsh penalties, including fines, license suspension, and revocation.
Considering all this, it is easy to see why FMA-authorized forex brokers uphold such high standards of service. Austria acceded to the European Union (EU) in 1995 and ditched its local currency, the schilling, for the euro four years later. As a result of Austria’s EU membership, the local financial watchdog works closely with the European Securities and Markets Authority (ESMA) and has adopted the guidelines laid down in the Markets in Financial Instruments Directive of 2014 (MiFID II).
How to Identify Forex Brokers Authorized in Austria
MiFID II paved the way for a harmonized financial regulatory framework applicable to all EU and EEA member states. It created a passporting regime that enables brokers authorized in other EU countries to legally operate in Austria without necessarily procuring licenses from the FMA.
While recommended, trading forex with an FMA-regulated broker is not mandatory for Austrian residents. Local traders can confirm the regulatory status of their forex brokers by searching the official company database of the FMA. We recommend you visit the regulator’s website occasionally as FMA regularly publishes investor warnings to alert local consumers about unauthorized brokers and clone firms.
Security at Austrian Forex Brokers
Austrian residents have nothing to be concerned about when trading with FMA and EU-licensed forex brokers. Such companies are subject to stringent regulations mandating robust consumer protections, ethical business practices, and full price transparency. FMA regulations largely align with MiFID restrictions on short-term derivatives like contracts for difference. Austria introduced permanent curbs on retail derivative trading aimed at safeguarding inexperienced consumers from high-risk financial instruments.
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Retail Leverage Restrictions and Risk Disclaimers
FMA requirements mandate caps on the maximum leverage available to retail traders who can boost their currency CFD positions at rates of up to 1:30. Properly regulated brokers must warn retail clients about the high risk involved in CFD trading via comprehensible risk disclosures. Broking firms should also inform potential clients about the percentages of retail traders losing money when entering into contracts for difference.
Brokers must position these risk warnings in prominent places, either at the top or the bottom of their websites. The risk disclaimers should be visible to retail traders at all times for a broker to be fully compliant with FMA and ESMA requirements. This applies to both desktop trading platforms and mobile apps.
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Restrictions on Promotional Incentives
Regulated brokers should not motivate retail customers to engage in complex derivative trading by offering them bonus payments or similar promotional incentives. In fact, the aggressive marketing of such high-risk products to laypersons is altogether prohibited in Austria.
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Margin Closeout Protection and Encryptions
All retail traders from the country have access to negative balance protection preventing them from running up debt. Margin closeouts are enforced on retail accounts with a limited balance that cannot absorb further losses. Licensed brokers implement robust security measures to protect clients and their transactions. They rely on advanced security protocols to encrypt all customers’ personal and financial information during transmission.
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Funds Segregation and Investor Compensation
Regulated forex broking companies abide by strict fund segregation rules, storing the assets of their clients in separate accounts at accredited financial institutions. This measure gives customers complete peace of mind that their funds can never be misappropriated by a broker.
Austrian financial law mandates that all regulated brokers must make annual contributions to investor compensation funds. Retail clients can thus claim compensation of up to €20,000 per person if their broker faces financial challenges or declares insolvency. Austria’s FMA slaps hefty fines on licensees infringing on these requirements. Repeated transgressions result in license suspension and revocation.
Negative Balance Protection at Austrian Forex Brokers
Let’s tackle negative balance protection in more depth. Mandated by EU regulations, this measure has been adopted by all licensed brokers operating on Austrian soil, effectively preventing retail customers from sustaining losses exceeding the capital available in their trading accounts. Licensed brokers achieve this by implementing automated margin closeouts on accounts with a rapidly declining balance due to unexpected price movements against traders’ CFD positions.
As per FMA and EU regulations, brokers must close out all leveraged positions in retail accounts when their equity declines to 50% of the margin initially required to keep them open. This initial margin is also known as a “maintenance” margin. In other words, retail traders must have enough capital in their accounts to cover at least half of their losses. If a trader still ends up in the red (an unlikely scenario but still), their broker will absorb any excess losses and restore their account to zero without requiring additional deposits.
Taxes on Forex Trading Profits in Austria
The income derived from capital assets is liable for taxation under Section 9, Article 27 of Austria’s Income Tax Act. The capital asset category is rather broad and covers profits from savings accounts interest, derivatives, equities, dividends, and securities. Income generated from these financial instruments is generally taxed as capital gains at a rate of 27.5%. The exact amounts due are calculated based on the net profits a forex trader realizes during a given tax year.
There are certain exceptions, however, when lower rates apply. Austrian residents holding trading accounts for over a year are subject to a lower “long-term” capital gains tax of 25%. Forex earnings used for purchasing and holding assets for one or more years are exempt from taxation. Traders are taxed on a per-annum basis and have until April 30 to submit their tax returns.
Leverage Caps at Austrian and Offshore Forex Brokers
Inexperienced retail traders are prone to downplaying the financial risks involved in CFD trading and this can cost them dearly. Licensed brokers safeguard retail clients from sustaining massive losses by limiting the maximum leverage they can use as per FMA and EU regulations. Austria’s leverage caps coincide with those in other EU and EEA member states as they all adhere to MiFID guidelines.
Leverage restrictions are proportionate to the volatility of the underlying assets; the higher it is, the lower the maximum leverage accessible to retail traders. Forex major pairs like EUR/USD are less volatile, so brokers cap their leverage rates at 1:30. Forex crosses and exotic pairs have higher volatility, hence their lower leverage caps of 1:20. Leverage rates decrease even further for riskier asset classes like commodities (1:10), individual stocks (1:5), and cryptocurrency CFDs (1:2).
Brokers regulated in countries like Japan and Singapore have even lower leverage caps for forex majors (1:25 and 1:20, respectively). By contrast, companies operating from jurisdictions with a more lenient regulatory approach tend to provide considerably higher leverage to retail customers. For example, traders doing business with broking firms from Belize can use maximum leverage of 1:1000 on certain forex pairs.
Professional Trader Requirements in Austria
It is worth noting the aforementioned leverage curbs apply only to retail clients in Austria. FMA-compliant forex brokers raise this ceiling for professional accounts but customers must satisfy certain requirements to become eligible. One condition is to have a large enough portfolio valued at over half a million euros in the form of derivatives, cash, stocks, and debt instruments.
Applicants must also prove they have relevant experience in leveraged trading and spread betting. They must have been professionally employed in the financial services sector for twelve months or more in a position that requires high levels of expertise in over-the-counter derivatives. The last requirement is to have made ten or more large-volume transactions per quarter over the last year before applying.
Clients must fulfill at least two of these three conditions for FMA-regulated brokers to deem them fit for setting up a professional account. Keep in mind that you renounce your rights to certain protections when switching to a professional account. Professional traders typically lose their access to investor compensation and negative balance protection.
Forex Trading Platforms at Austrian Forex Brokers
The top-rated forex brokers shortlisted on this page all deliver first-class trading experience to customers from Austria but this is unsurprising considering they run on award-winning platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and TradingView. Order execution is as fast as lightning with all three platforms but traders should also take into account their individual style and investment goals before settling for any software.
MT4 is a common choice for novice forex traders as it has a relatively simple interface, enabling them to easily find their way around. It enjoys huge popularity among Austrian retail traders thanks to its great charting capabilities, quick execution, and features for algorithmic trading. MT4 was built specifically for forex trading, although it also supports other asset classes.
MT5 is the platform of choice for many active CFD and day traders from Austria as it offers all the advantages they could possibly ask for. Loaded with features for advanced technical analysis, the platform also supports a larger order volume than its predecessor. MT5 offers dozens of technical indicators, including the Moving Average that proves useful for forex scalping.
TradingView is also picking up steam in Austria’s forex trading community but is yet to receive broader support at local brokers. It has some of the best charting capabilities we have seen to date. Additionally, TradingView boasts a vast user base of over 50 million traders, allowing you to identify lucrative trade opportunities by following other traders. Some FMA-regulated forex brokers offer proprietary desktop platforms as well. Testing them with free demo accounts will allow you to get a proper feel of their features and peculiarities.Are you seeking further information on licensed forex brokers and trading regulations in Austria? The links we provide below may be handy for Austrian traders seeking to file a complaint, steer clear of unlicensed brokers, or learn more about the regulatory landscape in their country.
- FMA Your local financial regulator maintains a comprehensive register of all financial companies authorized to operate in the country legally. You can search registrants by company name, location, or bank identification number.
- CySEC (Cyprus Securities and Exchange Commission) Database: Browse this database to find all brokers authorized to provide cross-border services to clients from EU and EEA member states, including Austria.
- Unapproved Domains: Here, you can see CySEC’s entire list of brokers and other financial services providers that target Austrians and other EU customers without authorization.
- Are you having issues with a forex broker? File your complaints with the FMA or CySEC to resolve them promptly.