| Updated: December 2, 2024Looking for the best forex brokers in Estonia? We can recommend some of the top performers in this field, with our team of experts doing thorough research to ensure that every Estonian trader will be able to enjoy safe, fair, and easily accessible forex trading. Our forex trading professionals have opened real money accounts with every broker on our list, ensuring they can fully test each feature offered by the brands they have reviewed.
Fusion Markets74-89% of retail CFD accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Markets.com74.2% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
Plus50082% of retail investor accounts lose money
FXCM70% of retail investor accounts lose money
IG70% of retail client accounts lose money
XTB80% of retail investor accounts lose money
Vantage FXEstonian Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. Global Prime | 161 | 4.5 ⭐ |
| 3. Markets.com | 1,198 | 4.4 ⭐ |
| 4. Eightcap | 2,668 | 4.2 ⭐ |
| 5. eToro | 25,095 | 4.2 ⭐ |
| 6. Plus500 | 14,038 | 4.1 ⭐ |
| 7. FXCM | 548 | 3.9 ⭐ |
| 8. IG | 7,200 | 3.7 ⭐ |
| 9. XTB | 1,311 | 3.7 ⭐ |
| 10. Vantage FX | 4,089 | 3.5 ⭐ |
Estonian Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 2. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 3. Markets.com | 0.6 | 0.7 | 0.9 | 0.9 |
| 4. IG | 0.85 | 0.9 | 0.9 | 1.40 |
| 5. FXCM | 0.6 | 1.1 | 1 | 0.8 |
| 6. XTB | 0.9 | 14 | 1.3 | 2.2 |
| 7. Vantage FX | 0.2 | 0.5 | 0.3 | 0.4 |
| 8. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
| 9. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 10. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
Estonian Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. eToro | $0 |
| 2. Plus500 | $0 |
| 3. IG | $0 |
| 4. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| 5. FXCM | $0 |
| 6. Markets.com | $0 |
| 7. Vantage FX | $3 per side on Raw; $1.50 per side on Pro |
| 8. XTB | $0 |
| 9. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 10. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
Important Note: To be eligible to offer forex trading services to residents of Estonia, broker brands must be regulated by the Estonian Financial Supervision Authority (EFSA). This is the local authority that has taken upon the task of regulating the financial market in Estonia, ensuring that licensed entities are conducting safe and fair trading. You can find out more about the regulator and its process of monitoring the forex trading industry by visiting its official website or following its X account.
Top 10 FX Brokers in Estonia
Fusion Markets Broker Details Supports Estonian No Estonian 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 Estonian No Estonian 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
eToro Broker Details Supports Estonian No Estonian Currency (EUR) Yes (eToro Money account) Regulators FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN, AMF, SEC, GFSC 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 CFD Forex Pairs to Trade 55 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 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
Plus500 Broker Details Supports Estonian Yes Estonian Currency (EUR) Yes Regulators FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727), BaFin registration, SCB (SIA-F250) Min Deposit $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 14,038 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 (1:5 via FSA)Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Withdrawal Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free CFD trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
IG Broker Details Supports Estonian No Estonian 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
Eightcap Broker Details Supports Estonian No Estonian Currency (EUR) Yes Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, TradingView, Capitalise.ai, FlashTrader Trustpilot Rating 4.2 out of 2,668 reviews Number of CFD Forex Pairs to Trade 50+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.1
EURGBP: 1
GBPUSD: 1Forex Commission per Lot per Trade $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay Key Pros
- Commission-free FX trading via standard accounts
- Spreads from 0 pips on major currency pairs
- Accepts cryptocurrency deposits
- Fantastic variety of deposit and withdrawal methods
- Insights section with webinars, trade ideas, and weekly forecasts
Key Cons
- Below-average range of tradable instruments
- Crypto withdrawals incur transaction fees
FXCM Broker Details Supports Estonian No Estonian Currency (EUR) Yes Regulators FCA, CySEC, ASIC, FSCA, ISA, IIROC Min Deposit $50 Trading Platforms MetaTrader 4, TradingView Pro, Trading Station, Capitalise.ai Trustpilot Rating 3.9 out of 548 reviews Number of CFD Forex Pairs to Trade 40+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.6
USDJPY: 1.1
EURGBP: 1
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer, Neteller, Skrill, Google Pay, Open Banking, Apple Pay, PayPal, Paysafecard Withdrawal Methods Visa, Mastercard, Bank Transfer, PayPal, Neteller, Skrill Key Pros
- Offers up to 1:1,000 leverage on all new accounts
- Supports popular trading platforms
- Does not charge depositing and withdrawal fees
- Regulated by multiple top-tier regulators
- Offers competitive spreads
Key Cons
- Charges a rather high inactivity fee
- Offers limited number of products
- Number of currency pairs is average
Markets.com Broker Details Supports Estonian No Estonian 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
Vantage FX Broker Details Supports Estonian Yes Estonian Currency (EUR) Yes Regulators FCA (license no. FRN: 590299), VFSC (reg. No. 700271), ASIC (license no. no. 428901), FSCA (license no. 51268), CIMA (no. 1383491) Min Deposit $50 Trading Platforms MetaTrader 4, MetaTrader 5, ProTrader, TradingView, Copy Trading Trustpilot Rating 3.5 out of 4,089 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.2
USDJPY: 0.5
EURGBP: 0.3
GBPUSD: 0.4Forex Commission per Lot per Trade $3 per side on Raw; $1.50 per side on Pro Deposit Methods Visa, Mastercard, Union Pay, Boleto, Bank Wire, Skrill, Neteller, Crypto, POLi, FasaPay, Perfect Money, BPay, Pagsmile, AstroPay, JCB Withdrawal Methods Visa, Mastercard, Union Pay, Bank Wire, Skrill, Neteller, Crypto, AstroPay, Perfect Money, JCB Key Pros
- Regulated by reputable authorities
- Offers over 1,000 CFD products
- Supports various popular platforms
- Enables easy copy trading on mobile app
- Tight spreads and low commission for forex traders
Key Cons
- Some banking methods are exclusive to certain markets
- Could add more currency pairs to its products
- Limited educational materials
XTB Broker Details Supports Estonian No Estonian 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 Estonia?
Forex trading is a legal activity in the territory of Estonia, with this sector being fully regulated by EFSA. To be eligible to offer trading services to traders based in this European country, brokers are required to be licensed either by the Estonian authorities or any regulator in the EU and EEA. That means Estonian traders can legally trade currency pairs either with brokers regulated by the EFSA or regulators like the FCA, CySEC, and other EU financial market watchdogs.
Forex brokers must meet a list of requirements to prove they are eligible to offer a safe and fair trading environment for Estonian traders. Top brokers make sure to add additional protection for their clients’ funds, making trading extra secure.
Each Estonian trader can easily verify the legitimacy of any broker operating in the local forex market. Meanwhile, the EFSA is constantly updating its official website, providing enough information on dangerous trading practices and entities that have been operating illegally in the Estonian market.
Estonian Financial Supervision Authority (EFSA) Regulation Info
As already mentioned, forex brokers operating in Estonia are required to be registered with the EFSA, which is the regulatory body responsible for monitoring the financial industry and operations in the country. In addition to authorizing companies that wish to provide financial services, including forex trading, to Estonians, the EFSA is also responsible for taking the respective action whenever an entity has been operating illegally in the territory of the country.
There are several conditions that operators are required to meet if they wish to obtain a forex broker license in Estonia. For starters, to prove their eligibility for offering this type of service, brokerage firms must submit documents ensuring their starting capital of at least €125,000. It should be noted that the required minimum could be higher depending on the different services offered by the company as well as the risks linked to the scope of activities offered by the entity applying for a license.
Applicants must also ensure that their staff is well educated and experienced in the financial market, with anyone involved in the business required to have a clean reputation as well as proper education corresponding to their position. Brokers applying for an Estonian forex trading license must also deliver a detailed business plan that provides information on the business model of the company, its strategy for risk management, security, and audit systems that will be implemented, and the tools that will be used for combating money laundering and terrorist financing. The whole licensing process may take between three and six months.
The EFSA is also assigned with the task of taking action and inflicting financial and other types of penalties upon entities that have not been operating accordingly. That is why, on the official website of EFSA, you can find public notices informing about penalties imposed on companies that have not been operating following local and ESMA trading regulations.
How Can I Verify EFSA Authorization?
If you are looking for a reputable broker that operates in Estonia, you should check whether the brand you have chosen is regulated by the EFSA. While the broker does not need a license from the local authority to offer its services to Estonian traders, information about the regulators monitoring the operations of the company should be readily available on the website of the broker.
If you see that a broker is authorized by the EFSA, there is a way to confirm the validity of that information. All you need to do is load the EFSA website and look for the section with the registry that will show you a list of companies that are currently regulated by the local financial body.
Make sure to follow the newest EFSA publications as you can always stay informed about any entities found to have operated illegally or have breached a regulatory condition.
Are My Funds Safe with Forex Brokers in Estonia?
If you have decided to trade with a regulated Estonian broker, you can be certain that your funds will always be handled with the utmost care. As mentioned above, in order to be authorized by the local regulator, forex brokers are required to meet the criteria for a minimal starting capital. That way, financial entities guarantee they are stable enough to handle big trading volumes and fulfill traders’ orders.
Risk disclosure is yet another regulatory condition licensed Estonian brokers are required to meet. That means forex brokers must be transparent with their customers about the risks related to forex trading, allowing them to make informed decisions while trading.
To prevent fraudulent activities and identity theft, regulated forex brokers require their clients to go through a standard KYC (Know Your Customer) process. Meanwhile, robust AML measures are taken to prevent money laundering activities and terrorist financing. The implementation of such instruments adds another layer of security to the whole forex trading experience for Estonian traders.
Do Estonian Brokers Provide Negative Balance Protection?
Another extra security measure adopted by most Estonian brokers is negative balance protection. In fact, this is a security feature that all brokers operating under ESMA regulations are required to introduce to their customers. Negative balance protection is a useful feature, especially when you trade currency pairs with higher leverage. While this can be exciting, bringing you potentially higher returns, it can also carry a huge risk as high leverage can also quickly generate huge losses.
Luckily, any reputable Estonian broker will offer its clients negative balance protection that will help them balance the risk levels while trading currency pairs. With this additional layer of protection applied to your trading account, you will not be able to amass losses that will exceed the amount you have deposited into your trading balance.
Do Traders Pay Tax on Forex Trading in Estonia?
The income that Estonian traders have generated through their forex trading activities is subject to taxation. Estonians who choose to trade currency pairs are obligated to report their losses and gains to the local tax authorities. Income generated through forex trading activities falls under the category of capital gains. In Estonia, capital gains are not subject to corporate income tax until they are distributed in the form of dividends.
The extremely favorable taxation laws in Estonia allow traders to enjoy their hard-earned money with no corporate income tax attached to them. The efficient tax system implemented in Estonia eliminates the need to waste your time submitting piles of paperwork. Instead, Estonians can focus on their trading portfolio, enjoying their profits from forex trading.
How Does the Available Leverage of EFSA-Regulated Brokers Compare to the Leverage at Brokers Regulated Offshore?
As Estonian traders are exploring their options for a reputable forex broker, they will notice that they will have certain limitations on the maximum leverage they can enjoy while trading with currency pairs. The leverage maximum that will be imposed on forex trading options usually depends on the regulator that is monitoring the trading sector in the respective jurisdiction. With Estonia being one of the countries included in the EU and EEA, it follows the ESMA leverage limitations that apply to any broker licensed to operate in these areas.
For trading major currency pairs, Estonian traders will be presented with a maximum leverage of up to 1:30. Meanwhile, if they are trading exotic or other non-major currency pairs, the maximum allowed leverage is 1:20. The same limits will apply to other brokers licensed by major EU-based regulators, as the aforementioned maximums are introduced as a safety measure across all markets included in the EU and EEA.
While the UK is no longer in the EU and EEA, its local regulator, the FCA, has introduced the same mandatory leverage limit of 1:30 on major currency pairs and 1:20 on non-major forex pairs. The same limits have also been adopted by the ASIC, which is the Australian financial regulatory body, meaning even some brokers licensed in different jurisdictions may impose the same leverage limits.
Some offshore brokers, however, boast significantly higher leverage, which can be both exciting and very risky. The maximum allowed leverage on major currencies at some US brokers may reach up to 1:50. However, brokers operating in the US market are allowed to impose lower limits if they want to further reduce risk levels. Meanwhile, if you take a look at most brokers operating in the Seychelles, under FSA licenses, they are allowed to offer leverage of up to 1:5,000.
Keep in mind that higher leverage will improve potential returns but it will also increase the risk factor to exponential levels. That said, we should also mention that mandatory leverage limits apply only to retail trading accounts and those eligible for professional trading accounts can significantly increase the potential maximum leverage on both major and non-major currency pairs.
What Do You Need to Qualify to be Designated as a Professional Trader in Estonia?
If you are based in Estonia and wish to apply for a professional trading account, you will be asked to meet certain criteria to qualify for the perks that come with professional trading. While it is true that this type of trading allows investors to increase their potential profits, the risk levels also get boosted. That is why, ESMA has introduced a list of conditions traders within the EU and EEA must meet to be able to classify as professional traders. Said requirements also apply to Estonians who wish to unlock higher leverage, lower commissions, and other perks that come with professional trading.
There are three main conditions that should be fulfilled in order to prove you can be a professional trader in Estonia. These include having enough experience in the financial market industry, having enough knowledge about this sector, and generating a portfolio to back up your high-volume orders. While the application process may differ depending on the broker you have chosen to trade with, the three main requirements to qualify you for professional trading are pretty much the same across most Estonian forex brokers:
- Prove you have made at least 10 transactions of significant size in the previous 12 months
- Show that you have experience working in the financial market industry for at least one year
- Present a financial instruments portfolio that is worth at least €500,000
According to ESMA regulations, investors who meet at least two of the three aforementioned conditions are eligible for professional trading accounts. We suggest preparing the documents required to verify your professional trading status beforehand, allowing you to speed up the process of upgrading from retail investor to professional trader.
What Trading Platforms are Available to Estonian Traders?
No matter the brand they choose, forex traders must be sure they will be able to enjoy intuitive, easy, and secure trading via the platform supported by the trading brand. Many of the brokers catering to Estonian traders will offer their customers proprietary platforms, specifically developed to provide easy and intuitive trading to traders. That said, many of the forex brokers operating in Estonia will also feature popular platform options like MT4, MT5, cTrader, and more.
MetaTrader 4: Probably one of the most popular platform variations for forex trading, offering a decent number of tools that can help investors make decisions. The interface of the platform is extremely easy to use, making it suitable for both beginners and advanced forex traders. Often adapted for mobile trading as well, MT4 is a great option you can find at many Estonian-friendly brokers.
MetaTrader 5: If you enjoy forex trading but would also like to explore other products, you might want to switch to the slightly more advanced MT5 platform, which is also supported by a number of Estonian brokers. Offering more extensive market coverage and a great selection of tools, MT5 is a suitable option that many expert forex traders enjoy.
TradingView: This platform offers some of the latest data on various trading products, including forex, stock, futures, and crypto. It allows traders to make informed decisions, helping them to assess the risk levels and communicate with fellow traders who might be sharing the same ideas as them.
cTrader: Enjoyed mostly by expert traders, this platform offers a wide selection of charting tools as well as advanced order types. The speed of order execution is also one of the greatest qualities of this trading platform, with traders having the chance to run cTrader across a wide range of devices, including smartphones and tablets.Below, traders will find relevant information on the organization that regulates the forex market in Estonia.
- The Estonian Financial Supervisory Authority (EFSA): Forex trading is a legal activity in Estonia, with EFSA serving as the sector’s official regulator. To offer trading services legitimately to traders in Estonia, brokers must acquire a license from the local regulator or any regulator in the EU and EEA. Besides licensing, EFSA is responsible for monitoring financial markets and imposing penalties when breaches occur.
- EFSA-regulated companies list from the registry section: Under the section called “Approved Prospectuses”, Estonian traders can check a list of companies that are under the monitoring of Finantsinspektsioon, the local financial regulator.