Austria Forex Brokers

Austria offers a stable and well-regulated environment for forex trading. Operating within the European Union’s regulatory framework, Austria ensures a high level of integrity for forex brokers while safeguarding traders’ interests. This article covers everything you need to know about forex trading in Austria, including the various legal trading forms, restrictions, regulatory bodies, and taxes, as well as guidance on how to choose a trustworthy broker.

Top 10 Forex Brokers in Austria

Brokers Compared by Spread

FX Brokers Deposit Method Comparison

Brand Minimum deposit
Fusion Markets Available $0
FP Markets Available $50 (AU$100)
ActivTrades Available $0
IC Markets Available $200
Swissquote Not Available $1,000
Global Prime Available $0
Saxo Bank Not Available $0 Classic
$200,000 + Platinum
$1,000,000 + VIP
Eightcap Available $100
Axi Available $0
Libertex Available $/€10, €100 (first deposit, Europe)

Brokers by Regulator

Brand Maximum leverage
Fusion Markets Not Available 1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account)
FP Markets Available 1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account)
ActivTrades Not Available 1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB)
IC Markets Available 1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:1000 (FSAS | Retail Account)
Swissquote Available 1:400 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:50 (DFSA | Retail Account), 1:100 (FSC | Retail Account), 1:20 (MAS | Retail Account)
Global Prime Not Available 1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC)
Saxo Bank Not Available 1:30 (ASIC | Classic Account), 1:30 (DFSA | Classic Account), 1:30 (FCA | Classic Account), 1:20 (MAS | Classic Account)
Eightcap Available 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SCB | Retail Account)
Axi Available 1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA)
Libertex Available 1:30 (BaFin | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (SVGFSA | Retail Account)

Forex Brokers Platform Availability

Brand FX pairs to trade
Fusion Markets Available cTrader, MetaTrader 4, MetaTrader 5, TradingView
FP Markets Not Available cTrader, TradingView
ActivTrades Available MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView
IC Markets Available cTrader, MetaTrader 4, MetaTrader 5
Swissquote Available MetaTrader 4, MetaTrader 5
Global Prime Available MetaTrader 4
Saxo Bank Not Available TradingView
Eightcap Available MetaTrader 4, MetaTrader 5, TradingView
Axi Available MetaTrader 4
Libertex Available MetaTrader 4, MetaTrader 5

Comprehensive Comparison of the Best Austrian Forex Brokers

Brand Min. Deposit Trading Platforms Spread Regulation Trustpilot
$0
  • cTrader
  • DupliTrade
  • Fusion+ Copy Trading
  • MetaFX
  • MetaTrader 4
  • MetaTrader 5
  • TradingView
AVG 0.93 pips
  • FSAS (Seychelles)
  • VFSC (Vanuatu)
  • ASIC (Australia)
$50 (AU$100)
  • cTrader
  • IRESS
  • TradingView
AVG 1.2 pips
  • CySEC (Cyprus)
  • FSAS (Seychelles)
  • FSCA (South Africa)
  • SCB (Bahamas)
  • ASIC (Australia)
  • FSCM (Mauritius)
$0
  • MetaTrader 4
  • MetaTrader 5
  • Proprietary Web
  • TradingView
AVG 0.5 pips
  • CONSOB (Italy)
  • FCA (United Kingdom)
  • SCB (Bahamas)
  • CMVM (Portugal)
  • FSCM (Mauritius)
  • CVM (Brazil)
$200
  • cTrader
  • IC Social
  • MetaTrader 4
  • MetaTrader 5
  • ZuluTrade
AVG 0.82 pips
  • CySEC (Cyprus)
  • FSAS (Seychelles)
  • SCB (Bahamas)
  • ASIC (Australia)
  • CMA (Kenya)
$1,000
  • CFXD
  • MetaTrader 4
  • MetaTrader 5
  • Swissquote Live Platfrom
AVG 1.2 pips
  • CySEC (Cyprus)
  • DFSA (United Arab Emirates)
  • FCA (United Kingdom)
  • FINMA (Switzerland)
  • FSCA (South Africa)
  • MAS (Singapore)
  • MFSA (Malta)
  • HKSFC (Hong Kong)
$0
  • MetaTrader 4
AVG 0.96 pips
  • VFSC (Vanuatu)
  • ASIC (Australia)
$0 Classic
$200,000 + Platinum
$1,000,000 + VIP
  • TradingView
  • SaxoInvestor
  • SaxoTraderGO
  • SaxoTraderPRO
AVG 1.2 pips
  • CONSOB (Italy)
  • FCA (United Kingdom)
  • FFAJ (Japan)
  • JFSA (Japan)
  • MAS (Singapore)
  • DFSA (Denmark)
  • HKSFC (Hong Kong)
  • ASIC (Australia)
$100
  • MetaTrader 4
  • MetaTrader 5
  • TradingView
AVG 1.1 pips
  • CySEC (Cyprus)
  • FCA (United Kingdom)
  • SCB (Bahamas)
  • ASIC (Australia)
$0
  • MetaTrader 4
  • Axi Copy Trading
  • Axi Mobile
AVG 0.1 pips
  • CySEC (Cyprus)
  • DFSA (United Arab Emirates)
  • FCA (United Kingdom)
  • FMA (New Zealand)
  • SVGFSA (Saint Vincent and the Grenadines)
  • ASIC (Australia)
$/€10, €100 (first deposit, Europe)
  • MetaTrader 4
  • MetaTrader 5
AVG 0.1 pips
  • CySEC (Cyprus)
  • SVGFSA (Saint Vincent and the Grenadines)
  • FSCM (Mauritius)
  • BaFin (Germany)

Forex trading in Austria can be done using several financial instruments, each with its own distinct characteristics and risk profiles. The main legal forms include:

  1. Spot Trading
    This is the immediate exchange of currencies based on the current market price. Transactions are typically settled within two business days, allowing traders to benefit from short-term price fluctuations.
  2. Contracts for Difference (CFDs)
    CFDs are popular derivative products that allow traders to speculate on the price movement of currency pairs without needing to own the underlying asset. CFDs allow traders to take both long and short positions, depending on their market outlook.
  3. Futures Contracts
    These are agreements to buy or sell a specific currency at a future date, at a predetermined price. Futures are commonly used for hedging and speculative purposes, providing a standardized approach to currency risk management.
  4. Options Contracts
    These contracts give the holder the right, but not the obligation, to buy or sell a currency pair at a specified price before a certain expiry date. Options can be an effective tool for managing risk while leveraging potential profits.
  5. Forward Contracts
    Similar to futures, forward contracts also involve agreements to exchange currencies at a future date and at an agreed price. Unlike futures, forwards are customizable and are traded over-the-counter (OTC), offering more flexibility between the contracting parties.

Restrictions on Forex Trading in Austria

While forex trading is accessible in Austria, several restrictions are in place to protect traders from excessive risk and maintain market stability:

  • Leverage Limits for Retail Traders
    In line with regulations by the European Securities and Markets Authority (ESMA), leverage is capped for retail traders:

    • 30:1 for major currency pairs.
    • 20:1 for minor pairs, gold, and major indices.
    • 10:1 for other commodities and smaller indices.
  • Prohibition of Binary Options
    Due to their high-risk nature, binary options are prohibited for retail traders under ESMA regulations. This ban is in place to shield traders from excessive risks and all-or-nothing payout structures.
  • CFDs Involving Cryptocurrencies
    CFD trading on cryptocurrencies is subject to stricter regulations. Leverage for such trades is limited, and brokers must provide detailed risk warnings regarding the volatility of digital assets.
  • Marketing and Sales Restrictions
    Brokers in Austria are required to avoid aggressive marketing tactics, such as misleading advertisements or incentivized promotions like bonuses. They must provide clear and honest risk disclosures to ensure fair trading practices.

Who Regulates Forex Trading in Austria

Forex trading in Austria is regulated by the Financial Market Authority (FMA), known in German as the Finanzmarktaufsichtsbehörde. The FMA is an independent body responsible for overseeing the country’s financial markets and ensuring compliance with national and EU-level regulations.

Key Responsibilities of the FMA

  • Licensing and Supervision

    Forex brokers operating in Austria must be licensed by the FMA. This guarantees they meet strict standards regarding financial stability, operational transparency, and customer protection.

  • Enforcing EU Regulations

    As part of the EU, Austria follows the Markets in Financial Instruments Directive II (MiFID II) and other ESMA regulations, which harmonize financial practices across the EU, ensuring fairness and investor protection.

  • Monitoring Market Conduct

    The FMA also enforces rules against insider trading, market manipulation, and other unethical behaviors to maintain a fair and orderly market.

  • Promoting Transparency

    Brokers regulated by the FMA must clearly disclose their fees, risks, and trading conditions, ensuring that traders are fully informed when making decisions.

  • Collaboration with International Bodies

    The FMA works with international organizations like the European Banking Authority (EBA) and ESMA to ensure that Austria’s regulatory practices are in line with global standards.

How the FMA Protects Traders:

  • Segregated Funds: Brokers must keep clients’ funds separate from their own operational accounts, ensuring that client money is protected.
  • Negative Balance Protection: Traders are protected from losing more than their deposits, even during periods of high volatility.
  • Leverage Limits: To limit excessive exposure to risk, retail traders are subject to leverage restrictions.

Requirements for Forex Brokers in Austria

Forex brokers operating in Austria must adhere to rigorous requirements set by the Financial Market Authority (FMA) and the European Union’s MiFID II (Markets in Financial Instruments Directive II) standards. These requirements are designed to ensure investor protection, promote transparency, and uphold market integrity.

Key Broker Requirements in Austria:

Forex brokers operating in Austria must comply with stringent requirements set by both the FMA and EU MiFID II regulations. These rules are designed to ensure investor protection and enhance market transparency.

  • Negative Balance Protection
    Brokers must have mechanisms in place to ensure that clients cannot lose more money than they initially invested, especially when using leverage.
  • Investor Compensation Scheme
    Austrian brokers must participate in an investor compensation scheme, which guarantees protection of up to €20,000 per client in the event of broker insolvency.
  • Leverage Restrictions
    As per ESMA’s rules, leverage is capped for retail traders, with different limits applied to various asset classes.
  • Fund Segregation
    Brokers must segregate client funds from their operational funds to ensure the security of traders’ money.
  • Risk Disclosures
    Brokers must provide clear and transparent risk warnings, detailing the potential for significant financial losses.
  • Automatic Margin Closeouts
    Brokers must close positions automatically when a client’s margin falls below a specified threshold, protecting traders from further losses.
  • Monitoring Systems
    Brokers must maintain robust systems to detect suspicious activities and ensure compliance with anti-money laundering (AML) regulations.

Taxes on Forex Trading Profits in Austria

Profits earned from forex trading in Austria are subject to taxation. It is essential for traders to understand their tax obligations to remain compliant with local tax laws.

Tax Classification

  • Capital Gains Tax (KESt):

    Forex profits are treated as capital income and taxed at a rate of 27.5%.

  • Applicability:

    • Individual Traders: Retail traders’ forex profits fall under private capital income and must be declared in annual tax filings.
    • Professional Traders: If forex trading is the primary source of income, it may be considered business income and taxed under Austria’s progressive income tax rates.
  • Deductible Expenses:

    Traders may deduct certain trading-related expenses, such as:

    • Trading platform fees.
    • Costs for financial advice or educational materials.
    • Interest on funds borrowed for trading.
  • Reporting Forex Profits
    Traders must maintain comprehensive records of all trading activity, including profits, losses, and transaction dates, and report their net profits in annual tax returns.
  • Tax Withholding by Brokers
    Brokers may withhold taxes on behalf of Austrian traders, but those using international brokers must ensure they comply with tax regulations independently.
  • Cross-Border Tax Considerations
    Traders using brokers outside Austria should consider any tax treaties between Austria and the broker’s country to avoid double taxation.

How to Identify a Reliable Forex Broker in Austria

When choosing a forex broker in Austria, it is crucial to ensure they are reliable, transparent, and regulated. Here are the key factors to consider:

  1. Regulation and Licensing
    A trustworthy broker should be licensed by the FMA or another recognized European regulatory authority under MiFID II. This ensures adherence to strict standards for financial stability and client protection.
  2. Segregation of Funds
    Make sure the broker keeps client funds in segregated accounts, safeguarding them in case of financial difficulties.
  3. Negative Balance Protection
    The broker should offer negative balance protection to prevent traders from losing more than their initial deposit.
  4. Transparent Fees
    Look for brokers that clearly disclose all fees, including spreads and commissions. Avoid brokers with hidden fees.
  5. Reputation and Client Reviews
    Research the broker’s reputation through independent reviews and forums. Pay attention to feedback regarding withdrawal processes and customer service.
  6. Trading Platform and Tools
    Choose a broker that offers an intuitive trading platform with features such as real-time charts, analytical tools, and mobile apps.
  7. Customer Support
    A reliable broker provides responsive, multilingual customer support through multiple channels like live chat, email, and phone.
  8. Leverage and Risk Management
    Ensure the broker offers leverage within regulatory limits and provides risk management tools like stop-loss orders and margin closeouts.
  9. Demo Accounts
    A reputable broker should offer a demo account to allow traders to practice trading strategies without risking real money.
  10. Education and Resources
    Look for brokers that provide educational resources such as webinars, guides, and market analysis to help improve trading skills.

FAQs

How can I verify if a broker is reliable?

Check if the broker is licensed by the FMA or another recognized European regulator under MiFID II. Ensure they offer features like segregated client funds, negative balance protection, and transparent fee structures.

Are binary options allowed in Austria?

No, binary options are prohibited for retail traders under ESMA regulations due to their high-risk nature and speculative structure.

Can Austrian traders use brokers based outside the EU?

Yes, Austrian traders can use international brokers, but it is essential to ensure the broker complies with strict regulatory standards and offers sufficient client protection.

Do brokers in Austria offer demo accounts?

Most brokers provide demo accounts, allowing traders to practice without risking real money. This is a valuable feature for beginners to understand market dynamics and test trading strategies.

What measures protect traders in Austria?

Regulations mandate measures such as negative balance protection, investor compensation schemes, transparent pricing, and segregated client funds to safeguard traders.

Can I trade cryptocurrency CFDs in Austria?

Yes, cryptocurrency CFDs are available but with stricter controls, including reduced leverage limits and mandatory risk disclosures due to the high volatility of crypto markets.

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