Austria provides a stable and well-regulated forex trading environment. The country’s financial regulatory framework operates following EU MiFID II standards. Locally, the Austrian Financial Markets Authority (FMA) regulates the forex trading market, ensuring a high level of integrity and proper investor protection rules. This article covers everything you need to know about forex trading in Austria, including the various legal trading forms, regulatory restrictions, taxation, and guidance on choosing a trustworthy broker.
Top 10 Forex Brokers in Austria
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
-
IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Swissquote
- Clients can hold multiple currencies in one account - CHF, EUR, USD, GBP and earn up to 5% interest rate.
- Beyond trading, Swissquote offers banking services, including savings accounts and mortgages
- Traders can use advanced trading platforms, such as MT4, MT5 and a proprietary mobile app for maximum flexibility.
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
-
Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
Trading InstrumentsDeposit Methods- Commodities CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
-
Saxo Bank
- Holds a banking license
- Offers forex options and spot trading
- Minimum EUR/USD spreads from 0.9 pips
Trading InstrumentsDeposit Methods- Bond Futures
- Bond Options
- Commodities CFDs
- Commodity Futures
- Commodity Options
- Crypto Options
- Currency Futures
- Energy Futures
- Energy Options
- ETF Options
- Forex CFDs
- Forex Options
- Index Futures
- Index Options
- Indices CFDs
- Interest Rate Futures
- Metal Futures
- Metal Options
- Metals CFDs
- Share CFDs
- Stock Options
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Eightcap
- Traders can enjoy competitive trading conditions through different account types
- Offers access to over 800 CFD markets through TradingView
- Platforms like MT4 and MT5 enable multi-device trading
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
-
Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Libertex
- Libertex offers access to over 250 assets, including Forex, Stocks, Commodities, Cryptocurrencies, and ETFs.
- The proprietary trading platform features advanced charting tools.
- Licensed and regulated by CySEC.
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| ActivTrades | |
$0 |
| IC Markets | |
$200 |
| Swissquote |  |
$1,000 |
| Global Prime | |
$0 |
| Saxo Bank | |
$0 Classic$200,000 + Platinum $1,000,000 + VIP |
| Eightcap | |
$100 |
| Axi | |
$0 |
| Libertex | |
$/€10, €100 (first deposit, Europe) |
Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
| IC Markets | |
1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:1000 (FSAS | Retail Account) |
| Swissquote | |
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 | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC) |
| Saxo Bank | |
1:30 (ASIC | Classic Account), 1:30 (DFSA | Classic Account), 1:30 (FCA | Classic Account), 1:20 (MAS | Classic Account) |
| Eightcap | |
1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SCB | Retail Account) |
| Axi | |
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 | |
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 | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, TradingView |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
| IC Markets | |
cTrader, MetaTrader 4, MetaTrader 5 |
| Swissquote | |
MetaTrader 4, MetaTrader 5 |
| Global Prime | |
MetaTrader 4 |
| Saxo Bank | |
TradingView |
| Eightcap | |
MetaTrader 4, MetaTrader 5, TradingView |
| Axi | |
MetaTrader 4 |
| Libertex | |
MetaTrader 4, MetaTrader 5 |
Comprehensive Comparison of the Best Austrian Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
|
 |
$200 |
|
AVG 0.82 pips |
|
|
 |
$1,000 |
|
AVG 1.2 pips |
|
|
 |
$0 |
|
AVG 0.96 pips |
|
|
 |
$0 Classic$200,000 + Platinum $1,000,000 + VIP |
|
AVG 1.2 pips |
|
|
 |
$100 |
|
AVG 1.1 pips |
|
|
 |
$0 |
|
AVG 0.1 pips |
|
|
 |
$/€10, €100 (first deposit, Europe) |
|
AVG 0.1 pips |
|
Legal Forms of Forex Trading in Austria
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:
- 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. - 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. - 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. - 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. - 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:
- 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. - Segregation of Funds
Make sure the broker keeps client funds in segregated accounts, safeguarding them in case of financial difficulties. - Negative Balance Protection
The broker should offer negative balance protection to prevent traders from losing more than their initial deposit. - Transparent Fees
Look for brokers that clearly disclose all fees, including spreads and commissions. Avoid brokers with hidden fees. - Reputation and Client Reviews
Research the broker’s reputation through independent reviews and forums. Pay attention to feedback regarding withdrawal processes and customer service. - 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. - Customer Support
A reliable broker provides responsive, multilingual customer support through multiple channels like live chat, email, and phone. - Leverage and Risk Management
Ensure the broker offers leverage within regulatory limits and provides risk management tools like stop-loss orders and margin closeouts. - Demo Accounts
A reputable broker should offer a demo account to allow traders to practice trading strategies without risking real money. - 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.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it's essential to rely on trustworthy sources. RationalFX, a company with over 20 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it's clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker's service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.