Forex trading has become a popular investment alternative for individuals globally, including those in Bulgaria. Official data from the Bulgarian National Bank points to a daily average volume of the local forex market amounting to $2.397 billion in April 2022, marking an increase of nearly 15% since 2019. Bulgarian traders can access a variety of financial instruments, including spot forex, CFDs, futures, options, and forwards. The regulation of these financial assets falls under the remit of the Bulgarian Financial Supervision Commission (BFSC). This article provides an overview of the forex trading framework in Bulgaria, outlining the legal forms of trading, regulatory bodies, and key considerations for both traders and brokers.
Top 11 Forex Brokers in Bulgaria
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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
-
FXTM
- Established brokerage company regulated by UK FCA, Kenya CMA, and Mauritius FSC
- MT4, MT5, Mobile Trading Platform
- $1M Lloyd’s of London account insurance
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
-
Pepperstone
- 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
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Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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XTB
- XTB is a publicly traded company regulated by FCA and CySEC
- XTB's proprietary mobile app enables traders to trade from anywhere
- Commission-free stock trading with no platform fees and direct access to thousands of shares
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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XM Group
- XM provides great trading experiences using MetaTrader 4 and MetaTrader 5, which are improved by personalized features.
- Zero commission accounts are available
- Top-tier regulation from CySEC, ASIC, FSC, and DFSA oversee XM's operations, assuring transparency and client safety.
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Forex Options
- Index Options
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- Stock Options
- US Stock Options
-
AvaTrade
- Minimum deposits from $100
- Licensed by 11 regulatory bodies
- Retail forex leverage of up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Crypto Options
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Forex Options
- Index Options
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- Stock Options
- US Stock Options
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Interactive Brokers
- Providing access to more than 135 global markets: Forex, Cryptocurrencies, Bonds, Commodities and Stocks
- Seamless integration with third-party research platforms and API access for automated trading and portfolio management.
- Advanced trading tools, such as algorithmic trading options, which allow professional-level trading executions.
Trading InstrumentsDeposit Methods- Bond Futures
- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Mutual Funds
- Share CFDs
- Stock Options
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| ActivTrades | |
$0 |
| FXTM |  |
$200 |
| BlackBull Markets | |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| Pepperstone | |
$0 |
| Plus500 | |
$100 |
| XTB | |
$250 |
| XM Group | |
$5 |
| AvaTrade | |
$100 |
| Interactive Brokers | |
$0 |
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) |
| FXTM | |
1:30 (FCA | Retail Account), 1:400 (CMA), 1:3000 (FSCA) |
| BlackBull Markets | |
1:500 (FMA), 1:500 (FSAS) |
| Pepperstone | |
1:500 (CySEC | Pro Account), 1:500 (SCB | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:200 (SCB | Retail Account) |
| Plus500 | |
1:300 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (BaFin | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:30 (FMA | Retail Account), 1:30 (SFSA | Retail Account), 1:30 (DFSA), 1:300 (FSAS), 1:20 (MAS), 1:300 (SCB) |
| XTB | |
1:200 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:500 (IFSC | Retail Account) |
| XM Group | |
1:30 (CySEC | Retail Account), 1:1000 (IFSC | Retail Account) |
| AvaTrade | |
1:400 (Pro Account), 1:30 (Standard Account) |
| Interactive Brokers | |
1:30 (ASIC | IBKR Lite), 1:30 (CBI | IBKR Lite), 1:30 (FCA | IBKR Lite), 1:25 (JFSA | IBKR Lite), 1:20 (MAS | IBKR Lite), 1:500 (Pro 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 |
| FXTM | |
MetaTrader 4, MetaTrader 5 |
| BlackBull Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| Pepperstone | |
MetaTrader 4, MetaTrader 5, Proprietary Mobile, Proprietary Web |
| Plus500 | |
Proprietary Mobile, Proprietary Web |
| XTB | |
Proprietary |
| XM Group | |
MetaTrader 4, MetaTrader 4 MultiTerminal, MetaTrader 5, Proprietary Mobile, Proprietary Web |
| AvaTrade | |
MetaTrader 4, MetaTrader 5, Proprietary Web |
| Interactive Brokers | |
Proprietary Mobile, Proprietary Web |
Comprehensive Comparison of the Best Bulgarian 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 0.4 pips |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
AVG 0.3 pips |
|
|
 |
$0 |
|
AVG 1.1 pips |
|
|
 |
$100 |
|
AVG 1.3 pips |
|
|
 |
$250 |
|
AVG 0.9 pips |
|
|
 |
$5 |
|
AVG 1.2 pips |
|
|
 |
$100 |
|
AVG 0.8 pips |
|
|
 |
$0 |
|
MIN 0.2 pips |
|
Legal Forms of Forex Trading Available in Bulgaria
In Bulgaria, traders have access to a wide range of forex trading instruments, each with distinct features and associated risks. The primary legal forms of forex trading available to Bulgarian residents include spot trading, contracts for difference (CFDs), spread betting, futures, options, and forwards.
- Spot Trading
Spot forex trading involves the direct exchange of currencies at current market prices, with settlement typically occurring within two business days. This is the most straightforward and commonly used method for currency exchange, as it doesn’t involve leverage or complex financial instruments. - Contracts for Difference (CFDs)
CFDs are highly popular in Bulgaria, allowing traders to speculate on currency price movements without actually owning the underlying asset. This derivative instrument enables both long and short positions, meaning traders can profit from rising or falling markets. CFDs in Bulgaria are subject to strict regulatory standards, ensuring they are offered transparently by licensed brokers. - Spread Betting on Currency Pairs
Spread betting, although less common than CFDs, is another legal form of forex trading in Bulgaria. This type of trading allows investors to speculate on the price movement of currency pairs without purchasing the underlying asset. It is based on the difference (spread) between the buying and selling price of a currency pair. Spread betting is tax-free in certain jurisdictions but requires careful regulation to prevent excessive risk exposure. - Futures
Futures contracts on currency pairs are legal in Bulgaria and allow traders to lock in a price for a currency pair at a future date. These contracts are standardized and traded on regulated exchanges. Futures trading requires a higher degree of understanding, as it involves more complex strategies and often comes with significant leverage. - Options
Currency options are a more advanced form of forex trading, offering traders the right, but not the obligation, to buy or sell a currency pair at a predetermined price before a specified expiration date. In Bulgaria, options are regulated under the same legal framework as other forex derivatives, but they require advanced knowledge and risk management strategies. - Forwards
Similar to futures, forward contracts are agreements to buy or sell a currency pair at a future date, but they are privately negotiated between parties and are not standardized. These contracts are typically used by businesses or institutional investors to hedge against currency risk. In Bulgaria, forwards are subject to regulation to ensure that they are conducted transparently and fairly.
Restrictions on Forex Trading in Bulgaria
While forex trading is legal in Bulgaria, there are several key restrictions aimed at protecting investors and ensuring market stability. These restrictions primarily concern CFDs involving cryptocurrency pairs, binary options, and leverage.
- CFDs Involving Fiat and Cryptocurrency Crosses
CFDs that involve cryptocurrency crosses (e.g., Bitcoin/EUR or Ethereum/USD) are subject to heightened scrutiny in Bulgaria. Following EU regulations by the European Securities and Markets Authority (ESMA), leverage on these CFDs is limited to a maximum of 2:1 for retail traders. This restriction is designed to protect traders from the extreme volatility typical of cryptocurrency markets, reducing the risk of significant losses.
- Binary Options
Binary options trading has been banned across the European Union, including Bulgaria. The EU’s ESMA imposed this ban due to the high risks and potential for fraud associated with binary options. In this type of trading, the outcome is either a fixed profit or a total loss, which often leads to substantial losses for retail traders. This ban applies to all brokers and firms offering such products within the EU, including those servicing Bulgarian clients.
- Leverage Restrictions
Leverage, which allows traders to control larger positions with smaller capital, is heavily regulated in Bulgaria. For major currency pairs, the leverage is capped at 25:1, while for non-major pairs, it’s set at 15:1. Cryptocurrencies are limited to 2:1 leverage. These restrictions, imposed by ESMA, are designed to prevent traders from taking on excessive risk and ensure a safer trading environment.
Regulations on Forex Trading in Bulgaria
Forex trading in Bulgaria is primarily regulated by the Bulgarian Financial Supervision Commission (FSC), which oversees all financial markets, including securities, insurance, pension funds, and forex trading activities. The FSC ensures that brokers, financial institutions, and market participants comply with Bulgarian and European Union (EU) regulations designed to protect investors and maintain market integrity.
- Bulgarian Financial Supervision Commission (FSC)
The FSC is an independent government body responsible for supervising and regulating the financial markets in Bulgaria. It oversees the operations of forex brokers, ensuring that they are licensed and adhere to financial conduct standards. The FSC also works to protect consumers by enforcing rules on transparency, conduct of business, and investor protection. The commission ensures that local brokers operate in a fair and transparent manner, providing a safe environment for Bulgarian traders. - European Securities and Markets Authority (ESMA)
As an EU member state, Bulgaria adheres to the regulations set forth by the European Securities and Markets Authority (ESMA). ESMA plays a crucial role in setting uniform rules across the EU, including those governing forex trading. ESMA’s regulations, such as leverage limits, product transparency, and risk warnings, are enforced within Bulgaria to maintain a level playing field and ensure that investors are adequately protected from excessive risk. - European Central Bank (ECB)
Although the European Central Bank (ECB) does not directly regulate forex brokers, its policies influence the financial environment in which forex trading occurs. The ECB sets monetary policy for the Eurozone, which can impact currency values and, by extension, forex markets. Traders in Bulgaria must consider ECB decisions as they can affect exchange rates and trading conditions.
Requirements for Forex Brokers in Bulgaria
Forex brokers operating in Bulgaria must meet strict regulatory standards set by the Bulgarian Financial Supervision Commission (FSC), ensuring that they provide a safe and transparent environment for traders. These requirements align with European Union (EU) regulations to protect investors and maintain market integrity.
- Licensing and Regulation
Brokers must be licensed by the FSC to operate legally in Bulgaria. In addition to meeting local requirements, brokers must comply with the EU’s MiFID II regulations, which standardize financial market rules across member states. These regulations cover aspects such as financial stability, transparency, and reporting. - Negative Balance Protection
Brokers are required to offer negative balance protection, which ensures that traders cannot lose more money than they have deposited. If a trader’s losses exceed their account balance, the broker absorbs the deficit, protecting the trader from financial ruin due to market volatility. - Investor Compensation Scheme
To safeguard traders’ funds, brokers must participate in the Investor Compensation Scheme. This scheme provides compensation to clients in the event of broker insolvency, typically covering up to €20,000 per client. - Leverage Restrictions
In line with ESMA regulations, retail traders in Bulgaria face leverage limits. The maximum leverage for major currency pairs is set at 30:1, and for non-major pairs, it’s 20:1. This reduces the risk of traders overleveraging and facing significant losses. - Fund Segregation and Risk Disclaimers
Brokers must segregate client funds from their own operational funds, ensuring that clients’ money remains protected. Additionally, brokers are required to display risk disclaimers, warning traders of the inherent risks in forex trading.
Taxes on Forex Trading Profits in Bulgaria
In Bulgaria, profits from forex trading are taxable, and traders must comply with local tax laws. As of February 2025, the tax treatment of forex trading profits falls under the general regulations for income derived from financial investments.
- Taxable Income
Profits from forex trading, whether through spot trading, CFDs, or other instruments, are considered taxable income. Traders must report any gains from trading to the National Revenue Agency (NRA), regardless of whether the activity is done professionally or as a hobby. - Capital Gains Tax
Forex trading profits are subject to capital gains tax at a rate of 10%. This applies to the difference between the buying price and the selling price of currency pairs or financial instruments. Any net profit made from trading is taxable, and traders must include these gains when filing their annual tax returns. - Tax Reporting and Documentation
Traders are required to keep accurate records of all their transactions, including dates, amounts, and profits or losses. This documentation is necessary for filing accurate tax returns with the NRA. Inaccurate reporting or failure to disclose forex earnings can lead to fines or penalties. - Loss Deductions
Traders who experience losses can offset these against other capital gains for the same tax year, reducing their tax burden. However, losses cannot be carried over to subsequent years for deduction. - VAT Exemption
Forex trading itself is exempt from Value Added Tax (VAT) in Bulgaria, as it is classified as a financial service. Traders don’t need to pay VAT on broker commissions or spreads.
How to Identify a Reliable Forex Broker from Bulgaria
When choosing a forex broker in Bulgaria, it is crucial to ensure that the broker is trustworthy, regulated, and offers transparent services. Here are some key factors to consider when identifying reliable brokers:
- Regulation and Licensing
A reliable forex broker must be licensed and regulated by a reputable authority. In Bulgaria, the Bulgarian Financial Supervision Commission (FSC) ensures that brokers adhere to local regulations. Additionally, brokers regulated under the European Securities and Markets Authority (ESMA) are subject to the EU’s strict financial standards. Brokers with a UKGC (UK Gambling Commission) or CySEC (Cyprus Securities and Exchange Commission) license are also good indicators of regulatory compliance. - Price Transparency
A trustworthy broker provides price transparency by offering clear and accessible information on trading costs, such as spreads, commissions, and overnight financing fees. It’s important to ensure that no hidden fees or charges are applied, as these can significantly affect trading profitability. Look for brokers that provide detailed and easy-to-understand pricing structures. - User Reviews and Reputation
Check online forums, trader reviews, and independent sites to assess the broker’s reputation. Reliable brokers tend to have positive feedback regarding their platform’s reliability, customer service, and withdrawal procedures. Be cautious of brokers with a history of complaints or unresolved issues. - Trading Platforms and Tools
Good brokers provide a range of advanced trading tools and platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5), which offer technical analysis, charting tools, and automated trading features. Test the platform with a demo account to ensure it is user-friendly and suitable for your trading style. - Customer Support
A reputable broker will offer responsive customer support with multiple contact channels, including live chat, phone, and email. Quality customer service ensures that any issues or questions can be addressed promptly, which is vital for effective trading.
FAQs
What Is the Maximum Leverage Allowed for Forex Trading in Bulgaria?
The European Securities and Markets Authority (ESMA) imposes leverage restrictions on retail traders in Bulgaria. The maximum leverage allowed for major currency pairs is 30:1, while non-major pairs are capped at 20:1. Cryptocurrency CFDs are limited to 2:1 leverage.
Are There Any Restrictions on Trading Cryptocurrencies in Bulgaria?
While trading cryptocurrencies is legal in Bulgaria, brokers offering cryptocurrency CFDs must comply with ESMA’s leverage restrictions, which limit leverage to 2:1. Additionally, brokers are required to offer negative balance protection and transparent pricing for crypto traders.
Can I Trade Forex on My Mobile in Bulgaria?
Yes, many forex brokers offer mobile trading platforms, including apps for iOS and Android devices. These platforms typically offer the same features as desktop versions, including charting tools, order management, and real-time market data, allowing traders to manage their positions from anywhere.
How Can I Avoid Forex Scams in Bulgaria?
To avoid scams, ensure that the broker is properly licensed and regulated by the Bulgarian FSC or another reputable authority like CySEC or the UKGC. Always check for transparent pricing, verify broker reviews, and never trade with unregulated platforms.
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