Hungary Forex Brokers

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• Top 10 Forex Brokers in Hungary
• Brokers Compared by Spread
• FX Brokers Deposit Method Comparison
• Brokers by Regulator
• Forex Brokers Platform Availability
• Comprehensive Comparison of the Best Hungarian Forex Brokers
• Legal Forms of Forex Trading in Hungary
• Restrictions on Forex Trading in Hungary
• Regulations on Forex Trading in Hungary
• Requirements for Forex Brokers in Hungary
• Taxes on Forex Trading Profits in Hungary
• Choosing a Reliable Forex Broker in Hungary
• FAQs
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Forex trading in Hungary is both legal and regulated, offering traders a variety of financial instruments to engage with the global currency markets. The National Bank of Hungary (MNB) oversees the forex market, ensuring compliance with European Union directives to maintain a secure trading environment. Traders in Hungary can access instruments such as spot trading, contracts for difference (CFDs), and currency futures, each catering to different trading strategies and risk appetites. It’s essential for traders to understand the regulatory framework and available instruments to make informed decisions in the Hungarian forex market.

Top 10 Forex Brokers in Hungary

1. Visit Broker Overview

   74-89% of retail's CFD accounts lose money
   Fusion Markets

   • Australia regulated broker
   • MT4, MT5, TradingView, Ctrader
   • Leverage up to 500

   Best Overall Forex Broker

   Regulations: FSAS (Seychelles), VFSC (Vanuatu), ASIC (Australia)

   Trading Instruments

   • Commodities CFDs
   • Crypto CFDs
   • Forex CFDs
   • Indices CFDs
   • Metals CFDs
   • Stock CFDs

   Deposit Methods

   • 
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   Trustpilot Rating

   4.7
2. Visit Broker Overview

   73.85% of retail investor accounts lose money
   FP Markets

   • Australia and CySEC regulated broker
   • MT4/MT5, TradingView, Ctrader, Iress
   • EUR/USD spread from 0.0 pips

   Highest Rated Broker with 4.8 Trustpilot Score

   Regulations: CySEC (Cyprus), FSAS (Seychelles), FSCA (South Africa), SCB (Bahamas), ASIC (Australia), FSCM (Mauritius)

   Trading Instruments

   • Commodities CFDs
   • Crypto CFDs
   • Energy CFDs
   • Forex CFDs
   • Indices CFDs
   • Metals CFDs
   • Stock CFDs

   Deposit Methods

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   Trustpilot Rating

   4.9
3. Visit Broker Overview

   72% of retail investor accounts lose money
   ActivTrades

   • Winner of 20+ Global Awards
   • MT4/MT5, TradingView
   • Leverage up to 1:400

   Best European Forex Broker

   Regulations: CONSOB (Italy), FCA (United Kingdom), SCB (Bahamas), CMVM (Portugal), FSCM (Mauritius), CVM (Brazil)

   Trading Instruments

   • Bonds CFDs
   • Commodities CFDs
   • Crypto CFDs
   • ETF CFDs
   • Forex CFDs
   • Indices CFDs
   • Share CFDs

   Deposit Methods

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   Trustpilot Rating

   4.5
4. Visit Broker Overview

   71% of retail investor accounts lose money
   easyMarkets

   • Innovative tools like to manage risk effectively.
   • EasyMarkets provides access to Forex, Indices and Stocks
   • Proprietary EasyMarkets platform available, as well as MetaTrader 4 (MT4), to suit both beginner and experienced traders.

   A trusted online broker offering competitive trading conditions and user-friendly platforms.

   Regulations: CySEC (Cyprus), FSAS (Seychelles), FSCA (South Africa), ASIC (Australia), BVIFSC (Virgin Islands, British)

   Trading Instruments

   • Commodities CFDs
   • Crypto CFDs
   • Forex CFDs
   • Forex Forwards
   • Forex Options
   • Indices CFDs
   • Metal Options
   • Metals CFDs
   • Share CFDs

   Deposit Methods

   • 

   Trustpilot Rating

   4.3
5. Visit Broker Overview

   70% of retail investor accounts lose money when trading CFDs with this provider.
   Capital.com

   • Capital.com provides access to a wide range of financial products: Forex, CFDs, cryptocurrencies and more
   • Capital.com offers commission-free stock trading and competitive forex spreads
   • Advanced trading tools enhancing traders' ability to make better decisions

   Everything you need to trade, gathered in one place

   Regulations: CySEC (Cyprus), FCA (United Kingdom), SCB (Bahamas), DFSA (Denmark), ASIC (Australia), ESCA (United Arab Emirates)

   Trading Instruments

   • Commodities CFDs
   • Crypto CFDs
   • Forex CFDs
   • Indices CFDs
   • Share CFDs

   Deposit Methods

   • 
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   Trustpilot Rating

   4.5
6. Visit Broker Overview

   77.7% of retail investor accounts lose money
   Forex.com

   • Access to over 80 currency pairs, majors and exotics.
   • Traders may pick from a variety of platforms, including MT4 and MT5, as well as Forex.com proprietary online and mobile platform
   • Forex.com provides exclusive research, news feeds, and a range of educational resources to help traders make informed decisions.

   Solid trading platform for both beginners and professionals.

   Regulations: CFTC (United States), CIMA (Cayman Islands), CIRO (Canada), CySEC (Cyprus), FCA (United Kingdom), JFSA (Japan), MAS (Singapore)

   Trading Instruments

   • Bond Futures
   • Bond Options
   • Bonds CFDs
   • Commodities CFDs
   • Commodity Futures
   • Commodity Options
   • Crypto CFDs
   • Crypto Options
   • Currency Futures
   • Energy Futures
   • Energy Options
   • ETF CFDs
   • 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

   Deposit Methods

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   Trustpilot Rating

   4.7
7. Visit Broker Overview

   Trading leveraged products is risky
   BlackBull Markets

   • Broker boasting lightning-fast execution speed
   • ECN brokers with tight spreads from 0.0 pips
   • $0 minimum deposit requirement

   Reputable broker offering great market exposure through 26,000+ instruments

   Regulations: FMA (New Zealand), FSAS (Seychelles)

   Trading Instruments

   • Commodities CFDs
   • Crypto CFDs
   • Forex CFDs
   • Indices CFDs
   • Metals CFDs
   • Stock CFDs

   Deposit Methods

   • 
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   Trustpilot Rating

   4.8
8. Visit Broker Overview

   The vast majority of retail client accounts lose money
   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

   Top-tier forex and CFD broker, offering lightning fast executions and competitive prices

   Regulations: CySEC (Cyprus), DFSA (United Arab Emirates), FCA (United Kingdom), FMA (New Zealand), SVGFSA (Saint Vincent and the Grenadines), ASIC (Australia)

   Trading Instruments

   • Commodities CFDs
   • Crypto CFDs
   • Forex CFDs
   • Indices CFDs
   • Metals CFDs
   • Stock CFDs

   Deposit Methods

   • 
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   Trustpilot Rating

   4.5
9. Visit Broker Overview

   70% of retail investor accounts lose money
   Tickmill

   • Classic and Raw accounts available to suit various trading needs and requirements.
   • Popular trading platforms, such as MT4 and MT5.
   • Regulated by reputable authorities: ASIC and CySEC.

   10 years of professionalism and reliability in the trading industry.

   Regulations: CySEC (Cyprus), DFSA (United Arab Emirates), FCA (United Kingdom), FSAS (Seychelles), FSCA (South Africa)

   Trading Instruments

   • Bonds CFDs
   • Commodities CFDs
   • Crypto CFDs
   • Forex CFDs
   • Indices CFDs
   • Stock CFDs

   Deposit Methods

   • 
   • 
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   Trustpilot Rating

   3.9
10. Visit Broker Overview

    82% of retail investor accounts lose money
    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.

    A user-friendly, award-winning trading platform.

    Regulations: CySEC (Cyprus), SVGFSA (Saint Vincent and the Grenadines), FSCM (Mauritius), BaFin (Germany)

    Trading Instruments

    • Commodities CFDs
    • Crypto CFDs
    • Forex CFDs
    • Indices CFDs
    • Metals CFDs
    • Share CFDs

    Deposit Methods

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    Trustpilot Rating

    3.9

Brokers Compared by Spread

FX Brokers Deposit Method Comparison

Brokers by Regulator

Forex Brokers Platform Availability

Comprehensive Comparison of the Best Hungarian Forex Brokers

Legal Forms of Forex Trading in Hungary

In Hungary, traders have access to a diverse array of financial instruments for engaging in the forex market. These instruments cater to various trading strategies and risk preferences, allowing participants to choose the most suitable approach for their objectives.

1. Spot Trading
   This involves the immediate exchange of one currency for another at the current market rate. Transactions are settled “on the spot,” typically within two business days. Spot trading is straightforward and appeals to traders seeking direct exposure to currency price movements.
2. Contracts for Difference (CFDs)
   CFDs are derivative instruments that enable traders to speculate on the price movements of currency pairs without owning the underlying assets. In Hungary, CFD trading is legal and regulated under the European Union’s framework, with oversight from the National Bank of Hungary (MNB). Traders can leverage positions, but must adhere to leverage limits and risk management protocols established by regulatory authorities.
3. Futures Contracts
   These standardized agreements obligate traders to buy or sell a specific amount of a currency at a predetermined price on a set future date. Futures are commonly traded on exchanges and are favored by those looking to hedge against currency risk or speculate on future price movements.
4. Options
   Options provide traders with the right, but not the obligation, to buy or sell a currency at a specified price before a certain date. This flexibility allows traders to manage risk and implement various strategies based on market expectations.
5. Forwards
   Similar to futures, forward contracts are agreements to exchange currencies at a future date for a price agreed upon today. Unlike futures, forwards are customizable and traded over-the-counter (OTC), making them suitable for parties with specific needs.

Restrictions on Forex Trading in Hungary

In Hungary, the National Bank of Hungary (MNB) enforces specific restrictions on certain financial instruments to protect retail investors from high-risk products. These measures are designed to mitigate potential losses and ensure a fair trading environment.

Binary Options: The MNB prohibits the marketing, distribution, and sale of binary options to retail clients. This ban is due to the highly speculative nature of binary options, which can lead to significant financial losses for inexperienced traders.

Contracts for Difference (CFDs): While CFDs are available to retail clients, the MNB imposes several restrictions to enhance investor protection:

• Leverage Limits: The MNB mandates varying degrees of initial margin requirements based on the type of underlying asset. Consequently, CFDs with different underlying assets are available to retail clients with a maximum leverage ratio of 30:1. This limitation is designed to prevent excessive risk-taking by traders.
• Margin Close-Out Protection: To protect retail clients, service providers are required to apply margin close-out protection. This means that one or more CFD positions must be closed on terms most favorable to the client when the sum of funds in the CFD trading account and the unrealized net profits of all open CFDs connected to that account falls to less than half of the total initial margin protection for all those open CFDs.
• Negative Balance Protection: A client’s aggregate liability for all CFDs may not exceed the amount of the client’s funds in the CFD trading account at any given moment. This ensures an upper limit for potential losses, preventing clients from incurring debts exceeding their account balance.
• Marketing Restrictions: Service providers are prohibited from publishing marketing information related to trading in CFDs unless it contains the standardized risk warning required by the MNB, which also presents the loss percentage of client accounts. Additionally, providers may not encourage trading by offering bonuses or other monetary or non-monetary benefits to retail clients.

Regulations on Forex Trading in Hungary

In Hungary, the forex market is regulated by the Magyar Nemzeti Bank (MNB), also known as the National Bank of Hungary. The MNB is responsible for overseeing financial institutions and ensuring the stability and integrity of the financial system. Its supervisory role encompasses licensing, monitoring, and enforcing compliance among forex brokers operating within the country.

The MNB’s regulatory framework aligns with European Union directives, particularly the Markets in Financial Instruments Directive II (MiFID II), which aims to enhance investor protection and promote fair, transparent, and efficient financial markets. Forex brokers in Hungary must adhere to these regulations to operate legally.

The MNB’s supervisory activities include:

• Licensing and Authorization: Forex brokers must obtain the necessary licenses from the MNB to offer their services in Hungary. This process involves meeting stringent capital requirements, demonstrating robust internal controls, and ensuring the competence of key personnel.
• Ongoing Supervision: The MNB conducts regular audits and inspections to ensure that licensed brokers comply with regulatory standards. This includes monitoring financial reporting, risk management practices, and adherence to conduct of business rules.
• Market Surveillance: To maintain market integrity, the MNB monitors trading activities to detect and prevent market abuse, such as insider trading and market manipulation. The MNB also enforces compliance with the Short Selling Regulation (SSR) and publishes warnings about entities engaging in unauthorized activities.
• Investor Protection: The MNB ensures that forex brokers implement measures to protect client funds, provide transparent information, and adhere to best execution policies. This includes enforcing requirements for negative balance protection, segregation of client funds, and clear risk disclosures.

Requirements for Forex Brokers in Hungary

In Hungary, forex brokers must adhere to stringent requirements set by the National Bank of Hungary (MNB) to ensure a secure and transparent trading environment for investors. These requirements are designed to align with both national regulations and European Union directives, particularly the Markets in Financial Instruments Directive II (MiFID II).

Licensing and Authorization

To operate legally, forex brokers must obtain a license from the MNB. The licensing process involves several key steps:

• Application Submission: Brokers are required to complete and submit a comprehensive application to the MNB. This includes providing a detailed business plan outlining the firm’s operational strategy, target markets, and financial projections.
• Financial Documentation: Applicants must submit audited financial statements for the past two years, if applicable, along with future financial projections. This demonstrates the firm’s financial stability and preparedness to operate in the forex market.
• Management Information: Detailed information about the firm’s management and ownership structure is required. This includes background checks to ensure that key personnel meet the ‘fit and proper’ criteria established by the MNB.
• Risk Management Framework: Brokers must provide an outline of their risk management systems, demonstrating their ability to manage and mitigate potential risks associated with forex trading.

Additionally, brokers are required to have a physical office in Hungary and maintain an account with a local bank. The presence of a local office ensures that the firm has a tangible presence in the country, facilitating better oversight and accountability. The minimum capital requirement for forex brokers is €125,000, which must be deposited in a local bank account.

Ongoing Compliance

Once licensed, forex brokers must adhere to ongoing compliance obligations, including:

• Capital Adequacy: Maintaining the required minimum capital to ensure financial stability.
• Reporting: Regular submission of financial reports and disclosures to the MNB, ensuring transparency and facilitating effective supervision.
• Conduct of Business: Adhering to conduct standards that promote fair treatment of clients, including clear communication, fair pricing, and prompt dispute resolution.

Taxes on Forex Trading Profits in Hungary

In Hungary, profits derived from forex trading are classified as capital gains and are subject to taxation under the country’s personal income tax framework. As of the latest available information, the tax rate on capital gains is 15%.

• Tax Reporting Obligations
  • Annual Tax Return: Individuals are required to report their capital gains from forex trading in their annual tax return. The deadline for filing is typically May 20th of the following year. For instance, profits earned in 2024 should be declared by May 20, 2025.
  • Calculation of Gains: The taxable gain is determined by subtracting the acquisition cost and any associated expenses from the total proceeds of the forex transactions. It’s essential to maintain detailed records of all trades, including dates, amounts, and transaction costs, to ensure accurate reporting.
• Social Contribution Tax
  In addition to the 15% capital gains tax, an additional 13% social contribution tax may be applicable if certain conditions are not met. This brings the total potential tax liability to 28%. However, specific exemptions or caps may apply, so it’s advisable to consult with a tax professional to determine individual obligations.
• Loss Offsetting
  Hungarian tax law allows for the offsetting of capital losses against capital gains within the same tax year. If losses exceed gains, the remaining amount can be carried forward to offset future capital gains for a limited period. Proper documentation of all trading activities is crucial to substantiate any claims of loss offsetting.
• Professional Advice
  Given the complexities of tax regulations and potential changes in legislation, it’s highly recommended to seek guidance from a tax advisor or accountant familiar with Hungarian tax laws. They can provide personalized advice, ensure compliance with all reporting requirements, and help optimize tax liabilities related to forex trading activities.

Choosing a Reliable Forex Broker in Hungary

Here are key factors to consider:

1. Regulatory Compliance: Ensure the broker is authorized and regulated by reputable financial authorities. In Hungary, the National Bank of Hungary (MNB) oversees financial institutions. Additionally, brokers regulated by well-known international bodies such as FCA or ASIC are considered trustworthy.
2. Client Fund Protection: A reputable broker should offer negative balance protection, ensuring that traders cannot lose more than their deposited funds. This is particularly important in volatile markets to prevent significant losses. Additionally, brokers should segregate client funds from their operational funds, ensuring that client money is protected even if the broker faces financial difficulties.
3. Transparent Fee Structure: Reliable brokers provide clear information about their fee structures, including spreads, commissions, overnight fees, and any other charges. Transparency in fees helps traders understand the true cost of trading and prevents unexpected charges.
4. Trading Platform and Tools: A dependable broker offers a robust and user-friendly trading platform equipped with essential tools such as real-time charts, technical indicators, and risk management features.
5. Customer Support: Responsive and knowledgeable customer support is vital. Traders should have access to assistance when needed, especially during trading hours. Support should be available through multiple channels, including phone, email, and live chat, and preferably in the trader’s preferred language.
6. Educational Resources: Reputable brokers often provide educational materials such as webinars, tutorials, and articles to help traders improve their skills and knowledge. Access to quality educational resources can be beneficial, especially for novice traders.
7. Reputation and Reviews: Research the broker’s reputation by reading reviews from other traders and checking for any regulatory actions or complaints. Consistent positive feedback and a clean regulatory record are indicators of a trustworthy broker.

FAQs

Are there any foreign exchange controls in Hungary?

No, there are no foreign exchange controls in Hungary. This means traders can freely engage in forex transactions without governmental restrictions on currency exchange.

What leverage limits are available for forex trading in Hungary?

Hungarian brokers offer leverage in line with European Securities and Markets Authority (ESMA) regulations:

• Up to 1:30 for major currency pairs (e.g., EUR/USD, USD/JPY)
• Up to 1:20 for non-major currency pairs (e.g., USD/HUF, EUR/HUF)

How are profits from forex trading taxed in Hungary?

Profits from forex trading are typically considered capital gains and are subject to a flat tax rate of 15%. However, this rate may increase to 28% if certain conditions are not met. It’s advisable to consult with a tax professional to understand your specific tax obligations.

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