Best Forex Brokers in Romania

• Navigating platforms can be difficult for beginners
• Instruments on MT4 platforms are significantly fewer than other platforms
• Charges monthly fee after 12 months of inactivity

Is Forex Trading Legal in Romania?

If you are a resident of Romania and you would like to trade currency pairs, you can legally participate in this type of activity. Luckily forex trading is a completely regulated market, with the ASF being the official regulatory body responsible for overlooking the operations of forex brokers within the country.

To be able to legally operate in Romania, brokers must obtain a license from the ASF. To do that, they must meet certain criteria to prove they are eligible to provide trading services to Romanian traders. The ASF is responsible for taking action against illegal trading activities and preventing unregulated brokers from accessing the Romanian forex trading market.

Since Romania is a part of the EU, forex brokers operating in the local market are also required to follow ESMA (European Securities and Markets Authority) guidelines and operate in accordance with MiFID 2. That also means that Romanian traders are not required to necessarily join forex brokers that have been licensed by the ASF. Instead, they can join any broker authorized to operate in the EU and EEA, with regulators like the FCA and CySEC often indicating you can trust the brand with your forex trading.

Autoritatea de Supraveghere Financiara (ASF) Regulation Info

Like any reputable financial market regulator, the ASF is responsible for several activities that help them regulate the trading market in Romania. The ASF can authorize brokers to operate on the territory of Romania, with companies required to submit several documents to prove their eligibility. Any entity that wishes to join the Romanian trading market can head to the official website of the regulator and check what documents they are required to submit in order to receive an ASF authorization.

The ASF is also responsible for monitoring the operations of financial companies and entities offering a wide range of financial services in Romania. Licensed forex brokers are also subject to ASF monitoring, which means the regulator is making sure brokers are compliant with imposed regulatory guidelines.

If you visit the official website of the regulatory body in Romania, you can also see the sanctions imposed on entities that have breached operational rules or have been operating illegally on the territory of Romania. This is a key feature that can help traders learn whether they are trading with a reputable forex broker.

Since the ASF operates following ESMA requirements, brokers authorized by the Romanian regulators are also required to be compliant with regulations and laws insisting on providing a fair trading market for all EU and EEA customers. That is why the ASF is also making sure local companies are following ESMA guidelines.

How Can I Verify ASF Authorization?

If a Romanian trading company has been registered with the ASF, it should provide all relevant information on its official website. Meanwhile, you can verify such information on the official website of the ASF, where the regulator has listed all companies registered with the Romanian financial regulator.

As already mentioned, the ASF also publishes public statements about any entity that has been fined by the regulator for breaching local trading regulations. That way, traders can be aware of any brokers that have been negligent in their operations or have been conducting trading operations without the proper authorization.

Are my Funds Safe with Forex Brokers in Romania?

When you trade with a broker authorized in Romania, you can be sure that your funds will be fully protected, with Romanian forex brokers following strict ESMA trading regulations. As already mentioned, traders based in this European country can choose to join brokers licensed by other regulatory bodies across the EU and EEA.

With major regulators like the FCA and the CySEC being some of the authorities ensuring safe forex trading for Romanians, it is also guaranteed that one’s money will always be protected via a wide range of security tools and measures adopted by all regulated EU brokers. Not only will all properly regulated brokers implement industry-standard software solutions like SSL encryption to protect your transactions, but you can often enjoy additional protection for your money.

Any reputable Romanian broker is making sure that the company’s funds and the money of investors are kept in separate bank accounts. In addition to that, brokers must meet requirements for certain starting capital when they apply for operational licenses. That way, entities can ensure they are eligible to fulfill their customers’ withdrawal requests even in the case of said companies ceasing their operations.

Most regulated brokers operating in Romania also offer negative balance protection, which is a great tool for limiting the risk level forex traders may be exposed to while trading currency pairs. Properly regulated companies should also provide enough information about the risks related to any form of trading they offer, with extra educational tools allowing traders to make informed decisions while they trade forex pairs.

Do Romanian Brokers Provide Negative Balance Protection?

Since Romanian brokers are required to abide by the rules imposed by ESMA, they should ensure a fair and safe trading environment for their customers. Negative balance protection is a feature that regulated EU brokers are required to implement into their operations, allowing forex brokers to be more cautious with their trading.

The negative balance protection tool comes in handy whenever traders are trying to take advantage of higher leverage. Unfortunately, while it can be very profitable, higher leverage can also lead to massive losses accumulated in no time. That is why, most Romanian brokers will apply this additional layer of protection to the accounts of their retail customers. With negative balance protection attached to your balance, you cannot amass losses that exceed the amount of your deposits.

Do Traders Pay Tax on Forex Trading in Romania?

While Romania brokers must ensure fair and safe trading conditions for their clients, local traders are also responsible for their trading endeavors. Some of the responsibilities of Romanian investors include paying any forex trading-related taxes that may apply to their profits.

In most areas where forex trading is legal and regulated, traders are required to pay capital gains tax on their income generated through forex trading. Romania has also introduced such a fee that will apply to the profits local traders have earned while they have been trading currency pairs. At the moment of writing this article, the capital gains tax in Romania is 10%.

We advise Romanian forex traders to always contact local financial experts to make sure there have not been any changes in laws and applicable tax rates. That way they can be sure that they are diligent with their forex trading on the territory of Romania.

How Does the Available Leverage of AFS-Regulated Brokers Compare to the Leverage at Brokers Regulated Offshore?

While trading currency pairs, forex traders are often concerned about the leverage they can enjoy. Although that may depend on the broker’s policy, the maximum allowed leverage is also determined by the local regulator responsible for ensuring a safe trading environment for investors. If you are trading currency pairs with a broker regulated in Romania, you will be offered a maximum leverage of 1:30 on major pairs and 1:20 on exotic or non-major pairs. In fact, these are the limits imposed on all brokers operating in the EU and EEA, as said limits were introduced by ESMA as a safety measure to reduce risk levels.

While higher leverage could potentially offer huge returns, it is also extremely risky as it can cost traders bigger losses. That is why other regulators have also adopted significantly low leverage maximum, with FCA and ASIC also requiring UK and Australian brokers to offer up to 1:30 leverage on major pairs and 1:20 on non-major pairs.

Other markets have increased the potential maximum leverage, with US brokers being allowed to offer up to 1:50 leverage on major pairs. It should be noted that regulators in some states have allowed brokers to impose lower leverage limits.

While most regulators have taken a more cautious approach, there are also markets where you can see the leverage go as high as 1:5,000 or even higher. One example of such a market is the Seychelles, with local brokers being compliant with regulations imposed by the FSA.

What Do You Need to Qualify to be Designated as a Professional Trader in Romania?

While leverage limits offer a safer approach to forex trading, some traders do not appreciate this type of restriction, especially if they tend to trade bigger volumes. Luckily, leverage limits apply only to retail traders while professionals can enjoy reduced commissions and significantly higher leverage. To be eligible for a professional trading status, however, you must meet certain criteria.

According to ESMA, traders in the EU and EEA, including Romania, can apply for professional trading accounts if they can prove that they are experienced enough, have the knowledge to understand financial markets, and have the funds to support trading with bigger sums. As long as they meet two of the three requirements we have listed below, Romanian investors can be classified as professional traders:

• Make at least 10 transactions of a significant amount per quarter in the last one year
• Prove to have at least one year of experience working in the financial markets industry
• Have a portfolio of financial instruments that is equal to or exceeds €500,000

Each reputable forex broker operating in Romania will allow its clients to apply for a professional trading account, requiring several documents that can help them verify their eligibility for a professional status. If you want to enjoy the perks that come with professional trading, make sure to follow the steps required by your broker of choice and you can start enjoying better pricing and higher leverage in no time.

What Trading Platforms are Available to Romanian Traders

Romanian traders will have no issue trading with any of the top forex brokers we have listed in this article, as they all offer some of the most popular trading platforms to their clients. While there are many brands that offer their proprietary platforms, which may often include exclusive and extremely useful tools, it is also common to see platforms like MetaTrader 4 and 5, cTrader, and WebTrader supported by the majority of Romanian forex brokers.

MetaTrader 4: You cannot go wrong if you choose to trade with MT4, with this platform being one of the most suitable options for forex traders. With a user-friendly interface, MT4 allows both newbies and advanced traders to enjoy smooth trading experiences. Whether you are on your desktop device or your smartphone, the majority of brokers will allow you to use MT4 across various devices.

MetaTrader 5: Considered by many as the more advanced option of MT4, this platform adds to the forex and CFD options available in MT4. With more markets, additional instruments, and great insight into trading, investors can easily make decisions and place orders on the MT5 platform.

WebTrader: No matter how convenient other platforms may seem, some investors do not appreciate the inconvenience of having to install additional software on their devices. That is why, many Romanian brokers have added WebTrader to their offerings, allowing a seamless trading experience available straight on your browser. Whether you are on your computer or your smartphone, all you need to access numerous markets is to launch the WebTrader platform in your browser.

cTrader: This platform makes trading a lot smoother, intuitive, and advanced. With many advanced traders enjoying the options in cTrader, quite a few Romania forex brokers have adopted the platform, allowing their clients to enjoy access to numerous charts, analysis, and drawing tools. With cTrader, it is much easier to make informed decisions and assess the risk while trading forex pairs and other products.