Forex trading in Greece is legal and relatively safe. Since Greece is part of the European Union (EU), however, online brokers often restrict your access to high leverage ratios to the lower 30 to 1 ratio specified in the Markets in Financial Instruments Directive (MiFID) and its recent revision known as the MiFIR.
If you’re an investor looking for the best forex broker that provides services in Greece, then make sure to choose one that operates under strict local regulatory oversight. Also, since forex brokers can differ substantially in the products and services they offer, make sure to consider your trading needs carefully before opening an account with them.
Trading Forex in Greece: What You Need to Know
Forex trading in Greece used to be dominated by the Greek drachma. This national currency was replaced by the EU’s euro (EUR) that started circulating in January 2002 after its exchange rate was fixed on June 19, 2000 at 340.75 drachmas to the euro.
The Bank for International Settlements (BIS) noted that the euro ranked 2nd in 2016 among all actively traded currencies. The euro also accounted for 31.4% of forex market turnover that year. According to the International Monetary Fund (IMF), the euro ranked 2nd among central bank reserve currencies and made up 19% of central bank reserves in Q3 2018.
Although the euro is managed by the European Central Bank (ECB), the Bank of Greece is the Greek central bank tasked with implementing monetary policy in Greece, issuing euro banknotes and protecting the stability of the Greek financial system.
Financial regulation in Greece is handled by the Hellenic Capital Market Commission (HCMC) which protects and ensures orderly and efficient capital markets in Greece to promote economic growth and protect investors. All financial institutions, intermediaries and forex brokers need to be authorized by the HCMC before taking on clients from Greece.
Things to Consider Before You Open a Forex Account in Greece
When shopping around to find the best forex broker, keep in mind that the broker you choose is just as important as how you trade. Make sure to find a reputable one you feel safe depositing money with and take into account the list of key considerations below.
Probably the most important thing to look for when choosing an online forex broker is the quality of their local regulatory environment. Any decent online broker should be overseen by a major financial regulator. Also, the majority of regulators insist that brokers keep client funds segregated from their own funds, so keep an eye out for that protective feature in any broker you consider.
Online forex brokers typically let traders operate via proprietary trading software and/or popular 3rd-party platforms like MetaTrader 4 or 5 (MT4/5). Such software should allow trading directly from charts and include comprehensive technical analysis functions, a flexible interface and a news feed. Additional desirable features include custom indicator creation and automated trading.
Leverage determines the size of the trading position you can control with a given amount of margin. Greater leverage raises the risk of a position and therefore affects the size of both gains and losses. EU-regulated forex brokers typically offer a low leverage ratio of 30 to 1, while U.S.-based brokers offer a 50 to 1 ratio. Brokers operating outside of such highly regulated jurisdictions can offer leverage ratios beyond 1000 to 1.
You should be able to open up a free demo account to test out the platform and services of any online broker. Most brokers also offer micro accounts to those who want to trade in small sizes to practice in. Standard accounts are best for medium-size traders, while VIP accounts are aimed at traders with substantial funding. Most brokers will gladly accept euro deposits if you do not have U.S. dollars or pounds sterling to open up an account with.
Brokers should provide easy access to support staff to protect your account from costly errors or to support you in using their systems. You should be able to contact your online broker via live chat, phone, email and fax. If you prefer to speak or read Greek, look for a broker that has their website translated into Greek and has customer service staff who speak the language.
Those new to forex trading might want access to educational resources, as well as fundamental or technical research from financial experts. Look for a broker’s offerings such as e-books, blogs, webinars, online courses, social media feeds, videos and articles.
The Best Forex Brokers in Greece
- securely through Forex.com's websiteBest For:Forex Trading in and Outside the U.S.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
If you live in Greece, most international brokers will accept you as a client because you reside within the EU, although your ability to trade with substantial leverage may be hampered as a result. You will, however, enjoy relative currency stability because you live in a country that is a member of the Eurozone.
All online forex brokers offer services and websites in English, although some will also provide you with customer support and website text in Greek. When selecting a forex broker to trade via from Greece, it is paramount to choose a reputable and well-regulated broker that keeps its own funds distinct from its clients’ money.
Frequently Asked Questions
Is Forex Legal in Greece?
Forex trading is in fact legal in Greece. The primary regulator for forex in Greece is the Hellenic Capital Market Commission (HCMC). Greece is a part of the European Union, making forex trading relatively safe.
Is trading Forex in Greece safe?
Trading Forex in Greece is safe as long as you use a broker that is regulated by authorities.
Where can I find regulated brokers to trade Forex in Greece?
You can find a list of regulated Forex brokers in Greece by consulting the list above.
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