French Forex Brokers

French Forex Brokers: Rules and Regulations

FranceRegulation of the forex market in France is carried out by the Autorité des Marchés Financiers (AMF). This regulator issues guidelines under which operators in the financial markets do business in France.

Understanding Regulation of Forex in France

In France, the AMF has what can best be described as an anti-forex stance. The AMF has traditionally been an organization which prefers to push French citizens towards investments with relatively lower risk profile such as the stock market, while having a hostile stance towards high-risk investment vehicles such as forex trading. The AMF claims to provide added protection to investors by alerting them to advertising campaigns which seem to overpromise on the returns that can be attained from forex trading. AMF is convinced that for the most part, many of the forex brokers operating in the market downplay risks in forex trading as a means of luring French citizens to part with their hard earned money.

Consequently, the AMF now maintains an official blacklist of forex companies, which it says are not licensed to do forex business in France and therefore not safe for French citizens to invest in. This list is not static and is constantly updated. Presently, 25 forex brokerage companies have been placed in the AMF blacklist, with the AMF maintaining its conservative stance on financial investments in forex.

This list also includes companies listed as offering financial intermediary services, or introducing brokerage services. But are there any forex brokers licensed to do business in France?

Top 3 French Forex Brokers:

1
Min. Deposit
$10
Exclusive promotion
Our score
10
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Start Trading
Description:
LonghornFX is a true ECN STP broker dedicated to delivering a superior trading experience to traders no matter their level of experience. Their services are based on transparency, innovation and efficiency, ensuring an unparalleled trading experience for all.
Payment Methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
0% Commission Account
Low Spreads
Eco-Account Option
Start Trading
Description:
CedarFX is an eco-conscious broker offering 0% commission trading on 170+ assets, including Forex, Cryptocurrency Pairs, Stocks, Indices and Commodities. With up to 1:500 leverage, no-fee transactions and low spreads, traders can make the most of their funds. CedarFX also offers an Eco Account option to support tree planting and sustainability projects.
Payment Methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
3
Min. Deposit
$200
Exclusive promotion
Our score
8.7
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro offers a wide range of currency pairs and other trading instruments. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
4
Min. Deposit
$10
Exclusive promotion
Our score
8.5
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Start Trading
Description:
EagleFX is an online digital asset, Forex and CFD broker providing traders across the globe with cutting edge technology to trade the world’s markets. Our focus has been to change the way people trade Digital Assets and Forex. We are driven to provide traders with incredibly low-cost pricing across all Digital assets, FX, stocks, indices, commodities and futures along with industry-leading 24/7 live customer support.
Payment Methods
Credit Card, Debit Card, Bitcoin, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.
5
Min. Deposit
$200
Exclusive promotion
Our score
7.9
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Start Trading
Description:
BlackBull Markets is a top-tier, award-winning, and financially registered forex broker with a globally trusted presence. Operating since 2014, BlackBull Markets is now the fastest growing financial services business in New Zealand. We were founded with the goal of becoming the leading online Financial Technology and Foreign Exchange broker. BlackBull Markets is a true ECN, No Dealing Desk brokerage specializing in Forex, CFDs, Commodities, Fibre Optic Communications and Fintech solutions for a global clientele.
Payment Methods
Mastercard, Visa, Bank Transfer, Neteller, Skrill, UnionPay, FasaPay
Full regulations list:
FSPR, FMA New Zealand

Status of Forex Trading in France

AMF has adduced reasons for its action. In a report filed in the third quarter of 2014, AMF presented data which showed that French forex traders covering the entire spectrum from novice to experienced trader, lost a total of 161 million Euros over a 5 year period. Anyone who knows the nature of the forex market will understand that this is a form of capital flight from the country, as money lost by a trader in one country is money gained by traders in other countries in the globalized forex arena.

The report also presents other data which are sobering:

  • 9 out of every 10 traders lose money in forex
  • Average losses are about 10,900 Euros between 2009 and 2012.

Most of the losses are attributed to the unscrupulous practices of brokers who are located outside the shores of France and out of reach of the AMF in response to numerous complaints of these infractions made to it by victims.

AMF has therefore come out with a position.

  1. Block the websites of these companies from appearing on France cyberspace. A court judgment from the Court of First Instance in Paris has been obtained to this end.
  2. Use satirical pop-ups to ridicule the ads of blacklisted brokers if they are able to evade the first step.

french forex brokers

So while the AMF has not banned forex trading in France, it has come out with a position which is exemplified by the comments of Natalie Lemaire of the Retail Investors Relations Directorate of the AMF:

“foreign exchange trading is a market that individual investors should avoid. This is our conviction and the purpose of our efforts today”.

Implications for Forex Traders in France

In the light of the information provided above, we can therefore see that it is going to be very difficult for brokerage firms to get licensing to do forex brokerage business in France. With what could be viewed as a biased mindset of the AMF towards the business of forex, many forex firms would not waste their time and efforts to try to get licensed in France, but would rather move to places like the UK, Cyprus and Germany where they would more easily get their business registered.

Forex traders in France will therefore have to seek other options abroad with licensed companies.

The Future of Forex Regulation in France

The maintenance of the blacklist by the AMF is not entirely a bad thing, as our review has shown that there are several forex brokers on that list which deserve to be there as a result of nebulous regulatory disclosures on their websites.

Going forward, the AMF would be better served by making known to traders in very clear terms, the reasoning behind the listing of some of the companies in the blacklist. It should not be left to traders to have to start combing the internet searching for reasons for the blacklisting of brokers. Newbie traders do not have the knowledge or the experience to start sifting information as to why a broker is blacklisted or not. By making the reasons known to all, some contribution to knowledge can be made for the benefit of new traders, who can then tap into this resource when searching for brokers to do business with.

One thing the AMF has done rightly is the new arrangement it has with the Financial Conduct Authority (FCA) in the UK, and CONSOB in Italy on the disclosure of brokers who advertise for clients and claim to be regulated in these other climes when they are actually not licensed to do so. Such disclosure has the potential to save many traders from falling into the hands of these scam brokers.

It is our opinion however, that the AMF should drop its hardline stance against forex trading as a whole, and focus instead on sanitizing the sector. We use the knife to draw an analogy in this regard. A knife is a tool. In the hands of a chef, a knife would be useful in cutting up ingredients which would make for great recipes. In the hands of a killer, a knife is an agent of death. But would the approach be to throw the knife away simply because it can cause harm? Imagine a world without the knife.

Imagine a world without forex trading. AMF would be better served refocusing and repackaging its forex regulatory function.

Adam

More About

Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

View Posts - Visit Website

Leave a Reply