Despite lower volatility and client activity, ESMA’s recent regulations have given traders confidence in the Spanish market.
Spain, the country which has given the world Sangria and Paella, is the fifth largest economy in the European Union. After a tough period which saw the country fall into recession, the country is now on the mend, and so is its foreign exchange (Forex) industry.
In our latest country overview series, we are taking a look at the FX industry in Spain - who are the top brokers, what trends influence the industry as well as the most popular assets and trading instruments.
Spain’s Financial Market
Spain’s financial market rests under the national umbrella of the Spanish Stock Market - including the bolsas, the derivatives markets, and fixed-income markets. Out of the bolsas, the Bolsa de Madrid is the largest and most international of Spain’s four stock markets.
The benchmark of the Bolsa de Marid is the IBEX 35 Index, a capitalization-weighted index comprising the 35 most liquid Spanish stocks traded in the continuous market.
ESMA Regulation Brings Confidence to Spain’s FX Market
For the securities market, which includes forex, the country’s local regulator is the National Securities Market Commission (CNMV), which is responsible for supervision and inspection. However, as Spain is part of the EU, FX trading providers must also abide by the rules outlined by the European Securities and Markets Authority (ESMA).
One of the largest changes to Spain’s FX and contracts-for-difference (CFD) sector, was the product intervention measures imposed by ESMA last year, which saw leverage restrictions on a number of instruments, as well as marketing caps and the banning of binary options.
This not only impacted Spain but all countries in the EU. As Finance Magnates has reported extensively since the measures were introduced last year, brokers have seen a drop in client activity, volatility, and as a result, profits and revenues.
However, despite the obstacles that ESMA’s product intervention measures have brought, Javier Molina, an analyst at eToro, believes that overall, the changes in regulation has been positive as it has brought more control for traders and more confidence in the industry.
Top Brokers in Spain
Because of the structure of EU law, traders in Spain have the ability to trade with a suite of European brokerages such as CMC Markets, eToro, AvaTrade, FXTM and more. But which brokers top the list in terms of trading volume in the country?
According to estimates from Finance Magnates Intelligence DIF Broker, a Portuguese broker with operations in Spain, leads the way in the country, followed by UK-based IG and ClickTrade.
Who is the Average Trader in Spain?
According to Molina, the most popular FX instrument to trade is the EUR/USD currency pair - the most commonly traded on the market. This is because traders in Spain tend to be more conservative and stick to the main currencies.
Speaking to Finance Magnates, Molina said: “Investors in Spain are more likely to be male, older than 26 and college educated. Investors with lower portfolio values tend to hold a less diverse mixture of investments than those with higher portfolio values.”
“Just 14% of those with investments, use products with leverage. In general, they tend to be conservative and when trading, really concentrated in no more than 2 or 3 assets. FX and cryptos are currently the most traded assets for Spanish investors on eToro,” he added.
In Spain, most FX day trading happens through near-term futures, options, and CFDs, with the latter being the most popular for traders with medium and low portfolios in terms of volume.
The biggest influences on trading trends and the use of specific products in Spain is market Liquidity , regulations, and the global economy, according to Molina.
When asked whether he believes the FX industry in the country is healthy, Molina replied: “Yes. Investors have developed and honed their skills in the last few years. We have more online brokers offering good educational tools, including seminars, and webinars.”
Spain, the country which has given the world Sangria and Paella, is the fifth largest economy in the European Union. After a tough period which saw the country fall into recession, the country is now on the mend, and so is its foreign exchange (Forex) industry.
In our latest country overview series, we are taking a look at the FX industry in Spain - who are the top brokers, what trends influence the industry as well as the most popular assets and trading instruments.
Spain’s Financial Market
Spain’s financial market rests under the national umbrella of the Spanish Stock Market - including the bolsas, the derivatives markets, and fixed-income markets. Out of the bolsas, the Bolsa de Madrid is the largest and most international of Spain’s four stock markets.
The benchmark of the Bolsa de Marid is the IBEX 35 Index, a capitalization-weighted index comprising the 35 most liquid Spanish stocks traded in the continuous market.
ESMA Regulation Brings Confidence to Spain’s FX Market
For the securities market, which includes forex, the country’s local regulator is the National Securities Market Commission (CNMV), which is responsible for supervision and inspection. However, as Spain is part of the EU, FX trading providers must also abide by the rules outlined by the European Securities and Markets Authority (ESMA).
One of the largest changes to Spain’s FX and contracts-for-difference (CFD) sector, was the product intervention measures imposed by ESMA last year, which saw leverage restrictions on a number of instruments, as well as marketing caps and the banning of binary options.
This not only impacted Spain but all countries in the EU. As Finance Magnates has reported extensively since the measures were introduced last year, brokers have seen a drop in client activity, volatility, and as a result, profits and revenues.
However, despite the obstacles that ESMA’s product intervention measures have brought, Javier Molina, an analyst at eToro, believes that overall, the changes in regulation has been positive as it has brought more control for traders and more confidence in the industry.
Top Brokers in Spain
Because of the structure of EU law, traders in Spain have the ability to trade with a suite of European brokerages such as CMC Markets, eToro, AvaTrade, FXTM and more. But which brokers top the list in terms of trading volume in the country?
According to estimates from Finance Magnates Intelligence DIF Broker, a Portuguese broker with operations in Spain, leads the way in the country, followed by UK-based IG and ClickTrade.
Who is the Average Trader in Spain?
According to Molina, the most popular FX instrument to trade is the EUR/USD currency pair - the most commonly traded on the market. This is because traders in Spain tend to be more conservative and stick to the main currencies.
Speaking to Finance Magnates, Molina said: “Investors in Spain are more likely to be male, older than 26 and college educated. Investors with lower portfolio values tend to hold a less diverse mixture of investments than those with higher portfolio values.”
“Just 14% of those with investments, use products with leverage. In general, they tend to be conservative and when trading, really concentrated in no more than 2 or 3 assets. FX and cryptos are currently the most traded assets for Spanish investors on eToro,” he added.
In Spain, most FX day trading happens through near-term futures, options, and CFDs, with the latter being the most popular for traders with medium and low portfolios in terms of volume.
The biggest influences on trading trends and the use of specific products in Spain is market Liquidity , regulations, and the global economy, according to Molina.
When asked whether he believes the FX industry in the country is healthy, Molina replied: “Yes. Investors have developed and honed their skills in the last few years. We have more online brokers offering good educational tools, including seminars, and webinars.”
Interactive Brokers Expands Offerings with Daily Options on French Stocks
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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