Can i trade forex in France

Yes, Forex trading is legal in France under strict oversight by the Autorité des Marchés Financiers (AMF). All brokers must be registered with the AMF and listed in the REGAFI database. Retail traders face leverage limits of 1:30 for major currency pairs and 1:20 for minors under ESMA regulations. Platforms must provide negative balance protection and comply with MiFID II transparency rules.

Taxes on Forex profits follow the Prélèvement Forfaitaire Unique (PFU) regime. Gains are taxed at 30% (12.8% income tax + 17.2% social charges). Declare earnings exceeding €305 yearly via Form 2086. Non-residents pay 12.8% tax without social charges if they submit a Tax Residence Certificate.

Verify brokers using the AMF’s Regafi Search Tool. Avoid unregulated entities offering leverage above ESMA caps. Saxo Bank and IG are AMF-compliant brokers with EUR-denominated accounts. Note that Forex cannot be traded through tax-advantaged PEA accounts; use standard comptes-titres (CT) instead.

Certain strategies like algorithmic trading require explicit broker approval under AMF rules. Check platform terms before using automated tools. All transactions must be reported for tax purposes, including losses, to offset gains.

Can I Trade Forex in France

Yes, forex trading is legal in France, but it’s strictly regulated by the Autorité des Marchés Financiers (AMF). Only brokers authorized by the AMF or operating under EU regulations via MiFID II can offer services to French residents. Retail traders must adhere to EU-wide leverage limits: 30:1 for major currency pairs, 20:1 for non-major pairs, and 2:1 for cryptocurrencies.

Key requirements for trading forex in France:

Verify broker authorization via the AMF’s REGAFI registry before opening an account.
Retail accounts are subject to negative balance protection and mandatory risk warnings under ESMA rules.
Profits from forex trading are taxable as non-professional income under the 30% flat tax rate (PFU).

Recommended brokers for French traders:

Saxo Bank (authorized by AMF)
Interactive Brokers (MiFID-licensed)
IG Group (regulated by AMF)

French residents cannot trade CFDs on forex through unregulated offshore brokers–AMF bans advertising and restricts access to non-compliant platforms. For high-volume traders, professional status (€50K+ capital, 10+ significant trades per quarter) exempts you from leverage limits but removes retail protections.

Legal Regulations and Authorized Forex Brokers in France

Forex trading is legal in France under strict oversight by the Autorité des Marchés Financiers (AMF). Only brokers registered with AMF and compliant with EU’s Markets in Financial Instruments Directive (MiFID II) may offer services to French residents. Verify a broker’s authorization status via the AMF Regafin database before opening an account.

Authorized Forex Brokers in France:

Saxo Bank France (AMF registration: 12808) – Offers 182 currency pairs with spreads from 0.7 pips.
IG France (AMF registration: 73263) – Provides fixed commissions of €10 per million EUR traded.
eToro Europe (CySEC & AMF passporting) – Allows social trading with a minimum deposit of $50.
XTB France (AMF registration: 76217) – Features swap-free accounts and free access to TradingView tools.

AMF-regulated brokers must adhere to:

Client fund segregation in AA-rated EU banks.
Negative balance protection for retail traders.
Leverage limits of 30:1 for major currency pairs (e.g., EUR/USD) and 20:1 for minors.
Mandatory risk warnings disclosing past-performance disclaimers.

Avoid brokers not listed in Regafin. Unauthorized platforms like FXTM, OctaFX, and FP Markets face regular AMF blacklist updates; trading with them voids legal protection. Report suspicious activity to AMF’s FinTech Innovation Hub within 48 hours via their whistleblower portal.

French traders pay 30% flat tax on forex profits under the prélèvement forfaitaire unique regime. Declare earnings exceeding €305 annually using Form 2086.

Tax Obligations and Reporting Requirements for Forex Traders in France

Forex trading profits in France are taxed under capital gains rules. Traders must declare net gains exceeding €5,000 annually on Form 2042 C, with additional details provided on Form 2074 for capital assets.

Two tax regimes apply:

Flat Tax (PFU): 30% combined rate (12.8% tax tax + 17.2% social contributions).
Progressive Income Tax: Rates from 0% to 45%, plus 17.2% social charges. Requires opting out of PFU.

Losses can offset capital gains for the current year and up to 10 subsequent years. CFD trading profits follow the same taxation but require separate reporting as speculative income.

Key deadlines:

April-June: Online tax declaration submission
September: Final tax payment

Non-compliance penalties include fines up to 10% of undeclared amounts. Maintain detailed records of trades, account statements, and currency conversion rates for at least six years.