Overview of Forex Trading in Romania

Romania joined the European Union in 2007 and has been working hard to catch up with other EU countries in terms of productivity and GDP. Over the past decade, Romania has grown at one of the fastest rates among European countries. Today, it is the 40th largest economy in the world, with an annual output of $516.5 billion.

Romania currently uses its own currency, the Romanian Leu (RON), although it is planning to introduce the Euro. Although it remains one of the poorest and least developed countries in the EU, it has become a popular destination for investment and business due to its rapid economic growth and reputation as a hub for electronics, technology and mobile communications in Central and Eastern Europe.

Romanian Forex Regulation

Trading Forex is legal as long as the Forex broker is authorized to provide financial services in the country. The Forex regime in Romania is regulated by Regulation No. 4/2005 issued by the National Bank of Romania, including the mechanism for entering the Forex market, restrictions on buying and selling Forex, etc.

Everyone can access the Forex market in Romania, but Forex trading can only be carried out by Forex market intermediaries - except Romanians who access the Forex market through exchange houses and credit institutions. In order to legally offer services to residents, brokers need to hold a license from the local regulator, the Financial Supervisory Authority (ASF).

As a member of the European Union, Romania adheres to EU financial regulation directives, implemented under the EU Markets in Financial Instruments Directive (MiFID), which means that the country allows brokers registered and licensed in other EU jurisdictions to operate in Romania. For example, brokers licensed by the Cyprus Securities and Exchange Commission (CySEC) or the UK Financial Conduct Authority (FCA) can legally offer services to Romanian traders.

In addition, the European Securities and Markets Authority (ESMA) has set some restrictions on Contracts for Difference (CFD) trading. These rules affect retail clients of online brokers and are intended to enhance investor protection. According to these rules, Romanian Forex brokers are not allowed to offer bonuses and other incentives for CFD trading. Brokers are also required to close positions at a minimum margin of 50% and provide negative balance protection to limit client losses.

In addition, brokers are also restricted in the maximum leverage they can offer when offering CFD trading. The leverage limit for major currency pairs is 30:1, while the leverage limit for minor Forex pairs, gold and major indices is 20:1. The maximum leverage for commodity CFDs is 10:1, and for single stocks and other reference values ​​it is 5:1. The leverage limit for cryptocurrency CFDs is only 2:1.

Romanian Financial Regulators

The capital markets are regulated by the ASF, an independent body that replaced the National Securities Commission (CNVM), the Insurance Supervision Commission (CSA) and the Supervisory Commission of the Private Pension System (CSSPP).

The ASF regulates credit rating agencies, financial market participants and trading in various financial instruments, takes measures to combat insider trading and market manipulation, and is the country's national body responsible for implementing EU financial regulations. It also regulates Romania's major exchanges, including the Bucharest Stock Exchange (BVB) and the Sibiu Monetary and Financial Products Exchange (BMFMS), a specialized derivatives exchange.

The ASF is also a member of several international bodies, including the International Organization of Securities Commissions (IOSCO), the European Securities and Markets Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA) and the International Association of Insurance Supervisors (IAIS).

Romanian Forex Payment Methods

When looking for a suitable online Forex and CFD broker in Romania, traders should choose a broker that offers the Romanian Leu as the base account currency. Of course, clients can also open an account in Euros, US dollars or other foreign currencies, but due to additional conversion fees; another option is to use a bank card or e-wallet to deposit in the foreign currency of their choice.

There are many payment methods available in Romania, including credit and debit cards, digital wallets, instant banking services, prepaid methods, etc. Credit and debit card payments are the most common in the market, and the most popular brand is Visa. Brokers also offer Mastercard, Maestro, Diners Club International, etc.

Users who do not want to use credit cards can choose digital wallets. These modern, convenient and secure payment methods allow for fast and economical transactions online, including online shopping, paying bills or conducting foreign exchange transactions. Popular e-wallets include PayPal, Neteller, Skrill, WebMoney and ecoPayz.

However, online banking remains one of the preferred methods for making online payments. Although online bank transfers are usually slower than e-wallet or credit card transactions, this payment method is considered very safe. In addition, using online banking for trading may be the easiest option, as most people already have a bank account - just contact the bank and activate the online banking service.

Popular trading software in Romania

One of the most important considerations when choosing an online forex broker is the trading software provided by the company. It should speed up the trading process in the forex market and guarantee real-time transactions and instant execution. While the performance of a trading platform is crucial, traders should also take the time to evaluate its functionality and overall ease of use.

For this reason, it is recommended that investors open a demo account with a chosen broker to determine how the trading platform performs, whether it provides access to global markets and financial instruments, and whether the trading conditions (spreads, commissions, leverage, etc.) are suitable. In general, traders in Romania have access to the same platforms used by traders around the world.

Most brokers that welcome Romanian clients offer what is probably the most popular trading software, MetaTrader 4, which is suitable for both beginners and experienced traders with its user-friendly interface and a host of advanced tools and features. In addition, MT4 can be installed on any Windows or Linux computer, Mac, etc. Some traders prefer the web version, which can be opened directly in the browser without downloading. Of course, brokers also offer MT4 apps for Android and iOS devices.

Another popular Forex trading software platform is cTrader, which is currently offered by some of the leading brokers and is mainly used for Forex and CFD trading. It offers a variety of customization options, advanced trading features, automated trading, etc. Like MetaTrader 4, cTrader is also available in desktop and mobile versions, with various tutorials and social trading features.