Borsa Italiana

Borsa Italiana brokers offer access to a major European stock exchange dealing in Italian stocks, indices, ETFs and derivatives. The Italian stock exchange has an eventful history and is home to several notable global companies, including Juventus, Moncler and UniCredit. This guide lists the best Borsa Italiana brokers and trading platforms in 2022. We also share insights into price determinants, historical performance, trading strategies, the number of listed companies, and tips on choosing the best brokers with access to the Borsa Italiana.

Borsa Italiana Brokers

  1. IG-US offer spread betting, CFD and Forex trading across a range of markets. They are FCA regulated, boast a great trading app and have over 47 year track record of excellence.

    Forex trading involves risk. Losses can exceed deposits

  2. IB Boast a huge market share of global trading. With a minimum deposit of $10,000 however, they remain an option for larger traders only.

  3. InstaForex is a CFD broker providing access to forex, stocks, cryptocurrencies, commodities, energies, indices, and more. With competitive fees and a huge range of available assets, the brand offers safe and reliable trading.

How To Trade At Borsa Italiana Brokers

There are plenty of trading vehicles provided by Borsa Italiana brokers, the exchange, and investment companies.

Single Stocks

Individual stocks are available through some of the top Borsa Italiana brokers. However, international investors may have difficulty finding a provider and website that supports Italian companies outside the MIB 40.

Some of the largest stocks are available for CFD trading through Borsa Italiana brokers that support EU stock CFDs.

Futures and options contracts for equities such as Banco Bpm, Unicredit S.p.A and other high market cap listed companies are available directly from the exchange.

Indices

The indices of the Borsa Italiana are arguably the most accessible trading product. There are many different methods of speculating on the value of these indices at the best Borsa Italiana brokers. However, the larger indices, such as the MIB 40 and MIB ESG, may have more options than the smaller stock collections.

For pure investing, mutual funds that track Borsa Italiana indices’ performance are available from several investment companies. Traders signed up with a specialist investing broker should have no trouble finding multiple options for each index.

Another option is to use an ETF that tracks a specific index. This instrument gives investors more flexibility as ETFs can be traded throughout the day. Derivative ETFs also offer inverse and leveraged index tracking of up to 3x or -3x.

There are several other derivatives available for speculation on Italian stock indices. For example, some Borsa Italiana brokers offer CFDs, binary options or spread betting markets on the MIB 40. Alternatively, the exchange itself provides options and futures contracts on its indices.

ETFs

In addition to tracker ETFs, sector-specific ETFs are available from the Borsa Italiana. Investors can gain exposure to ESG groups, inflation derivatives, industry sectors like finance and tourism and much more through hundreds of specific ETFs.

Bonds

The Borsa Italiana provides domestic and international government bonds to investors. Corporate bonds from Italian and global companies are also available.

On the downside, there is a limited selection of relevant bonds at Borsa Italiana brokers.

Comparing Borsa Italiana Brokers

When choosing brokers with access to the Borsa Italiana, there are several things to look out for:

Instruments

When it comes to online trading, ensuring that Borsa Italiana brokers support your favored instruments is the first place to start.

For example, binary options traders that want to speculate on the MIB 40 will have to find an entirely different provider than investors that wish to purchase Kolinpharma or BE Group equities.

Whether you want to invest in indices, stocks or bonds or trade using derivatives, ensure your Italian stock exchange broker can meet your needs. Multi-instrument traders may also want to consider signing up with two or more brokerages to meet individual trading goals while benefiting from the most competitive investing conditions.

Leverage

A big factor for derivatives traders is leverage. Some products, such as options, futures and ETFs, come with fixed, inherent leverage. However, Borsa Italiana brokers with high leverage are often a must for CFD traders who want to trade in large volumes with a small initial outlay.

Safety & Regulation

Staying safe is important in the online investing sphere. Therefore, look for Borsa Italiana brokers with a genuine licence from a reputable regulator, such as the Cyprus Securities & Exchange Commission (CySEC) or the UK Financial Conduct Authority (FCA).

In addition, our experts recommend choosing Borsa Italiana brokers and platforms with additional login protection measures, such as two-factor authentication (2FA), to further safeguard your funds from fraud.

Fees

Experienced traders know that working with Borsa Italiana brokers with low fees can enhance profits or diminish losses when trading. To this end, research the fee schedule of a prospective brokerage and directory, looking into areas such as spreads and commissions, deposit and withdrawal fees, market data fees, margin rates and inactivity charges.

Note, if an Italian stock exchange broker is entirely fee-free or has far lower charges than its competitors, consider whether this offer is too good to be true.

Opening Hours

The Borsa Italiana follows set trading hours from Monday to Friday every week, excluding calendar holidays. These trading hours are 09:00 to 17:30 Italian time, which follow the CET and CEST time zones.

There is also a pre-market session where limited trading can occur between 08:00 and 09:00, as well as an aftermarket session from 18:00 to 20:30.

While using international Borsa Italiana brokers, we noted that it’s worth checking their individual opening times to ensure they offer market and platform access when you wish to trade.

Payment Options

Find Borsa Italiana brokers with convenient and low-cost deposit options. This could include debit and credit cards, e-wallets like Skrill, bank wire transfers, or even crypto payments.

The top trading platforms also offer local payment solutions, for example, those popular with Italian stock traders. Note, Borsa Italiana brokers that primarily accept US clients may have regional payment methods unavailable to international traders.

Strategies

Not all Borsa Italiana brokers support every strategy, whether that be scalping, hedging or using automated bots. And due to the wealth of different instruments and products available when trading the Italian stock exchange, there is no shortage of potential strategies. Popular systems used by beginners through to seasoned traders include:

  • Fundamentals – When looking at a stock, index or bond, long-term investors should consider the product’s intrinsic value and whether it is trading higher or lower than this level. This can inform traders whether to buy long or sell short using instruments such as futures, options and ETFs. Long-term projections about the sector of the product can also come into play. For example, a fossil fuel company will likely need to pivot towards greener forms of energy to survive into the next 20 years.
  • Momentum – The alternative to fundamentals trading is conducting stock, index or bond analysis based on short-term price movements. This momentum-based strategy is based on short-term factors such as breaking news rather than long-term projected outcomes. Therefore, a firm grasp of technical analysis is often key to successfully implementing this strategy, as is using an investing platform with ample graphs, indicators and drawing tools. Suitable instruments for making money off short-term trends include CFDs, spread bets and short-term binary options, available at many of the top-rated Borsa Italiana brokers. Leading platforms will also offer real-time price quotes from today in real-time, information on data fees, corporate actions, financial statements and filings, among other YTD, last week or last month statistics.
  • Dividend Investing – Dividend investing involves investing in a stock, index or bond to capitalize on high payouts to investors. As a lower-risk strategy compared to derivative trading, dividend investing is used by many as a form of passive income, with little to no intraday trading activity required. Several high-yielding stocks within the Borsa Italiana could facilitate this strategy, such as Zucchi, Jonix and BCA Profilo. Indeed, the main index of the Borsa Italiana, the MIB 40, yielded an impressive 4.67% in 2022. However, there is no specialist dividend-focused index of stocks provided to investors by the exchange.
  • Covered Calls – Similarly to dividend investing, covered calls are an options strategy designed to generate small but consistent profits. Investors need to hold a long spot position on a Borsa Italiana product and then sell short positions to investors. The options premium is the profit of this trade.

About The Borsa Italiana

Founded in 1808 as the ‘Borsa di Commercio di Milano’, or Milan Stock Exchange, the Borsa Italiana S.p.A. oversees the publicly listed companies of Italy and the region’s major indices, bonds and derivative markets.

The Borsa Italiana is traded in Euros. However, investors can trade some stocks and indices in alternative currencies through regional mutual fund trackers and ETFs.

Licensed by the Italian government agency CONSOB, the exchange sets guidelines for its member companies and provides real-time market information from its data centre building to online Borsa Italiana brokers and financial platforms.

Ownership

The Borsa Italiana has undergone several attempted changes in ownership in its recent history.

In 1998, the exchange moved from public ownership to private, shortly after the merger of all Italian markets to the single exchange. The London Stock Exchange (LSE) then purchased the exchange in late 2007. However, less than ten years later, they attempted to sell the Borsa Italiana to Deutsche Borse in 2016, though this sale was vetoed by the EU Competition Regulator.

The London Stock Exchange finally offloaded the Borsa Italiana in 2021, with regional exchange company Euronext taking control for a reported sale price of €4.3 billion. The Euronext migration of the exchange is underway, along with a name change to Euronext Milan to reflect the acquisition.

Importantly, the top Borsa Italiana brokers will continue to provide retail trading products on the exchange under the new name and structure.

Indices

Italian stock exchange brokers typically offer several regional indices, which can often be traded using CFDs, ETFs, and mutual funds, among other instruments. These are made up of companies that meet the listing requirements of the exchange and are arranged thematically.

Some of the more notable indices include:

  • FTSE MIB 40 – The major index of Italy, the MIB 40 contains the 40 biggest companies within ten major market sectors. This index is widely available for spot, futures and derivatives trading.
  • FTSE Italia MIB Dividend – The MIB Dividend has a value based on the cumulative dividend yield of the MIB 40 stocks, readjusting after each corporate action.
  • FTSE Italia All-Share – The Italia All-Share Index offers exposure to Italy’s entire stock market, including all stocks from the FTSE MIB, FTSE Italia Mid Cap and FTSE Italia Small Cap indices.
  • FTSE MIB IVI – The Implied Volatility Index (IVI) tracks the expected volatility of the FTSE MIB 40 using options contracts values. This index is available in 30, 60, 90 or 120-day formats.
  • FTSE MIB ESG – The MIB ESG contains the top 40 ranked stocks in terms of ESG score from a basket of the 60 most liquid Italian companies.

Price & Performance

With a total share value of just under €560 billion, the value of the Borsa Italiana members list makes up over 30% of Italy’s national GDP. Over 80% of this value is contained within the FTSE MIB index, which has returned a yearly average of 3.04% since December 1997.

The MIB’s record high occurred in 2000 when only 30 constituent companies were within the index. The index reached a value of 50,109.00 at close on 6th March 2000.

Unfortunately, the index has not reached this level since, with promising highs exceeding 40,000 in 2006 being short-lived. The historical low of the index was in May 2012, when the MIB 40 reached 12295.76.

Dividends

Dividends are a way for investors to get paid on long-term stock investments and generate passive income from holding stocks. With a 2022 dividend yield of 4.67%, this index pays out significantly more through dividends than similarly priced European indices.

While there is no specific dividend index within the Borsa Italiana, traders can invest individually in high-yield stocks such as Zucchi, Jonix and BCA Profilo to make the most of this investment strategy.

Alternatively, through the MIB Dividend index, investors can speculate on the dividend value paid out by MIB 40 companies.

Note, check Borsa Italiana brokers you are considering trading with offer direct shares dealing versus derivatives to benefit from dividend payments.

Price Determinants

Here are some of the major price determinants when looking at the value of Borsa Italiana stocks and indices:

Local Economy

The performance of the local economy in Italy will significantly impact its stocks– even those with substantial internal exposure. For example, changes in the import and export tariffs or laws, business tax adjustments or the country’s employment levels can all holistically affect stock prices.

Value Of The Euro

The value of the Euro compared to other major global currencies, such as GBP and USD, will also affect the value of Borsa Italiana member companies.

A stronger Euro will tend to mean an increase in the share prices of European or globally positioned stocks, with any fluctuations likely amplified for the high market cap MIB 40.

Fortunately, the best Borsa Italiana brokers offer insights into the currencies and economies of neighbouring countries.

Single Stock Performance

80% of the index’s market capitalization is centred on the top 40 companies. Of these 40, the top 10 comprise over 65% of its weighting.

As a result, the top ten stocks hold over 50% of the overall exchange value, making the Borsa Italiana and its non-specific indices highly exposed to these companies.

Italian stock exchange investors should take note of the outlook of energy companies Enel and Eni, Automotive firms Stellantis and Ferrari and banks Intesa Sanpaolo and Unicredit S.p.A.

Global Economy

With more and more companies expanding into international business, global market sentiment can have far-reaching effects worldwide. As a prominent European exchange, changes in the global economy will significantly impact the Borsa Italiana.

For example, the MIB 40 dropped 19.6% from September 2021 to 22nd September, mirroring significant drops in the US S&P 500, UK FTSE 100 and global crypto markets.

Again, the best Borsa Italiana trading brokers will offer insights into geopolitical events and other indices.

Ownership

Any significant hurdles in transferring ownership from the London Stock Exchange to Euronext may also impact investors’ trust in the Italian stock exchange. Having already survived a scare when EU competition laws blocked the exchange sale to Deutsche Borse, further complications could lead to a stock sell-off.

Final Word On Borsa Italiana Brokers

As Italy’s only stock exchange, the Borsa Italiana S.p.A forms the hub of all the trading activity in the European country. Investors can trade stocks, indices, bonds and ETFs through the Euronext-owned exchange. Both domestic and international brokerages will support the major trading assets, such as the MIB 40 index and stocks such as Ferrari, Moncler, Juventus and Unicredit S.p.A. However, a regional broker may be required for more obscure Borsa Italiana offerings.

Use our list of the best Borsa Italiana brokers to start trading.

FAQ

Do Borsa Italiana Brokers Offer CFDs?

Many CFD brokers support the major index of the exchange, the MIB 40. Some CFD brokers that support stock speculation may also offer products based on high market cap, liquid Borsa Italiana stocks, such as Ferrari and Unicredit S.p.A.

Are There Any Borsa Italiana Brokers With The No PDT Rule?

The Pattern Day Trading (PDT) rule is a US regulatory consideration restricting investors from making four or more intraday trades within five days. Using an international broker may help USA-based investors around this rule. Alternatively, traders can fund their Borsa Italiana accounts with $25,000 or more and transition to a margin account to comply with the rule.

Do Borsa Italiana Brokers Offer Trading On Every Listed Company?

The Borsa Italiana has over 375 companies listed on its markets, grouped into indices based on market cap, ESG score or recent growth. The total market cap of the listed companies stands at just under €560 billion. However, not all Borsa Italiana brokers will offer access to every stock and index. You can often check which assets are available using a free demo account.

Who Owns The Borsa Italiana?

From 2007 until 2021, the Borsa Italiana was owned by the London Stock Exchange. The current ownership, Euronext, acquired the exchange in 2021 for €4.3 billion. Importantly, most Borsa Italiana brokers and platforms will continue to offer trading on the Italian stock exchange and its respective constituents without any disruption.

What Are The Borsa Italiana Trading Hours At Online Brokers?

The Borsa Italiana stock exchange trades from 09:00 to 17:30 CET (CEST in summer months). But it’s also worth checking whether your Borsa Italiana broker also supports market and platform access during these times to prevent issues.

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