Day Trading in Italy

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Written By
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Written By
Christian Harris
Christian is a seasoned journalist with decades of experience. He transitioned from tech journalism to finance to follow his interest in investing. He has been trading stocks, futures, forex, and cryptocurrencies for more than 5 years, becoming an eToro Popular Investor. With hands-on expertise across various assets, he offers valuable trading insights.
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James Barra
James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.
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Michael MacKenzie
Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.
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Day trading, the practice of buying and selling financial instruments during the same day, has become increasingly popular in Italy, offering exciting opportunities for potential profits.

Italy boasts the fourth-largest economy in the Eurozone, with a GDP of approximately $2.32 trillion. The nation’s diverse economy encompasses vital sectors like manufacturing, services, and agriculture.

The Commissione Nazionale per le Società e la Borsa (CONSOB) is Italy’s securities market regulator, akin to the SEC in the US, providing a robust regulatory framework for active traders.

Join the community of day traders in Italy and master the fundamentals of short-term trading.

Quick Introduction

  • While Italy’s CONSOB is a ‘green tier‘ authority that regulates day trading platforms in Italy, EU regulations allow Italian traders to use brokers regulated in other member states.
  • Italy’s stock exchange, Borsa Italiana, is located in Milan. Owned by pan-European Euronext, it houses the FTSE MIB index, which tracks Italy’s 40 most actively traded companies.
  • Italian tax law treats most short-term trading profits as capital gains. These gains, generated by selling assets that have increased in value, are taxed at a flat rate of 26%.

Top 4 Brokers In Italy

Our latest tests highlight these 4 trading platforms as the best choices for Italian day traders:

Click a broker for details
  1. 1
    AvaTrade
    79% of retail accounts lose money with this provider.

    Ratings
    4.8 / 5
    4.3 / 5
    4.5 / 5
    3.8 / 5
    4.3 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5
    4.3 / 5
    4 / 5

    $100
    0.01 Lots
    1:30 (Retail) 1:400 (Pro)
    ASIC, CySEC, FSCA, ISA, CBI, FSA, FSRA, BVI, ADGM
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, Futures
    WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
    Skrill, Wire Transfer, FasaPay, Mastercard, Perfect Money, Swift, MoneyGram, Credit Card, WebMoney, JCB Card, Debit Card, Neteller, Boleto
    USD, EUR, GBP, CAD, AUD
  2. 2
    Eightcap

    Ratings
    4.3 / 5
    4 / 5
    3.6 / 5
    3.8 / 5
    4.3 / 5
    4 / 5
    3.5 / 5
    3 / 5
    4.8 / 5
    4.4 / 5

    $100
    0.01 Lots
    1:30
    ASIC, FCA, CySEC, SCB, CNMV
    CFDs, Forex, Stocks, Indices, Commodities, Crypto
    MT4, MT5, TradingView
    Neteller, Skrill, Visa, UnionPay, Credit Card, Debit Card, Bitcoin Payments, Wire Transfer, FasaPay, BPAY, PayPal, Dragonpay, PIX Payment
    USD, EUR, GBP, CAD, AUD, NZD, SGD
  3. 3
    RedMars

    Ratings
    3.3 / 5
    3.5 / 5
    3.8 / 5
    3.5 / 5
    3.8 / 5
    4 / 5
    2.8 / 5
    3 / 5
    4.7 / 5
    4.6 / 5

    €250
    0.01 Lots
    1:30 (Retail), 1:500 (Pro)
    CySEC
    CFDs, Forex, Stocks, Indices, Commodities, Cryptos
    MT5
    Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, Visa
    USD, EUR
  4. 4
    Deriv.com

    Ratings
    3.5 / 5
    4.5 / 5
    4.5 / 5
    4 / 5
    4 / 5
    4.1 / 5
    2.5 / 5
    3 / 5
    4.2 / 5
    4.5 / 5

    $5
    0.01 Lots
    1:1000
    MFSA, LFSA, VFSC, BFSC
    CFDs, Multipliers, Forex, Stocks, Indices, Commodities
    Deriv Trader, MT5
    Neteller, Visa, Skrill, WebMoney, FasaPay, Perfect Money, Diners Club, Banxa, Paytrust, Wire Transfer, Mastercard, Credit Card, JCB Card, Sticpay, Trustly, Volet, Paysafecard, AstroPay, Maestro, Airtm, Boleto, JetonCash
    USD, EUR, GBP, AUD

All Day Trading Platforms in Italy

What Is Day Trading In Italy?

Day trading in Italy involves buying and selling securities (stocks, options, etc.) through EU-approved brokers within the same trading day.

Italy’s robust regulatory environment and advanced financial infrastructure make it an attractive destination for domestic traders. These factors create a compelling landscape for those seeking quick-fire opportunities in the market.

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Day trading opportunities in Italy reflect its economic strength with diverse instruments: Borsa Italiana-listed stocks (e.g. Ferrari), currency pairs (e.g. EUR/USD), and essential export commodities, like oiliron, and coffee.

Day trading is legal in Italy, and CONSOB acts as the country’s financial watchdog, overseeing domestic trading service providers.

Italy’s EU membership brings it under the purview of the European Securities and Markets Authority (ESMA). This means that Italian traders benefit from several financial safeguarding measures.

ESMA enforces leverage limits, capping it at 1:30 to prevent excessive borrowing. Additionally, it mandates negative balance protection, ensuring you never owe more than your account balance.

MiFID II, the EU’s Markets in Financial Instruments Directive, unlocks opportunities for Italian traders. It grants you access to a broader pool of brokers regulated across the EU, potentially leading to more competitive fees, a more comprehensive selection of platforms, and access to a greater range of financial products.

The interplay between CONSOB’s domestic oversight, ESMA’s pan-European guidelines, and MiFID II regulations creates a more robust and transparent online trading landscape in Italy.

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Christian Harris
Author

How To Start Day Trading In Italy

The fast-paced world of Italian trading is exciting, but mastering the essentials is critical. Here are the key steps:

  1. Your secure foundation starts with a broker authorized to trade in Italy. This ensures your financial well-being is prioritized, allowing you to hone your day trading strategies.
  2. Secure a top day trading broker in Italy, and opening your account becomes a breeze. Expect a smooth verification process involving documents like your electronic identity card (carta di identità elettronica, CIE) and a recent utility bill to confirm residency. Once approved, funding your account is easy – your chosen broker will likely offer convenient methods like wire transfers, credit cards, or even mobile-only options like Google Pay.
  3. Italy’s markets brim with options for active traders. Stock traders can speculate on established giants like Enel and Intesa Sanpaolo. Meanwhile, currency traders can capitalize on fluctuations in Italy’s official currency with popular forex pairs including EUR/AUD and EUR/JPY.

Example Trade

Let’s dive into a day trading scenario involving Ferrari, the iconic Maranello-based luxury carmaker, to illustrate how a short-term trading strategy could work.

Event Background

Active traders eagerly await earnings reports because these financial snapshots offer a glimpse into a company’s health and potentially trigger price swings.

Anticipating the impact of Ferrari’s earnings release, I braced for a potentially volatile day for the company’s stock price.

Data Analysis

Ferrari revved its engine past market expectations in its quarterly earnings report. Revenue surged 17.2% year-over-year to €5.97 billion, with total shipments climbing 3.3% to 13,663 units.

I expected this robust performance to fuel investor confidence and present an excellent intraday trading opportunity.

Trade Entry

Ferrari’s stock closed the previous day at €323.70 but was trading a little lower in the run-up to the earnings report.

Following the earnings release, the price rocketed over 4% in 30 minutes, surging into overbought territory on the Relative Strength Index (RSI). Despite this, the high trading volume signaled strong momentum.

Technical analysis on Italian Ferrari stock
TradingView Platform

Bullish on the news, I opted to forgo waiting for a potential pullback. I entered a long position, confident the upward trend would hold for the rest of the trading session.

Trade Exit

Ferrari’s stock steadily climbed after a pause in the morning session. The upbeat company news sustained the upward momentum, and my strategy paid off.

With the price rising sharply and profit-taking a possibility, I decided to lock in my gains. I exited my long position at the close of the European session, selling at €353.40 for a healthy 6.35% ROI. My pre-determined stop-loss order, set at -2.95% ROI, helped manage risk throughout the trade.

How Is Day Trading Taxed In Italy?

In Italy, day trading profits generally fall under capital gains and are taxed at a flat rate of 26%. So, any income you generate from buying and selling securities within the same day may be subject to this tax rate.

Although specific rules and limitations apply, capital losses can be offset against gains to reduce overall tax liability. Additional taxes or contributions may also be applicable depending on your overall income and specific circumstances.

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Consulting a tax advisor is recommended to ensure compliance and filing your taxes accurately. For further information on Italian taxes, visit the Italian Revenue Agency (Agenzia delle Entrate).

Bottom Line

Short-term trading in Italy is a legal and regulated activity overseen by CONSOB.

To succeed, you must adhere to stringent regulations, stay informed about economic indicators, manage risk effectively, and comply with capital gains tax requirements.

However, signing up with a top-rated day trading broker in Italy is the cornerstone of your online trading journey.

Article Sources

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