CFD and forex brokerage
Brokering contracts for difference (CFDs) and rolling spot forex requires an investment firm licence under MiFID II for Annex I Section C(4) and C(9) instruments, typically combining dealing on own account with order execution. Authorised firms can passport across the EEA, and must enforce mandatory leverage limits, negative balance protection and standardised risk warnings.
Definition
Offering retail and professional clients contracts for difference and rolling spot forex, usually as dealing on own account or order execution.
- MiFID II, Annex I, Section C(4) and C(9) instruments: official text
Which licence you need
Licence families that typically permit this activity:
- IF · Cyprus
Cyprus Investment Firm (CIF) authorisation
CySEC
- IF · Czech Republic
Investment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)
CNB
- IF · Estonia
Authorisation as an investment firm
FI
- IF · Germany
Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)
BaFin
- IF · Ireland
Investment Firm Authorisation (MiFID II)
CBI
- IF · Italy
Società di Intermediazione Mobiliare (SIM) investment firm licence
CONSOB
- IF · Latvia
Investment firm licence
LB
- IF · Lithuania
Financial brokerage firm licence
LB
- IF · Luxembourg
Investment firm authorisation
CSSF
- IF · Malta
Investment services licence (Category 1, 2, or 3)
MFSA
- IF · Netherlands
Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II
AFM
- IF · Poland
Brokerage House licence (dom maklerski)
KNF
- IF · Slovakia
Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)
NBS
- IF · Spain
Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence
CNMV
Where it can be licensed
Frequently asked questions
What retail leverage restrictions apply to CFD brokers in Europe?
European regulators enforce strict leverage caps for retail CFD traders across major currency pairs and volatile underlying assets. Brokers must also mandate margin close-out rules and guarantee negative balance protection for retail client accounts.
Can a CFD broker operate a B-book model where it trades against clients?
Yes, a broker licensed for dealing on own account may internalise client flow (B-book). However, firms must disclose execution policies, manage conflicts of interest transparently and comply with strict market conduct and best execution standards.
Sources
- MiFID II Annex I, Section C(4) and C(9) instruments · retrieved 2026-09-24
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