# CFD and forex brokerage

Source page: https://protegra.io/licensing/activities/cfd-fx-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](https://eur-lex.europa.eu/eli/dir/2014/65/oj)

## Which licence you need

Licence families that typically permit this activity:

- [Investment firm / broker-dealer](https://protegra.io/licensing/licences/investment-firm/)

- [IF · CyprusCyprus Investment Firm (CIF) authorisationCySEC](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/)
- [IF · Czech RepublicInvestment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)CNB](https://protegra.io/licensing/licences/investment-firm/czech-republic/)
- [IF · EstoniaAuthorisation as an investment firmFI](https://protegra.io/licensing/licences/investment-firm/estonia/)
- [IF · GermanyInvestment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)BaFin](https://protegra.io/licensing/licences/investment-firm/germany/)
- [IF · IrelandInvestment Firm Authorisation (MiFID II)CBI](https://protegra.io/licensing/licences/investment-firm/ireland/)
- [IF · ItalySocietà di Intermediazione Mobiliare (SIM) investment firm licenceCONSOB](https://protegra.io/licensing/licences/investment-firm/italy-sim/)
- [IF · LatviaInvestment firm licenceLB](https://protegra.io/licensing/licences/investment-firm/latvia/)
- [IF · LithuaniaFinancial brokerage firm licenceLB](https://protegra.io/licensing/licences/investment-firm/lithuania/)
- [IF · LuxembourgInvestment firm authorisationCSSF](https://protegra.io/licensing/licences/investment-firm/luxembourg/)
- [IF · MaltaInvestment services licence (Category 1, 2, or 3)MFSA](https://protegra.io/licensing/licences/investment-firm/malta/)
- [IF · NetherlandsInvestment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID IIAFM](https://protegra.io/licensing/licences/investment-firm/netherlands/)
- [IF · PolandBrokerage House licence (dom maklerski)KNF](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/)
- [IF · SlovakiaInvestment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)NBS](https://protegra.io/licensing/licences/investment-firm/slovakia/)
- [IF · SpainSociedad de Valores y Agencia de Valores (SV / AV) investment firm licenceCNMV](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/)

## Where it can be licensed

| | EU/EEA passport | Domestic |
| --- | --- | --- |
| [Cyprus: Cyprus Investment Firm (CIF) authorisation](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/) | ✓ | |
| [Czech Republic: Investment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)](https://protegra.io/licensing/licences/investment-firm/czech-republic/) | ✓ | |
| [Estonia: Authorisation as an investment firm](https://protegra.io/licensing/licences/investment-firm/estonia/) | ✓ | |
| [Germany: Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)](https://protegra.io/licensing/licences/investment-firm/germany/) | ✓ | |
| [Ireland: Investment Firm Authorisation (MiFID II)](https://protegra.io/licensing/licences/investment-firm/ireland/) | ✓ | |
| [Italy: Società di Intermediazione Mobiliare (SIM) investment firm licence](https://protegra.io/licensing/licences/investment-firm/italy-sim/) | ✓ | |
| [Latvia: Investment firm licence](https://protegra.io/licensing/licences/investment-firm/latvia/) | ✓ | |
| [Lithuania: Financial brokerage firm licence](https://protegra.io/licensing/licences/investment-firm/lithuania/) | ✓ | |
| [Luxembourg: Investment firm authorisation](https://protegra.io/licensing/licences/investment-firm/luxembourg/) | ✓ | |
| [Malta: Investment services licence (Category 1, 2, or 3)](https://protegra.io/licensing/licences/investment-firm/malta/) | ✓ | |
| [Netherlands: Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II](https://protegra.io/licensing/licences/investment-firm/netherlands/) | ✓ | |
| [Poland: Brokerage House licence (dom maklerski)](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) | ✓ | |
| [Slovakia: Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)](https://protegra.io/licensing/licences/investment-firm/slovakia/) | ✓ | |
| [Spain: Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) | ✓ | |

## 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

1. [MiFID II Annex I, Section C(4) and C(9) instruments](https://eur-lex.europa.eu/eli/dir/2014/65/oj): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.