Overall Rating: ★★★★☆ (4.1/5)

The Commissione Nazionale per le Società e la Borsa (CONSOB) is Italy’s national securities and financial markets regulator. As a public authority operating under the Ministry of Economy and Finance, CONSOB oversees investment firms, brokers, and financial advisers, including those offering leveraged forex and CFD trading to retail traders in Italy.

While CONSOB enforces the broader European Union regulatory framework via MiFID II, it is also known for being one of the most aggressive EU regulators in fighting financial scams, unregulated broker operations, and misleading marketing — all of which directly impact the safety of retail forex traders.

Key Protections and Regulatory Features for Forex Traders Under CONSOB

1. Full Enforcement of ESMA and MiFID II Rules
   CONSOB requires all brokers to comply with MiFID II, which mandates transparency, investor protection, fair execution, and suitability testing. This includes leverage caps of 30:1 on major forex pairs, negative balance protection, and ban on binary options and bonuses for retail clients.
2. Aggressive Enforcement Against Unlicensed Brokers
   CONSOB is known for systematically blocking access to unlicensed offshore brokers offering services to Italian clients. Through ISP coordination, it can blacklist and restrict access to illegal broker websites, protecting traders from scams.
3. Client Classification and Suitability Requirements
   All brokers operating under CONSOB must classify clients correctly (retail, professional, or eligible counterparty) and assess whether forex trading is suitable based on the client’s knowledge and experience.
4. Investor Compensation Scheme via Fondo Nazionale di Garanzia
   CONSOB-authorised brokers are participants in Italy’s Fondo Nazionale di Garanzia, which offers compensation up to €20,000 to retail clients in case of broker insolvency.
5. Prohibition of Bonuses and Risky Promotions
   Following ESMA rules and national enhancements, CONSOB bans deposit bonuses, prize incentives, and misleading promotional tactics, particularly those targeting inexperienced traders.
6. Supervision of Execution Quality and Fee Transparency
   Brokers must provide clear disclosures of spreads, commissions, slippage policies, and order execution procedures. CONSOB monitors firms to ensure retail clients are not disadvantaged by poor execution or hidden charges.
7. Public Alerts and Broker Registry
   CONSOB publishes regular public warnings and maintains a detailed registry of authorised brokers and financial service providers. This allows traders to verify broker legitimacy before opening accounts.

Why CONSOB Regulation Matters to Retail Traders

Italy has historically been a target for unregulated brokers, which makes CONSOB’s intervention especially relevant. For retail traders, CONSOB regulation ensures access to brokers that meet EU standards for leverage, transparency, and legal protection — while also actively shielding the public from bad actors through swift website blocking and fines.

Final Verdict

CONSOB is a strict and highly protective regulator for Italian forex traders. While it does not create independent rules outside of the EU framework, it goes above and beyond in enforcement and consumer protection. Traders looking for safety, transparency, and regulated access to the forex market in Italy will benefit from CONSOB oversight.