CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
Greece, in the wake of the 2008 global financial crisis, has been recovering from one of the most difficult financial periods in its post-war history. In 2009, Greece’s sovereign debts escalated resulting in bailouts from the European Central Bank (ECB) and the International Monetary Fund (IMF).
After a period of recession, Greece’s economy is now rebounding with the country’s economy returning to growth in 2018, with the European Union Commission projecting real GDP growth of 2.3 percent in 2019.
The stock market in Greece is known as the Athens Exchange (ATHEX) located in Athens. The exchange dates back to 1876 and is now managed by a listed company called Hellenic Exchanges – Athens Stock Exchange S.A. The exchange merged with the Athens Derivatives Exchange in 2002. In addition to listing Greek stocks, indices and stock derivatives like futures and options, ATHEX also provides a listing service for bonds and exchange traded funds (ETFs).
The broad market stock index for the ATHEX is the FTSE/Athex Market Index (FTSEA) that includes all shares traded on the ATHEX. Other popular indices are the Composite Index (GD), the FTSE/Athex Large Cap index consisting of 20 large cap Greek stocks, and the FTSE/Athex Mid Cap Index (FTSEM) made up of mid-cap stocks.
Moreover, Greece as part of the EU has adopted the European Union’s euro (EUR), managed by the European Central Bank (ECB). The Euro replaced the Greek drachma and consists of 100 lesser units known as cents.
According to the Bank for International Settlements (BIS), the euro ranked second among the most actively traded currencies in 2016 resulting in around 31.4% of the overall forex market turnover. The International Monetary Fund (IMF) also ranked the Euro second among the reserve currencies held by central banks, comprising roughly 19% of total central bank reserves in 2018’s third quarter.
Furthermore, the Bank of Greece is the county’s central bank tasked with the responsibility of implementing the Euro-system’s monetary policy in Greece. It also takes a key role in protecting the Greek financial system’s stability. The Bank of Greece issues euro banknotes, on prior approval by the ECB, and is responsible for the handling and circulation of euro bills and coins in Greece.
The primary Greek financial sector regulator is the Hellenic Capital Market Commission (HCMC). This regulator aims to protect and ensure the orderly and efficient functioning of Greek capital markets that are crucial for the growth of Greece’s economy. Any financial institution, intermediary or forex broker should be authorised by the HCMC before operating in Greece.
When seeking online brokers in Greece to trade currencies or derivative trading such as contract for difference (CFDs) Most brokers will accept Greek based clients, including foreign brokers. Nevertheless, an EU registered broker may be particularly appealing when selecting a broker. EU registered brokers not only will need to maintain a positive reputation with local regulators, but any conflict that may arise should be able to be resolved locally. Not to mention, a number of reputable online forex brokers are based in the EU, especially in Cyprus. Alternatively, traders based in Greece can generally deposit funds in online trading accounts with any non-EU broker that will onboard them as a client.
Moreover, it is important to verify that any non-EU broker is subject to strict governing regulations in their jurisdiction. Brokers should keep their client funds segregated from their own assets, assuring the safety of margin deposits. Good foreign brokers should also have a good overall reputation with their clients, and they should potentially offer a satisfactory set of trading-related services and asset classes.
Additionally, many online brokers provide demo accounts with virtual money so traders can practice, test strategies and the brokers’ trading platform out. Likewise, brokers also generally provide live trading accounts that need to be funded with a given minimum initial deposit to allow margin trading to begin. Other brokers may also offer Sharia law compliant Islamic accounts to traders, which lack swaps on rollovers.
When stock trading is involved, ATHEX aims to foster trading in a fair and transparent market throughout range of asset classes, in addition to Greek stocks. ATHEX trades will generally be executed in euros, although U.S. dollar transactions are also available. Electronic trading in securities and derivatives listed on the ATHEX has been available via its Automated Integrated Trading System (OASIS) since 1999. OASIS has two sub systems called the Equity Trading System (ETS) and the Derivatives Trading System (DTS), that cater to different types of products involved. OASIS is available in both Greek and English.
While Greece’s economy has gone through an extended period of turbulence and upheaval, the country’s economic growth has continued to progress over the last few years. According to Export.gov, Greece provides additional opportunities for business and investment in the following sectors of the economy:
Moreover, the World Bank ranked Greece at 31st place in trading across borders.
According to the World Bank Group, the EU nations of Italy, Germany, Cyprus and Bulgaria remain Greece’s top trading partners as of 2017. As an EU member since 2007, Greece’s economy and relationship with the UK might be adversely affected by the UK’s upcoming exit from the European Union.
As a consistent net importer with negative balance of trade numbers since 2001, Greece’s economy could potentially be negatively affected by trade tariffs, trade wars and any failure to adhere to its key trade agreements. According to the World Bank, Greece’s trade to GDP ratio of 67% as of 2017 increasing the country’s economic vulnerability to trade disruptions.
According to the World Bank, Greece ranked 72nd in the overall ease of doing business , as well as 153rd in registering property and 132nd in enforcing contracts. The business climate was also implied to be challenging for obtaining credit, electricity and paying taxes, for which the country ranked 99th, 79th and 65th respectively.
In general, traders and businesses will find Greece a fairly secure place to operate in when it comes to doing business, in part due to the fact that Greece remains a member of the European Union. Greece also benefits from relative currency stability due to its membership in the Eurozone.
Greece has nevertheless had some financial difficulties in the past during its sovereign debt crisis, which is an element to bear in mind. Moreover, Greek financial institutions and forex brokers operating in Greece are authorised and overseen by the HCMC. They also need to comply with the Markets in Financial Instruments Directive (MiFID) regulations of the EU.
When considering an online broker to trade with from Greece, traders should review the broker’s available asset classes, reputation with clients, regulatory oversight and trading platform. Moreover, brokers should always keep clients’ funds separate from their own money, in order to protect clients’ assets from creditors in case of insolvency.