Prop Firms Italy: Complete Guide for Italian Traders [2025]

Looking for prop firms Italy traders can trust? Italy has become one of Europe's most active prop trading markets, with Milan, Rome, and Naples home to thriving trading communities. Whether you're searching for an Italian prop firm or international options that serve Italian traders, this complete guide covers everything you need to know in 2025—from CONSOB regulations to EUR payment options and tax implications.

Prop Firms Italy: What Italian Traders Need to Know

Prop firms Italy traders use are predominantly international operations rather than domestic companies. Most global prop firms accept Italian traders who pass their evaluation stage—no prior professional experience required. This actually benefits Italian traders, as international firms typically provide more established infrastructure and proven track records.

Italy shows remarkable interest in prop trading—with 61 searches per million people, the country positions itself as a vibrant hub within the European financial ecosystem. The Italian trading community has historically shown strong interest in forex, indices, and increasingly, futures trading.

Key Facts for Italian Traders

Legality: Prop trading is completely legal in Italy
Prior experience: Not required—passing the evaluation is the only condition
Account sizes: €5,000 to €400,000+, with scaling to €1,000,000
Profit splits: 80-90% for challenge accounts, ~50% for instant funding
Platforms: MT4, MT5, cTrader, TradingView widely supported

CONSOB Regulation and Italian Prop Firm Rules

Understanding how prop firms Italy regulations work helps traders make informed decisions.

CONSOB's Position

The Commissione Nazionale per le Società e la Borsa (CONSOB) supervises Italian financial markets. In July 2024, CONSOB warned investors about risks associated with prop trading, describing some as "trading video games" that could lead to financial losses.

However, prop firms operating the evaluation-service model don't typically fall under CONSOB's direct regulatory jurisdiction. They don't manage external client investments or act as brokers—they provide evaluation services and profit-sharing arrangements using their own capital.

EU Legal Framework

Prop firms based within the EU operate under European business law, providing accountability through EU court systems. An Austrian, Czech, or Cypriot prop firm is accountable under EU consumer protection directives. For Italian traders, this means meaningful legal recourse that offshore firms cannot offer.

Key regulations affecting prop firms include:

MiFID II: Some models may fall under this directive (evolving area)
GDPR: All firms must comply with data protection
AML directives: Anti-money laundering compliance required

Best Prop Firms in Italy for 2025

These firms have proven track records serving Italian traders with EUR options and reliable operations.

FTMO

Czech Republic-based with the longest track record in the industry. EUR accounts available, SEPA withdrawals supported, full EU legal accountability.

Entry: From €155
Max Capital: €400,000
Profit Split: 80-90%
Trustpilot: 4.8/5

TradersYard

Austrian-registered with full EU accountability—ideal for Italian traders wanting maximum legal protection. EUR pricing eliminates conversion costs, and SEPA transfers ensure fast withdrawals to Italian bank accounts.

Entry: From €36
Max Capital: €500,000
Profit Split: 80-95%
Payout Speed: Under 4 hours (fastest in industry)
Flexible rules: News trading and hedging allowed

FunderPro

European firm offering no-time-limit evaluations, removing deadline pressure. Popular among Italian traders who prefer methodical approaches without arbitrary constraints.

The5ers

Offers instant funding options alongside traditional evaluations. Scaling potential up to $4 million for consistently profitable traders.

Tax Implications for Italian Prop Traders

Understanding Italian tax treatment of prop trading profits is essential for compliance.

Income Classification

Prop trading profits in Italy are generally classified as professional service income (prestazione di servizi) rather than capital gains. This is because you're providing a service (trading skill) in exchange for compensation (profit share) using someone else's capital.

Key tax considerations:

IRPEF rates: Progressive 23% to 43% (vs 26% flat for capital gains)
Partita IVA: May be required if trading is regular professional activity
ATECO code: Typically 74.90.99 (Altre attività professionali nca)
Regime forfettario: Possible with 87% profitability coefficient if eligible
Wealth tax: 0.2% may apply to foreign financial assets

Documentation Requirements

Maintain detailed records of all prop firm transactions:

Evaluation fee payments
Profit withdrawals with dates and amounts
Currency conversion rates at transaction time
Any platform fees or charges

Consult a commercialista familiar with trading income for personalized guidance on Partita IVA requirements and proper income classification.

EUR Payment Options for Italian Traders

Payment infrastructure significantly impacts the practical experience of using prop firms Italy traders choose.

EUR Pricing Advantages

Firms offering EUR-denominated accounts eliminate currency conversion costs. When evaluation fees and withdrawals are both in EUR, you avoid spreads associated with USD conversion. Over multiple evaluations and regular withdrawals, these savings compound meaningfully.

SEPA Transfers

Single Euro Payments Area (SEPA) transfers provide the ideal withdrawal method:

Often same-day or next-day arrival
Minimal or zero fees
Works seamlessly with all Italian banks (Intesa Sanpaolo, UniCredit, Monte dei Paschi, etc.)
Online banks like N26 and Revolut also process efficiently

EU-based prop firms typically support SEPA by default, while international firms may route through different channels with varying fees.

Card Payments

Italian-issued Visa and Mastercard work universally for evaluation purchases. This provides potential consumer protection through chargeback mechanisms if a firm fails to deliver services.

Frequently Asked Questions

Are prop firms legal in Italy?

Yes, prop firms Italy traders use are completely legal. Prop trading is subject to little regulatory scrutiny as prop firms don't deal in securities or hold client funds. Your obligations are limited to proper tax reporting of profits earned.

Do I need a Partita IVA for prop trading in Italy?

It depends on the nature and frequency of your activity. If prop trading becomes regular professional activity with consistent income, a Partita IVA is generally required. For occasional activity, different treatment may apply. Consult a commercialista for personalized assessment.

How are prop trading profits taxed in Italy?

Profits are typically classified as professional service income subject to progressive IRPEF rates (23-43%) rather than the flat 26% capital gains rate. A 0.2% wealth tax may also apply to foreign financial assets. Professional guidance is essential for proper compliance.

Are there Italian-owned prop firms?

Very few prop firms are headquartered specifically in Italy. Italian traders primarily use international and EU-based prop firms, which often provide better-established operations. EU-based firms offer similar regulatory protections with proven track records.

What profit split do Italian traders receive?

Most prop firms Italy traders access offer 80-90% profit splits for challenge accounts. Instant funding accounts typically offer lower splits around 50%. Some firms offer scaling to 95% for consistently profitable traders.

Can Italian traders use scalping strategies?

Yes, many prop firms support scalping and other intraday strategies. Verify individual firm rules, as some have restrictions on minimum hold times or maximum daily trades.

How to Choose the Right Prop Firm from Italy

Italian traders should evaluate firms based on these criteria:

EU registration: Maximum legal protection and SEPA support
EUR pricing: Avoid conversion costs on fees and withdrawals
Track record: Verify business registration, check Trustpilot reviews
Payout reliability: Look for feedback from other European traders
Support hours: EU firms typically available during Italian business hours

Conclusion

Prop firms Italy traders can access offer genuine opportunities to trade significant capital without personal financial risk. The Italian market is well-served by international and EU-based firms with EUR options and SEPA support.

Success requires understanding tax obligations, selecting reputable firms, and maintaining proper documentation. With systematic preparation, Italian traders can access funded accounts from €10,000 to €500,000 or more.

For Italian traders seeking EU-level accountability with fast payouts and EUR convenience, TradersYard's Austrian-registered service offers the combination of regulatory protection, flexible trading rules, and operational efficiency that makes prop trading practical from Italy. Start your evaluation with one of Europe's fastest-paying prop firms.