Forex Brokers in Germany

Richard Montana | November 23, 2022

Forex trading is popular amongst German residents who are looking to buy and sell currencies to speculate on falling and rising prices in the forex market. Although German traders can use any forex broker that accepts German clients, the Federal Financial Supervisory Authority (BaFin) is the financial regulatory authority for Germany. BaFin brings together under one roof the supervision of banks and financial services providers, insurance undertakings and securities trading.

Best forex brokers Germany

To find the best forex brokers in Germany, we created a list of all regulated brokers that accept German clients, then ranked them according to their overall rating. Below is our list of our top forex brokers for Germany.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.

ASIC, BaFin, CFTC, DFSA, FCA, FINMA, FMA, FSA, FSCA, JFSA, MAFF, MAS, METI, NFA

$250

1974

1:200

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
2.

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

$200

2010

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
3.

BaFin

$200

1997

1:30

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
4.

BaFin

$1

2015

N/A

Investing carries risk and you may receive back less than your original investment.
5.

BaFin

$1

2006

1:30

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

BaFin forex brokers in Germany

Germany has two national regulators that are responsible for authorizing and supervising banks, insurers and certain other financial sector companies ̶ the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and the German Federal Bank (“Deutsche Bundesbank”).

The Federal Financial Supervisory Authority better known by its abbreviation BaFin is the financial regulatory authority for Germany. It is an independent federal institution with headquarters in Bonn and Frankfurt and falls under the supervision of the Federal Ministry of Finance.

It was established in the year 2002 with an amalgamation of The Federal Banking Supervisory Office, Federal Insurance Supervisory Office and The Federal Securities Supervisory Office. The independent regulatory body has stringent rules in favour of protecting investors as well as ensuring that service providers such as BaFin forex broker must operate in an honest and transparent manner.

BaFin operates in the public interest. Its primary objective is to ensure the proper functioning, stability and integrity of the German financial system. Bank customers, insurance policyholders and investors ought to be able to trust the financial system.

It takes into account the management, minimum capital requirements, reliability, solid leadership, and the sustainability of the business when approving licenses.

The Central Compliance Office at BaFin works towards compliance with applicable statutes and other provisions relating to data protection, corruption prevention and sponsoring. To this end, it advises BaFin employees and takes preventative measures. BaFin has the power to initiate legal action in the event that investigations reveal any inconsistencies in the financial sector.

One of the main pillars that exists within BaFin is the Consumer Advisory Council that is in charge of collecting and analysing information on the financial markets and ensuring that investors and traders are not exposed to any form of foul play. The major risks that investors face while dealing in the financial markets sector include insider trading, price manipulation and mismanagement of funds.

How to verify BaFin regulated brokers in Germany

BaFin is Germany’s financial regulator, and is responsible for regulating banks, insurance firms, financial institutions, as well as forex brokerages based in Germany. If you are a German resident, you can still trade with a non-BaFin regulated forex broker but you may not get the same protection.

To identify if a forex broker is authorised to operate in Germany, you need to first identify the brokers regulation number from the disclosure text which is usually at the bottom of the brokers homepage. Once you have that, you can look up the brokerage with the BaFin register to validate if the broker is licensed in Germany.

About the Author

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Richard Montana
Richard has many years of experience in broker research, testing, analysis and reviews. He knows what to look for through years of trading himself with different brokers and listening to the feedback of others.

Review Methodology

For all of our broker reviews, we research, validate, analyse and compare what we deem to be the most important factors to consider when choosing a broker. This includes pros, cons and an overall rating based on our findings. We aim to help you find the best broker according to your own needs. You can read more about our review process.


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