Zornitsa Stefanova
Zornitsa Stefanova is a Financial Research and Platform Testing Analyst at BestBrokers.com, specialising in hands-on reviews of forex, cryptocurrency and stock trading platforms. She evaluates brokerage companies from a user-focused perspective, testing key areas such as account setup, trading conditions, platform usability, available markets and overall reliability.
| Updated: The European market is increasingly embracing forex trading, with multiple countries introducing clear regulatory frameworks to support its growth. Germany is no exception, reporting an average daily forex turnover of $386.1 billion in 2025. Unsurprisingly, a number of brokers operate legally in the German market, offering forex enthusiasts a safe and fair trading environment. If you are looking for a reputable broker to help you in your forex trading endeavors, we can recommend several of the best brokers in Germany that offer intuitive and easily accessible trading no matter where you go.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro52% of retail investor accounts lose money
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.33% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Eightcap59.57% of retail investor accounts lose money when trading CFDs with this provider.
Global Prime74-89% of retail CFD accounts lose money
Capital.com69% of retail investor accounts lose money when trading CFDs with this provider.
XTB73% of retail investor accounts lose money
Saxo Bank65% of retail investor accounts lose money when trading CFDs with this provider.German Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. FP Markets | 9,422 | 4.9 ⭐ |
| 2. Fusion Markets | 4,873 | 4.8 ⭐ |
| 3. Global Prime | 341 | 4.7 ⭐ |
| 4. Capital.com | 13,311 | 4.6 ⭐ |
| 5. eToro | 29,171 | 4.2 ⭐ |
| 6. Plus500 | 17,312 | 4.2 ⭐ |
| 7. Swissquote | 3,574 | 3.7 ⭐ |
| 8. Saxo Bank | 7,617 | 3.6 ⭐ |
| 9. XTB | 1,935 | 3.5 ⭐ |
| 10. Iron FX | 863 | 3.5 ⭐ |
German Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. FP Markets | 1.17 | 1.64 | 1.40 | 1.43 |
| 2. Fusion Markets | 0.90 avg (Classic) | 1.04 avg. (Classic) | 1.03 avg. (Classic) | 1.04 avg. (Classic) |
| 3. Global Prime | 1.00 avg (Standard) | 1.20 avg (Standard) | 1.16 avg (Standard) | 1.18 avg (Standard) |
| 4. Capital.com | 0.7 | 1.2 | 2.0 | 1.4 |
| 5. Iron FX | 1.2 | 0.9 | 1.0 | 1.3 |
| 6. Saxo Bank | 1.2 | 2 | 3.1 | 1.6 |
| 7. XTB | 0.9 | 1.4 | 2.1 | 2.2 |
| 8. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
| 9. Plus500 | 0.9 | 2.0 | 1.5 | 1.5 |
| 10. Swissquote | 1.7 | 1.6 | 1.7 | 2.0 |
German Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. Iron FX | $0 Standard Account; $18 Live Zero Fixed Spread; $10 STP/ECN Zero Spread; $6 STP/ECN Zero Spread Professional |
| 2. Saxo Bank | $3 per lot |
| 3. Plus500 | $0 |
| 4. eToro | $1 or $2 (stocks only) |
| 5. Capital.com | $0 |
| 6. XTB | $0 for Standard accounts, $3.50 per side for Pro accounts |
| 7. Fusion Markets | $0 on Classic accounts; $4.50 per round turn on ZERO accounts |
| 8. FP Markets | Standard account: $0; Raw account: $6 round-turn per lot |
| 9. Global Prime | $0 on Standard accounts; $7 round-turn on Raw accounts |
| 10. Swissquote |
|
Important Note: To be eligible to offer trading services to German traders, forex brokers are required to obtain approval from the local authorities. The main trading regulatory body in Germany is the Federal Financial Supervisory Authority or Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). If you want to learn more about the regulator and the guidelines that forex brokers must follow to ensure fair and safe trading for their clients, you can head to the official website of BaFin or follow the regulator’s social media accounts on Instagram and LinkedIn.
Top 11 FX Brokers in Germany
Fusion Markets Broker Details Supports German No Germany Currency (EUR) Yes Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader 4, MetaTrader 5, cTrader, DupliTrade, Fusion+ Copy Trading, TradingView Trustpilot Rating 4.8 out of 4,873 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via the VFSC entity)
Index CFDs: 1:5
Cryptocurrency CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.90 avg (Classic)
USDJPY: 1.04 avg. (Classic)
EURGBP: 1.03 avg. (Classic)
GBPUSD: 1.04 avg. (Classic)Forex Commission per Lot per Trade $0 on Classic accounts; $4.50 per round turn on ZERO accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, FasaPay, Jeton Wallet, Perfect Money, OnlineNaira, DOKU, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, Bank Wire, ZotaPay, VNPAY, DuitNow, XPay, Dragonpay, VAPay, AstroPay, PayID, JetonBank, STICPAY, Interac, LuqaPay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller, Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, Dragonpay Key Pros
- Offers some of the lowest spreads
- ASIC clients have negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment methods
Key Cons
- Does not offer investor protection
- Traders outside Australia do not have negative balance protection.
- Accounts cannot be set up in minor currencies.
- Does not have an FCA license
Global Prime Broker Details Supports German No Germany Currency (EUR) Yes Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4, MT4 WebTrader, MT4 Android, MT4 iOS; for VFSC clients: MT4, MT5 (Desktop, WebTrader, Mobile), and GP Copy Trustpilot Rating 4.7 out of 341 reviews Number of CFD Forex Pairs to Trade 59 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrency CFDs: Up to 1:2 (ASIC); up to 1:5 (Pro and VFSC)Spread EURUSD: 1.00 avg (Standard)
USDJPY: 1.20 avg (Standard)
EURGBP: 1.16 avg (Standard)
GBPUSD: 1.18 avg (Standard)Forex Commission per Lot per Trade $0 on Standard accounts; $7 round-turn on Raw accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, FasaPay, VNPay, Pagsmile, BPAY, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could offer more trading platforms
- Limited range of educational resources
- Does not offer Islamic or cent accounts
BlackBull Markets Broker Details Supports German No Germany Currency (EUR) Yes Regulators FSA (Seychelles, No. SD045), FMA (No. FSP403326) Min Deposit $0 (Standard)$0 (Prime)$20,000 (Institutional) Trading Platforms MetaTrader 4, MetaTrader 5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade, BlackBull Invest, ZuluTrade Trustpilot Rating 4.8 out of 2,681 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:500
Index CFDs: 1:500
Cryptocurrency CFDs: 1:500Spread EURUSD: 0.8
USDJPY: 0.8
EURGBP: 1.4
GBPUSD: 0.8Forex Commission per Lot per Trade $0 (Standard); $6 per lot (Prime); $4 per lot (Institutional) Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, bank transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, FasaPay, China UnionPay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, bank transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China UnionPay, Boleto, FasaPay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Key Pros
- Uses a proprietary copy-trading platform
- Swap-free trading via ECN Standard and ECN Prime accounts
- Multi-platform support
- Provides 24/7 customer support
- Strong education hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 withdrawal fee
4. Capital.comTRADE NOW 69% of retail investor accounts lose money when trading CFDs with this provider.Capital.com Broker Details Supports German No Germany Currency (EUR) Yes Regulators ASIC, FCA, CySEC, SCB, SCA (UAE), FSA Min Deposit $20 ($50 for wire transfers) Trading Platforms MetaTrader 4, MetaTrader 5, TradingView Trustpilot Rating 4.6 out of 13,311 reviews Number of CFD Forex Pairs to Trade 140+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 0.7
USDJPY: 1.2
EURGBP: 2.0
GBPUSD: 1.4Forex Commission per Lot per Trade $0 Deposit Methods Bank transfers, Visa, Mastercard, Maestro, Apple Pay, PayPal, Neteller, Skrill, Sofort, Przelewy, TrueLayer, iDEAL, Trustly, SPEI, Volt, Lean, Direct Deposit, USDT Withdrawal Methods Bank transfers, bank cards, Apple Pay, PayPal, Neteller, Skrill, Sofort, Trustly, iDEAL, Przelewy, TrueLayer, Lean Key Pros
- Trusted by 817,000+ traders across the globe
- Trading guides for beginner, intermediate, and advanced traders
- Mobile apps for Android and iOS devices
- Low FX fees built into the spread
- Negative balance protection
Key Cons
- An inactivity fee applies after 1 year of account dormancy
- Capital.com does not accept US, Canadian, or Belgian customers
- Only CFD trading is supported; physical shares are not available
Swissquote Broker Details Supports German Yes Germany Currency (EUR) Yes Regulators FCA (562170), DFSA (F001438), SFC (AZV127), MFSA (C 57936), CySEC (422/22), MAS (226182), CSSF, FSCA (43908) Min Deposit Standard Account: $1,000; Premium Account: $10,000; Prime Account: $50,000 Trading Platforms CFXD, MetaTrader 4, MetaTrader 5 Trustpilot Rating 3.7 out of 3,574 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30 (Europe), 1:100 (International), 1:50 (Middle East), 1:20 (Singapore)
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 1.7
USDJPY: 1.6
EURGBP: 1.7
GBPUSD: 2.0Forex Commission per Lot per Trade - $/€0 on Standard, Premium, and Prime Accounts
- $/€2.50 per side per lot for Elite Accounts
Deposit Methods Visa, Mastercard, Bank Transfer, Online Banking Withdrawal Methods Visa, Mastercard, Bank Transfer, Online Banking Key Pros
- Publicly traded, reputable brand
- Broker with extensive trading experience
- Offers competitively low spreads
- Supports MT4 and MT5
- Forex traders can choose from over 80 currency pairs
Key Cons
- Traders must pay an inactivity fee
- The desktop trading platform looks somewhat outdated
- Trading fees tend to be high
- 6. Saxo BankTRADE NOW 65% of retail investor accounts lose money when trading CFDs with this provider.
Saxo Bank Broker Details Supports German No Germany Currency (EUR) Yes Regulators FCA (No. 551422), FSA Denmark (No. 1149), MAS (No. 200601141M), ASIC (No. 32110128286), SFC Hong Kong (No. 1395901), FSA Japan (No. 0104-01-082810), Registered with CONSOB (no. 296) Min Deposit $0 Classic$200,000 + Platinum $1,000,000 + VIP Trading Platforms Proprietary, SaxoTraderGO, SaxoTraderPRO, TradingView, SaxoInvestor Trustpilot Rating 3.6 out of 7,617 reviews Number of CFD Forex Pairs to Trade 185+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 1.2
USDJPY: 2
EURGBP: 3.1
GBPUSD: 1.6Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Visa Electron, Mastercard, Maestro, Bank Transfer, Quick Payment Withdrawal Methods Bank Transfer Key Pros
- Offers a varied range of major, minor, and exotic FX pairs
- Provides tier-1 liquidity for high order fill rates
- Boasts over 30 years of experience in the financial industry
- Offers more than 140 FX forward contracts
- Excellent fill rates for FX majors like EUR/USD
Key Cons
- Steep minimum deposits for VIP and Platinum accounts
- Overcrowded and hard-to-navigate website
- Customizing SaxoTraderPRO for desktop takes some time
Plus500 Broker Details Supports German Yes Germany Currency (EUR) Yes Regulators FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727), BaFin registration, SCB (SIA-F250) Min Deposit $10 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.2 out of 17,312 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: 1:2Spread EURUSD: 0.9
USDJPY: 2.0
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Visa/Mastercard debit cards, wire transfers, Apple Pay, and Google Pay Withdrawal Methods Visa/Mastercard debit cards, wire transfers, Apple Pay, and Google Pay Key Pros
- Publicly traded on the London Stock Exchange
- Commission-free CFD trading with tight spreads
- Great selection of analytical tools and educational materials
- Quick and easy account opening
- Provides real-time quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could offer more customization features
eToro Broker Details Supports German Yes Germany Currency (EUR) Yes Regulators FCA, CySEC, ASIC, MFSA, FSRA, FSA, FINRA/FinCEN, AMF, SEC, GFSC Min Deposit $50 or $100, depending on the country ($10 in the UK, $1 in the US) Trading Platforms eToro Investing, eToro App, TradingView, eToro CopyTrader, proprietary platform Trustpilot Rating 4.2 out of 29,171 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30 (1:400 leverage available at the Seychelles entity)
Index CFDs: 1:20 (1:100 leverage available through the Seychelles entity)
Cryptocurrency CFDs: 1:2 (CySEC, ASIC), 1:5 (Seychelles)Spread EURUSD: 1.0
USDJPY: 1.0
EURGBP: 1.5
GBPUSD: 2.0Forex Commission per Lot per Trade $1 or $2 (stocks only) Deposit Methods eToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDEAL, Klarna, Bank Transfer, Trustly, Przelewy24 Withdrawal Methods PayPal, Skrill, Visa, Mastercard, Neteller, Trustly, bank transfer Key Pros
- Offers trading in over 6,000 instruments
- Ideal for social and copy trading
- No commissions on forex trades
- Straightforward registration process
- Offers negative balance protection
Key Cons
- Withdrawals are subject to an additional $5 processing fee.
- USD is the only base account currency.
- Charges an inactivity fee on dormant accounts ($10 per month)
FP Markets Broker Details Supports German Yes Germany Currency (EUR) Yes Regulators ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines), SCB (Bahamas), FSC (Mauritius) Min Deposit $50 (AU$100) Trading Platforms MetaTrader 4, MetaTrader 5, WebTrader, IRESS, cTrader, TradingView Trustpilot Rating 4.9 out of 9,422 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrency CFDs: Up to 1:2 (retail clients); up to 1:5 (professional clients)Spread EURUSD: 1.17
USDJPY: 1.64
EURGBP: 1.40
GBPUSD: 1.43Forex Commission per Lot per Trade Standard account: $0; Raw account: $6 round-turn per lot Deposit Methods Visa, Mastercard, Neteller, Bank Transfer, Skrill, SticPay, FasaPay, Virtual Pay, Perfect Money, PagSmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker-to-Broker, PayPal, XPay, Rapyd Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, PayTrust88, PayPal Key Pros
- Offers a good selection of educational tools for traders
- Competitive spreads
- Easy mobile trading
- Regulated by reputable authorities
- Offers a wide range of currency pairs
Key Cons
- Some supported trading platforms feel outdated.
- Could expand its product selection
- No investor compensation protection for clients under ASIC regulation
XTB Broker Details Supports German Yes Germany Currency (EUR) Yes Regulators FCA (License No. FRN 522157), CySEC (License No. 169/12), FSC (License No. 000302/438), IFSC (License No. 000302/35), KNF (N/A), CNMV (N/A), BaFin (registered), FSCA (N/A), FSA Norway (Registration ID: FT00118162), DFSA (License No. F006316), CMF (Chile) Min Deposit $0 Trading Platforms xStation 5, xStation Mobile Trustpilot Rating 3.5 out of 1,935 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30; 1:20
Index CFDs: 1:20; 1:10
Cryptocurrency CFDs: 1:2Spread EURUSD: 0.9
USDJPY: 1.4
EURGBP: 2.1
GBPUSD: 2.2Forex Commission per Lot per Trade $0 for Standard accounts, $3.50 per side for Pro accounts Deposit Methods Visa, Maestro, Mastercard, bank transfer, Neteller, Skrill, PayPal, Ecommpay, PayU, SafetyPay, Paysafecard Withdrawal Methods Bank transfers, Visa, Mastercard, Skrill Key Pros
- Regulated by the FCA, CySEC, BaFin, and KNF
- Mobile-friendly platform
- Offers negative balance protection
- Standard account users are not charged commissions on forex trades
- Low fees overall
Key Cons
- Traders from the US cannot register with XTB
- No support for MT5 or other popular third-party platforms
- Withdrawals below certain thresholds incur additional fees
ActivTrades Broker Details Supports German Yes Germany Currency (EUR) Yes Regulators FCA (UK), CMVM (Portugal), CVM (Brazil), SCB (Bahamas), FSC (Mauritius) Min Deposit $0 Trading Platforms ActivTrader, TradingView, MT4, MT5 Trustpilot Rating 3.9 out of 1,251 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:30 (1:400 under the Bahamas entity)
Index CFDs: 1:20 (1:200 under the Bahamas entity)
Cryptocurrency CFDs: 1:2 (1:20 under the Bahamas entity)Spread EURUSD: 0.50
USDJPY: 0.50
EURGBP: 0.80
GBPUSD: 0.80Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Google Pay, Skrill, Neteller, Bank Transfer, Cryptocurrencies Withdrawal Methods Visa, Mastercard, PayPal, Skrill, Neteller, Bank Transfer, Cryptocurrencies Key Pros
- Has held an FCA license since 2009
- Safeguards all traders with negative balance protection
- Stores client funds at top-tier banks such as Barclays and Lloyd’s
- Supports free PayPal deposits and withdrawals
Key Cons
- Additional fees apply to card deposits
- Charges administrative fees after 50 weeks of inactivity
Is Forex Trading Legal in Germany?
Like many other European countries, Germany has also legalized online forex trading, with multiple brokers operating legally on the territory of the country. Of course, to be eligible to offer such services, trading websites must be licensed by the respective authorities in Germany. As mentioned, the regulation of the forex trading sector in Germany falls under the remit of the Federal Financial Supervisory Authority (BaFin).
It is recommended to always do a thorough check-up of a broker before you engage in any form of trading. Make sure the brand has been licensed and regulated by the BaFin, and confirm the validity of the license and the legitimacy of the broker. In addition to BaFin’s regulations, Germany-friendly forex brokers will also operate under the rules outlined in the European Economic Area’s Markets in Financial Instruments Directive (MiFID II).
Alternatively, German traders can also opt for a forex broker whose operations are overseen by another financial supervisor in the EEA. That means operators can be authorized to legally offer forex trading to Germans thanks to licenses from entities like the French Autorité des Marchés Financiers (AMF), the Central Bank of Ireland (CBI), or the Cyprus Securities and Exchanges Commission (CySEC).
Protecting investors is one of the main goals of the German financial regulatory body, ensuring that forex brokers will abide by stringent regulatory standards and will always follow best business practices to guarantee safe trading to German traders.
BaFin Regulatory Responsibilities
If you are a trader based in Germany, we recommend always picking broker brands that are regulated by BaFin, which is the main financial authority overseeing forex trading in Germany. Forex brokers are regulated under the provisions of the Securities Trading Act (Wertpapierhandelsgesetz, or WpHG for short) and must satisfy various requirements to obtain a license from BaFin. That way, traders can rest assured that they are trading on a properly regulated forex platform and their funds are always protected via measures of the highest security level.
Licenses for forex trading are issued according to the regulations imposed by the German Capital Investment Code, meaning brokers must fulfill the requirements stipulated in the respective legal document.
In order to be eligible for a license, forex broker operators must maintain a minimum capital of at least €50,000. At the time of submitting their applications, entities must ensure that the said funds have not been financed directly or indirectly via a loan. In addition to proof of minimum capital, license applicants need to provide a set of documents required by the local regulator.
In addition to authorizing the operations of forex brokers, BaFin is also responsible for taking regulatory actions against brokers that have breached security measures or other local guidelines.
Entities providing financial services without the proper license may face serious legal consequences. Meanwhile, the German Banking Act (KWG) dictates that customers who have been victims of unlawfully operating brokers can file a lawsuit against the respective company.
Any operator who has been previously found to be offering financial services without the proper authorization is no longer eligible for a license from the BaFin. If a company is found to be guilty of violating the injunction, it can face a financial penalty of up to €250,000 and can be prohibited from operating on the German market.
How to Verify BaFin Authorization?
While Germany’s forex market is regulated, it is always recommended to be careful with any broker claiming to be authorized to operate in the European country. To make sure you will enjoy a safe and fair trading environment, you should verify the brand’s license.
As we have mentioned, the BaFin is the official regulator authorizing forex trading operations on the territory of the European country. Any broker licensed to operate in Germany must be transparent with their customers, clearly stating information about the license it has obtained.
You can verify the validity of a given broker’s license by checking the registry of BaFin. You will need to look up the following information of the broker:
- Company name
- Registration number
- BaFin ID.
Alternatively, you can browse the authorized brokerage firms in alphabetical order.
You may also contact the support team of the regulatory body and ask directly for the status of any forex broker you are evaluating before you open an account and start trading online. German traders can contact representatives of BaFin over the phone by dialing the local toll-free number 0800 2 100 500 or by calling +49 228 299 70 299 from abroad. The phone lines are staffed on weekdays from 8 am to 6 pm.
Requesting information is also possible by sending an email to if@bafin.de. If you think your chosen broker is targeting German customers without the necessary permits, you can additionally check BaFin’s database of warnings about unauthorized companies.
It is also possible that a forex broker operating in Germany has been issued a license by another supervisory entity in the EEA and, therefore, still adheres to the pan-European MiFID II directive. Each regulator will have its own register of licensed entities. For example, you can look up the licensing information of CySEC-regulated brokers by paying a visit to this page.
Do German Forex Brokers Ensure the Safety of Clients’ Funds?
Since the protection of client funds is one of the safety measures German forex brokers are mandated to implement into their operations, you can trust that properly regulated trading companies will ensure top-level security for the money you utilize when trading forex pairs. The safeguards include:
- KYC (Know Your Customer): Upon registration or whenever you request a withdrawal from your trading account, you will most likely be asked to go through a KYC process. This often includes verifying your identity by providing a copy of an ID, uploading a selfie, and/or a copy of a document confirming your physical address. This is how brokers can prevent fraudulent activity and ensure that only the account holder can access their funds.
- Negative Balance Protection: This is another BaFin-imposed requirement that ensures the safety of your funds at any regulated German broker. As of 2017, licensed German brokers are required to ensure that the losses of investors cannot exceed the amount of their deposits.
- Fund Segregation: German brokers must keep client funds separate from their own operational funds in different accounts, protecting customers’ money if the broker faces financial trouble.
- Investor Compensation: Such schemes provide additional protection, reimbursing clients up to €20,000 per claim under MiFID and BaFin investor compensation rules.
As established, German traders can also join brokers operating under another EU license, meaning brands that are compliant with MiFID 2 requirements. This ensures that the money of German trading enthusiasts will be protected, allowing them to enjoy secure forex trading online.
Do German Forex Brokers Provide Negative Balance Protection?
As mentioned above, ensuring negative balance protection is compulsory if a broker is looking to apply for and obtain an operational license from BaFin. As of 2018, entities licensed in any EEA country must also offer this additional type of protection as per the requirements outlined in the MiFID directive.
Simply put, brokers that have the legal authorization to operate in Germany or any of the EEA jurisdictions will provide negative balance protection and, thus, prevent you from accumulating losses bigger than the amount you have deposited into your trading account. That means you will not owe the broker money and will not trade beyond your financial capacity.
Do German Traders Pay Taxes on Their Forex Trading?
Forex traders based in Germany are required to pay taxes on their forex trading profits. Such income falls under the category of capital gains, making your income accumulated from forex trading a taxable amount. The tax rate you are required to pay depends on your overall income.
Under financial laws in Germany, the capital gains tax rate is 25%, with another 5.5% (of the CGT) in the form of solidarity tax being added to the taxable amount. That makes the total surcharge on financial investments 26.375%.
German traders may also be eligible for an annual investor’s allowance (Sparer-Pauschbetrag) of €1,000 for single individuals and €2,000 for married couples specifically for capital gains, meaning that amounts below this threshold are tax-exempt. Conveniently enough, if you trade with a forex broker based out of Germany, the tax is automatically charged at the source. Otherwise, German investors are required to fill out tax return forms on their own.
We must caution, however, that tax-related legislation is subject to change. Thus, any aspiring forex trader who resides in Germany should get in touch with a local tax expert in order to get the most up-to-date information on their particular obligations.
How Does the Available Leverage of BaFIN-Regulated Brokers Compare to the Leverage at Brokers Regulated Offshore?
When we consider the maximum leverage offered by forex brokers regulated in Germany, we should keep in mind that the country is a member state of the EU, which means brokers regulated by the BaFIN are also required to operate in accordance with guidelines imposed by the European Securities and Markets Authority (ESMA). In 2018, the ESMA introduced a mandatory maximum leverage of 1:30 when trading major currency pairs. Meanwhile, for non-major pairs, the maximum allowed leverage is 1:20.
Naturally, the set maximum leverage levels in Germany are identical to those implemented in other EU markets. Other major trading regulators like ASIC and the FCA have also implemented the same leverage caps.
How to Become a Professional Trader in Germany?
If you have some experience in trading, many forex brokers regulated in Germany will allow you to open a professional trading account that comes with a wide selection of perks, including better leverage and lower commission rates. However, you must keep in mind that eligibility for such an account is determined by a set of requirements.
Most forex brokers have set up the same list of requirements for residents of all EU member states, which means the following conditions will also apply to traders residing in Germany.
Provide proof of actively trading sufficient amounts in the last 12 months:
- Traders must have initiated transactions of significant size on forex pairs as frequently as 10 per quarter over the previous four quarters
- Pro account applicants need to provide account statements from trading with regulated forex brokers from the previous month
Have relevant experience in the financial services sector:
- This includes individuals with at least one year of working experience in the financial sector in a position requiring knowledge of Forex
- Traders are required to provide a letter from an employer confirming their experience of at least one year in the aforementioned position
Provide proof of a financial instrument portfolio exceeding €500,000:
- Users’ portfolios with financial instruments (including shares, cash deposits, profits from investing, and debt instruments) must be over €500,000
- The broker will require the client to send bank account statements of the last month and/or trading account statements as proof of the portfolio’s value
Requirements for opening a professional account with any regulated German forex broker should be available on the official website of the brand. We recommend checking the conditions of your broker and providing the respective documents to qualify for the perks that come along with professional trading in Germany.
Do keep in mind that if you do manage to open such an account, you will likely need to give up on negative balance protection. As the measure is primarily meant to protect retail clients from poor trading decisions, professionals are considered experienced enough to not need this type of safeguard.
What Trading Platforms are Available to German Traders?
There are several trading platforms you may come across as you trade with forex brokers regulated in Germany. Each has its own perks, offering a convenient trading experience to different types of traders. It should be noted that some brokers also offer their proprietary software or web traders that may offer exclusive features that are not available on the commonly used platforms.
MetaTrader 4: One of the most widely used platforms, MT4 is also supported by the majority of German forex brokers. Automatic trading is one of the great features incorporated in MT4, and most brands offer the platform both for desktop and mobile trading.
MetaTrader 5: While MT4 is more suitable for beginner forex traders, MT5 will better serve the needs of forex enthusiasts who wish to expand their trading to markets beyond currency pairs and CFDs. MT5 features more technical indicators, graphics, and other trading tools. German forex brokers tend to offer their customers the MT5 software, its web trader version, and the smartphone application.
cTrader: Another platform that is often available at German forex brokers, cTrader offers more advanced charts and timeframes, making it even more convenient than MT5. With cTrader, German traders can easily assess trade sizes and place various trading orders.
Web Trader: There are various types of web traders that forex devotees can take advantage of. Some are exclusive to the broker they trade with, while others are the non-downloadable versions of MT4, MT5, or other third-party platforms. Regardless, a web trader will always eliminate the need to install additional software on one’s device and is likely to boast a user-friendly interface that will cater to both beginners and experienced traders.
Below you can find some useful references with links to organizations that monitor the forex market in Germany.
- BaFin (Federal Financial Supervisory Authority): Homepage of Germany’s financial regulator.
- BaFin Register: This page allows traders to look up and verify the licensing status of a given company. Here, one will also find comprehensive lists of every license holder.
- BaFin Market Entry: This page offers insight into the regulatory requirements entities must meet if they wish to operate in Germany.
- BaFin Complaint Submission: Detailed instructions on how one can submit complaints should they run into issues with an entity supervised by BaFin.
- BaFin Consumer Helpline: Page outlining how BaFin can assist consumers.
- ESMA Register: This official European Securities and Markets Authority (ESMA) register allows you to check licensees authorized to operate across the EU, including those serving the German market under MiFID requirements.
About the Editorial Team