German Forex Brokers

Germany is the country with the largest population in the European Union, with around 83 million inhabitants. It is the fourth largest country in the EU, after France, Spain and Sweden. And as many of us know, Germany has the most exceptional economy in the EU. BaFin is the main agency that regulate Forex brokers for German residents.

It must be noted that many other regulators within Europe and in the world accept German Forex traders. traders in Germany do not need to trade strictly with a BaFin regulated broker.

Forex Brokers for German Residents

Requirements to trade in Germany: Today, more and more young people are becoming interested in investing in trading. However, the generation that Germany allows to start investing in trading is 18 years. Trading is an international subject; anybody can get in the trading world if you want to. 

The minimum amount that people can trade is not specified. 

You also must know that Forex trading is completely legal in the germany, but highly regulated by the BaFIN authority. 

There are no laws which govern Forex trading, yet under the EU’s objective to unite the Eurozone, regulated brokers in any other member state may market to and accept traders. 

List of Forex Brokers for German Residents

fxcm logo
Broker TypeMarket Marker – non dealing desk
RegulationsFCA, ASIC, FSCA
Min Deposit$50.00
Account Base CurrencyUSD CAD EUR JPY GBP AUD HKD NZD CHF
Max Leverage400:1, EU Clients 1:30
Trading PlatformsMetatrader 4, Trading Station, NinjaTrader, Zulutrade
avatrade
Broker TypeMarket Maker
RegulationsASIC, B.V.I, FSA, FFAJ, FSCA, IIROC
Min Deposit$100.00
Account Base CurrencyUSD EUR GBP AUD
Max Leverage400:1 / 30:1 EU Clients
Trading PlatformsMetatrade 4, AvaTradeAct, Web trading, AvaOptions AvaTradeGO, Mobile trading
pepperstone
Broker TypeECN
RegulationsASIC, FCA
Min Deposit$200.00
Account Base CurrencyUSD, AUD, EUR, GBP, CAD, JPY, NZD,CHF, SGD, HKD
Max Leverage 500:1, 30:1 EU Clients
Trading PlatformsMetatrader 4/5, cTrader, Webtrader, API Trading, MAM / PAMM

Forex Regulations In Germany

Bundesanstalt für Finanzdienstleistungsaufsicht

“BaFin short for “Bundesanstalt für Finanzdienstleistungsaufsicht” is one of the largest financial supervisory authorities in Europe.” As we know, the Federal Financial Supervisory Authority is called BaFin. 

BaFin’s primary role is the supervision of banks, insurance companies and securities trading and ensuring the viability, integrity and stability of the German financial system.

As a financial market-based institution, BaFin is responsible for both providers and consumers. On the supply side, attention paid to the creditworthiness of banks, insurance companies and financial institutions. 

For investors, clients of the bank and insured that guarantees confidence in the financial markets and the companies that operate in it.

Currently, BaFin oversees some 2,700 banks, 800 financial services institutions, and more than 700 insurance companies. 

To maintain the integrity and stability of the financial system and combat money laundering, BaFin is required, under the Banking Law, to run a centralized computer system that stores information about all accounts and their account titles. 

This information must be established to BaFin by all financial institutions in Germany.

BaFin currently has two offices in Germany; one is located in the city of Bonn while its Central bank is located in Frankfurt.

The establishment of new banks in Germany is subject to a compulsory license subject to law, BaFin, as the competent authority, approves such permits. 

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

High Leverage Forex Brokers For German Residents

xm trading
Broker TypeMarket Maker
RegulationsIFSC, CySec, ASIC
Min Deposit$5.00
Account Base CurrencyUSD, EUR, GBP, JPY, CHF, AUD, RUB, PLN, HUF, SGD, ZAR
Max Leverage888:1. *Leverage depends on the entity of the group and the financial instrument traded.
Trading PlatformsMetatrader 4/5, Webtrader
fpmarkets logo
Broker TypeECN, DMA
RegulationsASIC, CySEC
Min Deposit$100.00 USD
Account Base CurrencyAUD, CAD, CHF, EUR, GBP, HKD, CNY, NZD, SGD, USD
Max Leverage1:500
Trading PlatformsIRESS, Metatrader 4 and 5, MAM, PAMM

BaFin Fundamental Principles

When a trader, especially a beginner, opens an account at one of the hundreds of Forex brokers that exist in the world, it is unlikely that they will think about which regulator, if any, has obtained his license. 

And, most likely, you will never think about it. But cases of unfair provision of services by brokers and even the refusal to return your initial deposit are not so rare.

BaFin is supervised by the German Federal Ministry of Finance, which ensures that the organization offers excellent regulatory and audit oversight of partner companies, having the highest quality standards. 

All types of BaFin regulated Forex brokers must comply with the regulatory requirements of the German Securities Market Law, and it is BaFin’s responsibility to monitor the activities of companies to ensure that they do not deviate from standard protocols. 

It has enabled BaFin to gain consumer confidence as it has successfully reduced the amount of financial fraud compared to other regulatory agencies in the European Union.

All BaFin regulated brokers must submit periodic financial reports generated through internal audits carried out by third-party service providers. 

All brokers must prove that they have a minimum capital that is kept in a segregated account, in case of emergency. 

These funds are held in segregated German bank accounts, under the supervision of BaFin and its most influential members. 

BaFin is strict in its regulations so that any broker can be easily liquidated if the need arises, and its lack of solvency in no way affects client funds.

More on German Forex Regulation..

BaFin makes it easy for its consumers to access its online platform, which allows viewing each regulated member and their behavior in the company. It means that investors can analyze their broker before starting to invest with him.

Also, the platform is designed specially so the consumers can share their opinion or complaints of any kind, so that the company can solve the problem most effectively.

In the event of a conflict with a consumer, BaFin makes its clients want to reach an out-of-court settlement. Even though investors and the company prefer to avoid their problems in court, some of those conflicts need to file an arbitration. 

In conclusion, BaFin has been instrumental in shaping the German economy, reducing cases of financial misunderstanding and ensuring the integrity of financial markets by continually developing the code of conduct that all companies must abide. 

The German authorities have successfully reduced levels of corruption by monitoring BaFin’s daily activities and holding them accountable to federal authorities.

Within Germany or Offshore?

Should Forex brokers for German residents be trusted?

Yes. BaFin’s regulations are highly reliable because they differ from other companies’ rules positively.

BaFin has become the most trusted regulator for many consumers. It has a small number of complaints due to its significant regulations, and it has a large number of advantages that other companies do not have.

The regulator encourages consumers to contact them regarding any claims they may make regarding any of the companies regulated by the BaFin regulatory authority. BaFin offers direct customer service numbers that operate during standard business hours during business days, through a team of fully dedicated support staff.

Germans do not have to trade only with BaFIn regulated brokers. Many regulators in the EU (FCA, CySec) and around the world (ASIC, IFSC) would accept German Forex traders. You may be at an added risks with brokers outside the EU so it is wise to due your home work on any broker you decide to trade with.