| Updated: May 15, 2024There is no doubt that the European market is opening its doors to forex trading, with multiple countries on the continent introducing a proper regulatory framework for this innovative type of investment. Germany makes no exception, with a number of brokers legally operating in the German market, offering traders a safe and fair trading environment. If you are looking for a reputable broker to help you with your forex trading endeavors, we can recommend several of the best forex brokers in Germany, offering safe, intuitive, and easily accessible trading no matter where you go.
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
Capital.com75% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Plus50080% of retail investor accounts lose money
Saxo Bank65% of retail investor accounts lose money
XTB80% of retail investor accounts lose money
Swissquote61% of retail investor accounts lose money
Iron FX67.62% of retail investor accounts lose moneyGermanian Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. FP Markets | 6143 | 4.8 ⭐ |
| 2. Fusion Markets | 1409 | 4.8 ⭐ |
| 3. eToro | 22902 | 4.2 ⭐ |
| 4. Capital.com | 10490 | 4.2 ⭐ |
| 5. Global Prime | 100 | 4.1 ⭐ |
| 6. Plus500 | 13168 | 4.1 ⭐ |
| 7. Saxo Bank | 5596 | 3.7 ⭐ |
| 8. XTB | 1044 | 3.7 ⭐ |
| 9. Swissquote | 2349 | 3.6 ⭐ |
| 10. Iron FX | 0 | N/A ⭐ |
Germanian Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. FP Markets | 0.10 | 0.30 | 0.30 | 0.30 |
| 2. Fusion Markets | 0.11 | 0.13 | 0.15 | 0.11 |
| 3. Global Prime | 0.13 | 0.28 | 0.28 | 0.22 |
| 4. Capital.com | 0.6 | 10 | 2 | 1.3 |
| 5. Iron FX | 0.7 | 0.4 | 0.9 | 0.8 |
| 6. Saxo Bank | 0.9 | 1.2 | 0.8 | 1 |
| 7. XTB | 0.9 | 14 | 1.3 | 2.2 |
| 8. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
| 9. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
| 10. Swissquote | 1.7 | 1.6 | 1.7 | 2.0 |
Germanian Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. Iron FX | $0 |
| 2. Saxo Bank | $3 per lot |
| 3. Plus500 | $0 |
| 4. eToro | $0 |
| 5. Capital.com | $0 |
| 6. XTB | $0 |
| 7. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 8. FP Markets | $0 Standard Account; $6 round turn on Pro Account |
| 9. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 10. Swissquote | $9 per lot (Standard); $0 (Premium) |
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 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 X, Instagram, or LinkedIn.
Top 10 FX Brokers in Germany
Fusion Markets Broker Details Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade Trustpilot Rating 4.8 out of 1409 reviews Number of Forex Pairs to Trade Over 200 Leverage Forex & Metals: 30:1
Index CFDs: 5:1
Cryptocurrencies: 2:1Spread EURUSD: 0.11
USDJPY: 0.13
EURGBP: 0.15
GBPUSD: 0.11Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple Founded by Australian trading experts, Fusion Markets was launched in 2017 and is currently one of the top destinations for traders all over the globe. While it is common for brokers to advertise low spreads, Fusion Markets was actually recognized by Brookerchooser, receiving the award “Lowest Spread Forex Broker” four years in a row.
In addition to offering traders tight spreads, Fusion Markets is committed to offering the best value for your trading, charging a significantly low commission of only $2.25 per lot ($4.50 per side). As you can see, const-effectiveness is one of the main values of this top-shelf broker.
Safety is always a priority for Fusion Markets, with major regulatory bodies like the Australian Financial Services (license No.385620), the Financial Services Authority of Seychelles (license No.SD096), and authorities in Vanuatu regulating the services provided by the broker. Under ASIC’s (Australian Securities & Investments Commission) regulation, the broker also provides a negative balance protection to some of its clients.
With no minimum on deposits and a wide range of popular trading platforms like MetaTrader4, MetaTrader5, cTrader, and more, it is no surprise that Fusion Markets is one of the top choices of traders. With an average score of 4.6 out of 5 on Trustpilot, this broker has received an Excellent rating from more than 1,300 happy customers.
Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
Global Prime Broker Details Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.1 out of 100 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 500:1
Index CFDs: 100:1
Cryptocurrencies: 10:1Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 0.22Forex Commission per Lot per Trade $0 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
Global Prime is a reliable brokerage that has been providing low-cost trading services since 2010. Regulated by the watchdogs of Vanuatu and Australia, the broker facilitates trading with over 150 financial instruments, including indices, bonds, commodities, cryptocurrencies, and more than 50 currency pairs. Major-pair spreads on raw accounts start at zero pips, with most orders being executed within 10 milliseconds on average. The broker works with MT4 only but plans to soon expand its range of supported platforms with cTrader, MT5, and TradingView.
These excellent trading conditions, coupled with a streamlined registration process, fee-free transactions to and from customer accounts, and round-the-clock support, have earned the broker a solid 4.1 score on Trustpilot. Still, there is scope for improvement as the company offers no cent and swap-free accounts for Islamic customers. The broker has no compensation scheme for client funds, either, which is yet another area Global Prime could improve in.
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 use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
Iron FX Broker Details Regulators FCA (licensing no. 585561), FSCA (licensing no. 45276) Min Deposit $100 Trading Platforms MetaTrader 4, WebTrader, VPS, PMAM, TradeCopier, Mobile App Trustpilot Rating N/A out of N/A reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.7
USDJPY: 0.4
EURGBP: 0.9
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Visa, MAstercard, Bank Wire, Skrill, Neteller, China Union Pay, Fasapay, Perfect Money, Bitwallet, Paysafecard Withdrawal Methods Bank Wire Founded in 2010, Iron FX is a broker with extensive experience in the trading field, offering traders a vast selection of products. Providing CFDs on forex pairs, commodities, indices, shares, and futures, this online brokerage is a great place for a vast variety of traders. With seven different types of accounts, members of Iron FX can pick the option that suits their preferences the best, with each of the account types offering either low or low fees that offer the best value for your trading.
Unfortunately, while Iron FX was regulated by the Cyprus Securities and Exchange Commission (CySEC), its Bermuda entity currently holds no license authorizing its operations. Meanwhile, its UK and South African entities are regulated by the Financial Conduct Authority (FCA) and the Financial Sector Conduct Authority (FSCA), respectively. We would also like to highlight the company’s dedication to traders’ safety, with Iron FX utilizing enterprise-class security tools to keep you and your money safe.
Members of the broker will have access to trading platforms like MetaTrader 4, WebTrader, VPS, PMAM, and TradeCopier as well as the mobile app of Iron FX that enables seamless trading on the go. To fund your account, you are required to deposit $100, which is the minimum required for the standard account type.
Key Pros
- Offers a wide selection of trading instruments
- Supports several popular trading platforms
- Enables easy trading on the go via dedicated app
- Supports various deposit methods
- Traders can choose from 7 different account types
Key Cons
- Bahamas entity operates with no license
- Trustpilot score not available due to many fake review detected
- Withdrawals are possible only via bank wire
Swissquote Broker Details Regulators FCA, MFSA, FINMA, DFSA, MAS, CySEC Min Deposit $1,000 Trading Platforms CFXD, MetaTrader 4, MetaTrader5 Trustpilot Rating 3.6 out of 2349 reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.7
USDJPY: 1.6
EURGBP: 1.7
GBPUSD: 2.0Forex Commission per Lot per Trade $9 per lot (Standard); $0 (Premium) Deposit Methods Visa, Mastercard, Bank Transfer, Online Banking Withdrawal Methods Visa, Mastercard, Bank Transfer, Online Banking Swissquote is one of the most secure brokers you can trade with online. Starting as a financial company specializing in the development of financial software and web applications in 1990, by 1996, it introduced its first financial platform offering traders prices on all securities trading on the Swiss stock market. Today, Swissquote is publicly traded, runs two entirely online-operating banks, and is one of the most trustworthy brokers for Swiss traders as well as trading enthusiasts from multiple foreign markets.
To offer seamless CFD and Forex trading to its customers, Swissquote has introduced its CFXD platform, boasting a simple interface that provides multiple features for an extra intuitive trading experience. In addition to CFXD, the broker also supports MetaTrader 4 and 5, while the Autochartist tool can offer traders access to a large library of charts and trading analysis.
Offering only the best value for your trading is one of Swissquote’s strongest features. It offers competitive spreads as well as low margin rates. Traders’ accounts will enjoy cash deposit protection for transactions up to $/€100, 000 as well as negative balance protection. With major regulators like the FINMA, FCA, DFSA, and more regulating the services offered to Swissquotes customers, it comes as no surprise that many have trusted the broker with their investments.
Key Pros
- Publicly traded reputable brand
- Broker with extensive experience in trading
- Offers competitively low spreads
- Supports various trading platforms
- Forex traders can choose from over 80 currency pairs
Key Cons
- Traders must pay an inactivity fee
- Desktop trading platform looks a bit outdated
- Trading fees tend to be higher
Saxo Bank Broker Details 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) Min Deposit $0 Classic$200,000 + Platinum $1,000,000 + VIP Trading Platforms SaxoTraderGO, SaxoTraderPRO, TradingView Trustpilot Rating 3.7 out of 5596 reviews Number of Forex Pairs to Trade 185+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.9
USDJPY: 1.2
EURGBP: 0.8
GBPUSD: 1Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Visa Electron, Mastercard, Maestro, Bank Transfer, Quick Payment Withdrawal Methods Bank Transfer Established in 1992, Saxo Bank provides a superior trading experience across multiple asset classes and more than 71,000 financial instruments. The brokerage is operated by one of Denmark’s largest investment banks and carries licenses from several first-tier financial regulators, including the British FCA, Australia’s ASIC, and Singapore’s MAS. Saxo Bank provides a solid choice from over 185 major, minor, and exotic currency pairs available for commission-free trading at highly competitive spreads.
Apart from trading on the spot markets, Saxo Bank clients can dabble in Forex forwards, vanilla options, contracts for difference, and futures. All costs are built into the spreads as the brokerage charges no additional commissions on foreign exchange trades. Customers looking to diversify their portfolios can trade in various hard and soft commodities, equity indices, mutual funds, bonds, and ETFs. Its somewhat limited range of deposit and withdrawal methods is one of the very few shortcomings of Saxo Bank, whose overall score on Trustpilot averages 4.2 out of 5 stars.
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 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) Min Deposit $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 13168 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Mastercard, Visa, Skrill, PayPal, Bank Transfer, Apple Pay, BPAY Withdrawal Methods PayPal, Bank Transfer, Visa, Mastercard, Skrill Plus500 is a well-funded trading company with a spotless reputation that services over 25 million customers across 50 countries. This market-leading brokerage is regulated by some of the strictest financial watchdogs in the world, including ASIC, FCA, and CySEC. Its parent company Plus500 Ltd trades publicly on the Main Market of the London Stock Exchange, which only adds to the broker’s good reputation.
The broker specializes in providing CFD trading across multiple asset classes, offering a choice from over 2,800 financial instruments. Forex, indices, stocks, commodities, cryptocurrencies, options, and ETFs are all tradable at Plus500. It ensures a clean trading experience with a robust platform flaunting a modern yet highly intuitive design.
Plus500 caters to traders with tight spreads and charges no additional commissions on forex trades. Customers can fund their live trading accounts via cards, bank transfers, and several popular e-wallets, with minimum deposits starting at $100. Deposits and withdrawals are free but administrative fees are levied on dormant accounts after three months of inactivity.
Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free FX trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time FX quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
eToro Broker Details Regulators FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN Min Deposit $10 Trading Platforms eToro Investing, eToro App, TradingView, eToro CopyTrader Trustpilot Rating 4.2 out of 22902 reviews Number of Forex Pairs to Trade 55 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.0
USDJPY: 1.0
EURGBP: 1.5
GBPUSD: 2.0Forex Commission per Lot per Trade $0 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 Launched in 2007, eToro is home to a global investment community of more than 30 million customers. The company operates with licenses from tier-one financial regulators like CySEC, ASIC, and FCA. The brokerage provides a varied range of tradable instruments, including 55 currency pairs, 32 commodities, 21 equity indices, and thousands of stocks. Cryptocurrency, ETF, and NTF trading is also possible via the platform.
Forex traders will benefit from spreads as low as a single pip on major pairs like the EUR/USD. Unlike many rival brokers, eToro charges no commissions on currency trades. All costs and fees are built into the spreads instead. The broker’s proprietary platform is well-designed and user-friendly enough to accommodate novice and versed traders. Another thing that distinguishes eToro from rival brokerages is its social and copy trading platform that leaves the competition in the dust with its superior features.
Key Pros
- Offers trading with over 5,000 instruments
- Ideal for social and copy trading
- No commissions on forex trades
- Effortless registration process
- Offers negative balance protection
Key Cons
- Withdrawals are subject to additional processing fees ($5)
- USD is the only base account currency
- Charges inactivity fees on dormant accounts
FP Markets Broker Details Regulators ASIC, CySEC, FSA (Seychelles), FSCA Min Deposit $50 (AU$100) Trading Platforms MetaTrader4, MetaTrader5, WebTrader, IRESS Trustpilot Rating 4.8 out of 6143 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 50:1Spread EURUSD: 0.10
USDJPY: 0.30
EURGBP: 0.30
GBPUSD: 0.30Forex Commission per Lot per Trade $0 Standard Account; $6 round turn on Pro Account Deposit Methods Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal FP Markets is a broker that joined the online trading scene in 2005, making it a well-experienced brand, offering great trading conditions for all of its clients. Traders from multiple markets will have the chance to trade a decent number of currency pairs as well as numerous CFDs. Some of the biggest perks FP Markets offers to traders include competitively low spreads, popular trading platforms, and a great selection of tools suitable for beginners.
To offer an equally smooth trading to different traders, FP Markets supports popular platforms like MetaTrader 4 and 5 as well as IRESS and WebTrader. A dedicated mobile app will also offer Android and iOS users easy access to mobile trading platforms, enabling seamless trading on the go.
Tight spreads are also among the features that attract numerous traders to FP Markets, with pleased reviewers on Trustpilot giving the brand an average score of 4.8 out of 5. The average leverage ratio that FP Markets members can enjoy can reach up to 30:1 on certain products, including popular currency pairs. To ensure the safety of traders, the broker abides by the rules and guidelines imposed by major regulators in jurisdictions like Australia (License No. 286354) and Cyprus (License No. 371/18).
Key Pros
- Offers plenty of educational trading tools
- Broker with competitive spreads
- Allows easy trading on the go
- Regulated by reputable authorities
- Offers a decent number of currency pairs
Key Cons
- Supported trading platforms are a tad outdated
- Could expand selection of products
- No negative balance and investor protection for clients under ASIC
Capital.com Broker Details Regulators ASIC, FCA, CySEC, SCB, MiFID Min Deposit $20 Trading Platforms MetaTrader 4, TradingView Trustpilot Rating 4.2 out of 10490 reviews Number of Forex Pairs to Trade 125+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 10
EURGBP: 2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Bank transfers, VISA, MasterCard, Maestro, Apple Pay, PayPal, Neteller, Skrill, Sofort, Przelewy, TrueLayer, iDEAL, Trustly, SPEI Withdrawal Methods Bank transfers, bank cards, Apple Pay, PayPal, Neteller, Skrill, Sofort, Trustly Capital.com is a broker that has been providing its services since 2016. It has licenses from several Tier-1 regulators, including the ASIC, CySEC, and FCA, ensuring a secure trading environment. More than 580K registered traders enjoy an excellent user experience, from hassle-free account opening to streamlined trading.
Capital.com offers market-leading spreads on more than 125 currency pairs. The brand’s product offering goes far beyond forex trading, with 3,000 indices, commodities, shares, major cryptocurrencies, and altcoins tradable both on desktop and mobile.
The minimum deposit requirements at Capital.com start from $20, with diverse payment methods, including bank transfers, bank cards, and various e-wallet brands. Withdrawals do not entail processing fees and demo accounts are available to practice in a simulated trading environment with virtual funds. The brand is praised for its rich assortment of educational materials, the latest market news, and advanced analytical tools.
Key Pros
- Trusted by 580K+ 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
- There is an inactivity fee after 1 year
- No two-step login
- No price alerts on the web platform
XTB Broker Details Regulators FCA (License No. FRN 522157), CySEC (License No.169/12), FSC (FSC License No.: 000302/438), IFSC (License No.: 000302/46.), KNF (N/A), CNMV (N/A), BaFin (N/A), FSCA (N/A), FSA (N/A) Min Deposit $0 Trading Platforms xStation 5, xStation Mobile Trustpilot Rating 3.7 out of 1044 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.9
USDJPY: 14
EURGBP: 1.3
GBPUSD: 2.2Forex Commission per Lot per Trade $0 Deposit Methods Visa, Maestro, Mastercard, Bank Transfer, Neteller, Skrill, PayPal, Ecommpay, PayU Withdrawal Methods Bank Transfers, Visa, Mastercard, Skrill Established in 2002 under the name X-Trade, XTB is a broker of Polish origin that traders from across the globe gravitate towards thanks to its low fees, excellent reputation, and versatile selection of financial instruments that encompasses forex, stocks, ETFs, and more.
This broker’s operations are overseen by multiple regulatory entities, including but not limited to Poland’s Financial Supervision Authority (KNF) and the British Financial Conduct Authority (FCA). What is more, it also offers negative balance protection, which is an absolute must for many modern traders.
Although XTB does not support the familiar MT4, MT5, NinjaTrader, or cTrader platforms, the broker does offer its proprietary xStation 5 platform. It comes in several variants, the first one being the convenient web platform. There are also dedicated software applications for desktop computers and smartphone devices.
Key Pros
- Bears the seal of approval of both the FCA and the KNF, along with other regulators
- Mobile-friendly platform
- Offers negative balance protection
- Standard users are not charged commission when it comes to forex
- Low fees
Key Cons
- Traders from the US cannot register and trade at XTB
- No support for MT5 and other popular platforms
- Withdrawals under certain thresholds are accompanied by fees
Is Forex Trading Legal in Germany?
Like many other European countries, Germany has also legalized 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 and regulated by the respective authorities in Germany. As mentioned, the regulation of the forex trading sector in Germany falls under the remit of the BaFin.
It is recommended to always do a thorough checkup of a broker before you engage in any form of trading. Make sure the brand has been licensed and regulated by the BaFin, checking the validity of the license and the legitimacy of the broker. In addition to a BaFin regulation, Germany-friendly forex brokers may also operate under a Markets in Financial Instruments Directive (MiFID) license, as this is the body responsible for regulating financial services in the European Economic Area (EEA).
Alternatively, German traders can also opt for trading with a forex broker licensed by another jurisdiction within the EEA. That means operators can be authorized to legally offer forex trading to Germans thanks to licenses from the Financial Conduct Authority (FCA) 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 have been regulated and licensed by the BaFin, which is the main financial authority overseeing forex trading on the territory of Germany. In order to obtain a license from the German regulator, forex brokers are required to meet a certain set of requirements. That way traders can be sure they are always trading on a properly regulated forex platform and their funds are always protected via instruments 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 license application, forex broker operators must maintain a minimum capital of at least €50,000. At the time of submitting their applications, to prove their minimum capital, entities must ensure that said funds have not been financed directly or indirectly via a loan. In addition to proof of minimum capital, license applicants must provide a set of documents required by the local regulator.
In addition to authorizing the operations of forex brokers, the BaFin is also responsible for taking regulatory actions against brokers that have breached security measures or other guidelines imposed by the local regulator.
Entities providing financial services without the proper license may face serious legal consequences. Meanwhile, under the Federal Supreme Court, art. 32 of the German Banking Act (KWG), 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 any 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 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 is a regulated forex trading market, 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 be participating in regulated and safe trading operations, 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 its regulator and the license it has obtained from the respective authorities in the country. If you see the number of the license obtained by the company or its register number, you can verify the validity of the license by checking the official registry of BaFin. Such information is available on the official website of the regulator, available both in German and English. You can 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.
It is also possible that a forex broker operating in Germany is regulated by the MiFID, which is responsible for supervising financial services provided across all countries included in the EEA, such as Germany. Such information should also be clearly stated on the website of the broker, ensuring the brand is operating following strict MiFID guidelines.
Do German Forex Brokers Ensure the Safety of Clients’ Funds?
Since money protection is one of the safety measures German forex brokers are required to implement into their operations, one can be sure that properly regulated trading companies will ensure top-level security for the money you invest into forex pairs.
As the BaFin requires forex brokers to follow stringent anti-money laundering and secure financial service provision guidelines, you can be sure that properly regulated brokers will keep your funds secure. What is more, 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.
Another requirement imposed by the BaFin that ensures that your funds will be safe at any regulated German forex broker is negative balance protection. As of 2017, licensed German brokers are required to ensure that the losses of investors cannot exceed the amount of their deposits, eliminating the risk of losing more than they can afford trading.
German traders can also join brokers operating under an EU license, meaning they 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 for their customers is one of the requirements German forex brokers are asked to meet. The German regulatory body, BaFin, has implemented this regulatory measure as a compulsory condition that brokers are required to fulfill if they apply for an operational license in Germany. As of 2018, providing negative balance protection has also been a measure introduced by the MiFID, ensuring that forex, CFD, and binary traders residing in any of the countries of the EEA will be offered this additional type of protection.
Simply put, German brokers that have been regulated by the BaFin or any of the EEA jurisdictions will offer negative balance protection and will not allow you to accumulate 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 will depend on your overall income, with most traders usually required to pay a 25% forex trading tax.
Under financial laws in Germany, the capital gains tax rate is 25%, with another 5.5% in the form of solidarity tax being added to the taxable amount. That makes the total surcharge on financial investments 26.375%. One thing we would like to note is that German traders may often be eligible for an investor’s allowance that can reduce their forex trading taxes. 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.
As of 2024, the investor’s allowance has introduced a threshold of €801, which means traders with accumulated income from forex trading below that amount are exempted from this type of tax.
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 30:1 when trading major currency pairs. Meanwhile, for non-major pairs, the maximum allowed leverage is 20:1.
Naturally, the set maximum leverage levels in Germany are identical to those implemented in other EU markets, with all brokers operating by ESMA rules offering the same maximums as German forex brokers. Other major trading regulators like the ASIC and the FCA have also implemented the same maximums of 30:1 leverage on major pairs and 20:1 on non-major currency pairs.
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. However, you must keep in mind that there is a set of requirements that need to be met by German traders to be eligible for professional trading accounts that come with a wide selection of perks, including better leverage and lower commission rates. 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
- Traders must provide account statements from trading with German-regulated forex brokers from the previous month
Have a relevant experience in the financial services sector:
- Traders with at least one year of working experience in the financial sector in a position requiring knowledge of Forex
- Traders must provide a letter from an employer confirming their experience of at least one year in the aforementioned position
Providing financial instrument portfolio exceeding €500,000:
- Traders’ portfolios with financial instruments (including shares, cash deposits, profits from investing, and debt instruments) must be over €500,000
- Traders must provide 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 any broker and providing the respective documents to qualify for the perks that come along with professional trading in Germany.
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 platform 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 platforms that may offer exclusive features that are not available on the commonly used platforms.
MetaTrader 4: One of the most widely used platforms, also supported by the majority of German forex brokers. Automatic trading is one of the great features incorporated in MT4, with most brokers offering the platform both for desktop and mobile trading.
MetaTrader 5: While MT4 is more suitable for beginner forex traders, MT5 is more suitable for traders who wish to expand their trading to markets beyond Forex and CFDs. MT5 features more technical indicators, graphics, and other trading tools. German forex brokers tend to offer their customers MT5 for both desktop and mobile trading.
cTrader: Another platform that is often available at German forex brokers, offering 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 on the platform.
WebTrader: Being the web-based version of MT4, WebTrader allows traders to place orders directly from their web browsers, eliminating the need to install any software on their devices. The platform boasts a user-friendly interface, making it a great option for both beginners and experienced traders.Below you can find some useful references with links to organisations that monitor the forex market in Germany.
- The Federal Financial Supervisory Authority or Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)