| Updated: December 2, 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 in 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
Global Prime74-89% of retail CFD accounts lose money
Capital.com75% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
Plus50082% of retail investor accounts lose money
Swissquote61% of retail investor accounts lose money
Saxo Bank65% of retail investor accounts lose money
XTB80% of retail investor accounts lose money
Iron FX67.62% of retail investor accounts lose moneyGerman Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. FP Markets | 7,092 | 4.7 ⭐ |
| 3. Global Prime | 161 | 4.5 ⭐ |
| 4. Capital.com | 11,249 | 4.3 ⭐ |
| 5. eToro | 25,095 | 4.2 ⭐ |
| 6. Plus500 | 14,038 | 4.1 ⭐ |
| 7. Saxo Bank | 6,484 | 3.8 ⭐ |
| 8. Swissquote | 2,877 | 3.8 ⭐ |
| 9. XTB | 1,311 | 3.7 ⭐ |
| 10. Iron FX | 0 | N/A ⭐ |
German Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. FP Markets | 1.1 | 0.30 | 0.20 | 1.2 |
| 2. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 3. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 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 | 1.0 | 0.6 | 1.2 | 1.0 |
German 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 |
|
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 Supports German No Germany Currency (EUR) Yes Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.9 out of 1,862 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.07
USDJPY: 0.13
EURGBP: 0.23
GBPUSD: 1.01Forex 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, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, 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 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
- Has no 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 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.5 out of 161 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex 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
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 Supports German No Germany Currency (EUR) Yes 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 CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread 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 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 Supports German Yes Germany Currency (EUR) Yes Regulators FCA, MFSA, FINMA, DFSA, MAS, CySEC, FSC, FSCA Min Deposit $1,000 Trading Platforms CFXD, MetaTrader 4, MetaTrader5 Trustpilot Rating 3.8 out of 2,877 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.0
USDJPY: 0.6
EURGBP: 1.2
GBPUSD: 1.0Forex Commission per Lot per Trade - $/€0 on Premium and Prime Accounts;
- $/€2.5 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 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 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) Min Deposit $0 Classic$200,000 + Platinum $1,000,000 + VIP Trading Platforms SaxoTraderGO, SaxoTraderPRO, TradingView, SaxoInvestor Trustpilot Rating 3.8 out of 6,484 reviews Number of CFD Forex Pairs to Trade 185+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread 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 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 $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 14,038 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 (1:5 via FSA)Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Withdrawal Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free CFD trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
eToro Broker Details Supports German Yes Germany Currency (EUR) Yes Regulators FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN, AMF, SEC, GFSC Min Deposit $50 or $100 based on country ($10 for the UK) Trading Platforms eToro Investing, eToro App, TradingView, eToro CopyTrader Trustpilot Rating 4.2 out of 25,095 reviews Number of CFD Forex Pairs to Trade 55 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: Up to 1:2 (European and Australian Retail traders) Up to 1:5 (Pro and FSA traders)Spread 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 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 Supports German Yes Germany Currency (EUR) Yes Regulators ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines) Min Deposit $50 (AU$100) Trading Platforms MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView Trustpilot Rating 4.7 out of 7,092 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 1.1
USDJPY: 0.30
EURGBP: 0.20
GBPUSD: 1.2Forex 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, PayPal, XPay, Rapyd Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal 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 Supports German Yes Germany Currency (EUR) Yes Regulators ASIC, FCA, CySEC, SCB, SCA (UAE) Min Deposit $20 Trading Platforms MetaTrader 4, TradingView Trustpilot Rating 4.3 out of 11,249 reviews Number of CFD Forex Pairs to Trade 125+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread 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, Volt, Lean Withdrawal Methods Bank transfers, bank cards, Apple Pay, PayPal, Neteller, Skrill, Sofort, Trustly 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 Supports German Yes Germany Currency (EUR) Yes 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 (registered), FSCA (N/A), FSA Norway (registration ID - FT00118162) Min Deposit $250 Trading Platforms xStation 5, xStation Mobile Trustpilot Rating 3.7 out of 1,311 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread 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 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, both in German and English. German traders can look up the brokers by company name, registration number, or BaFin ID. Alternatively, you can browse the authorized brokerage firms in alphabetical order.
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. German traders can contact representatives of the regulatory body 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 at if@bafin.de. If you think your chosen broker is catering to German customers without due authorization, you can additionally check BaFin’s database of warnings about unauthorized companies.
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.
- 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 licence holder.
- BaFin Market Entry: This page offers insight into the regulatory requirements entities must meet if they wish to operate in Germany.
- BaFin Submitting Complaints: 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.
- BaFin Complaint Form: German residents can submit complaints via this form, at the time of writing it is available exclusively in German.