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9 Best Forex Brokers in Germany for 2024

Looking for the top forex broker in Germany? Based on our hands-on analysis, we’ve identified the 9 best options tailored to various trading needs. Practical tips from our experts are included.

By:
Vladimir Zernov
Reviewed By:
FX Empire Editorial Board
Updated: Apr 8, 2024

List of Top German Forex Brokers

Plus500 - Best Overall
Reliable broker with multiple top regulations. User-friendly proprietary platform. Helpful research section +Insights. Wide range of available instruments.

ActivTrades - Best Trading Tools
A wide range of in-house trading tools. Innovative proprietary trading platform. Competitive fees.

IronFX - Best for Tradable Instruments
Extensive array of instruments, including 32 cryptocurrencies. Abundant assortment of account types. Regulated by EU authorities.

FP Markets - Best Low Spreads
Globally regulated broker. Highly competitive spreads. A wide range of platforms and tools. 13000+ instruments.

AvaTrade - Best Trading App
Tightly regulated in multiple jurisdictions. Intuitive mobile app. Dedicated app for options trading. Over 1250 instruments.

MultiBank Group - Best for Professional Traders
Overseen by top global regulators. MAM/PAM and Fix API. Competitive spreads. ECN and Pro accounts.

RoboMarkets - Best Trading Platform
Proprietary RoboMarkets Terminals and R StocksTrader platforms. MT4 and MT5. Five accounts tailored to different needs. Abundance of tradable instruments.

Tickmill - Best for Beginners
Licensed by reputable regulators. Competitive fees. Broad selection of tradable instruments. Useful trading tools. Diverse account types.

eToro - Best for Social and Copy Trading
A pioneer and leader in copy trading. User-friendly proprietary platform. Impressive range of tradable instruments, including 41 cryptocurrencies.

Forex Trading in Germany

The forex and CFD trading industry in Germany is experiencing significant growth and is known for its highly regulated financial sector. With a multitude of options available to traders of all experience levels, navigating this market can be a daunting task. However, rest assured that we have done the groundwork for you.

Germany boasts a robust regulatory framework, overseen by the Federal Financial Supervisory Authority (BaFin), which prioritizes investor protection. Brokers wishing to operate in the country must obtain a license from BaFin or another reputable European regulator. This ensures that traders’ interests are safeguarded, offering peace of mind in a potentially complex market.

How Did FX Empire Select The Best Brokers in Germany?

FXEmpire's Methodology

To choose the best brokers in Germany, I used the FX Empire 250-point rating system to find the leaders in each category. I focused on the following key features:

  • I chose brokers that accept German residents.
  • I prioritized brokers regulated by BaFin or European Tier-1 regulators.
  • I focused on trustworthy and transparent brokers.
  • I preferred brokers that have EUR as the base currency.
  • I explored the localized German version of the website to identify any dedicated features for German clients, such as the relevant hours of customer support.
  • I listed brokers that have user-friendly and feature-rich platforms.
  • I chose brokers that offer low fees.
  • I focused on brokers that provide their websites and customer support in German.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Without further ado, let’s move to the selected brokers.

Best Overall

Plus500

4.3
Start Trading
CFD Service, 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
  • Min Deposit
    $100
  • Tradable Instruments
    2047
  • Fees
    Medium

Founded in 2008, Plus500 is based in London and is listed on the London Stock Exchange under the ticker PLUS. The broker is overseen by multiple top regulators around the world, including CySEC, UK FCA, and ASIC, and offers to trade in forex, commodities, indices, stocks, ETFs, and cryptocurrencies (availability subject to regulation)

Regional Features:

  • Accepts clients from Germany.
  • Has a German version of the website.
  • Provides customer support in German.
  • Offers EUR as a base currency for a trading account.

What makes Plus500 stand out is its proprietary WebTrader platform which is available via web browsers, Windows 10 apps, tablets, and smartphones. Traders can use more than 100 technical indicators, as well as classic drawing tools like Fibonacci retracement levels, which are often used in forex trading. Plus 500 also offers a unique +Insights section, which draws data from its client community. This analytical tool shows the most traded instruments, most profit-making positions, most loss-making positions, etc.

My research showed that Plus500 offered tight spreads in some instruments. For example, the spreads for EUR/USD were as low as 0.8 pips, while spreads for other instruments were average for the industry (spreads are dynamic and subject to change).

Pros
  • Over 2,500 available CFDs.
  • A user-friendly proprietary trading platform with robust charting tools.
  • Fast-responding chat support is available 24/7.
  • Impressive +Insights research section.
Cons
  • No phone support.
  • WebTrader platform is not available on the desktop.
  • High swap fees.
Plus500 Review

Best Trading Tools

ActivTrades

4.4
Start Trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  • Min Deposit
    $0
  • Tradable Instruments
    1253
  • Fees
    Medium

Founded in 2001, ActivTrades is an online CFD broker with offices around the world that offers over 1100 tradable instruments from different asset classes. The broker is regulated by different jurisdictions globally, including Tier-1 UK FCA, CMVN in Portugal, and CSSF in Luxemburg. ActivReades has issued private indemnity insurance and a ‘best execution policy’, protecting its clients and ensuring quality order execution.

Regional Features:

  • Accepts clients from Germany.
  • Has a German version of the website.
  • Provides customer support in German.
  • Offers EUR as a base currency for a trading account.
  • Provides educational content in German.

ActivTrades’ clients can choose between the proprietary platform ActivTrader and the popular MetaTrader4 and MetaTrader 5. My research showed that ActivTrader has multiple in-house tools that boost the overall trading experience. These include SmartOrders which is used for faster order placement and SmartPattern which detects chart patterns and generates statistics.

The broker offers trading over forex pairs, commodities, stocks, indices, cryptocurrencies, bonds, and ETFs. My tests showed that ActivTrades offers low-to-medium spreads and swaps, compared to the broader industry. For example, EUR/USD spreads were 0.7–1.2 pips, while WTI Oil spreads ranged between 0.04 pips and 0.05 pips.

Pros
  • Plenty of helpful trading tools.
  • An innovative proprietary trading platform.
  • Competitive trading fees
  • Fast order execution.
Cons
  • Deposits and withdrawal fees may be charged by third parties.
  • No third-party research content.
ActivTrades Review

Best for Tradable Instruments

IronFX

4
Start Trading
Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.
  • Min Deposit
    $0
  • Tradable Instruments
    321
  • Fees
    Medium

IronFX, established in 2010, offers a wide range of trading options including forex, commodities, indices, stocks, and cryptocurrencies. The broker operates under the regulatory oversight of CySEC, UK FCA, and FSCA.

Regional Features:

  • Accepts clients from Germany.
  • Has a German version of the website.
  • EUR is available as a base currency for a trading account.

IronFX provides access to a comprehensive selection of trading instruments, including 84 forex pairs (minor and exotic), 31 commodities, 149 stocks, 33 indices, 7 FX futures, and 23 cryptocurrencies. The commodity offering encompasses both commodity futures and spot contracts, while the cryptocurrency offering includes various currency pairs.

My tests showed that IronFX’s spread levels varied widely between instruments. For example, spreads for EUR/USD ranged between 0.9 pips and 1.1 pips, for GBP/JPY – 3.6–3.9 pips, while spreads for WTI oil were 0.06–0.07 pips.

The broker offers the widely popular MetaTrader 4 platform available on desktop, web, and mobile. The traders can benefit from advanced indicators, customizable watchlists, copy trading capabilities, and automated trading functionality. Additionally, to assist clients in gaining a deeper understanding of MT4 Advanced platform IronFX has introduced its own dedicated educational guide.

Pros
  • Advanced functionality in MT4.
  • A high number of tradable instruments.
  • Seven accounts to choose from.
Cons
  • Weak research support.
  • High spreads for some instruments.
IronFX Review

Best Low Spreads

FP Markets

4.6
Start Trading
Contracts for Difference (CFDs) are leveraged over-the-counter derivative products and carry a high level of risk to your capital. You should only risk capital that you can afford to lose. In certain circumstances, due to fluctuations in market value you may not get back your initial investment amount. You may not only lose your initial investment but you may incur a liability to pay a further amount to cover losses. This means you can lose more money than you have invested.
  • Min Deposit
    $100
  • Tradable Instruments
    8977
  • Fees
    Low

Founded in 2005, FP Markets has established itself as a prominent broker, offering a diverse range of trading instruments to global clients. Based in Australia, the broker operates under the regulation of ASIC and CySEC, ensuring a secure and reliable trading environment for its users.

Regional Features:

  • Accepts clients from Germany.
  • Has a German version of the website.
  • Provides customer support in German.
  • Offers EUR as a base currency for a trading account.

During my comprehensive testing, FP Markets demonstrated low fees across various asset classes, including forex, indices, and commodities. Notably, the spreads for WTI Oil were as low as 0.03 points, reflecting the broker’s commitment to providing cost-effective trading opportunities. While share CFD spreads were slightly higher than the industry average, with Tesla spread at 0.95 points and Apple spread at 0.40 points, FP Markets still maintains competitive pricing overall.

FP Markets stands out with its diverse selection of trading platforms, catering to the varying preferences and trading styles of its clients. Traders have access to the widely acclaimed MetaTrader 4&5 platforms, the WebTrader platform, ensuring accessibility from any web browser, and the IRESS platform, known for its powerful functionality. Moreover, FP Markets offers a Mobile Trading App, enabling traders to stay connected and trade on the go.

Pros
  • Competitive spreads and commissions.
  • Strong educational and research support.
  • No inactivity fee.
Cons
  • The Mobile Trading App has limited functionality.
FP Markets Review

Best Trading App

AvaTrade

4.6
Start Trading
Trading CFDs and FX Options entail risk and could result in the loss of your capital.
  • Min Deposit
    $100
  • Tradable Instruments
    853
  • Fees
    Medium

AvaTrade is one of the most reputable brokers in Europe. Founded in 2016 and headquartered in Ireland, AvaTrade is authorized in multiple jurisdictions and holds several Tier-1 financial licenses. The broker offers more than 1250 instruments across multiple markets that can be traded as CFDs or options contracts. This diversity helps traders to better manage their market exospore.

Regional Features:

  • Accepts clients from Germany.
  • CBI regulation, no. C53877.
  • Has a German version of the website.
  • EUR is available as a base currency for a trading account.

One of the standout features of AvaTrade is its proprietary AvaTradeGo mobile app. It affords easy access to the market, and traders can use it to adjust their running positions. The app has an intuitive design and advanced charting capabilities, at least as far as mobile app designs go.

AvaTrade also incorporates MetaTrader 4 and 5, DupliTrade, and its two proprietary platforms – the AvaTrade Web Trader and AvaOptions. This variety suits the needs of beginners and seasoned traders alike, as it allows them to decide how to best manage their market exposure and conduct probing technical analyses.

AvaTrade offers commission-free accounts for beginner traders with floating spreads around 0.9 pips. After reviewing all of its costs, I determined that they fall marginally below the industry average.

Pros
  • Tightly regulated.
  • Intuitive mobile app.
  • Choice of trading platforms and tools.
  • 1250+ CFDs and options.
Cons
  • No phone support
AvaTrade Review

Best for Professional Traders

MultiBank Group

4.5
Start Trading
CFDs can be very risky because they use leverage, which might not be suitable for everyone. The use of leverage means that even a small amount of money you deposit initially can lead to big losses due to market movements. CFD trading is particularly risky because the markets they involve are speculative and can change a lot. Trading these products could mean losing money, therefore, you must carefully consider your financial situation and risk tolerance before trading CFDs.
  • Min Deposit
    $50
  • Tradable Instruments
    14189
  • Fees
    Medium

Founded in 2005, MultiBank provides a diverse range of trading opportunities including forex, commodities, stocks, indices, and cryptocurrencies. Headquartered in the UAE, MultiBank operates under the supervision of multiple global regulators, including BaFin.

Regional Features:

  • Accepts clients from Germany.
  • BaFIN regulation, no. HRB 73406.
  • Has a German version of the website.
  • EUR is available as a base currency for a trading account.

MultiBank supports the widely used MetaTrader 4 and MetaTrader 5 platforms, available on desktop, web, and mobile devices, as well as the cTrader platform.

The broker offers three types of accounts including spread-based and commission-based accounts. Advanced traders will benefit from high leverage (up to 1:500), free VPS hosting, expert advisors, MAM/PAMM for multiple accounts managing, and Fix API that may be integrated with MT4 and enables high-speed connectivity. The broker also incorporates social trading and automated trading.

Based on my tests, MultiBank offers competitive trading fees. The broker maintains tight spreads, low commissions, and minimal swap fees. It’s important to note that an inactivity fee of $60 per month is applicable after 90 days of inactivity, making MultiBank suitable for active traders.

Pros
  • Competitive spreads.
  • 20,000 stock CFDs.
  • Accounts insured up to $1,000,000.
Cons
  • Limited educational materials.
  • High inactivity fee.
MultiBank Group Review

Best Trading Platform

RoboMarkets

4.1
Start Trading
69.88% of retail investor accounts lose money when trading CFDs with this provider”
  • Min Deposit
    $100
  • Tradable Instruments
    12047
  • Fees
    Medium

Established in 2012, RoboMarkets is a Cyprus-based broker offering a diverse range of trading opportunities in forex, commodities, stocks, ETFs, and indices. The broker is regulated by renowned authorities such as BaFin and CySEC that ensure traders a high level of protection.

Regional Features:

  • Accepts clients from Germany.
  • BaFIN regulation, no. 154068.
  • Has a German version of the website.
  • EUR is available as a base currency for a trading account.

RoboMarkets delivers a robust trading experience through its array of platforms, including MetaTrader 4 and MetaTrader 5, along with their in-house R StocksTrader and RoboMarkets Terminals. The latter stands out for its intuitive user interface and sophisticated toolkit catering to both rookie and veteran traders. This platform boasts state-of-the-art charting options, replete with multiple timeframes and customizable indicators that make technical analysis a breeze.

The layout is designed for optimal navigation, grouping essential functions like order management, market watch, and account summary in easily accessible panels. Users will particularly appreciate the platform’s sleek design, which successfully balances visual appeal with functionality.

Through my thorough analysis, I discovered that RoboMarkets boasts an extensive selection of 12,000+ instruments, encompassing stocks, ETFs, and CFDs. Notably, the broker stands out with its vast offering of 120+ CFDs on commodity ETFs, positioning itself among the industry’s leaders in this regard.

In terms of spreads, RoboMarkets presents attractive conditions for certain instruments, while others may be less competitive. For instance, in evaluating the R StocksTrader account, I observed narrow spreads of just 0.2 pips for EUR/USD, accompanied by commission charges.

Pros
  • Excellent selection of trading platforms.
  • Intuitive and feature-rich RoboMarkets Terminals.
  • Plenty of tradeable instruments.
  • Remote VPS server.
Cons
  • Withdrawal fees.
  • Educational videos are available only for registered clients.
RoboMarkets Review

Best for Beginners

Tickmill

4.5
Start Trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd. You should consider whether you understand how CFDs, or any other of our products work, and whether you can afford to take the high risk of losing your money.
  • Min Deposit
    $100
  • Tradable Instruments
    747
  • Fees
    Low

Tickmill, established in 2014, provides a wide range of trading instruments including forex, commodities, indices, stocks, bonds, cryptocurrencies, futures, and options. The broker holds regulatory oversight from reputable bodies such as FCA, CySEC, and FSCA. Tickmill’s clients can access the popular MetaTrader 4 and MetaTrader 5 platforms, along with Tickmill’s mobile app for seamless trading on the go.

Regional Features:

  • Accepts clients from Germany.
  • Has a German version of the website.
  • Provides customer support in German.
  • Offers EUR as a base currency for a trading account.
  • Provides educational content in German.

My research indicated that Tickmill offers robust educational and research materials, such as a dedicated glossary, multiple videos, infographics, and several ebooks. The topics include forex and futures trading, technical analysis, risk management, trading psychology, and other crucial aspects of a trader’s life. The presented content could be useful for both beginner and advanced traders. Notable that German clients can enhance their trading skills through Tickmill’s webinars conducted in the German language.

In terms of trading conditions, Tickmill offers competitive spreads and swaps that fall within the low-to-medium range when compared to industry averages. For instance, the spread for Gold typically ranges between 18 and 25 pips.

Pros
  • Competitive fees.
  • Strong educational and research support.
  • Diverse account types.
Cons
  • Customer support is only available during office hours.
Tickmill Review

Best for Copy and Social Trading

eToro

4.3
Start Trading
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk
  • Min Deposit
    $50
  • Tradable Instruments
    3705
  • Fees
    High

Established in 2007, eToro has emerged as a pioneering platform in the field of copy trading. With regulation from multiple top-tier authorities, the broker offers a wide array of over 2000 financial instruments, encompassing stocks, cryptocurrencies, ETFs, indices, forex, and commodities.

Regional Features:

  • Accepts clients from Germany.
  • Has a German version of the website.
  • Provides customer support in German.
  • Offers EUR as a base currency for a trading account.

eToro revolutionizes the trading landscape with its pioneering approach to copy trading. Traders have the flexibility to execute trades based on their own strategies or effortlessly replicate the proven strategies of others within the platform. From my research, eToro also empowers traders to invest in diversified portfolios that combine top-performing traders or encompass different market sectors.

Based on my findings, eToro exhibits spreads that range from average to competitive. For instance, when assessing spreads for GBP/JPY, I found variations between 2.9 pips and 3 pips.

The broker has made substantial investments in its proprietary platform, which is accessible via both web and mobile devices. eToto trading platform boasts a user-friendly interface with a host of convenient features, including built-in alerts, one-click trading, and seamless trading directly from the chart.

Pros
  • Leadership in copy trading.
  • A user-friendly in-house platform.
  • Well-rounded educational offerings.
Cons
  • Account balance of at least $5,000 is required for chat and phone support.
  • Only 1 base currency (USD).
  • Wide spreads in some instruments.
eToro Review

Our Methodology

FX Empire, with a history dating back to 2010, has established itself as a reputable authority in broker reviews. Our extensive experience in evaluating CFD brokers, spanning over a decade, has led us to develop a meticulous and comprehensive review strategy. Adhering to rigorous guidelines for editorial integrity, we maintain a commitment to providing unbiased assessments.

Our review process adheres to a diligent protocol, encompassing objective criteria and measurable data. This systematic approach enables us to generate an impartial score that accurately reflects the broker’s performance. Through our efforts, we aim to furnish traders with a comprehensive and unbiased review, enabling them to make informed decisions tailored to their specific requirements.

To choose the best brokers for you, we rate them across nine categories and calculate a score that reflects their performance. The categories include

  • Trust and Stability
  • Fees
  • Platform and Tools
  • Tradable Instruments
  • Account Types
  • Deposit and Withdrawal
  • Research
  • Customer Support
  • Education.

We open accounts, test platforms, measure spreads, and chat with support teams to collect as much data as we can for each broker. In total, we examine brokers according to over 250 data points.

Every category receives a rating from one star (weak) to five stars (excellent). The broker’s total score depends on its performance in each of these nine categories.

We highlight each broker’s strengths and weaknesses, explain regulatory details, and share the results of our live tests of brokers’ fees, customer support, and trading platforms. To learn more about our review process, click here.

For this best brokers page, we selected the best forex brokers in Germany. As traders have different needs, we separated the brokers into categories where they stood out as winners.

Meet our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

Get to Know Our Authors

Dan BlystoneBroker Analyst

Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.

Jitan SolankiBroker Analyst

Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.

Plamen StoyanovBroker Analyst

Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.

Vladimir ZernovBroker Analyst

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

How to Choose the Best Broker in Germany?

Use our guide to choose the forex broker in Germany according to your needs.

How to choose a safe broker as a Germany-based trader?

The process of choosing a legal forex broker in Germany begins with learning where your potential broker is regulated. Germany-based traders may find BaFin-regulated brokers, although the majority of brokers will offer a CySEC-regulated entity.

Traders should prioritize essential safeguards such as negative balance protection, segregated funds, and compensation funds, all of which offer reassurance in case of financial issues. BaFin and CySEC equally enforce robust protections for traders.

Read more about best CySEC-regulated brokers and best BaFin-regulated brokers.

What fees should you focus on when choosing a broker?

Typically, brokers charge spreads, commissions, swap/rollover fees, and inactivity fees.

The spread is the difference between the bid and the ask price. The higher the spread, the more you pay for the trade. We consider spreads below 1 pip for EUR/USD and 3 pips for GBP/JPY to be low.

A commission is a fixed cost of entering the trade. Usually, accounts that charge commissions offer low spreads. For instance, for forex pairs and gold commissions below $3 are considered to be low.

A swap/rollover fee is charged when you hold a leveraged position overnight. Traders should pay extra attention to these fees if they plan to use swing trading strategies, which involve holding positions for several days or even weeks. For forex pairs, a swap rate below 0.5 pips is viewed as a good result.

An inactivity fee is a fee that is charged by the broker if your account is dormant. In this case, a certain amount of money is charged monthly. An inactivity fee below $10 is considered to be low.

Check out our list of Best lowest spread forex brokers.

How to choose the right account for trading in Germany?

As a Germany-based trader, you should understand the difference between various types of accounts that will help you to choose the right one.

  • Demo accounts are used for practice without risking real money. Such accounts should be used by novice traders making their first steps in trading. Read more about Best forex demo accounts.
  • Spread-based accounts typically charge spreads and swap/rollover fees. These accounts are usually a good choice for traders whose trading volume is expected to be relatively modest.
  • Commissions-based accounts charge commissions in addition to spreads and swap/rollover fees. Usually, spreads are tight in such accounts. These accounts are suitable for traders whose trading volume is expected to be high.
  • On Islamic accounts, swap/rollover fees are not charged to ensure compliance with Sharia law. Read more about Best Islamic forex accounts.
  • Professional accounts usually have a high minimum deposit and offer access to high leverage that most professional traders are looking for. Read more about Best forex brokers for professionals.

Explore Best ECN forex brokers and Best STP forex brokers.

How to choose a trading platform in Germany?

Typically, most brokers provide access to MetaTrader4 and/or MetaTrader5. Those are sophisticated platforms with a variety of tools tailored mainly for experienced traders, hence, beginners may have to spend some time learning the ropes.

Some brokers have also developed in-house trading platforms. Usually, such platforms are focused on the needs of different levels of traders. They are easy to navigate and simple to use.

The choice of trading platform depends on personal preferences and trading experience. Novice traders are advised to begin with a user-friendly platform or a mobile app, whereas experienced traders typically opt for MT4/MT5.

Check out our dedicated guides on best forex platforms, best MT4 brokers, and best MT5 brokers.

What leverage is available for traders in Germany?

Leverage allows traders to use borrowed funds to increase their profits. The higher the leverage, the higher your potential profits are. However, leverage is a double-edged sword, and using high leverage also boosts your potential losses. Thus, beginners will be better off starting with low levels of leverage to avoid outsized losses.

The maximum potential leverage that the broker can offer is determined by the regulator. Reputable regulators like FCA and CySEC usually limit the leverage to 1:30. For retail traders, BaFin sets leverage limits at 1:30 for major currency pairs, 1:20 for non-major currency pairs and gold, 1:10 for commodities, 1:5 for indices and single stocks.

On the contrary, offshore regulators may allow the broker to offer leverage of up to 1:3000. To get access to higher leverage, traders should open accounts with entities that are regulated by offshore regulators and offer fewer protections. Note that it’s necessary to consider your risk tolerance and trading strategy before engaging in high-leverage trading.

Read more about best forex brokers with high leverage.

What to avoid when choosing a broker in Germany?

Here are the five things to avoid when choosing a broker in Germany:

  • Neglecting to verify regulatory compliance.
  • Overlooking broker fees, such as spreads, commissions, and swap rates.
  • Selecting an account type that does not align with your requirements.
  • Skipping to review the range of instruments provided by the broker.
  • Avoiding straight communication with the support team before opening an account.

How to avoid forex scams?

To safeguard yourself against forex scams, follow these essential guidelines:

  • Research and choose a reputable broker: Conduct thorough research to identify a broker with a solid reputation and a history of regulatory compliance. Verify its credentials and look for reviews or testimonials from reliable sources.
  • Check the regulatory status: Ensure that the broker you select is regulated by a recognized financial authority. This oversight provides a decent level of protection and ensures adherence to industry standards.
  • Be cautious of unrealistic promises: Beware of brokers or investment schemes that promise guaranteed high returns or low-risk opportunities. Forex trading involves inherent risks, and legitimate brokers will not make unrealistic claims.
  • Avoid unregulated entities: Steer clear of unregulated brokers or those operating from offshore jurisdictions with weak regulations. Regulatory oversight helps protect your funds and ensures fair trading practices.
  • Understand the terms and conditions: Read and comprehend the broker’s terms and conditions, including fee structures, withdrawal policies, and any potential hidden costs. Beware of brokers that make it difficult to access or withdraw your funds.
  • Use secure payment methods: Choose reputable payment methods that offer additional security layers, such as bank transfers or established electronic payment systems. Avoid dealing with brokers that solely accept cryptocurrency or other non-traceable forms of payment.
  • Stay informed and educated: Continuously educate yourself about forex trading and stay updated on market trends and news. This knowledge will empower you to make informed decisions and identify potential scams.
  • Trust your instincts: If something seems too good to be true or raises suspicions, trust your gut instinct and exercise caution. Take the time to seek advice from trusted financial professionals or consult with experienced traders before making any decisions.

FAQ

Yes, is a legal activity in Germany, and individuals can participate in forex trading through regulated brokers who operate within the legal framework set by the German financial regulatory authorities. In Germany, forex trading is overseen by the Federal Financial Supervisory Authority (BaFin), which is responsible for regulating financial markets and ensuring the protection of investors. BaFin regulates all financial instruments, including forex trading, and ensures that all market participants comply with the legal requirements.
BaFin (Federal Financial Supervisory Authority) is responsible for regulating financial institutions, including forex brokers, in Germany. A BaFin-regulated forex broker is a broker that has obtained a license from BaFin to operate in Germany. This license ensures that the broker complies with strict regulations and standards that are designed to protect the interests of investors and maintain the stability of the financial system.
Yes, you can trade with non-BaFin-regulated brokers in Germany, but it is generally not recommended. Non-regulated brokers may not adhere to the same strict standards and regulations as BaFin-regulated brokers, which can increase the risk of fraud and financial losses.
CySEC (Cyprus Securities and Exchange Commission) is the financial regulatory agency of Cyprus which is responsible for regulating financial services firms, including forex brokers, in Cyprus. A CySEC-regulated forex broker is a broker that has obtained a license from CySEC to operate in Cyprus. This license ensures that the broker complies with strict regulations and standards that are designed to protect the interests of investors and maintain the stability of the financial system.
Brokers regulated by BaFin or other EU regulators offer more protection to clients compared to offshore brokers. This includes stricter capital requirements, client fund protection, transparency and disclosure, and independent dispute resolution mechanisms. Clients should always research and choose a broker that is regulated by a reputable authority to ensure greater protection for their investments.
To verify if a forex broker is regulated in Germany, you can check the BaFin website's register of regulated entities. Enter the broker's name or registration number in the search bar, and if it's regulated by BaFin, its name and registration number will appear in the search results along with its regulatory status and any sanctions or measures taken against them. It's important to research a broker's regulatory status before choosing them, as not all brokers are regulated by BaFin and some may be regulated by other authorities.
ESMA is a regulatory agency that oversees financial markets within the European Union (EU) and aims to promote investor protection, enhance market integrity, and ensure the stability of the EU's financial system. ESMA has issued various regulations and guidelines that forex brokers operating within the EU must comply with, including leverage limits, negative balance protection, and disclosure of risk warnings to clients. For forex traders, this means they can trade with greater protection against risks, but some trading conditions previously available, such as higher leverage, are no longer available. It is important for traders to be aware of the regulations and the impact they have on their trading strategies, as well as to choose a regulated broker that adheres to ESMA's guidelines.
Our research showed that Tickmill is a good broker for beginners in Germany due to its strong educational and research materials and user-friendly proprietary trading app.
Our tests indicated that MultiBank is the best choice for professional traders in Germany thanks to access to high leverage, free VPS hosting, expert advisors, MAM/PAM, and Fix API.
Our research showed that Plus500’s WebTrader is the best for German-based clients as it is very intuitive and user-friendly standing out on the market.
Yes, if you are a resident of Germany and you generate income from forex trading, you are required to pay taxes on your trading profits. Forex trading profits are considered taxable income in Germany, and they are subject to both income tax and capital gains tax. Note that forex trading can be a complex and risky investment. It is important to understand the tax implications of forex trading and to consult with a tax advisor.
Yes, cryptocurrency trading is available in Germany. However, cryptocurrency trading in Germany is subject to various regulations, such as anti-money laundering (AML) and know-your-customer (KYC) requirements. Cryptocurrency exchanges and trading platforms must comply with these regulations to operate legally in Germany. In addition, gains from cryptocurrency trading in Germany are subject to taxation.
No, it is not possible to trade forex in Germany without a broker. Forex trading is a complex financial activity that requires access to the global foreign exchange market, which is facilitated by forex brokers. Forex brokers provide traders with access to trading platforms, market data, and other essential tools and services needed to execute trades.
Negative balance protection is a feature offered by some brokers that protect traders from incurring a negative account balance. In forex trading, it is possible to lose more money than you have in your account due to leverage, which magnifies gains and losses. With negative balance protection, the broker guarantees that the trader's account balance will never go below zero, even in the event of a sudden and significant market move that results in a large loss. If the trader's account balance falls to zero, the broker will close out their positions and absorb the loss, rather than requiring the trader to cover the negative balance.
To verify whether your broker has negative balance protection, you can review the terms and conditions of your account agreement, which should outline the broker's policy on negative balance protection. This information is usually available on the broker's website or can be obtained by contacting their customer support team.
A compensation scheme is a type of investor protection program that provides financial compensation to investors who have suffered losses as a result of a broker's insolvency, fraud, or other misconduct. Compensation schemes are designed to protect investors from financial harm and to promote confidence in the financial markets. In most countries, compensation schemes are established and regulated by the government or financial regulatory agencies. These schemes typically have specific eligibility requirements, such as a maximum level of compensation per investor or per claim, and may only cover certain types of financial instruments or transactions.
To verify whether your broker is a member of a compensation scheme, you can check their regulatory status and the terms and conditions of your account agreement. Compensation schemes are typically established and regulated by government or financial regulatory agencies, and brokers are required to be registered with these schemes to offer protection to their clients. You can also check the website of the compensation scheme in your country or region to see if your broker is listed as a member.
A segregated fund, also known as a segregated account, is an account that holds clients’ funds of a broker. This ensures that client funds are “segregated” and kept apart from the broker’s funds so client capital is not used as a funding method for the broker’s operations.
To verify if a broker offers segregated funds, you can check their website, contact them directly, review their regulatory filings, look for independent reviews, or consult with a financial advisor. The broker's website should have information about their investment products, including segregated funds.

About the Author

Vladimir ZernovBroker Analyst

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.

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