Best BaFin Regulated Forex Brokers 2021

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The brokers below represent the Best BaFin Regulated Brokers

Pro Tip: Most of these brokers offer free demo acdcounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.

Here’s a list of The Best BaFin Regulated Brokers

Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.



Regulated By:ASIC, CySEC, IFSC, DFSA

Foundation Year:2009


Min Deposit:$5

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Your capital is at risk.

XM was founded in 2009 and is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC) and the International Financial Services Commission of Belize (IFSC). The broker offers more than 1,000+ tradable assets across Forex, Stocks, Commodities, Indices, Metals and Energies on the globally-recognised trading platforms MetaTrader 4 and MetaTrader 5 for PC, Mac, Web, iOS and Android systems.

XM offers features that are suitable for both the beginner and advanced trader with a very impressive research and education section, feature-rich with up to date articles, webinars, videos, platform tutorials and access to daily interactive live trading rooms. The broker also offers 10 different trading accounts globally, all with different features and benefits.

Pros: Cons:
  • High regulation from CySEC and ASIC.
  • 1,000+ tradable assets across Forex, Stocks, Indices, Commodities, Metals and Energies.
  • Impressive research and education services with daily interactive live trading rooms.
  • Zero commission and 1:888 leverage on some accounts.*
  • No Forex ECN account.

*Leverage depends on the financial instrument traded and on the client’s country of residence.

Introduction to BaFin Regulation

BaFin which is short for Bundesanstalt für Finanzdienstleistungsaufsicht is the federal financial oversight authority in Germany. It regulates the banking, securities, investment funds and insurance sectors. It is arguably the largest regulator in Europe due to the fact that Frankfurt makes up a majority of the financial market in this region. In this article, we highlight how BaFin operates and its role in the financial sector in Germany.

The Federal Financial Supervisory Authority (BaFin) is an amalgamation of three major industry regulators that came together in 2002. The three regulators were The Federal Securities Supervisory Office, The Federal Insurance Supervisory office and The Federal Banking Supervisory Office. Initially, BaFin did not have extensive regulation regarding leverages forex and CFD trading as this was not a major sector. However due to the recent exponential growth of this forex and CFD trading, BaFin had to come up with a stringent set of rules to protect both the investor and the service provider. BaFin is an independent body as it operates through funding not from the federal government but from the business institutions which it regulates.

BaFin’s Responsibilities

BaFin’s major role is to ensure and maintain the integrity and transparency of the German financial sector. It is in charge of ensuring the constant solvency of banks and insurers such that they are capable of delivery of services to their clients and the government. It also is charged with the responsibility of maintaining investor confidence in the various financial markets by making sure that all players in this industry comply with the legislations set by BaFin. This means that BaFin must continuously crack the whip on rogue service providers in this sector.

How BaFin Regulation protects you

Consumer protection is among the major responsibilities of BaFin according to the Securities Trading Act (WpHG). One of the core pillars that exists within BaFin is the Consumer Advisory Council that is in charge of collecting and analysing information on the financial markets and ensuring the investors are not exposed to any form of foul play. The major risks that investors face while dealing in the financial markets sector include insider trading, price manipulation. BaFin has the power to initiate legal action in the event that investigations reveal any inconsistencies in the financial sector.

Guidelines for BaFin Regulated Brokers

There are some major guidelines outlined by BaFin that regulate brokers. One of these regulates is negative balance protection. Forex and CFD trading is often leveraged such that the investor is able to open a position that is worth more than the balance in their account. This means that spikes in prices (that often occur at a moment’s notice) can cause major profits or losses for the investor. Sometimes due to extreme volatility which causes ‘gapping’ in the markets, stop loss orders are no able to be executed thus exposing the investor to potentially negative losses. Negative balance protection means that the customer is assured that he/she will not lose any more money than the capital they initially invested.

Other regulation guidelines include the rights of BaFin to request financial/operational information from brokerages, conducting stress tests on brokerages, analysis of annual accounts and conducting of supervisory interviews from time to time.


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