Best BaFin Regulated Forex Brokers 2019

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Pro Tip: Most of these brokers offer free demo accounts 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.
Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.

HotForex

Regulated By:

CySEC, DFSA, FCA, FSA, FSC, MiFID

Foundation Year
2010
Headquarters:

N/A

Min Deposit
$5
Visit Broker

Your capital is at risk

Orbex

Regulated By:

CySEC, FCA

Foundation Year
2010
Headquarters:

No. 6, 82nd Street, Ground Floor, 4153 Kato Polemidia, Limassol, Cyprus

Min Deposit
$500
Visit Broker

Your capital is at risk

XM

Regulated By:

ASIC, CySEC, FCA

Foundation Year
2009
Headquarters:

N/A

Min Deposit
$5
Visit Broker

Your capital is at risk

XTB

Regulated By:

BaFin, CNMV in Spain, CySEC, FCA, IFSC

Foundation Year
2002
Headquarters:

Level 34, One Canada Square, Canary Wharf, E14 5AA, London, United Kingdom

Min Deposit
$250
Visit Broker

Your capital is at risk

AvaTrade

Regulated By:

ASIC, BVI, FSA(JP), FSB

Foundation Year
2006
Headquarters:

N/A

Min Deposit
$100
Visit Broker

Your capital is at risk

BaFin Regulated Brokers Comparison Table

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Broker
Rating
Regulations
Headquarters Country
Foundation Year
Min Deposit
Max Leverage
Trading Platforms
Publicly Traded
Restricted Countries
Trading Desk Type
Currencies
Commodities
Indices
Stocks
Cryptocurrency
ETFs
Bonds
Futures
Options
Mutual funds
Deposit
Withdrawal
Commission on trades
Fixed spreads
OS Compatibility
Mobile trading
promotions
Visit Broker
CySEC, DFSA, FCA, FSA, FSC, MiFID

Cyprus

2010

$5

1:1000

MT4, MT5

No

Canada, North Korea, Sudan, Syria, United States

ECN, STP

Yes

Yes

Yes

Yes

Yes

No

Yes

No

No

No

Credit Card, FasaPay, iDeal, Neteller, QIWI, Skrill, Sofort, Union Pay, Webmoney, Wire Transfer

Credit Card, cryptocurrencies, FasaPay, iDeal, Neteller, QIWI, Skrill, Sofort, Union Pay, Webmoney, Wire Transfer

No

No

N/A

N/A

No
Open Account

Your capital is at risk

CySEC, FCA

Cyprus

2010

$500

1:500

MT4

No

United States

Dealing Desk, ECN, STP

Yes

Yes

Yes

No

No

No

No

Yes

No

No

Credit Card, FasaPay, Moneybookers, Neteller, Skrill, Union Pay, Webmoney, Wire Transfer

Credit Card, FasaPay, Moneybookers, Neteller, Skrill, Union Pay, Webmoney, Wire Transfer

No

Yes

Desktop platform (Windows), Desktop platform (Mac), Web platform

Android, iOS

Yes
Open Account

Your capital is at risk

ASIC, CySEC, FCA

Cyprus

2009

$5

1:888

MT4, MT5

No

United States

Market Maker

Yes

Yes

Yes

Yes

No

No

No

No

No

No

China UnionPay, Credit Card, iDeal, Moneybookers, MoneyGram, Neteller, Skrill, Sofort, Webmoney, Western Union, Wire Transfer

China UnionPay, Credit Card, iDeal, Moneybookers, MoneyGram, Neteller, Skrill, Sofort, Webmoney, Western Union, Wire Transfer

No

No

N/A

N/A

No
Open Account

Your capital is at risk

BaFin, CNMV in Spain, CySEC, FCA, IFSC

United Kingdom

2002

$250

1:200

MT4

No

United States

STP

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

Credit Card, Neteller, PayPal, Skrill, Wire Transfer

Wire Transfer

Yes

Yes

Desktop platform (Windows), Desktop platform (Mac), Web platform

Android, iOS

Yes
Open Account

Your capital is at risk

ASIC, BVI, FSA(JP), FSB

Ireland

2006

$100

1:400

ActTrader, MT4

No

United States

Market Maker

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

Credit Card, Moneybookers, Neteller, PayPal, Union Pay, Webmoney, Wire Transfer

Credit Card, Moneybookers, Neteller, PayPal, Union Pay, Webmoney, Wire Transfer

No

Yes

N/A

N/A

No
Open Account

Your capital is at risk

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.