While Germany has one of the world's strongest economies, it also boasts one of the world's most vibrant and diverse foreign currency marketplaces. Despite Germany's tight rules on the market and all market players, German traders account for a significant fraction of all Forex traders. Even though London is Europe's most important financial center, Frankfurt serves as the continent's financial hub. In reality, Germany is Europe's second-largest online Forex trading market behind the United Kingdom. According to some estimates, the country's foreign exchange sector employs more than 150,000 people. Nearly two-thirds of all Forex transactions in the world are carried out by German dealers.
Germany aims to foster a business-friendly climate, but regulation is necessary to ensure that market participants are treated fairly and have adequate protections in place to protect their interests. A license from the Federal Financial Supervisory Authority or BaFin is required for foreign exchange and contract for difference (CFD) brokers in Germany. The European Economic Area (EEA) Markets in Financial Instruments Directive 2004/39/EC permits them to be licensed in another state, as long as it is within the EU (MiFID).
The forex market is accessible to German investors via a wide range of domestic and foreign brokers. Different brokers offer a wide range of options when it comes to the amount of leverage, spreads, and currencies you can buy and sell. For your convenience, we've compiled a ranking of the top German forex brokers for 2024.
Top 10 Best Forex Brokers in Germany
Support for scalping, day trading, and swing trading.
Connectivity between MetaTrader 4 and MetaTrader 5, along with Autochartist and Trading Central.
No fees for buying or selling assets and competitive spreads.
Offering negative balance protection to prevent consumers from losing more than they deposit.
Extensive assortment of over 12,000 different types of financial assets.
The educational resources on CMC Markets have considerable breadth and depth.
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Comparison of the Best Forex Brokers in Germany
Forex Broker
License
Minimum Spread
Maximum Leverage
Minimum Deposit
Open account
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Top 10 Forex Brokers in Germany Overall
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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FCA | Swissquote Ltd | Straight Through Processing(STP) | 562170 |
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MFSA | SWISSQUOTE FINANCIAL SERVICES (MALTA) LTD | Straight Through Processing(STP) | C57936 |
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FINMA | Swissquote Bank SA | Financial Service | Unreleased |
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DFSA | Swissquote MEA Ltd. | Retail Forex License | F001438 |
Swissquote is a Swiss-based online banking and financial services provider that is well-known for its online trading and investment platforms. Founded in 1996, Swissquote offers a wide range of financial services, including online trading of various assets like stocks, forex, commodities, and cryptocurrencies. Swissquote provides a user-friendly interface, extensive research and analysis tools, and a variety of account options to cater to the needs of different investors.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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FCA | Plus500UK Ltd | Straight Through Processing(STP) | 509909 |
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CYSEC | Plus500CY Ltd | Market Making(MM) | 250/14 |
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FMA | PLUS500AU PTY LTD | Straight Through Processing(STP) | 486026 |
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AISC | PLUS500AU PTY. LTD. | Market Making(MM) | 417727 |
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MAS | PLUS500SG PTE. LTD. | Retail Forex License | Unreleased |
Established in 2008, Plus500 is an online trading platform that offers retail investors a diverse selection of financial instruments. These include stocks, cryptocurrencies, commodities, forex, and more, all accessible through Contracts for Difference (CFDs). Operating in multiple countries and being regulated by various financial authorities, it offers users a sense of trust and security. Traders have the option to access the platform through web and mobile applications, providing convenience for individuals interested in participating in leveraged trading across global markets.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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FCA | CMC Markets UK plc | Market Making(MM) | 173730 |
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FCA | CMC Spreadbet Plc | Market Making(MM) | 170627 |
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FMA | CMC MARKETS NZ LIMITED | Market Making(MM) | 41187 |
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IIROC | CMC Markets Canada Inc. | Market Making(MM) | Unreleased |
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MAS | CMC MARKETS SINGAPORE PTE LTD | Retail Forex License | Unreleased |
CMC Markets is a brokerage firm established in 1989 and based in Australia. The company provides online trading services for a wide range of financial instruments, such as forex, commodities, and indices. CMC Markets is known for its user-friendly trading platforms and is regulated by financial authorities in multiple countries, making it a popular choice for retail traders and investors.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | STONEX FINANCIAL PTY LTD | Market Making(MM) | 345646 |
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FCA | Gain Capital UK Limited | Market Making(MM) | 113942 |
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FSA | GAIN Capital Japan Co., Ltd | Retail Forex License | 関東財務局長（金商）第291号 |
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NFA | GAIN CAPITAL GROUP LLC | Market Making(MM) | 0339826 |
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IIROC | GAIN Capital - FOREX.com Canada Ltd. | Market Making(MM) | Unreleased |
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CIMA | GAIN Global Markets, Inc | Market Making(MM) | 25033 |
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MAS | STONEX FINANCIAL PTE. LTD. | Retail Forex License | Unreleased |
FOREX.com is a reputable online forex and CFD broker based in the United States. Established in 2001, it has built a strong reputation in the industry. This broker offers a diverse selection of trading instruments, such as forex, commodities, and indices, to meet the needs of both individual and institutional traders. One of the standout features of this platform is its user-friendly and versatile trading interface. Traders can choose between the popular MetaTrader 4 (MT4) platform or the proprietary web-based platform. Both options offer a robust and intuitive experience for executing trades and managing portfolios.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | FIRST PRUDENTIAL MARKETS PTY LTD | Market Making(MM) | 286354 |
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CYSEC | First Prudential Markets Ltd | Straight Through Processing(STP) | 371/18 |
FP Markets, an Australian forex and CFD broker, was established in 2005. Based in Sydney, FP Markets is regulated by the Australian Securities and Investments Commision (ASIC) and holds an Australian Financial Services Licence. Throughout its extensive history of more than 15 years, FP Markets has established itself as a trusted name in the industry, known for its highly competitive pricing, lightning-fast execution speeds, and top-notch trading platforms such as MetaTrader 4, MetaTrader 5, and Iress. FP Markets provides a wide range of trading options, including forex trading on over 60 currency pairs and CFDs across various assets such as indices, commodities, shares, and cryptocurrencies. Traders have the option to select between raw spread accounts that offer access to deep liquidity or ECN accounts that provide tight variable spreads. FP Markets welcomes clients from around the world and is renowned for its round-the-clock customer support in multiple languages.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | SAXO CAPITAL MARKETS (AUSTRALIA) LIMITED | Market Making(MM) | 280372 |
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FCA | Saxo Capital Markets UK Limited | Market Making(MM) | 551422 |
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FSA | Saxo Bank Securities Ltd. | Retail Forex License | 関東財務局長（金商）第239号 |
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SFC | Saxo Capital Markets HK Limited 盛寶金融(香港)有限公司 | Dealing in futures contracts & Leveraged foreign exchange trading | AVD061 |
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AMF | Saxo bank A/S | Retail Forex License | 71081 |
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CONSOB | BG SAXO SIM SPA | Market Making(MM) | 296 |
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FINMA | SAXO BANK (SCHWEIZ) AG | Financial Service | Unreleased |
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MAS | SAXO CAPITAL MARKETS PTE. LTD. | Retail Forex License | Unreleased |
Saxo Bank is an online multi-asset trading and investment specialist that was established in 1992 and is based in Copenhagen, Denmark. Saxo Bank is authorised across Europe, Asia, and Australia and holds banking and investment banking licences issued by the Danish Financial Supervisory Authority. Saxo provides a wide range of trading options, including forex, CFDs, stocks, futures, options, bonds, and other asset classes. These can be accessed through the user-friendly SaxoTraderGO platform and the advanced SaxoTraderPRO platform. With a single margin account, clients have the convenience of accessing over 35,000 instruments across global markets.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | AVA CAPITAL MARKETS AUSTRALIA PTY LTD | Market Making(MM) | 406684 |
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FSA | Ava Trade Japan K.K | Retail Forex License | 関東財務局長（金商）第1662号 |
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FFAJ | AVA TRADE JAPAN K.K. | Retail Forex License | 1574 |
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CBI | AVA Trade EU Limited | Retail Forex License | C53877 |
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FSCA | AVA CAPITAL MARKETS (PTY) LTD | Retail Forex License | 45984 |
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FCA | AVA Trade EU Limited | European Authorized Representative (EEA) | 504072 |
AvaTrade is an international forex and CFD brokerage that was founded in 2006 in Dublin, Ireland. Regulated by the Central Bank of Ireland and licensed by financial regulators across Europe, Japan, South Africa, and Australia, AvaTrade provides retail traders, institutions, and fund managers access to trading instruments spanning forex, cryptocurrencies, bonds, commodities, indices, stocks, and ETFs. AvaTrade stands out for its comprehensive educational resources, multilingual customer support, and array of trading platforms including the popular MetaTrader 4 and AvaTradeGO. Traders can choose between floating or fixed spreads and leverage up to 1:400. AvaTrade also offers automated trading through Expert Advisors on the MetaTrader 4 platform. With its focus on trust, innovation, and empowering traders, AvaTrade has grown rapidly over the past 15+ years to serve over 200,000 accounts globally.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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CYSEC | Forextime Ltd | Market Making(MM) | 185/12 |
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FCA | Exinity UK Ltd | Straight Through Processing(STP) | 777911 |
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FSC | EXINITY LIMITED | Retail Forex License | C113012295 |
FXTM is a reputable global online brokerage that operates under the regulation of multiple jurisdictions worldwide, such as the UK, Cyprus, South Africa, and Mauritius. Established in 2011 in Limassol, Cyprus, FXTM has experienced significant growth and currently caters to over 2 million accounts in over 180 countries. FXTM offers a wide range of tradable instruments, giving retail traders, institutions, and introducers access to over 250 options. These include forex, stocks, indices, commodities, cryptocurrencies, and ETFs. Take advantage of leverage up to 1:1000, enjoy competitive spreads, and experience fast execution on the popular MetaTrader 4 and MetaTrader 5 platforms. FXTM is known for its dedication to educating traders, providing customer support in multiple languages, and offering a wide range of trading resources to empower traders with the confidence to trade. FXTM has established itself as a reputable global broker in just ten years of operation, thanks to its transparent pricing, tight spreads, and advanced trading tools.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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CYSEC | BDSwiss Holding Ltd | Market Making(MM) | 199/13 |
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FSA | BDS Ltd | Retail Forex License | SD047 |
BDSwiss is a prominent online brokerage that was established in 2012 and has its headquarters in Limassol, Cyprus. With a wide range of financial assets available, BDSwiss caters to over 1 million clients worldwide, offering access to forex, crypto, stocks, indices, and commodities. Traders have access to a range of trading platforms, including the popular MetaTrader 4 and MetaTrader 5, as well as the BDSwiss WebTrader, mobile apps, and advanced PowerTrader for desktop trading. BDSwiss is renowned for its competitive pricing, diverse account options, swift execution speeds, and round-the-clock multilingual customer support.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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CNB | Lynx B.V., organizační složka | Retail Forex License | 02451778 |
LYNX is an online brokerage brand of BinckBank that was established in the Netherlands in 2000. LYNX operates throughout Europe, offering retail investors the opportunity to access a wide range of markets, such as forex, CFDs, stocks, bonds, funds, and ETFs. The broker is renowned for its competitive trading fees, cutting-edge trading platforms such as MetaTrader 4 and LYNX Traders, and comprehensive educational resources. There are different types of accounts available, such as basic, active, trades+, and premium accounts. Each account has its own set of fees and levels of service. LYNX prioritises transparency, swift execution, effective risk management, and equipping traders with the necessary tools and knowledge to achieve success in the markets.
Forex Trading Knowledge Questions and Answers
Is Forex Trading Legal in Germany?
Yes, forex trading is allowed in Germany. German residents have the legal ability to engage in currency pair trading on the foreign exchange market. Forex brokers operating in Germany need to be authorised by the Federal Financial Supervisory Authority (BaFin) in order to provide Forex trading services to retail clients. Several well-established international brokers have been authorised by BaFin to operate in Germany. Germany has implemented the European Union's Markets in Financial Instruments Directive (MiFID). It oversees the provision of financial services, including Forex trading, throughout the EU. German brokers are required to adhere to stringent regulations regarding marketing, the segregation of client funds, reporting, and capital requirements as per MiFID. Brokers are required to take part in an investor compensation scheme, which ensures the protection of client funds.
Are There Any Differences in Forex Trading Between Germany and Other Countries?
Trading forex in Germany has some notable distinctions when compared to other countries:
Regulation:Regulation is crucial for Forex brokers in Germany, as they must obtain a licence from BaFin in accordance with the rigorous EU MiFID rules. Some jurisdictions may have looser regulations.
Leverage:There are limits on leverage set by BaFin. For major currency pairs, the leverage is capped at 1:30, while for minor pairs, it is capped at 1:20. Some other places might provide greater leverage.
Negative Balance Protection:German brokers are required to offer negative balance protection, which helps limit client losses to the balance in their trading account. Not implemented everywhere else.
Taxes:Germany imposes higher taxes on forex profits (ranging from 25-47%) compared to other countries with lower or no capital gains tax.
Trading Assets:Certain assets, such as binary options, are restricted for German retail clients but may be accessible in other jurisdictions.
Account Base Currency: German brokers usually provide accounts in euros as the base currency. Offshore brokers may offer support for a wider range of account currencies.
Trade Execution:EU regulations require order execution to prioritise the client's best interest. Execution standards vary more outside Germany.
Investor Protection: Germany offers investor protection by providing compensation of up to €90,000 in the event of broker insolvency. There is significant variation on a global scale.
Trading Restrictions:Certain German brokers have limitations on accessing high leverage, hedging, or scalping strategies. Consider exploring other options for greater flexibility.
Do I have to Pay Taxes on Profits from Forex Trading in Germany?
Yes, forex trading profits fall under the category of capital income, just like profits from trading shares or real estate.Net trading profits are subject to capital gains tax. In Germany, the current capital gains tax rate stands at 25%, with an additional 5.5% solidarity surcharge. Losses incurred in Forex trading can be utilised to offset any capital gains tax. Net losses can be carried forward to future tax years. Traders are required to report their profits or losses from Forex trading when filing their personal income tax return. The tax is evaluated on a yearly basis. In Germany, there is no tax-free allowance for income generated from Forex trading. Every single euro earned is subject to taxation. If the broker is based in Germany, retail Forex brokers operating in Germany will handle the withholding and remittance of the 25% capital gains tax on behalf of traders. When it comes to foreign brokers, traders are required to declare and pay the tax in their annual tax return. There may be an additional trade tax of 12-17% that could be applicable based on the municipality. The total tax rate on Forex profits can be approximately 42-47%.
What Is the Maximum Trading Leverage Allowed In Germany?
According to the stipulations laid down by BaFin, the Germany-wide regulatory body, the maximum threshold for leverage in forex trading is strictly controlled. For major currency pairs such as the US Dollar against the Euro (USD/EUR) or the British Pound against the Japanese Yen (GBP/JPY),the leverage ratio can go no higher than 1:30.This means that for every dollar put down as margin, a trader can control a position up to 30 dollars in value.
For minor or exotic currency pairs, which tend to be less liquid and more volatile, such as the South African Rand against the Japanese Yen (ZAR/JPY) or the Turkish Lira against the Swedish Krona (TRY/SEK), the leverage is even more restrained. Here, the ratio is capped at 1:20. This means that an initial investment of, say 50 dollars, would permit a trader to control a position up to 1000 dollars in value.
Is scalping allowed in Germany?
Yes, scalping is allowed for Forex traders in Germany, although brokers and regulations have implemented certain limitations. Many brokers have chosen to limit scalping, as it can be perceived as heightening risk. Certain German brokers require a minimum holding time for positions. The duration can vary from a few minutes to several hours. Consistently closing positions below the specified threshold may result in limitations on your trading activities. Although it is not prohibited to open and close positions within seconds or minutes, scalpers may encounter certain limitations, wider spreads, or even trade rejection at certain German brokers. For traders interested in utilising very short-term strategies, it is crucial to thoroughly assess the trading conditions and scalping policy of a broker prior to opening an account in Germany. In general, scalping is permitted but there may be certain restrictions on trading. German regulators recommend that traders adopt longer-term strategies for risk management purposes. It is important for scalpers to carefully choose their brokers.
What is the fee structure charged by forex brokers in Germany?
Commissions are normally not charged by German Forex brokers. If they also offer CFD trading, they may charge a commission. Forex brokers typically charge a spread for their services. To put it another way, this is how much money you'll make or lose while trading a currency pair.
Are there any restrictions on trading hours or accessing the Forex markets in Germany?
Absolutely, German traders have the distinct advantage of unrestricted access to the Forex market due to its operating hours. The Forex market is unique in its 24-hour operational schedule, which runs from Sunday 5 p.m. EST until Friday 4 p.m. EST. What this essentially means is that the market operates around the clock, five days a week, catering to different time zones globally.
So, for German traders, this translates into an unrestricted opportunity to engage in trading activities at any time during the weekdays. They can tailor their trading schedules precisely according to their preference and convenience, giving them significant flexibility over when to trade.
This continuous operation of the Forex market is facilitated by the functioning of major financial centers around the world, including Sydney, Tokyo, London, and New York, each taking turns as one region's trading day ends and another's begins.
Hence, there are no imposed restrictions on trading sessions for German Forex traders, permitting them to react swiftly to financial news and events as they unfold at various time zones. For instance, a German trader could trade the Australian Dollar during the Australian time zone and switch to trading the USD when the US market goes live, thus leveraging the 24-hour nature of the Forex market.
What is the investor compensation limit if a German broker goes bankrupt?
German brokers are required to be part of an investor compensation scheme that provides coverage of up to €90,000 per client in case of broker insolvency or bankruptcy. This compensation scheme acts as a safety net particularly for the smaller investors, who might otherwise be severely impacted by such instances. By providing such compensation, Germany aims to protect trader funds, maintain investor confidence, and thereby, ensure smoother functioning and resilience of the financial markets.
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