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Making a top forex broker choice is never as simple as it seems. With so many brokers providing all of the best options and top trading platforms to choose from, it is completely understandable that you may need some additional assistance.
That is why, when it comes to forex broker Deutschland (Germany) opportunities and picking the best available, we have compiled this selection of top brokers along with other helpful information to assist you in making the best broker choice.
Table of contents
Is Forex Trading legal in Germany?
The simple answer here with German forex brokers is yes, trading is legal. The forex market of Germany is regulated by BaFin but generally speaking, most forex brokers are covered by CySEC and as a knock on positive effect, ESMA regulations since any broker offering services in Germany must be registered within the EU.
How to trade forex in Germany
Trading forex within Germany could not be easier. ESMA regulations mean that there is a uniform process in place. This means providing your broker with documents to prove both your identity and residence before funding your account.
Top 10 Best Forex Brokers in Germany
Now that you know how to get started, here are 10 of the best forex trading brokers in Germany that we have selected for you to choose from:
German trader? Here’s what to look for in a forex broker
There are always some key things to look for and best practice points to follow when choosing a forex broker. When it comes to forex trading in Germany, you should of course be mindful of the following things first:
ESMA regulations mean that leverage is restricted to 30:1 with any EU registered broker outside of you being a professional trader. Spread betting and any kind of direct bonus offers are also not allowed. Brokers can offer loyalty / active trader programs though.
With those points noted, here are 3 key things to look out for when choosing your German forex broker:
1. Look for regulated forex brokers
The major key for any forex trader and broker is finding a forex broker that has trusted regulation in place. This is the very same in Germany. You should be on the lookout for an ESMA compliant broker well-regulated by CySEC or another top regulatory body like FCA of FINMA from Switzerland.
2. Choose brokers that offer low spreads and commissions
Of course, no matter where in the world you are trading forex, you want to keep spreads, commissions, and other fees to a minimum. This means keeping a close eye on things like overnight fees, and deposit fees while taking advantage of any active trader programs to help keep your trading costs as low as possible.
3. If you want to keep your budget low, look for brokers with nano-lots
You will find that many brokers within Germany and Europe have minimum deposits of 100-200 Euros for standard accounts. A great way to keep your costs down and also try out a broker though is to search for one that offers nano lot trading. This can significantly reduce your costs when opening positions and these accounts, along with cent accounts typically have great value and lower risk minimum deposits from around 10 Euros or less.
How to verify if a forex broker is regulated in Germany
Verifying that your broker is regulated in Germany should not be too much of a difficult task since each broker must be ESMA regulated to operate there. In this case, just check out the ESMA official website and look for the list featuring the European national regulators. Providing that your broker is based in Europe, you should find them here with a simple search bar entry.
The same is the case with the BaFin regulation in Germany. Simply visit the BaFin official website and look for the BaFin registered firms database by typing the broker name into the search bar provided.
Is forex trading taxable in Germany?
Yes, forex trading is taxed in Germany. The German tax regulations calculate your tax based on the ratio of your forex earnings to your total earnings. If this ratio is below 25% then you pay tax according to the tax bracket that you fall into. Generally though, you will pay 26% tax on your earnings.
We are not professional tax advisors, thus we strongly suggest you contacting local authorities if you don’t know how to manage this aspect
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