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.
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 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:
The first of our top German forex brokers to feature is eToro. They are well regulated by BaFin within Germany (Registration number: 123590) and also by CySEC and the FCA. They are of course well known for their social trading prowess.
Here you will have one account available that caters fully for demos and can also be converted to an Islamic account on request. The minimum deposit of this account is $200 and trading is done through the eToro proprietary platform.
You can fund your account through wire transfer, credit card, and eWallet with the majority being fee-free although a conversion fee to the USD base currency is charged when depositing EUR. Spreads here typically start from 2-3 pips though there is the eToro Club loyalty program to help lower costs, commissions, and fees.
Next up on our list of top German forex brokers is Pepperstone. They also boast FCA regulation along with their BaFin regulation (147088) and are a great broker to deal with if you are looking for the best in ECN execution.
There are 3 account types to choose from here and each employ the use of a different top trading platform. The minimum deposit is $200 across the board and a full demo account can easily be provided as well as Islamic trading where needed. Your account can be funded through wire transfer, credit card, and eWallet with most being fee-free completely.
EUR deposits as well as base currencies in EUR, USD, and GBP are all supported with trading available on MT4, MT5, and cTrader to correspond with your account selection. Trading spreads here also start from 0 pips and there is an Active Trader program available to help further reduce your forex trading costs.
3. IG Markets
IG Markets is next to feature as one of our top German brokers. They are regulated under the BaFin registration number 121333 for your convenience in checking as well as with the FCA in the UK. They feature more than 15,000 assets including 90 or more forex pairs and have a base in Frankfurt.
Here you can choose between a DMA or CFD account with both a full demo or Islamic account available where needed. A minimum deposit of $300 applies when opening a trading account.
Once open, your account can be funded by wire transfer, credit cards, or eWallet methods that are all fee-free for the most part. EUR deposits as well as both EUR and USD base currencies are catered for and spreads typically start from 0.6 pips with trading available through MT4 or the broker’s proprietary trading platform.
Next on our listing of top Germany forex brokers and operating under BaFin license number 121095 for your reference as well as being regulated by the FCA and CySEC, is FxPro. They are recognized and decorated around the world with in excess of 60 awards.
Three account types through MT4, MT5, and cTrader are available to choose from here and each has a $100 minimum deposit as well as demo and Islamic accounts available to select.
You can conveniently fund your account through wire transfer, credit, or debit cards from Visa, MasterCard, or Maestro and EUR deposits are available as well as EUR, USD, and GBP base currencies. The spread here can start from as low as 0 pip and this more than makes up for the lack of available bonus.
5. IC Markets
IC Markets is another top choice for German forex trading. They too are well regulated by both CySEC and BaFin under the registration number 155620 and are well known to offer very low forex spreads.
You can choose from a Metatrader Standard, Metatrader Raw, and cTrader Raw account here. Each has no minimum deposit in place and full demo accounts are available. So too are Islamic trading accounts on request.
You can fund your account through a wire transfer, credit, or debit card so long as they are Visa, MasterCard, or Maestro and EUR is available as both a deposit method and base currency alongside USD, AUD, and more. While there is no bonus offer in place, spreads do start from 0 pips and trading is available through the major platforms of MT4, MT5, and cTrader.
Next on our list of top German forex brokers with both BaFin (122649) regulation and that of the Central Bank of Ireland, is AvaTrade. They are one of the few to offer traders fixed spread trading.
You can select a retail, options trading, or spread betting account here and each account has a $100 minimum deposit with both fully functioning demo accounts and Islamic accounts available where requested.
Your account can be funded through wire transfer, credit cards, and eWallet methods and most of these are fee-free with both EUR and USD deposits and base currencies available alongside the GBP. Trading is done through the Trusted MT4, MT5, and Webtrader and the fixed spread here with no bonus available, starts from 1.3 pips.
FBS are the next top German forex broker to feature. They are well-regulated by CySEC and BaFin under registration number 151531 for you to easily verify and they are well known as a top broker particularly for new traders.
Here you will find both a standard account and a cent account available to choose from. The standard account is available with a $100 minimum deposit while you can open a cent account for a $10 minimum to start trading. Both full demo and Islamic trading accounts are available too.
You are welcome to deposit through wire transfer, credit cards, or eWallet methods and most are fee-free and with EUR deposits supported. Beyond that, EUR, USD, and GBP base currencies are available with trading through MT4 and MT5 and spreads that start from just 1 pip.
HotForex is another comprehensively regulated broker to make the top German broker selection. They are regulated by BaFin (132342), FCA, and CySEC and offer an excellent account choice as well as a proprietary copytrading service.
Here you will have 5 account type choices. These are a micro, premium, zero spread, premium pro, and copytrading account. The minimum deposits range from $50 for a micro account through $100 for premium, $200 for zero spread, $500 for premium pro, and $300 to be copy others trades and $1000 to be copied. Both Islamic and demo accounts are of course available.
You can deposit using wire transfer, credit cards, or eWallets with most methods being free of charge and EUR deposits being accepted along with a choice of USD, EUR, or GBP base currencies. You can trade through MT4, and while no bonus is available, spreads can start from a top value 0 pips.
XM is next on the list of top forex brokers in Germany and they again are well regulated by BaFin (124161), CySEC, and the FCA. They also provide a comprehensive education section for new traders.
Here you can make the choice between a micro, standard, and zero account. Both the micro and standard accounts can be opened with a minimum deposit of $5. These also feature nano lots trading. A zero account can be opened with $100 and both demo and Islamic accounts are available.
You can deposit with wire transfers, credit cards,and eWallet methods. Most of these are free of any fees and EUR deposits are allowed along with USD, EUR, and GBP base currencies. You can trade through both MT4 and MT5 platforms and although no bonus is catered for, spreads do begin from 0 pips.
Last but not least on our list of top German brokers is XTB. As with the others, they are BaFin regulated (130601) and also by FCA, and CySEC. They too have an excellent trading academy that can provide free lessons to all levels of forex trader.
Here you can choose either a standard or pro account with both demo accounts and Islamic accounts provided for, and no minimum deposits in place. Your account can be funded through wire transfer, credit card, or eWallet.
EUR deposits are allowed and USD, EUR, and GBP base currencies are catered for. Trading is done through MT4 and the brokers own proprietary trading platform and while no bonus amount is available, spreads do start from a great value 0.2 pips.
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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