eToro
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77% of retail investor accounts lose money
10 Best Forex Brokers in Germany for 2023
Our Picks
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Pepperstone
Visit Pepperstone74-89% of retail investor accounts lose money when trading CFDs -
IG Markets
Visit IG Markets70% of retail CFD accounts lose money -
FxPro
Visit FxPro72.87% of retail investor accounts lose money -
IC Markets
Visit IC Markets74-89% of retail CFD accounts lose money -
AvaTrade
Visit AvaTrade79% of retail investor accounts lose money -
HF Markets
Visit HF Markets70.51% of retail investor accounts lose money -
XM
Visit XM77,37% of retail investor accounts lose money -
XTB
Visit XTB79% of retail investor accounts lose money
Germany, home to the world’s fourth-largest economy, is a key player in global financial markets, renowned for its strong economy and as a leading member of the European Union.
Germany’s currency is the Euro (€), shared by many countries within the Eurozone.
When it comes to retail forex trading activity in Germany, the country adheres to the regulation of the European Securities and Markets Authority (ESMA), enforced through the national Federal Financial Supervisory Authority, commonly known as BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht). BaFin ensures the transparency, integrity, and stability of Germany’s financial system by setting and enforcing stringent rules and standards for financial institutions, thereby instilling confidence in both domestic and international investors participating in the nation’s forex market.
In this articles we have chosen the best forex brokers available in Germany by analyzing different factors.
To create the most accurate list possible, we have taken into consideration the following:
- If BaFin regulation was in place
- If German language was available on the broker’s website
- If the broker had an office in Germany
- The broker’s minimum deposit for German clients
- If EUR base currency was available for German clients
- The broker’s spreads for German clients
- The broker’s maximum leverage for German clients
Table of Content
What are the best forex brokers in Germany?
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Below is our curated list of the best forex brokers for traders living in Germany, with details and information about the country laws, the features, and the characteristics.
eToro : best for social trading
- eToro is well regulated by BaFin within Germany (n. 123590).
- The German language is available on eToro’s site.
- eToro minimum deposit for German clients is $50.
- USD is the only base currency available for German clients on eToro. So, if you use EUR or another currency, you will get charged a conversion fee.
- German clients will get charged eToro spreads from 1 pips on 47 currency pairs.
- The maximum leverage German eToro traders can get is up to 30:1 for retail clients and 400:1 for professional traders.
- German clients can benefit from the eToro social trading and copy trading features on their proprietary platform.
Pepperstone : best for algo-trading
- Pepperstone is Bafin regulated (n.151148) to operate in Germany, with a registered office in Düsseldorf (Germany).
- German is one of the languages available on Pepperstone’s website.
- Pepperstone requests a minimum deposit for German clients.
- Base currencies available for German clients are USD, EUR, CHF, and GBP
- Pepperstone German clients have access to spreads from 0 pips on 60+ forex currency pairs.
- German traders have a maximum leverage up to 30:1 (retail) and up to 500:1 (professional).
74-89% of retail investor accounts lose money when trading CFDs
IG Markets : best for number of assets
- IG Markets is regulated under the BaFin (n.121333) to operate in Germany with a registered office in Frankfurt (Germany).
- The German language can be chosen on the IG’s website.
- The IG Minimum deposit for German clients is 300 EUR.
- EUR is accepted as a base currency for IG German clients.
- German clients will find IG Markets spreads from 0.6 pips on 80+ forex currency pairs.
- The leverage German clients of IG find is up to 30:1 for retail clients and up to 222:1 for professional clients.
FxPro : best for no requotes
- FxPro is regulated under the BaFin (n.121095) to operate in Germany.
- The German language is available on the FxPro’s website.
- The Minimum deposit for FxPro German clients is 1,000 EUR.
- EUR is provided by FxPro as a base currency for German clients, including USD, GBP, CHF, and more.
- FxPro traders in Germany will find both fixed and variable spreads from 0.1 pips and 1.6 pips respectively on 70+ forex currency pairs.
- German clients of FxPro have access to leverage of up to 30:1 for retail clients and up to 500:1 for professional clients.
IC Markets : best for lowest spreads
- IC Markets is regulated under the BaFin (n.155620) to operate cross-border in Germany.
- German is one of the languages available on the IC’s website.
- German clients don’t have to make a minimum deposit with IC Markets.
- IC Markets German traders can open accounts with EUR, GBP, and USD base currencies.
- IC German clients have access to spreads from 0 pips on 60+ forex currency pairs.
- German traders with IC Markets can benefit from leverage of up to 30:1 for retail clients and up to 500:1 for professional clients.
AvaTrade : best for fixed spreads
- AvaTrade operates in Germany with a BaFin regulation (n.122649)
- AvaTrade offers German as one of the languages available on the site.
- $100 is the AvaTrade minimum deposit for German clients
- German clients can use EUR as a base currency with AvaTrade.
- German traders can access fixed spreads from 0.9 pips on 60+ forex currency pairs.
- German users with AvaTrade get access to maximum leverage of up to 30:1 for retail clients and up to 400:1 for professional clients.
FBS : best for Cent accounts
- FBS lets their German clients trade under BaFin regulation (n.151531).
- FBS allows clients to choose German as one of their languages.
- German traders of FBS have a minimum deposit requirement from $10.
- EUR as base currency is available for FBS German traders.
- FBS charges German clients spreads from 0 pips on 35 forex currency pairs.
- The maximum leverage an FBS German trader can find is up to 30:1 (retail) or 500:1 (professional).
HF Markets : best for account types choice
- HF Markets in Germany is regulated by BaFin (n. 132342).
- German can be chosen as a language on HF Markets’ website.
- The HF minimum deposit for German clients is $0.
- HF German clients can choose EUR and USD base currencies.
- German traders of HF Markets will find spreads from 0 pips on 45 forex currency pairs.
- The maximum leverage HF Markets clients have access to is up to 30:1 (retail) and 400:1 (professional).
XM : best for beginners
- XM is regulated in Germany by BaFin (n. 124161).
- XM clients can engage with the broker’s website in German.
- German clients need to make an XM minimum deposit of $5.
- EUR, USD, and GBP base currencies are all available for XM German traders.
- The spreads German clients find with XM start from 0 pips on 57 forex currency pairs.
- The leverage available for XM German traders can reach up to 30:1 (retail).
XTB : best for educational resources
- XTB is BaFin regulated (n. 130601) within Germany.
- German is available as one of the languages provided by XTB
- No XTB minimum deposit needs to be made by German clients.
- The base currencies which are accepted by XTB for German traders are EUR and USD.
- The XTB spreads charged for German traders start from 0 pips on 45+ forex currency pairs.
- Retail German clients benefit from a maximum leverage up to 30:1, while professional clients have access to a maximum leverage of 200:1.
Is Forex Trading legal in Germany?
Forex trading is legal in Germany. The forex market in Germany is regulated by BaFin but generally speaking, most forex brokers are covered by CySEC and as a knock-on 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.
What should German traders 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 be mindful of the following things:
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 broker that has trusted regulation in place. This is the 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
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 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, 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
About The Author
Filippo Ucchino
Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.
10 Best Forex Brokers in Germany for 2023
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