Based on our in-depth expert research here’s the list of the reliable forex brokers available in Germany.
Every broker is regulated and of course allows Euro currency deposits without a hassle or additional fees.
Top 5 Forex Brokers for traders from Germany
- Pepperstone
- eToro
- XTB
- XM
- Interactive Brokers
Comparison of Germany Forex Brokers
| Broker | Official site | Quality Score | Regulation | Average EURUSD forex spread | Min. deposit | FX Trading Platforms | Review |
|---|---|---|---|---|---|---|---|
 |  73.5% of CFD retail investor accounts lose money. | 99% | European Union, Australia United Kingdom, United Arab Emirates, | 0.17 Pips | 1€ | TradingView MT4, MT5 cTrader | Review |
 |  71% of CFD retail investor accounts lose money. | 98% | European Union, United Kingdom, United Arab Emirates, | 0.8 Pips | 0€ | xStation | Review |
 |  72,8% of CFD retail investor accounts lose money. | 98% | BaFin Germany European Union, Australia United Kingdom, United Arab Emirates, South Africa | 0.6 Pips | 15€ | MT4 MT5 XM Webtrader | Review |
Pepperstone – Award Winning BaFin Regulated Forex Broker
Pepperstone is a top forex broker that was founded in 2010. It offers an excellent Forex trading experience and is known for its strong regulation and wide range of currency pairs.
Regulation
Pepperstone broker is regulated by several highly-regarded authorities.
Is one of the most trustworthy German forex brokers regulated by BaFIN, the official German financial markets regulator, as well as the FCA in the UK, CySEC, and ASIC.
Regulation from BaFIN is especially valuable as it means German traders can rely on being able to use this platform regardless of geopolitical events. For example, several FCA-regulated brokers have been unable to offer Forex since Brexit.
Financial Assets
Pepperstone broker offers a high quality FX trading experience. A key benefit is that it doesn’t charge deposit or withdrawal fees, making it much more accessible for day traders.
Another advantage is that it offers over 60 currency pairs. This means that users have the freedom to move away from the major pairs and explore minor and exotic options, which can be very profitable.
The spreads at Pepperstone are very competitive. Users can choose between a standard or Razor account, with an advantage of the Razor account being its compatibility with active trader benefits. This lowers the overall spread based on your trading volume.
Pepperstone offers great customer support and has a helpful mobile app. Its educational resources are better than most brokers, making it a superb choice for traders.
Pros
- ✅ Regulated by BaFin Germany
- ✅ Wide range of 60+ currency pairs
- ✅ Super Low Forex Spreads from 0.00 Pips
- ✅ Average EURUSD spread 0.17 Pips
- ✅ cTrader, TradingView, Metatrader
- ✅ No withdrawal or deposit fees
- ✅ Great mobile trading apps
- ✅Good resources
- ✅ Accessible customer support
- ✅ Active trader benefits
Cons
- ⛔️ No proprietary forex trading platform
72,6% of retail investor accounts lose money when trading CFDs with this provider.
eToro – Best German Forex Broker for Social Trading
eToro has established itself as a world’s leading online trading platform for foreign exchange trading, CFD crypto and stock investing.
Regulation
One of the platform’s key benefits is that it’s very well-regulated. eToro is regulated for doing business in the European Union by the CySEC and by FCA (Financial Conduct Authority) in the UK, ASIC (Australian Securities and Investments Commission), and CySEC (Cyprus Securities and Exchanges Commission).
With the number of poorly regulated brokers popping up in recent years, traders are advised to stick to platforms that are regulated by highly respected bodies. This signifies that the broker treats its users fairly, as its reputation and status depend on good financial practice.
Financial Assets
eToro’s leading feature is its social trading platform, CopyTrader™. This software allows novice traders to copy the moves of more experienced traders and learn from their behavior.
The Forex spreads at eToro are slightly higher than average.
eToro allows users to trade in U.S. stocks with 0% commission and also offers CFD cryptocurrencies.
Users trade on the broker’s proprietary platform – eToro isn’t compatible with MetaTrader 4 or 5. This is good news because its in-built platform doesn’t allow algorithmic trading, so you know you’re copying a real trader’s decisions. Its mobile app is also easy to use, and the platform offers good customer support. Besides eToro provides an access to a demo account. So you can test the platform and try some trading strategy.
Overall, a fantastic broker for beginner and experienced traders alike.
Pros
- ✅ Very well-regulated in Europe
- ✅ Millions of users
- ✅ Superb social trading function
- ✅ Several markets available
- ✅ Proprietary platform
- ✅ Strong mobile app
- ✅ Helpful support
Cons
- ⛔️ Spreads slightly higher than average
46% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
XTB
XTB broker comes with one of the best online forex trading platforms accessible to German traders. This online broker has been operating since 2002 and continues to deliver great service for its almost 1,700,000 investors today.
Regulation
XTB ticks the box of being regulated by top authorities like the FCA and CySEC, as well as the PFSA/KNF (Polish Financial Supervision Authority). In addition, this CFD broker is listed on the Warsaw Stock Exchange, which means that the broker must submit regular financial reports. It’s one of the most trusted CFD brokers in Europe.
Available Trading Options
XTB doesn’t register as many users as many of the “big names” in Forex, but those who know the broker want to keep it that way. XTB’s Forex spreads are impressively low, and it offers 48 currency pairs. It’s one of the best-kept secrets of trading forex in Germany.
Its Trading Academy is one of the best educational resources we’ve seen from a Forex broker.
Combined with its top-notch customer support and excellent mobile app, XTB offers great rewards for its users.
Pros
- ✅ Registered/authorized by BaFin Germany
- ✅ Low spreads
- ✅ Great choice of currency pairs
- ✅ Accessible mobile app
- ✅ Helpful Trading Academy
- ✅ Responsive support
Cons
- ⛔️ Limited trading platforms
71% of retail investor accounts lose money when trading CFDs with this provider.
How to Pick The Right Forex Broker in Germany
1. BaFIN Broker Regulation & Protection
Trading forex (currencies) in Germany is legal but isn’t regulated by any laws. BaFIN and MiFID are the bodies responsible for its regulation.
BaFIN (Bundesanstalt für Finanzdienstleistungsaufsicht) is the German financial regulator.
When choosing a Forex broker , traders are advised to verify if the forex broker is covered by BaFin or British FCA or CySEC. This legislation allows German traders to access the platform.
2. Trading Platform Software
Most forex brokers use generic forex platforms, although some offer proprietary platforms. So what’s the difference?
– Third-Party Platforms
Third-party platforms like MetaTrader 4 & 5 and cTrader are popular choices in Germany. These platforms offer good functionality and allow features like algorithmic trading and copy trading.
– Proprietary Platforms
Well-designed proprietary platforms such as the one created by eToro typically offer more intuitive layouts and better features than generic platforms. Functions like eToro’s trading software would be less useful on MetaTrader, as algorithmic trading devalues the social trading experience.
– Mobile Trading Apps
MetaTrader 4 & 5 and cTrader all have helpful mobile apps. However, they aren’t as well-integrated into the broker’s other services as proprietary mobile apps. This makes platforms with a proprietary platform a more intuitive choice in general. Don’t forget to check our comparison of best mobile trading apps in Germany.
3. Commissions and Forex Spreads
Spreads are more popular than commissions among the best stock brokers in Germany. Low spreads mean that traders pay a lower cost on operations. In a spread system, users are charged based on the difference between the buy and sell prices.
Commission means that a fee is exacted per transaction, which is less attractive to day traders. This means that most top Forex brokers from Germany steer clear of commissions.
4. Customer Service
Good customer service is an underrated feature of trading platforms. Many traders get into Forex because it enables them to earn money more independently than a 9-5 job, but this independence is still provided by an online platform. Platforms can malfunction. At that point, you realize the value of accessible customer care.
Check out the customer service hours for your broker before signing up. Also, pay attention to what type of support they offer – can you call them? Is there an instant online messaging assistant? You don’t want to be left high and dry if there’s an error with a withdrawal or deposit.
FAQ (Frequently Asked Questions)
What are the best forex trading brokers in Germany for beginners?
Pepperstone and XTB are among the best fx brokers for beginners located in Germany is Pepperstone. eToro is a standout favorite due to its social trading feature.
How to check if a forex broker is BaFIN regulated?
To check if a broker is regulated by BaFin, search the broker’s legal entity in BaFin’s official company register, confirm it holds an active investment services license, compare the details with the broker’s website, and review BaFin’s warnings list for any alerts.
Is Forex trading legal in Germany?
Yes forex trading is legal in Germany but heavily regulated by the Federal Financial Supervisory Authority.
What is the German forex markets regulator?
German Forex Markets Regulator is the Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin in english “Federal Financial Supervisory Authority”.
Can German retail traders trade forex with brokers from outside of Germany?
Yes any forex broker regulated in European Union will gladly onboard German traders. All European Union licensed brokers are generally MiFID 2 compliant which means security and safety of your money.
Do I pay tax on forex trading in Germany?
Yes. Forex profits are taxable as either ordinary income or capital gains.
How are short-term forex trades taxed?
Trades held for under one year are taxed as ordinary income at 14%–45% after the €10,347 allowance.
How are long-term forex trades taxed?
Trades held for more than one year are taxed as capital gains at an effective rate of 26.3%.
Is there a tax-free allowance?
Yes. The first €10,347 of annual income is tax-free.
What is the highest tax rate I may pay on forex profits as German resident?
High-income traders can pay up to 45% on short-term trading profits.
About Author
Table of Contents