Based on our in-depth expert research here’s the guide to the best forex brokers in Germany.
Top 10 Forex Brokers in Germany
- Pepperstone
- Skilling
- XTB
- XM
- eToro
- Capital.com
- IC Markets
- Interactive Brokers
- Moneta Markets
- Plus500
Overview of the best forex brokers
| Broker | Official site | Quality Score | Speed | EURUSD forex spread | Min. deposit | FX Trading Platforms | Review |
|---|---|---|---|---|---|---|---|
 |  73.5% of CFD retail investor accounts lose money. | 99% | Ultra fast | 0.17 Pips | 1€ | TradingView MT4, MT5 cTrader | Review |
 |  75% of CFD retail investor accounts lose money. | 99% | Fast | 1Pips | 100€ | TradingView MT4, MT5 Metatrader cTrader Skilling Trader | Review |
 |  82% of CFD retail investor accounts lose money. | 98% | Fast | 0.8 Pips | 5€ | xStation | Review |
 |  77% of CFD retail investor accounts lose money. | 99% | Fast | 0.6 Pips | 15€ | MT4 MT5 | Review |
 |  77% of CFD retail investor accounts lose money. | 96% | Fast | 1 Pips | 50€ | CopyTrader™ | Review |
We have analyzed dozens of forex brokers, now let’s get to the review of the best forex brokerages in Deutschland.
Let’s get to the good stuff!
Pepperstone – Award Winning German Forex Broker “2023”
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 as it’s 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 70+ 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 yet
76.2% of retail investor accounts lose money when trading CFDs with this provider.
eToro
eToro has established itself as a world’s leading online trading platform for foreign exchange trading, crypto and stock investing.
Since its inception in 2007, the Tel Aviv-based broker has gone from strength to strength, making trading easy for its 17M users worldwide.
Regulation
One of the platform’s key benefits is that it’s very well-regulated. eToro is regulated by the German BaFIN, 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 CFDs and cryptocurrencies. This means that Openbook users can learn advanced trading strategies in multiple markets.
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 by BaFin Germany
- Millions of users
- Superb social trading function
- Several markets available
- Proprietary platform
- Strong mobile app
- Helpful support
Cons
- Spreads slightly higher than average
77% 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 Polish broker has been operating since 2002 and continues to deliver great service for its almost 400,000 users 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
- Regulated by BaFin Germany
- Low spreads
- Great choice of currency pairs
- Accessible mobile app
- Helpful Trading Academy
- Responsive support
Cons
- Limited additional options, e.g. cryptocurrencies
81% of retail investor accounts lose money when trading CFDs with this provider.
How to Pick The Right Forex Broker in Germany
1. Regulation
Trading forex (currencies) in Germany is legal but isn’t regulated by any laws. Instead, BaFIN and MiFID are the bodies responsible for its regulation.
BaFIN (Bundesanstalt für Finanzdienstleistungsaufsicht) is the German financial regulator. Webpage on Wikipedia.
Unlike many European forex market regulators, it’s not a state-owned body – it’s fully independent and funded by a license fee paid by registered companies.
This is an advantage for German traders looking for Forex brokers for trading in Germany, as it keeps trading forex mostly free from political interference and censure.
MiFID is an EU-wide directive that allows traders registered with EU financial regulators to operate in other countries within the Eurozone. Brokers registered with CySEC are a good example of this, as Cyprus is within the Eurozone.
While CySEC isn’t considered one of the tier-1 trusted regulators, platforms registered with highly trusted authorities such as the FCA and ASIC can also operate in Germany by registering with CySEC. Always ensure that your broker is registered with a MiFID-authorized regulator.
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 Spreads
Spreads are more popular than commissions among the best 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.
Final Thoughts
Strong educational resources. An intuitive trading interface. Great customer support. A wide choice of currency pairs and a competitive spread.
It’s not too much to ask, is it? It’s less common than you’d think. Check out our top-rated forex brokerages in Germany and make the right choice.
FAQ (Frequently Asked Questions)
Q: What are the best brokers in Germany to trade with?
- Pepperstone is a top forex brokerage in Germany. Skilling is recommended for all beginners. eToro is a standout favorite due to its social trading feature. XTB is yet another top broker thanks to its state of the art trading platform xStation and high quality education materials.
Q: Is Forex trading legal in Germany?
- Yes forex trading is legal in Germany but heavily reagulated by Federal Financial Supervisory Authority.
Q: What is the German financial markets regulator?
- German Financial Markets Regulator is the Federal Financial Supervisory Authority also known as BaFin. 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 – learn more about MiFID below.
Q: Can German traders trade with brokers from outside of Germany ?
- Absolutely. 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.
Q: Do I have to pay tax for forex trading Germany?
- If you are a German resident, you will be subject to German taxes on your profits. This includes both income tax and capital gains tax. Forex trading is considered speculative in nature, so any profits you make will be subject to the capital gains tax rate of 25%. However, if you can prove that forex trading is your sole source of income, you may be able to get a lower tax rate.
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