Forex Trading in Germany - Best Forex Brokers for [year]
Forex Brokers in Germany
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Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
Huzefa Hamid
Despite the rumors about over-regulation killing the industry, there are plenty of Forex / CFD brokers accepting German residents as clients. I’ve looked at the best Forex brokers in Germany in detail and compiled the shortlist below. Read on to find the best Forex broker for you, and to learn some important facts about trading in Germany.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
16 payment processors in 16+ currencies, including cryptocurrencies and e-wallets.
15 MT4/MT5 plugins & Capitalise AI for algorithmic trading in a code-free environment.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best ECN execution on the MT4 platform
Excellent implementation of cTrader and Smart Trader Tools
Tight spreads in the commission-based accounts are available at ACY Securities via 46 liquidity providers. The excellent trading infrastructure results in order execution under 30ms, making ACY Securities one of the best Forex brokers in Germany. The Pro Zero and Bespoke accounts, with a $200 and $10,000 deposit requirement, offer raw spreads from 0.0 pips for a $6.00 and $5.00 commission.
Negative balance protection applies, and ACY Securities segregates client deposits at Commonwealth Bank. It also has professional indemnity insurance. Copy traders get embedded MT4/MT5 services, Signal Start, and SoFinX, while VPS hosting supports 24/5 low-latency algorithmic trading.
Pros
Large repository of daily analysis and educational content
Low spreads starting at 0 pips in the Spread Zero account
16 payment processors, including cryptocurrencies
Competitive trading fees in its commission-based accounts
Highly regulated, choice of fixed or floating spreads
Traders at AvaTrade get commission-free costs with a balanced asset selection. Clients get 1,250+ CFDs and ETFs, while vanilla options allow advanced traders to deploy complex strategies. Beginners benefit from the high-quality, spun-out trading academy SharpTrader. Besides a competitive trading environment, AvaTrade provides passive income opportunities via its lucrative partnership program. It has 70,000+ partners from 150+ counties and 250M+ commission payouts.
AvaTrade ranks among the most balanced Forex brokers in Germany and maintains an excellent choice of trading platforms. Algorithmic traders get upgraded MT4/MT5 platforms, and social traders have integrated MT4/MT5 services, Ava Social, ZuluTrade, or DupliTrade. Manual traders may use the proprietary web based AvaTrade WebTrader. Options traders get AvaOptions, and mobile traders the AvaTradeGO app.
Pros
High-quality educational offering via SharpTrader
Excellent choice of trading platforms catering to various trading needs
Broad asset selection and cross-asset diversification opportunities
Well-regulated and trusted broker with oversight from a central bank
fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
FP Markets Pros & Cons
Pros
Choice of trading platforms and auxiliary trading tools
Very competitive cost structure and excellent asset selection
Low minimum deposit requirement and leverage of up to 1:500
Eightcap established itself among the best Forex brokers due to its superb trading infrastructure, excellent order execution amid deep liquidity, competitive fees, and cutting-edge trading tools. Manual traders get a well-designed AI-powered economic calendar, and Eightcap upgrades MT4 via Capitalise AI, which enables algorithmic trading in a code-free environment. MT5 traders benefit from Flash Trader, while the dedicated cryptocurrency solution Crypto Crusher caters to cryptocurrency traders.
Copy traders get the embedded MT4/MT5 services, and Eightcap connects social traders to the active TradingView community. Beginner traders get an outstanding educational and research offering via Eightcap Labs and Eightcap Trade Zone.
Pros
Low minimum deposit and high leverage of up to 1:500
Competitive cost structure
Excellent technology infrastructure and seasoned management team
With the 28 add-on Smart Trader Tools upgrade and the Autochartist plugin, Pepperstone maintains one of the most competitive MT4/MT5 environments. It also offers the leading ECN alternative cTrader, and API trading allows sophisticated trading solutions to connect to the quality Pepperstone trading infrastructure. Pepperstone also introduced Capitalise AI, a code-free environment to automate trading. Therefore, it ranks among the most competitive Forex brokers in Germany.
The quality educational content and market commentary at Pepperstone, provided by its in-house analytics team and in partnership with FX Evolution, cater to beginners. Social trading is available via integrated services in MT4, MT5, cTrader, Myfxbook Autotrade, and DupliTrade. Pepperstone also connects its clients to the active TradingView community, home to 30M+ traders.
Pros
Excellent choice of trading platforms consisting of MT4/MT5, and cTrader
Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade
BaFin was established in 2002 via the merger of three German regulators, has offices in Bonn and Frankfurt, and regulates over 2,700 banks, 800 financial services firms, and 700 insurance companies. It has legal enforcement powers, imposes fines for violations, and takes legal action where necessary.
What are the Best Deposit Methods Available to German Traders?
Since Germany has a well-developed financial system that is interconnected globally, German Forex traders have numerous deposit and withdrawal methods available. It offers the freedom to the individual to manage their finances as they see fit, provided their Forex brokers in Germany include them in their offering.
The available deposit and withdrawal methods at Forex brokers in Germany include:
Bank wires
Credit/debit cards
Giropay
Sofort
PayPal
Skrill
Neteller
Cryptocurrencies
Prepaid cards
Other e-Wallets
Localized FinTech solutions
EU licensed and regulated payment processors
Emerging FinTech alternatives
The Importance of Competitive Trading Platforms & Software
Trading with a cutting-edge platform ensures traders can have a competitive edge in today's fast-moving financial markets. Forex brokers in Germany can offer out-of-the-box trading platforms. They are available as desktop clients, lightweight web-based versions, and mobile apps. The most competitive German Forex brokers offer proprietary alternatives or trading apps streamlined for mobile trading.
Out-of-the-box trading platforms offered by Forex brokers in Germany:
MT4, the industry leader among Forex traders, with full support for algorithmic and copy trading, is home to 25,000+ EAs, plugins, and custom templates
cTrader, the primary ECN trading platform and fiercest MT4 challenger with full algorithmic and copy trading support and the best out-of-the-box user interface
MT5, which many consider the failed MT4 successor due to the lack of backward compatibility
Sirix, a lesser-known alternative for manual traders
Proprietary trading platforms offered by Forex brokers in Germany:
The most competitive Forex brokers in Germany develop proprietary trading platforms. It requires intensive monetary and time investment, usually resulting in superior alternatives to out-of-the-box trading platforms. The drawback is that only a few support algorithmic trading.
Trading apps offered by Forex brokers in Germany:
Some Forex brokers in Germany may not develop proprietary trading platforms but make smaller investments in trading apps streamlined for mobile trading. These are ideal for traders who prefer to check their portfolios on the go and get relevant market news and analytics but are not well-suited for trading-related activities.
Why Should Traders Care About Commissions, Spreads & Fees?
Trading costs directly impact profits, and high spreads, as offered by many commission-free Forex brokers in Germany, can make most Forex trading strategies unprofitable. Forex traders must avoid the commission-free trap and carefully evaluate trading costs.
How to spot expensive Forex brokers in Germany?
The quickest way is to look at trading costs for all major currency pairs, where costs should not exceed $8.00 per 1.0 standard round lot. Therefore, commission-free spreads should not be above 0.8 pips, while commission-based alternatives must average spreads of 0.2 pips with a $6.00 commission. Traders can try to exploit a volume-based rebate program where it exists, potentially lowering final trading costs.
Bottom Line
Forex trading in Germany continues to expand and evolve, and Forex brokers in Germany get plenty of competition from FinTech companies. It all results in better trading conditions for clients, cutting-edge trading platforms, and lower trading costs. German Forex traders should ensure they trade with a regulated broker. They should carefully compare the core trading environment between brokers, searching for the lowest pricing environment and an asset selection that suits their trading strategy. The most competitive Forex brokers in Germany fully support algorithmic and copy trading.
FAQs
Which Forex broker is best for Germany?
The answer depends on individual requirements, but the best Forex brokers in Germany will offer cutting-edge trading platforms, low trading costs, and a balanced asset selection.
Is Forex trading legal in Germany?
Forex trading is legal in Germany, regulated by the German financial regulator BaFin and the EU super-regulator ESMA.
Do Forex traders pay tax in Germany?
Forex traders pay tax in Germany and should consult a legal/tax professional for assistance with taxes paid on trading income. This ensures full compliance with the law and an accurate overall tax bill.
How do you trade in Germany?
Trading in Germany requires the use of a broker, usually an online broker for younger traders. Some seasoned traders with higher portfolios prefer the personalized services provided by brokerage units at their local bank.
What is the best trading platform in Europe?
The best trading platform in Europe will support algorithmic and copy trading, where MT4 remains the industry leader.
I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com.
I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money.
I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.
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