Forex Trading in Germany - Best Forex Brokers for [year]
Forex Brokers in Germany
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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.
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
Best all-around broker with high floating leverage and fast execution
We have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Pros
Excellent commission-based Forex pricing environment and transparency
Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
Quality market research and educational content for beginner traders
Proprietary copy trading platform, low minimum deposit, and high leverage
Cons
Limited choice of cryptocurrencies and commodities
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
Best broker for social traders and crypto traders : 78% of retail CFD accounts lose money
eToro features one of the most active trading communities among Forex brokers in Germany, with 25M+ traders. It caters well to equity traders with 2,000+ CFDs, ETFs, in-house managed thematic investment portfolios, and direct share dealing for passive portfolios. eToro relies on CopyTrader and CopyPortfolios, which form the core of its social-trading-focused model.
Beginners benefit from the quality eToro Academy. Additional services include in-depth analytics through eToro Plus and insights with market leaders at The Bull Club. eToro awards active traders through its eToro Club. Cryptocurrencies are a secondary core market. Following its proprietary crypto wallet development, eToro acquired Dutch and Belgian cryptocurrency companies and launched an NFT fund.
Pros
Active investment community ideal for social trading
Dedicated tools for social trading
Broad cryptocurrency selection
Expanding educational offering for beginner traders
Cons
Internal withdrawal fees
Low retail leverage and higher minimum deposits, but within a reasonable range
Forex traders looking for a quality execution-only multi-asset broker should consider Plus500. It also ranks among one of the most trusted Forex brokers in Germany. Plus500 is a publicly listed company in the UK and a constituent of the FTSE250 index. Therefore, it adheres to strict capital requirements and best business practices. Home to 22M+ accounts from 50+ countries, Plus500 reports 300M+ trades valued at $800M+ spread across 2,800 assets.
While Plus500 only supports manual trading via its proprietary web-based platform and highly ranked mobile app, it maintains one of the cheaper commission-based Forex pricing environments. It also has trailing stop-loss and guaranteed stop-loss orders for advanced risk management, complementing the standard take profit and stop loss options.
Pros
Well-regulated globally
Broad asset selection in equities and options
Guaranteed stop-loss order
Fast and
reliable order execution
Cons
Sub-standard trading platform without support for automated or social trading
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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