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Best Forex Brokers in Germany for 2023

2023-09-14 Brokersview

Germany is indeed a fantastic country for forex trading in Europe! With its strong economy and stable financial system, it offers a favorable environment for traders. Moreover, there are numerous forex brokers in Germany, providing a wide range of options for traders to choose from. To make your selection easier, here's a list of some of the best forex brokers in Germany.


forex brokers in germany


Top 10 Best Forex Brokers in Germany


IG: Founded in 1974, IG offers an intuitive trading platform and customizable apps that give traders access to a wide range of currency pairs, and is is publicly traded and regulated across the globe.


XTB: XTB was founded in Poland in 2002, and is one of the largest stock exchange-listed FX & CFD brokers in the world, with offices in over 13 countries including Germany. It offers an excellent variety of extensive educational videos and written content, and over 200 lessons via its Trading Academy.


Tickmill: Founded by long-time forex industry entrepreneurs in 2014, Tickmill is competitive in its offering of market research and continues to improve in this category each year. It also offers advanced pending orders, superior analysis tools, fully customizable charts, and a built-in economic calendar.


Admiral Markets: Founded in 2001, Admiral Markets offers excellent investor education and advanced MetaTrader features, such as the Supreme add-ons, alongside an extensive range of shares, forex, and CFD markets, and premium research content.  


IC Markets: IC Markets was founded in 2007 and is regulated by multiple jurisdictions including Germany. It has servers in New York and London, which makes it an agency broker that caters to scalpers and high-frequency algorithmic traders who require low-latency and fast execution.


BDSwiss: Founded in 2012, the well-renowned broker has a fast and easy account opening process, and offers free deposit and withdrawal. In addition to the highly popular MetaTrader 4 and MetaTrader 5 platforms, it also provides access to the BDSwiss Mobile App and BDSwiss WebTrader.


FXCM: FXCM has been in business for over 20 years since 1999, and was a pioneering developer of an electronic platform for trading on the foreign exchange market. Its enhanced execution allows traders to trade popular currency pairs and CFDs with no restrictions on stop and limit orders.


Pepperstone: Founded in 2010, Pepperstone processes an average of US$12.55bn of trades every day, making it one of the world's largest forex brokers. It offers a range of account types, including a Razor account with low spreads and a Standard account with no commissions.


Saxo Bank: Founded in 1992, Saxo Bank is licensed in seven Tier-1 jurisdictions and one Tier-2 jurisdiction. The broker offers many benefits and bonuses, including a wide range of analytical reports and reviews.


ActivTrades: Established in 2001, ActivTrades offers services to retail and institutional traders via the electronic trading platforms ActivTrader, MetaTrader 4, and MetaTrader 5. It has diverse in-house content published regularly, affording traders a comprehensive overview of the current market.


Comparison of the Best Forex Brokers in Germany


Brokers Regulation Min Deposit Spread from Currency Pairs
XTB BaFin, CySEC, FCA, Belize FSC $250 0.5 pips 48
Tickmill BaFin, FCA, CySEC, FSCA, Seychelles FSA $100 0.0 pip 60+
Admiral Markets BaFin, CySEC, FCA, ASIC, FSCA, CONSOB, Estonia FSA, Bulgaria FSC $25 0.0 pip 80+
IC Markets BaFin, CySEC, FCA, ASIC, Seychelle FSA, Bahamas SCB $0 0.0 pip 60+
BDSwiss BaFin, CySEC, Mauritius FSC, Seychelles FSA  $10 1.5 pips  50+
FXCM BaFin, CySEC, FCA, ASIC, FSCA $50 0.2 pips 39
Pepperstone BaFin, CySEC, FCA, ASIC, DFSA, Bahamas SCB, Kenya CMA $0 0.0 pip 60+
Saxo Bank BaFin, ASIC, the Danish FSA, FCA, MAS, FINMA, AMF, FSMA $0 0.5 pips 130+
ActivTrades BaFin, CSSF, CMVM, FCA, CONSOB, Bahamas SCB, Bacen $0 0.5 pips 48


Is It Legal to Trade Forex in Germany?


Forex trading is popular and growing in Germany, and there are no legal provisions against it. Forex brokers are not required to become authorized by the Federal Financial Supervisory Authority (BaFin) to accept residents of Germany as customers, but it is recommended. However, most Forex and CFD brokers are regulated in the forex market world for reliability. German citizens are free to buy and sell foreign currencies on the foreign exchange market, as long as they do so through a regulated forex broker.


How to Find the Right Forex Broker in Germany?


how to find the right forex broker in germany


The first step in finding the right forex broker is conducting thorough research, looking for brokers that are regulated by trusted regulatory bodies such as BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) in Germany or other reputable European regulators.


A user-friendly and reliable trading platform is essential for executing trades efficiently, therefore you also need to consider the trading platform and tools offered by the broker, and look for platforms that offer advanced charting tools, real-time market data, a wide range of order types, and even mobile trading options that allow you to trade on the go.


Different brokers offer various types of trading accounts to cater to different trader needs, including demo accounts for practice, standard accounts for regular trading, and premium accounts for advanced traders, and the minimum deposit required to open an account can differ. Ensure they align with your needs and financial capabilities.


Evaluate the broker's spreads, commissions, and fees. Narrower spreads are generally more advantageous for traders. Additionally, consider any commissions charged by the broker for executing trades. Watch out for hidden fees that could eat into your bottom line.


Finally, reliable customer support is vital, especially for novice traders. Look for brokers that offer multiple channels of customer support, such as live chat, email, or phone, and ensure they are responsive and helpful. Additionally, consider whether the broker provides educational resources and materials to enhance your trading knowledge and skills.


How to Trade Forex in Germany?


Step 1: Educate Yourself


It's important to have a good understanding of the forex market before you start trading. Familiarize yourself with basic forex terminology, trading strategies, and risk management techniques. Numerous online resources, educational courses, and trading books are available to help you understand the fundamentals of forex trading and develop a solid knowledge base.


Step 2: Choose a Reliable Forex Broker


Selecting the right forex broker is vital for a successful trading journey. Look for brokers regulated by reputable authorities, such as BaFin in Germany or other well-known European regulators. Evaluate the broker's trading platform, tools, spreads, and fees. Additionally, consider factors like customer support, account types, and available trading instruments to ensure the broker aligns with your trading needs.


Step 3: Open a Trading Account


Once you've chosen a suitable broker, it's time to open a trading account. Complete the registration process, provide the necessary documents for verification, and fund your account with the minimum deposit required. Some brokers offer different account types, so select the one that matches your trading objectives and risk tolerance.


Step 4: Develop a Trading Strategy


A well-defined trading strategy is essential for consistent success in forex trading. Determine your trading goals, whether it's short-term gains or long-term investments, and develop a strategy that suits your preferences. Consider factors like technical analysis, fundamental analysis, risk management, and the timeframes you prefer to trade in.


Step 5: Practice with a Demo Account


Most brokers offer demo accounts, which allow you to practice trading using virtual funds. Utilize this valuable resource to test your trading strategy, familiarize yourself with the broker's trading platform, and gain confidence in executing trades. Use the demo account to refine your skills, analyze market movements, and fine-tune your strategy before risking real funds.


Step 6: Start Trading with Discipline


Once you feel comfortable with your trading skills, it's time to execute real trades. It's important to start small when you're first starting out in forex trading. This will help you to limit your losses and learn from your mistakes. As you gain more experience, you can gradually increase the size of your trades. Practice discipline by sticking to your trading plan, managing risks effectively, and avoiding emotional decision-making.


Step 7: Continue Learning and Adapting


Forex trading is a dynamic market, and continuous learning is essential for staying ahead. Keep up with the latest news and events that can affect currency prices. Adapt your trading strategy as necessary to accommodate changing market conditions and refine your skills based on real-time experience.


What Is the Leverage of Forex Trading in Germany?


In Germany, the maximum leverage allowed when trading major currency pairs is 30:1, while for non-major pairs, it is 20:1. However, some forex brokers in Germany offer leverage up to 500:1 on pro accounts. It is important to note that leverage and bonuses are limited or prohibited in Germany. Forex brokers in Germany are strictly regulated by the German regulator Bundesanstalt für Finanzdienstleistungsaufsicht. Due to the restrictions imposed by the European Union, German forex traders can only use leverage of 30:1 when trading major currency pairs.


What Trading Platforms & Software do Germany Forex Brokers Offer?


trading platforms and software


Germany forex brokers offer a variety of trading platforms and software to cater to the diverse needs of traders. Some commonly offered options include MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, Web-based Platforms, Mobile Trading Apps and Proprietary Platforms.


What Is the Fee Structure Charged by Forex Brokers in Germany?


Forex brokers in Germany charge fees in different ways, and the fee structure may vary depending on the broker. Some common fees charged by forex brokers in Germany are as below.


Spreads - This is the difference between the bid and ask price of a currency pair. Forex brokers in Germany charge spreads on each trade, and the size of the spread may vary depending on the broker and the currency pair being traded.


Commissions - Although normally German forex brokers don’t charge commissions, some brokers in the country charge a commission on each trade, which is a percentage of the trade value.


Overnight fees - Forex brokers in Germany may charge overnight fees for positions that are held open overnight. The fee is usually a percentage of the trade value.


Deposit and withdrawal fees - Forex brokers in Germany may charge fees for deposits and withdrawals, depending on the payment method used.


Inactivity fees - Some forex brokers in Germany may charge inactivity fees if an account is inactive for a certain period of time.


Do Forex Traders Pay Tax in Germany?


Forex traders in Germany are required to pay taxes on their profits. The tax structure for forex trading in Germany is as follows.


Capital gains tax - The capital gains tax rate is 25%, and there is an additional solidarity surcharge rate of 5.5%.


Income tax - Professional forex traders in Germany must pay ordinary income tax on their net profit at the end of the year based on their tax brackets.


Trade tax - Forex traders who operate as a business in Germany may also be subject to trade tax (Gewerbesteuer). The trade tax rate in Germany is 3.5%, which is multiplied by the trade tax rate of the municipality where the business is located.


What Payment Methods Are Supported by Forex Brokers in Germany?


Forex brokers in Germany typically support a range of payment methods to facilitate deposits and withdrawals for their clients. Here are some commonly supported payment methods.


payment methods supported by forex brokers in germany


Bank Transfers: Bank transfers, also known as wire transfers or bank deposits, are a widely accepted payment method by forex brokers in Germany. This method allows you to transfer funds directly from your bank account to your trading account. It is a secure and reliable option, although it may take a few business days for the funds to reflect in your trading account.


Credit/Debit Cards: Most forex brokers accept major credit and debit cards such as Visa, Mastercard, and Maestro. This payment method offers convenience and allows for instant deposits. However, please note that some brokers may charge a small transaction fee for card deposits.


E-wallets: E-wallets like PayPal, Skrill, and Neteller are popular payment methods among forex traders in Germany. They offer quick and convenient transactions, allowing you to deposit and withdraw funds with ease. E-wallets also provide an added layer of security as they act as an intermediary between your bank account and the forex broker.


Online Payment Services: Some brokers may offer online payment services such as Trustly, Sofort, or Giropay. These services enable you to make direct online payments from your bank account, providing a seamless and secure transaction experience.


Cryptocurrencies: In recent years, a few forex brokers in Germany have started accepting cryptocurrencies like Bitcoin as a payment method. If you hold cryptocurrencies, you may be able to deposit funds directly from your crypto wallet to your trading account.