German Forex Brokers

Known as the strongest economy in the Eurozone, “German forex broker list“Germany applies strict rules to forex broker firms operating in the country. The body responsible for the regulation and supervision of financial institutions in Germany, best forex brokers in Germany ranging from banks, financial services institutions and insurance companies, is the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht), a.k.a. BaFin.

Anyone wishing to provide financial services in the country commercially (or on a scale that requires a commercially organized business undertaking) needs written authorization from BaFin. In other words, German forex brokers to operate legitimately in the country, forex brokers must be licensed by BaFin. Of course, exceptions apply to undertakings domiciled in another country of the European Economic Area (EEA).

The granting of such an authorization by BaFin, or a forex broker license, is subject to a number of conditions. First of all, the company must possess sufficient initial capital, which must be freely available and forex brokers in Germany may not be derived from borrowing. In the case of financial services institutions trading in financial instruments for their own account, the minimum amount required is €730,000. On the other hand, financial services institutions which do not trade in financial instruments for their own account are required to hold at least €125,000.

As Germany is a part of the EU, MiFID (Markets in Financial Instruments Directive) regulations apply. All regulated forex brokers are required by law to provide transaction reports to BaFin on a regular basis.German forex broker list In addition, all financial services institutions have to be members of the Investment Compensation Scheme, which covers a maximum amount of €20,000 per investor.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s