Forex Brokers Germany

Forex trading is legal and regulated in Germany. Both residents and expats can open accounts with licensed brokers and trade currency pairs like EUR/USD, GBP/JPY, or USD/CHF.

This guide explains how to trade forex in Germany in 2025, which brokers to use, what fees to expect, and how profits are taxed. It also shows how to compare platforms based on spreads, execution, and tools.

Who Can Trade Forex in Germany – Legal Access and Requirements

Forex trading is open to both German residents and expats with the right documentation. Most regulated brokers follow the same onboarding rules under EU law and German compliance standards.

To open a forex account in Germany, you typically need:

• Valid passport or EU national ID
• German residential address or EU residency
• Tax identification number (Steuer-ID)
• Proof of bank account (SEPA-compatible)
• Minimum age: 18 years
• Completed risk profile questionnaire (per MiFID II)
• KYC verification via PostIdent, VideoIdent, or similar

Most brokers will ask about your trading experience, financial status, and understanding of leverage and risk before activating the account.

EU-based brokers regulated by BaFin, CySEC, or FCA can legally offer services in Germany under MiFID II passporting. Expats can also use international brokers if they accept EU clients and comply with local tax reporting standards.

How to Open a Forex Trading Account in Germany

Opening a forex account in Germany is a regulated process designed to meet EU compliance standards. Most brokers follow a structured onboarding flow to verify your identity, assess your risk profile, and activate your trading access.

Steps to open a forex account:

1. Choose a regulated forex broker
2. Register your account online
3. Verify your identity
4. Complete the trading experience assessment
5. Add your tax and residency details
6. Link a SEPA-compatible bank account
7. Deposit funds and access the trading platform

1. Choose a regulated forex broker

Select a broker licensed by BaFin, CySEC, FCA, or another EU authority. Avoid offshore brokers that don’t follow MiFID II rules. Look for low spreads, strong execution, negative balance protection, and support in English if needed.

2. Register your account online

Sign up via the broker’s website or app. You’ll be asked to provide your name, address, nationality, contact details, and account currency. Most brokers support EUR as the base currency for clients in Germany.

3. Verify your identity

Submit ID verification via PostIdent, VideoIdent, or upload documents directly. You’ll need:

• Valid passport or EU ID
• Proof of address (e.g. utility bill or registration certificate)
• Optional: bank statement for funding verification

4. Complete the trading experience assessment

Under MiFID II, brokers must assess your knowledge of leveraged trading. You’ll answer questions about:

• Your past trading experience
• Understanding of margin and leverage
• Awareness of forex risks

Based on your answers, some brokers may limit leverage or restrict access to CFDs.

5. Add your tax and residency details

Provide your Steuer-ID and declare tax residency. U.S. citizens must also submit FATCA forms. This step ensures compliance with local and cross-border tax laws.

6. Link a SEPA-compatible bank account

Connect a bank account in your name. Most brokers accept SEPA transfers, credit cards, or e-wallets. Make sure the name on the bank account matches your trading profile.

7. Deposit funds and access the platform

Once verified, deposit funds using your preferred method. You can then access MetaTrader 4, MetaTrader 5, or the broker’s proprietary platform to begin trading.

Types of Forex Brokers Operating in Germany

Forex brokers in Germany fall into several categories based on their execution model, regulatory status, and platform setup. Understanding the differences helps you choose a broker that matches your trading style.

Market Makers (Dealing Desk)

Market makers set their own prices and often act as the counterparty to your trade. They offer fixed or variable spreads and no commissions. Execution is fast and slippage is minimal under normal market conditions. However, spreads are usually wider, and conflicts of interest may exist.

Pros:

• Stable pricing
• Beginner-friendly platforms
• Often lower minimum deposits

Cons:

• Spread markups
• Broker trades against you in some cases

STP (Straight Through Processing) Brokers

STP brokers route client orders directly to liquidity providers without internal dealing desks. Spreads are tighter and execution is more transparent. Some charge a small commission per lot traded.

Pros:

• No dealing desk
• Tighter spreads than market makers
• Fewer conflicts of interest

Cons:

• Variable spreads
• Slightly higher trading costs with commission

ECN (Electronic Communication Network) Brokers

ECN brokers connect you directly with a pool of banks, institutions, and other traders. This model offers the best bid/ask prices and ultra-tight spreads—usually with a fixed commission per trade.

Pros:

• Raw market pricing
• Fast execution
• Ideal for scalping and algorithmic trading

Cons:

• Higher capital requirements
• Commissions charged per lot
• Not beginner-friendly

Regulatory distinction: EU vs. offshore brokers

Brokers regulated by BaFin, CySEC, or FCA follow MiFID II rules, offer negative balance protection, and restrict leverage for retail clients (max 1:30). Offshore brokers may offer higher leverage (1:200+), but lack EU investor protection.

Tip: Always verify a broker’s license before funding your account.

Trading Platforms and Tools for Forex in Germany

Forex trading platforms vary in speed, features, and customization. Most brokers in Germany offer a combination of professional tools, mobile access, and integrations with industry-standard software like MetaTrader.

MetaTrader 4 (MT4)

MT4 is the most widely used forex platform worldwide. It offers:

• Real-time charts and technical indicators
• One-click trading
• Automated strategies via Expert Advisors (EAs)
• Support for custom scripts and indicators

MT4 is ideal for retail traders and supported by nearly all major brokers. It’s lightweight and compatible with Windows, macOS (via workaround), iOS, and Android.

MetaTrader 5 (MT5)

MT5 is the successor to MT4, with faster execution and support for more asset types, including stocks and commodities. Key improvements include:

• Depth of market (DOM) view
• Built-in economic calendar
• Advanced backtesting for EAs
• More order types and timeframes

Not all brokers offer MT5, but it’s gaining popularity among serious traders who want broader tools.

cTrader

cTrader is known for its clean UI and institutional-grade features. It offers:

• Level II pricing
• Detachable charts and multi-window mode
• Advanced order management
• Built-in cAlgo for automated trading

cTrader is typically used by ECN brokers and preferred by scalpers and professionals.

Proprietary and beginner-friendly platforms

Several brokers offer custom-built platforms focused on ease of use rather than advanced functionality. These platforms often work entirely in the browser or via mobile apps.

eToro offers a clean, intuitive interface for trading forex via CFDs. It supports manual trading, copy trading, and social features but does not offer MT4, MT5, or automated trading. Ideal for beginners looking for a plug-and-play experience with integrated risk tools.

Plus500 is another example of a beginner-focused CFD platform. It offers clear risk management tools, limited leverage, and a straightforward app interface, but lacks customization or third-party integration.

These platforms are suitable for casual traders and those who want to follow others rather than build complex strategies.

Additional tools to consider

• Copy trading and social trading (offered by eToro, ZuluTrade, etc.)
• VPS hosting for 24/7 algorithmic strategies
• Economic calendars and sentiment indicators
• Integrated risk calculators and position sizing tools

Available Forex Instruments and Market Access

Forex brokers in Germany provide access to a wide range of currency pairs and related trading products. The number of instruments and the trading conditions vary depending on the broker’s execution model, regulation, and platform.

Currency pairs offered

Most brokers divide their offerings into three categories:

• Majors – The most traded pairs with high liquidity
  • EUR/USD, USD/JPY, GBP/USD, USD/CHF
• Minors – Less traded but still liquid cross-currency pairs
  • EUR/GBP, GBP/JPY, AUD/NZD
• Exotics – Pairs involving a major and a developing economy’s currency
  • USD/TRY, EUR/ZAR, USD/THB

Major brokers offer between 30 and 70+ pairs, depending on platform and account type.

Leverage limits

Retail traders in Germany are restricted by ESMA rules under MiFID II:

• Max 1:30 on major pairs
• 1:20 on minors
• 1:10 or lower on exotics

These limits apply to all EU-regulated brokers. Some offshore brokers offer higher leverage (e.g. 1:200–1:500), but with reduced investor protection and no regulatory oversight in Germany.

Trading hours and execution

• Forex markets are open 24 hours/day, 5 days/week (Monday–Friday)
• Most brokers offer trading from Sunday 23:00 to Friday 23:00 (CET)
• Execution types: Market, Limit, Stop, and Trailing Stop orders
• ECN/STP brokers offer faster execution and lower latency, ideal for active strategies

Additional forex instruments

Some brokers also offer:

• Currency index CFDs (e.g., USD Index, EUR Index)
• Forex options (rare, but available via specialized platforms)
• Synthetic currency pairs or crypto-fiat pairs (e.g., BTC/USD)

These instruments may carry different risk profiles and fee structures than traditional spot forex.

Forex Broker Fees and Trading Costs

Forex trading fees can vary significantly depending on the broker’s execution model, pricing structure, and platform type. Understanding the true cost per trade is essential—especially for high-frequency traders or scalpers.

Main cost components

• Spreads – The difference between bid and ask price; can be fixed or variable
• Commissions – Charged per traded lot (often with ECN brokers)
• Swap/rollover fees – Interest paid or earned for holding positions overnight
• Deposit and withdrawal fees – Vary by method and broker
• Inactivity fees – Charged if no trading activity occurs over a set period

Fee comparison (2025)

Broker	Execution Model	EUR/USD Spread	Commission per Lot	Swap Fee	Inactivity Fee	Platform
eToro	Market Maker	~1.0 pip	None	Included in spread	$10/month (after 12 months)	Proprietary
IG	Market Maker	~0.6 pip	None	Variable	None	MT4, Web Trader
Pepperstone	ECN/STP	~0.1 pip	~$7 per round lot	Variable	None	MT4, MT5, cTrader
XTB	STP	~0.9 pip	None	Variable	€10/month (after 12 months)	xStation 5
Admirals	ECN/STP	~0.5 pip	€3–4 per lot (varies by account)	Variable	None	MT4, MT5
Plus500	Market Maker	~0.8–1.2 pip	None	Included in spread	€10/month (after 3 months)	Proprietary

Notes:

• ECN/STP brokers typically offer lower spreads but add a commission per lot traded.
• Market makers include all costs in the spread but may widen spreads during volatility.
• Swap fees depend on the currency pair, trade direction, and broker markup.
• Most brokers charge inactivity fees after 3–12 months without trades.
• eToro includes fees in the spread and charges in USD by default.

Taxes and Forex Trading in Germany

Profits from forex trading in Germany are taxable, whether you trade through a German or foreign broker. As a trader, you’re responsible for understanding how gains are classified and reported under German tax law.

Capital gains vs. other income

Forex profits are typically classified as Kapitalerträge (capital income) when trading through regulated brokers, including CFD-based forex platforms. This applies to:

• Profits from closed trades
• Realized gains from forex CFDs
• Swap income (if paid to you)

If you’re classified as a professional trader (rare for individuals), your income may instead fall under Einkünfte aus Gewerbebetrieb (business income), requiring different reporting and accounting.

Tax rates and allowance

• Flat tax rate: 25% capital gains tax
• Solidarity surcharge: 5.5% of the capital gains tax
• Optional: Church tax (~8–9%) if registered
• Tax-free allowance: €1,000 per year (2025 level)

Profits above this threshold are subject to full taxation.

Reporting and withholding

German brokers: Automatically withhold taxes on gains and provide a Steuerbescheinigung (annual tax certificate)

Foreign brokers: Do not withhold German tax—you must report all gains in your annual tax return via ELSTER

If you use a broker like eToro, Pepperstone, or Plus500 (non-German entities), you are fully responsible for accurate reporting and documentation.

Losses and offsets

You can offset losses against gains from the same income category within the same tax year. However, losses from CFDs and forex may be subject to deduction caps under newer tax regulations.

For active or high-volume traders, working with a Steuerberater (tax advisor) is strongly recommended—especially if you trade with foreign brokers or generate income in multiple asset classes.

Best Forex Brokers in Germany (2025 Picks)

The forex broker market in Germany is competitive, with a mix of global players and EU-regulated firms offering services to residents and expats. Below are top-rated brokers based on spreads, platform quality, regulation, and suitability for different trader types.

eToro

eToro is a well-known CFD broker offering forex, crypto, stocks, and commodities. It uses a proprietary platform designed for beginners and social traders. Forex is traded as CFDs with spreads starting around 1.0 pip on major pairs.

• Regulation: CySEC, FCA
• Leverage: Up to 1:30 (EU retail clients)
• Best for: Beginners and copy trading users
• Platform: Web + mobile (no MT4/MT5)
• Note: No raw spreads; swap costs included in pricing

IG

IG is one of the largest brokers in the world, offering forex, indices, and CFDs with competitive spreads and a range of platforms including MT4.

• Regulation: BaFin, FCA
• Spread: ~0.6 pip on EUR/USD
• Platform: MT4 + proprietary web trader
• Best for: Intermediate traders and those seeking German-language support
• Extras: Extensive education and analysis tools

Pepperstone

Pepperstone is a true ECN/STP broker with ultra-tight spreads and fast execution. It supports multiple platforms and is ideal for scalpers and algo traders.

• Regulation: FCA, ASIC, CySEC
• Spread: ~0.1 pip + ~$7 commission per lot
• Platform: MT4, MT5, cTrader
• Best for: Active traders and automation users
• Pros: Low latency, advanced order control

XTB

XTB is a Poland-based broker regulated in Germany and known for its fast web platform and solid asset selection. Forex is traded commission-free with tight spreads.

• Regulation: BaFin, FCA
• Platform: xStation 5
• Spread: ~0.9 pip on EUR/USD
• Best for: Beginner to intermediate traders
• Bonus: Strong customer support in German and English

Admirals (formerly Admiral Markets)

Admirals is a long-established ECN/STP broker offering MetaTrader platforms with flexible account types.

• Regulation: CySEC, FCA, EFSA
• Spread: ~0.5 pip + €3–4 per lot
• Platform: MT4, MT5
• Best for: Traders looking for both CFDs and spot-style accounts
• Extras: Risk management tools and premium MT add-ons

Plus500

Plus500 is a CFD-only broker focused on simplicity. It’s app-based with clear pricing but limited tools. Spreads are wider than ECN brokers, but there are no commissions.

• Regulation: CySEC, FCA
• Spread: ~1.0–1.2 pip on EUR/USD
• Platform: Proprietary web and app
• Best for: Casual traders wanting a low-maintenance setup

How to Choose the Right Forex Broker in Germany

Choosing the right forex broker depends on your trading goals, experience level, and how much control you want over execution, platform, and costs. Below are key factors to compare before opening an account.

Regulation and safety

Always choose a broker regulated by BaFin, FCA, or CySEC. These authorities enforce EU investor protection rules, including:

• Negative balance protection
• Leverage limits for retail clients (max 1:30)
• Client fund segregation
• Clear risk disclosures

Avoid unregulated or offshore brokers unless you fully understand the risks involved.

Trading conditions and pricing

Check what model the broker uses—market maker, STP, or ECN—and compare the actual trading costs:

• Spreads (fixed or variable)
• Commissions per lot (if any)
• Swap/rollover fees
• Minimum trade sizes
• Execution speed/slippage control

For active traders, even 0.1 pip in spread savings can make a big difference over time.

Supported platforms and tools

Your choice of platform should match your trading style:

• MT4/MT5: Ideal for manual trading and automation
• cTrader: Great for ECN access and scalping
• Proprietary apps (e.g. eToro, Plus500): Best for beginners or casual users
• Web vs. desktop vs. mobile: Make sure your preferred device is supported

Also look for extra tools like copy trading, economic calendars, VPS hosting, and order management add-ons.

Deposit, withdrawal, and account terms

Review the broker’s funding options and terms:

• Minimum deposit required
• Accepted payment methods (SEPA, card, PayPal, etc.)
• Withdrawal processing times and fees
• Inactivity fees or account maintenance costs

These details affect how smoothly you can move money in and out of the platform.

Language support and customer service

If you’re not fluent in German, make sure the broker:

• Offers full English-language interface and onboarding
• Provides English customer support via email, chat, or phone
• Supplies statements and tax documents you can understand

This is especially important when managing KYC, withdrawals, or tax reporting.

Match broker to user type

• Beginners: eToro, XTB, Plus500 – low entry, user-friendly platforms
• Scalpers/active traders: Pepperstone, Admirals – fast execution, tight spreads
• Multi-asset traders: IG, Admirals – forex plus stocks, indices, and commodities
• Automation users: Pepperstone, Admirals – MT4/MT5 with EA support

Safety and Regulation of Forex Brokers in Germany

Forex trading in Germany is tightly regulated to protect retail traders and ensure broker transparency. All brokers operating in the country must comply with EU rules under MiFID II, and many are overseen directly by BaFin or by equivalent regulators in other EU countries.

Brokers regulated in Germany or the EU must follow strict requirements, including client fund segregation, negative balance protection, and leverage restrictions for retail clients. These rules are designed to prevent loss beyond your account balance and ensure your money isn’t used for the broker’s own operations.

If a broker is BaFin-regulated, it is also part of Germany’s statutory investor compensation scheme, which protects cash deposits up to €100,000 in case of broker insolvency. Securities held in your name remain yours and can be transferred if the broker fails.

Foreign brokers like eToro, Pepperstone, or Admirals are licensed by CySEC or FCA and can operate in Germany via passporting rights. They must offer equivalent protections but are not under BaFin’s direct supervision. This means you should always check the regulator listed on the broker’s website and verify the license through the relevant authority.

While some offshore brokers offer higher leverage or looser onboarding, they do not provide EU-level protection and should be avoided by most retail traders. If a broker isn’t transparent about its regulation, it’s best to stay away.