🇩🇪 Broker coverage in Germany

Regulatory overview

Germany financial regulator is BaFin (Federal Financial Supervisory Authority). Forex and CFD trading is legal for German retail clients within the EU MiFID II framework, under BaFin national product-intervention rules. BaFin General Administrative Act (Article 42 MiFIR) prohibits marketing, distribution and sale of CFDs to retail clients unless negative-balance protection is provided; CFDs with an additional-payments obligation are prohibited. The ESMA leverage limits (30:1 to 2:1 by volatility), the 50% margin close-out rule and negative-balance protection continue to apply in Germany, with a bonus ban and a standardised risk warning. [S1][S3] Eligible claims against a failed investment firm are covered to the EU minimum of EUR 20,000 (national scheme may differ). [S2] Per-broker BaFin authorisation must be confirmed individually. [S4]

Considerations

Confirm the entity is the BaFin-authorised or EU-passported entity, not an offshore affiliate. [S4] Retail leverage is capped (30:1-2:1); higher-leverage offers usually mean a non-EU entity outside these protections. [S1] Investor-compensation cover is limited and does not cover trading losses. [S2]

Frequently asked questions

Is forex/CFD trading legal in Germany?

Yes, for retail clients, under BaFin national measures and the ESMA framework (leverage caps, 50% margin close-out, negative-balance protection, risk warning). [S1][S3]

How much investor-compensation protection applies?

At least the EU minimum of EUR 20,000 per investor for covered claims against a failed firm; this does not cover trading losses. [S2]

Sources

1. [S1] ESMA - final product-intervention measures on CFDs — https://www.esma.europa.eu/press-news/esma-news/esma-adopts-final-product-intervention-measures-cfds-and-binary-options
2. [S2] EU Investor Compensation Schemes Directive 97/9/EC - EUR 20,000 minimum — https://eur-lex.europa.eu/eli/dir/1997/9/oj
3. [S3] BaFin - General Administrative Act regarding CFDs (Art. 42 MiFIR) — https://www.bafin.de/SharedDocs/Veroeffentlichungen/EN/Aufsichtsrecht/Verfuegung/vf_190801_allgvfg_Differenzgeschaefte_en.html
4. [S4] BaFin company database (per-broker authorisation check) — https://portal.mvp.bafin.de/database/InstInfo/sucheForm.do?locale=en_GB