Forex trading in Germany

When it comes to financial trading, a trader should first ask where his residence is. So the next questions can be answered: how safe his Forex activity is or which financial trading platforms he can use. In addition, the location of a Forex trader determines whether he is allowed to trade at all, since, as you may know, there are some countries in the world where forex trading is still prohibited and where currency trading is a form of betting activity is pictured. Today we would like to draw your attention to forex trading especially in Germany. We know the country pretty well and we understand how powerful the financial power is, but what about its financial trading environment? Is she as powerful and strict as everything else in Germany? Find out with us!

Forex regulation in Germany

All financial activities in a country are usually placed in the hands of some special authorities or individuals. However, they are responsible for various things such as banking, exchange rates, etc. In addition to these aspects, a financial regulatory authority also regulates financial trading activity, if such is officially permitted in that country. For residents in Germany the Forex market is 100% admitted. This means that the regulator is responsible for all financial services that take place in Germany, thus also for the Forex activities. All financial activities in Germany are carried out by BaFIN, also known as the Federal Financial Supervisory Authority. Around 4,200 financial institutions in Germany, from banks,Forex brokers, are under the supervision of the powerful but fair BaFIN. The single financial regulatory system works quite well here, although we have witnessed a really bad implementation of this strategy. The BaFin grants licenses to the German brokers, but also the individual activities in the Forex market are pursued – both by the broker companies and by the traders. This means that the BaFIN is responsible for the transparency in the financial trade as well as for all trading accounts that open traders with a German broker. All disputes and legal disputes between traders and brokers or between financial companies are handled by the agency. So far, it has worked brilliantly and, more importantly, delivered really fast results, if problems or inquiries have occurred. Last but not least, BaFIN is always at your side – if you are a trader, even if you are at the beginning of your trading career, and need additional information about a specific broker you want to use.

 

What is the situation of financial trading in Germany?

Ten years ago, almost all Forex operations were done over phone calls. This meant that a trader who wanted to make a trade had to make a call and place his order. Once the call was done, the broker made the deal and the trader had to wait for the results, and then he would have received a callback in case of a win. But all that is past! Today, the Forex market in Germany accounts for about 10% of all financial operations in the country, and the number of online trading accounts has increased more than 67% in the last 3 years alone. Financial trading in Germany today involves dealing with hedge funds, Trading companies, authorized banks and investment companies. Speaking of equities: Germany holds more than 19% of all global financial trading activities, making them the largest national share. The rumors say that if BaFIN continues to use this power as it does today, the number of forex brokers in Germany will double in less than 10 years. So it only takes 20 years for a country to move successfully from good, old currency trading by phone to modern online trading activities – including the use of mobile devices. And because we’re talking about it, you can say that today about half of German retailers are online via smartphone or tablet – further proof that Germany is generally a very advanced country in the financial trade. So this is a place where you are 100% secured and protected by all authorities. At the same time you get a huge chance to choose from a large number of different and regulated forex brokers.

Trading in Germany is indeed a gratifying activity, because protection and security are not topics or categories traders need to worry about. If you are looking for a forex broker registered in Germany, you will definitely find one that suits you – your needs and your level of experience. There are advanced brokers, but there are also good alternatives for beginners in this field!