Detailed Guide to Forex Trading in Germany
When it comes to financial trading the first thing a trader should ask himself is what his residence is. Thus, the next things become clear: how safe his Forex activity is or what financial trading platforms he can use. Moreover – the residence of a Forex trader says if he can trade at all, because as you know quite well there are countries in the world that still forbid Forex representing financial trading as a kind of betting activity. Today, we are focusing your attention at Forex trading specifically in Germany. We do know the country quite well and we do understand how powerful financial force it is, but what about its financial trading environment? Is it so powerful and strict as everything else in Germany? Find out with us! Learn useful information about Forex trading in Germany with us now!
Forex Regulation in Germany
All financial activities in a country are usually put into hands of some special agencies or people. They are responsible, though, for different thing – like bank operations, currency exchange rate and etc. Alongside with these things, a financial regulator also handles the financial trading activity, if such is permitted and proclaimed as official in the country. Forex market is 100% allowed to be joined by the citizens in Germany. This means that the regulator of all financial services that take place in Germany is also in charge for Forex activity. All financial activity in Germany is handled by BaFIN, which is also known as the Federal Financial Supervisory Authority. About 4,200 financial institutions in Germany ranging from banks, financial services institutions and insurance companies, as well as Forex brokers are under the occupation of the mighty, but fair BaFIN. The unified financial regulation system here works quite well, even though we have become witnesses of really bad practice of this strategy. What BaFIN does is to provide licenses to the German brokers, but also to follow the individual activity on Forex market by both – the brokers` companies and the traders, themselves. This means that BaFIN are responsible for the transparency in financial trading, as well as for all the trading accounts traders open, when trading in a German broker. All disputes and legal arguments between traders and brokers or between financial companies only are handled by the agency and up to now it shows fantastic and what is more important really fast results, when a problem or inquiry appears. Last, but not least BaFIN is always by your side – if you are a trader, including a beginner, and you need some additional information about a certain broker you would like to join.
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What is The Situation of Financial Trading in Germany?
Nearly ten years ago, almost all the Forex operations were made only via a telephone call. This means that if a trader wants to make a trade, he would have had to make a call and say his order. Once the call is done, the broker proceeded with the operation and the trader had to wait for the results and then, in case of a win, he would have had call back. But all of these remained in past! Today, Forex market in Germany takes about 10% share of all financial operations in the country and online trading accounts have been increased with more than 67% only for the last 3 years. Financial trading in Germany today includes operations with hedge funds, commercial companies, authorized banks and investment management companies. And speaking of shares, Germany holds more than 19% of all global financial trading activity at all and this is the most massive national share. The rumors say that if BaFIN continues operating and working with that might it has today, the Forex brokers in Germany will double their number for less than one more decade. So it takes only 20 years for a country to successfully move from old, but gold telephone Forex trading to the modern online trading activity – including via mobile device. And speaking of this, it is a must to say that about half of the German traders today are online via smartphone or tablet – another proof that Germany is a very progressive financial trading country in general. So, this is a place you can by all means be 100% secured and protected by the authorities and in the same time, here, you receive a giant chance to choose from a very large number of various and regulated Forex brokers.
Trading in Germany is indeed a pleasant activity, because security and safety are not issues or categories traders should worry about. If you are looking for a Forex broker registered in Germany you will definitely find the one that could suit both – your need and your level of experience. There are brokers for advanced pros, but there are also good alternatives for beginners in the field!