Federal Financial Supervisory Authority (BaFin) Brokers 2024

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James Barra
James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
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The Federal Financial Supervisory Authority, better known as BaFin, is Germany’s chief financial regulator that oversees online brokers. Considered a ‘green-tier’ regulator in line with our Regulation & Trust Rating, it ensures excellent safeguards for traders in Germany.

Authorized platforms must comply with various regulations, notably the Securities Trading Act. Brokers that fail to comply risk hefty penalties, with the BaFin issuing 40 fines totaling over €8.1 million in 2023 alone.

We’ve identified the best brokers regulated by the BaFin, after personally verifying their credentials on the regulator’s Database of Companies.

Top BaFin Brokers

These 1 BaFin-regulated trading platforms go the extra mile for day traders:

Click a broker for details
  1. 1
    IG
    Forex trading involves risk. Losses can exceed deposits.

    Ratings
    4.9 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.8 / 5
    4.5 / 5
    4.9 / 5
    5 / 5
    4.6 / 5
    4 / 5

    $0
    0.01 Lots
    1:30 (Retail), 1:250 (Pro)
    FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
    Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
    PayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit Card
    USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Here is a short overview of each broker's pros and cons

  1. IG - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

BaFin Brokers Comparison

BaFin Brokers Comparison
Broker Regulated by BaFin EUR Account Minimum Deposit Markets
IG logo
$0 CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting

IG

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

Christian Harris, Reviewer

IG Quick Facts

Demo AccountYes
InstrumentsCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
RegulatorFCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB
PlatformsWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
Minimum Deposit$0
Minimum Trade0.01 Lots
Leverage1:30 (Retail), 1:250 (Pro)
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Pros

  • The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our Best Trading App award
  • IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
  • The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading

Cons

  • IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
  • IG has discontinued its swap-free account, reducing its appeal to Islamic traders

Methodology

To identify the top brokers regulated in Germany, we:

  • Scanned our database of 500 brokers to identify those who claim to be regulated by the BaFin
  • Ran their company credentials through the public register to verify they were authorized
  • Ranked them by their rating, blending 100+ data points with the findings of our testers

How Can I Check A Broker Is Regulated By The BaFin?

Checking a broker is regulated by the BaFin is straightforward:

  1. Navigate to the BaFin’s Database of Companies
  2. Enter the broker’s name or BaFin-ID in the left-hand search bar and press ‘search’
  3. Click on the ‘selected’ companies to check details, such as authorized activities and date issued

Below you can see the results of a search I ran on CMC Markets (sports one of the best charting platforms I’ve used), showing the broker is authorized.

Using BaFin database to confirm CMC Markets is regulated Below you can see the results of a search I ran on eToro (offers a fantastic social trading network), showing the broker is not authorized.

Checking whether eToro is regulated in Germany

💡
German traders can also sign up with brokers regulated elsewhere in the European Economic Area (EEA). This is known as a European passport for trading firms, and aligns with the free movement of services principle.

What Rules Must BaFin-Regulated Brokers Follow?

Online brokers regulated by the German Bundesanstalt für Finanzdienstleistungsaufsicht, or Federal Financial Supervisory Authority, must follow a robust set of rules to safeguard retail investors and the country’s financial system, notably:

Brokers that fail to satisfy the regulator’s rules risk enforcement action. For example, Degiro, one of the largest brokers in Europe and part of German-listed Flatex bank, was handed a €1,050,000 fine in 2023 for internal control failings relating to its money laundering and risk management systems.

The BaFin have also published a number of useful reports over the years that aim to educate retail investors about the risks of online investing, popular short-term trading products, and trends in the German financial markets.

I recommend reading the articles I’ve collated below.

author image
James Barra
Author

Bottom Line

Choosing a broker regulated by the BaFin is advisable for German day traders. This highly trusted, widely respected and proactive regulator helps ensure authorized brokers provide a secure, transparent and fair trading environment.

That said, online trading remains risky, even when you use a German-regulated broker. As such, only deposit what you can afford to lose.

Article Sources

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