BAFIN Regulated Forex Brokers

BAFIN Regulated German Forex Brokers

The Federal Financial Regulatory Authority of Germany (Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin) is the agency responsible for regulation of the financial marketplace and German forex brokers. All firms operating in the financial industry in Germany are covered by BaFin’s regulatory microscope. These firms include banks, insurance companies and brokers in the forex and equities markets.  The Financial Services Integration Act was passed in 2002, and this law gave birth to BaFin.

Top BAFIN Regulated Forex Brokers 2017

The following table lists our top BaFin regulated forex brokers. For more information and account details about each broker please click on the review button in the table.

1
Min. Deposit
$10
Exclusive promotion
Our score
10
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Start Trading
Description:
LonghornFX is a true ECN STP broker dedicated to delivering a superior trading experience to traders no matter their level of experience. Their services are based on transparency, innovation and efficiency, ensuring an unparalleled trading experience for all.
Payment Methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
0% Commission Account
Low Spreads
Eco-Account Option
Start Trading
Description:
CedarFX is an eco-conscious broker offering 0% commission trading on 170+ assets, including Forex, Cryptocurrency Pairs, Stocks, Indices and Commodities. With up to 1:500 leverage, no-fee transactions and low spreads, traders can make the most of their funds. CedarFX also offers an Eco Account option to support tree planting and sustainability projects.
Payment Methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
3
Min. Deposit
$200
Exclusive promotion
Our score
8.7
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Start Trading
Description:
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, ETF’s, indices and commodities. eToro offers a wide range of currency pairs and other trading instruments. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
4
Min. Deposit
$10
Exclusive promotion
Our score
8.5
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Start Trading
Description:
EagleFX is an online digital asset, Forex and CFD broker providing traders across the globe with cutting edge technology to trade the world’s markets. Our focus has been to change the way people trade Digital Assets and Forex. We are driven to provide traders with incredibly low-cost pricing across all Digital assets, FX, stocks, indices, commodities and futures along with industry-leading 24/7 live customer support.
Payment Methods
Credit Card, Debit Card, Bitcoin, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.
5
Min. Deposit
$200
Exclusive promotion
Our score
7.9
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Start Trading
Description:
BlackBull Markets is a top-tier, award-winning, and financially registered forex broker with a globally trusted presence. Operating since 2014, BlackBull Markets is now the fastest growing financial services business in New Zealand. We were founded with the goal of becoming the leading online Financial Technology and Foreign Exchange broker. BlackBull Markets is a true ECN, No Dealing Desk brokerage specializing in Forex, CFDs, Commodities, Fibre Optic Communications and Fintech solutions for a global clientele.
Payment Methods
Mastercard, Visa, Bank Transfer, Neteller, Skrill, UnionPay, FasaPay
Full regulations list:
FSPR, FMA New Zealand

About BAFIN

bafin logoThe functions of BaFin can be broadly classified into two:

a)    Solvency supervision

b)    Market supervision

c)     Investor protection

In performing its solvency supervision mandate, BaFin helps ensure that banks (some of whom are into forex brokerage business), financial services institutions and BaFin regulated forex brokers are able to meet their payment obligations to their clients.

Under its market supervisory role, BaFin also makes sure that industry best practices and standards in professional conduct are maintained so as to ensure the integrity of the financial markets and investor confidence.

BaFin also has a role in investor protection. BaFin also actively tries to prevent financial services firms from conducting unauthorized financial business.

In a more general sense, BaFin’s duties can be broken down as follows:

a)    Monitoring of the credit worthiness of financial institutions and BaFin regulated forex brokers. The premise behind this is that when the credit worthiness of a BaFin regulated forex broker is in doubt, this could be the first indications that all is not well with a broker. Thus monitoring this metric could potentially save investors from calamitous loss of their funds.

b)    Monitoring of BaFin regulated forex brokers to ensure they are solvent and liquid, with appropriate risk control and management strategies.

c)     BaFin also requires that all BaFin regulated forex brokers must submit their audited reports and financial statements periodically for assessment.

d)    BaFin checks to ensure that abuses by any of BaFin regulated forex brokers in the area of price manipulations are avoided.

e)    BaFin is also empowered to carry out investigations and prosecute errant forex brokers who are suspected of dealings which are inimical to the progress of the market.

 

Guidelines for BAFIN Regulated Brokers

What does it take to become an BAFIN regulated forex broker? In discussing this, we have to rememeber that BaFin regulates forex brokers, as well as the banking industry in Germany. Deutsche Bank and Commerzbank are two of the largest banks in Germany and as liquidity providers in the forex market, the relationship of BaFiN regulated forex brokers and these banks are relevant.

a)    BAFIN-regulated forex brokers must meet a minimum capital requirement. This capital must cover credit risks, market risks and operational risks on the part of the broker. This is necessary so that customers’ positions are guaranteed, and withdrawal requests can be settled promptly. Many of these BaFin regulated forex brokers maintain accounts with Commerzbank and Deutsche Bank, who are also players in the forex industry. Depending on the category of the financial institution, this amount ranges from 730,000 Euros to 5 million Euros.

b)    There are reporting standards that all BaFin regulated forex brokers must comply with. Financial reports which have been audited must be submitted to BaFin periodically. One of the parameters that brokers must declare is their state of liquidity. As BaFin regulates the German banking industry, it is usually easier to detect the state of actual solvency of BaFin regulated brokers and compare it with what the brokers have declared in their reports.

c)     BaFin regulated forex brokers must have at least two senior managers (executive directors), who must have acquired during their professional careers to date sufficient theoretical knowledge and practical experience to enable them perform their duties. Such persons must also not be blacklisted by the Federal Central Register and the Central Commercial Register.

d)    Before a broker can be licensed as a BaFin regulated forex broker, the authorization application must have business plan which is viable and indicates the nature of the proposed business, the organizational structure and the proposed internal control systems.

 

Assessing the Standing of an BAFIN Regulated Broker

BaFin has mechanisms in place to allow the investing public check on the standing of a BaFin regulated forex broker before committing their funds to such a broker. This is usually done via the BaFiN website by giving traders and users the opportunity to request for a broker’s status, and sometimes by BaFin itself taking the initiative to make periodic announcements about brokers that are either unregulated, or those who have run foul of BaFin’s high standards.

A comparison table of BAFIN regulated brokers has been provided for your perusal. You can choose from any of our list of approved BAFIN regulated brokers and trade with peace of mind.

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