1Top-tier

BaFin regulated forex brokers

Federal Financial Supervisory Authority · 🇩🇪 Germany

The Federal Financial Supervisory Authority (BaFin) is the financial regulator for Germany, established in 2002. ForexLicenses.com classifies it as tier 1 (top-tier regulation). We currently match 9 brokers in our database to an BaFin licence.

BaFin supervises banks, investment firms and insurers in Germany and is one of the most influential regulators inside the EU. Germany was the first country to ban additional payment obligations (margin calls beyond deposited funds) for retail CFD clients in 2017, a move later mirrored by ESMA across Europe. Several large international brokers run their EU hub from Germany under a BaFin licence. Licensed firms appear in BaFin's company database, and the EdW compensation scheme covers investment firms that cannot return client assets.

Key rules for retail clients

Tier
Tier 1 — Top-tier regulation
Compensation
EdW — 90% of claim, up to €20,000 (plus €100,000 deposit guarantee at banks)
Leverage
30:1 on major FX pairs (ESMA rules)
Negative balance protection
Required for retail clients
Client money
Client funds segregated under German Securities Trading Act rules
Complaints
BaFin consumer complaints / ombudsman schemes

Brokers licensed by the BaFin 9

Broker Licences on record Licence Score Actions
1 I IG Spread betting & CFD provider, since 1974 ASICBaFinCFTC / NFAFCAFINMAJFSA+5 93Very strong Licences Visit site
2 CM CMC Markets Spread betting & CFD provider, since 1989 ASICBaFinCIROFCAMASFMA (NZ) 86Very strong Licences Visit site
3 MG MultiBank Group Forex & CFD broker, since 2005 ASICBaFinMASCySECFMA (NZ)CIMA+1 80Very strong Licences Visit site
4 P Pepperstone Forex & CFD broker, since 2010 ASICBaFinFCACySECDFSACMA (Kenya)+1 78Strong Licences Visit site
5 F flatex Multi-asset broker, since 1999 BaFin 65Strong Licences Visit site
6 C Consorsbank Trading bank, since 1994 BaFin 60Moderate Licences Visit site
7 F FXFlat Forex & CFD broker, since 2004 BaFin 60Moderate Licences Visit site
8 C comdirect Trading bank, since 1994 BaFin 60Moderate Licences Visit site
9 C CapTrader Multi-asset broker, since 2009 BaFin 58Moderate Licences Visit site

Frequently asked questions

How do I check if a broker is BaFin regulated?

Search the firm's name or licence number on the BaFin official register (https://portal.mvp.bafin.de/database/InstInfo/), confirm the status is current and that the website domain you're using is listed, then check the BaFin warning list for clones.

Does the BaFin offer investor compensation?

EdW — 90% of claim, up to €20,000 (plus €100,000 deposit guarantee at banks)

What leverage do BaFin-regulated brokers offer?

30:1 on major FX pairs (ESMA rules)

Is negative balance protection required by the BaFin?

Yes. Negative balance protection is required for retail clients of BaFin-regulated firms.

Risk warning: CFDs and leveraged forex are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. Consider whether you understand how they work and whether you can afford to take the high risk of losing your money. Read more.