Want to jump straight to the answer? The best forex broker for traders is Avatrade
The #1 Forex Trading Course is Asia Forex Mentor
With the popular life-changing stories related to the crypto boom, people worldwide started to look for income streams on the internet. The increased popularity brought attention to the forex market, which had seen investments pouring in ever since. The market was valued at 1.93 quadrillions in November 2021 and is expected to cross 2 quadrillions by the end of 2021.
You might now be thinking about what the Forex market is. To keep it simple, you can take the forex market as any digital asset market where the commodities traded are currencies. A trader can hold different currencies, such as the euro and dollar, and then trade them when their values change. The latest accounts also offer CFDs- contracts for differences, which means that a trader can earn by the difference in the value of opening and closing rates of the commodity. It is a complicated process, and new retail CFD accounts lose money early on.
With rising interests in forex, various brokers have come to light, and all of them portray themselves as the best brokers; however, reality can often be different. There are more than 150 Forex brokers in Germany, and it can be hard to decide which one is the best for you. However, you won’t be confused any longer, as this blog has everything you need.
We shall discuss three popular German brokers that excel in their category. Our review shall contain descriptive details about the company, how the brokerage firm works, its pros cons, pricing, and whether you should go for it or not. By the end of it, you will have a clear understanding of the forex broker suitable for you. If you are still unclear, our conclusive remarks will help you reach a decision.
Best Online Forex Brokers in Germany
#1. Best Advanced for Non-US Traders: Avatrade
There are different expectations from casual investors and day-to-day traders. A casual investor may look for a simple user-intuitive interface and comprehensive educational resources in a forex broker. However, for advanced traders, the importance of educational resources won’t be the same as the essentiality of an advanced platform with technical options. For the latter type, Avatrade is an appropriate choice. The broker provides five different trading platforms with multiple features and improved reliability that help traders make the most of their accounts.
Foreign exchange trading involves loads of your precious money, and handing it out to an unreliable broker is the last thing you would want. Fortunately, you can trust Avatrade. The forex broker has been in the business since 2006 and has received innumerable positive reviews for forex and of retail CFD accounts service. Their brokerage started from Ireland and has now spread massively around the world, including the European Union. They provide a wide range of services for traders in Germany.
Avatrade is famous for its trading platforms, including MetaTrader 4 and 5; the brokerage has more than 1250 CFD contracts in stocks, forex, and crypto. The latest developments have allowed traders to trade in more than 100 currencies from 25+ markets. The broker offers a variety of accounts based on your trading needs. The cost would vary depending on the account type you choose; however, in comparison to interactive brokers and Saxo bank, Avatrade has a low price point.
We will discuss its pros cons, trading fees, and how it works shortly.
How does it work?
Most advanced traders would like to know whether a broker can be trusted with their money before getting started. We can judge the security of your asset by ensuring that the broker is well regulated by the country’s law. In the case of Avatrade, its policies are distinctive to comply with all operational regions. For Germany, Avatrade is regulated based on the laws and regulations presented by the European Union. Most other top-tier brokers, such as Saxo Bank and interactive brokers, follow the same legislation.
Setting up your account on Avatrade- mainly for german users- is the easiest; all you need to do is head to the official website and sign up for a trading account. The form would ask for your general details, an image of your passport (to confirm your identity) and a picture of a utility bill (to verify your address). If all of the required details check, your trading account will be operational within three days. You will receive your credentials to trading platforms through the provided email.
In case, you aren’t ready to start right away with real-time trading, Avatrade allows its users to assess the feasibility of the platform using a demo account. Once you head to the official website, you would find an option for a demo account sign-up. The trial account is similar to the original one in terms of variation in the value of the commodities. So, you won’t notice a significant difference in your actual profits.
The transfer for funds is straightforward; Avatrade offers multiple account deposit options, including bank transfer, wire transfer, cheque on the company’s name etc. The newer policies demand a minimum deposit of at least $100 to start an account. Once you have the desired funds in your account, you can head to the specific trading platform for your account type. For most advanced traders, MetaTrader 4 and 5 are recommended. They allow a wide range of technical options to help you analyze market trends.
CFD accounts lose money when they aren’t used with proper technical analysis; As an advanced trader, you must ensure that all your decisions are backed by the required research. Making hasty decisions put you at a high risk of losing your investment, and may turn you into one of the forex horror stories.
Pros
- Reliable broker, regulated by EU law
- Low price point for advanced traders
- A broader range of trading platforms compared to Saxo bank and interactive brokers
- More than 100+ forex commodities to trade-in
- More than 1250 CFD contracts options
- Negative Balance Protection for specific account types
Cons
- Research resources aren’t integrated into trading platforms
- The Stop-loss feature isn’t available for several account types
Price
Price:
Like interactive brokers and Saxo bank, Avatrade doesn’t charge trading fees from its forex account traders. The revenue model of the broker relies on the spread of trading value; the company charges different prices for selling and buying a currency. The spread of the values depends on several external factors related to the demand and supply of the currency.
The spread is usually 1/30 times the value for normal accounts and 1/400 times the value for professional accounts. It means that a professional account owner can buy a forex commodity worth $1 for a difference of $0.0025. Although a trading fee isn’t charged for trading a currency, Avatrade charges different prices for exchanging currencies.
Other than the day-to-day activity costs, Avatrade requires a minimum deposit of $100 to open the account. A $50 fee is charged if the account stays inactive for 3 months, and an additional $100 is charged if the period of inactivity cross a year. Avatrade doesn’t charge any withdrawal or closure fee; nevertheless, users have reported that the withdrawal process may be tedious.
#2. Best Overall Broker: Forex.com
Online broker FOREX.com, owned by GAIN Capital Holdings and founded in 2001, is a well-known FX and CFD trading service. StoneX Group Inc. acquired GAIN Capital Holdings in February 2020. GAIN Capital Holdings consists of City Index, an online CFD and spread betting provider, and Daniels Trading, a futures advisory trading firm. During its time in business, Forex.com has helped more than a million customers achieve their trading dreams, and has earned a reputation for being reliable and consistent.
FOREX.com provides a comprehensive range of products globally, including CFDs, spread betting, and futures, covering a range of asset classes. However, not all products are accessible in all countries. FOREX.com caters to various traders by offering commodities, indices, individual stocks, bonds, ETFs, gold & silver cryptocurrencies, and futures. FOREX.com is the industry’s top-ranked online broker owing to its well-organized and accessible website, fully disclosed services and fees, diverse user interfaces, industry-standard education and research resources, and regulatory oversight.
How does it work?
The FOREX.com platform offers four basic order types with “take profit” and “stop-loss” options. The main difference between the web-based and downloaded offerings is that the latter only offers guaranteed stop-loss orders for the UK/EU. That is how it works: Connectivity to MT4 and MT5 permits the usage of automated MetaTrader strategies.
The mobile app works well and gives traders access to their accounts. There is abundant order functionality, such as conditional orders and the ability to quickly set stop losses and profit targets at the time of a trade. Free demo accounts allow prospective customers to evaluate the price structure before investing real money. The broker’s demo accounts expire after 30 days, and FOREX.com does not allow potential clients to renew or register for a new one using the same credentials.
Pros
- A wide assortment of products
- The platform includes TradingView charts
- CFTC & FCA (U.K.) regulated, NFA (U.S.)
- Protects UK/EU customer accounts
- High-volume trader rebates
Cons
- No guaranteed stop losses for some account types
- Insufficient website upkeep
Price
Price: FOREX.com began as a market maker but has evolved into an ECN that earns money from client transactions that “cross” the bid/ask spread or from industry-standard fees. FOREX.com’s pricing is transparent and accessible. The spreads vary based on the client’s account type.
The minimum EUR/USD spread for US customers is one pip on a “regular” account, whereas commission and STP Pro accounts have spreads of 0.2 and 0.1. The last two add $50 and $60 per million to the indicated spread. Direct Market Access (DMA) accounts (25,000+) are available outside the US. The DMA account has no spread markup but charges a fee.
The Active Trader Program is open to standard and commission account traders. Anyone who opens a $10,000 account or trades $25 million in volume each month is eligible. The initiative excludes DMA account customers who already get volume-based fee discounts. FOREX.com demands a minimum initial deposit of $100 but recommends a commitment of $2,500 for “greater flexibility and better risk management” while trading.
Swap fees are common in the foreign exchange market. If you trade in a currency other than your account’s base currency, you may also have to pay fees to convert your money back and forth. Other costs include a $15/month inactivity charge for accounts with no trading activity for over a year. The website does not indicate any extra fees.
#3. Best for International Forex/CFD Traders: eToro
eToro enables U.S. customers to trade currencies and participate in social trading. eToro was founded in 2007 and is headquartered in the United Kingdom. As of 2018, it has more than 17 million registered users in nearly 100 countries, including millions of users in 43 U.S. states and Germany. Initially, eToro was a segregated forex platform that was popular for its graphics and user interface.
With time, It has now spread its offering to include the trading of cryptos too. eToro allows you to sell various types of assets, like contracts for difference (CFDs) and stocks, on numerous exchanges. This assessment discusses the capabilities of eToro for residents of Germany. You can open an eToro forex account from anywhere around the country. There might be some legal distinctions between states, but the process still stays the same.
The platform is designed for beginners in forex and cryptocurrency trading. It has interactive trading platforms to improve your trading experience. Access to more than 70 markets in 25 different countries is another perk that traders enjoy. As eToro has a wide network spread around 100 countries, it is appropriate for traders that often switch locations.
How does it work?
When seeing a currency on your watchlist, all you have to do is click the “Trade” button. The “Buy” option is prominently displayed on your portfolio page. To sell a commodity, pick “Sell” from the drop-down arrow. If you’ve acquired a stake in many lots, you can’t sell a piece of a single lot to close out your investment. To place it another way, if you receive $25 worth of CFDs and then decide to sell it for $10, you will need to complete the whole transaction.
Users may personalize their watchlists and share them with other mobile applications.
The product version offered to german residents includes the stop-loss feature; the feature isn’t currently available for all asset classes. It’s possible to establish a limit drawdown while copying a trade.
The Mobile Trade Experience
Trades may be placed on a mobile device just as they can be placed on a computer. Mobile applications have few analytic tools, but the overall experience is the same as desktop.
Types of Orders
Customers in the United States may only place market orders. There are no orders that can be placed with conditions. After an earlier one, specific stop-limit orders may be made when making a new transaction. Fortunately, German traders are at ease. They can set a stop-loss after a position is open, but the feature can’t be used when placing an order. There is an option for german traders to specify a purchase rate, stop loss, and profit target when they register an account.
Technological Trading
eToro’s trading algorithms have not been explained in detail. There are no order flow data in Germany since stock trading is not yet accessible.
After checking in, you may switch from “Real” to “Virtual” to get a feel for the platform’s asset types and how they interact with one another in your region.
Pros
- Wide range of offerings including crypto and forex
- Straightforward website and app.
- Great trading community.
- Commendable customer service
Cons
- Trading spreads are large.
- Complete lots are to be sold
Price
Price: Customers in the Germany trading CFDs pay from 0.75 to 5.0% of the entire trade worth, depending on the currency. This expense is hidden in the execution price. Trading stocks and currencies are free from any trading fees. Short sales cost 0.18% of the transaction value. Customers from Germany purchasing assets in the US will be charged a currency conversion fee. The same holds for other foreign states.
For accounts inactive for 12 months, the cost is $10. German consumers have no minimum deposit requirements. For withdrawals, a $5 is charged as a withdrawal fee, and the minimum withdrawal limit is set at $30. Transferring a cryptocurrency from eToro to your wallet incurs fees; it’s unique for each coin.
How we rank the Best Online Forex Brokers in Germany
The data for the Best Brokers ranking was obtained from 30+ brokers to analyze and contrast their offers in price, order execution rate, services, and customer satisfaction. Our reviewers collected data for over 50 distinct types of information for each trading platform under consideration.
In the next step, we reviewed each broker based on a mix of consensus from a group of trustworthy specialists and feedback from real-time users to determine the overall service quality, educational opportunities, and research alternatives.
As part of our suggestions, we searched for brokers that have reasonable fees, high client happiness, usability scores, and a wide range of products to select. There are several well-known investing businesses among them, as well as a few emerging firms that have shown the potential.
Specifically, there were six components to the scoring method:
- Products and customer accounts
- Fees for services rendered
- Research and development of tools
- Education and training
- Client satisfaction
How to choose the Best Online Forex Brokers in Germany
When selecting an online forex broker, you must consider your immediate trading demands as a trader. While searching for a good broker, you can ask yourself various questions. Here are a few examples:
- Are you a beginner? You desire to work with a broker that offers excellent instructional materials on forex and CFD markets, as well as responsive customer service.
- Do you only have a small sum of money to trade? Numerous forex brokers provide little-to-no-deposit requirements, which may be an excellent alternative for traders with small capital; many brokers also charge very cheap transaction costs and extends.
- Are you always on the attempt and in need of a dependable mobile platform? Numerous forex brokers provide robust mobile applications that include virtually all of the functionality found on their desktop versions.
- Are you a newbie or an experienced trader? Certain forex brokers have additional bells and whistles that more experienced traders demand, such as complex order types and fully featured charting platforms with great analytical tools.
- Do you like trading a diverse array of instruments? Forex brokers provide a diverse variety of goods, and you’ll want to find a broker that offers a various range of tradable assets, including currency pairings, indices, commodities, stocks, and cryptocurrencies.
- All of these characteristics, and others, should be carefully evaluated when selecting an online forex broker. We’re here to assist you with our evaluations, ratings, and rankings, but ultimately, it’s up to you to decide which forex broker is the best fit for you
Best Forex Trading Course
Investing in the Forex market might seem to be a daunting task especially if you are a beginner, and have just started exploring the Forex market. Although experience is said to be the best teacher when dealing in the Forex market, it is good to learn about the Forex market briefly before making your first investment.
There are several ways in which you can start expanding your knowledge of the stock market. You can either start reading books or ask for tips from your friends or family members who have prior experience of trading on the Forex platform. However, the former is a time-consuming method while the latter is not always a credible learning source.
If you want to learn about investing in the Forex market that would help you gain knowledge, and tell you all you need to know about the market, then you can opt for some professional courses available on the internet. These courses are developed by Forex markets experts who have years of training Forex traders.
Now, there are thousands of courses on the internet that claim to teach you about Forex investment. However, not all of these courses are reliable and give accurate information. So which is the best Forex course for learning the ins and out’s of the Forex market?
Asia forex mentor course by Ezekiel is by far one of the best Forex learning courses on the internet, and they are one of the best learning sources if you want to expand your Forex trading knowledge.
They have been featured on multiple different leading forex platforms and Forex events happening around the world. Ezekiel’s platform is the perfect solution for you to learn because their clients include multiple trainees and bank traders from private trading institutions around the globe.
It is the number one course available on the internet because it also reaches new bank traders and has fun managing if you want to make money from trading forex stocks and other commodities.
You can get a great return on investment by indulging yourself in this systematic course. Even if you are a beginner in the field and do not have enough experience and knowledge about Forex trading, you still join this program with zero knowledge. Everything will be taught to you from scratch, and you can enroll yourself in this program right now to get started.
Check out the testimonials on the website and start your Forex trading journey right away. The good thing about this course is that you will be crystal clear about what you need to do from day one.
They are using a return on investment approach to teaching their students. It is a scientific method of beating the market, and you will not be taught this somewhere else.
Conclusion: Best Online Forex Brokers in Germany
Our online broker scales are based on all available data at inspection. We recognize that online brokers constantly update their platforms, products, and pricing, so the information we used in our assessment may change. We stay in touch with the online brokers in our ranks to update our ratings.
If you are starting forex trading in Germany, we would recommend that you go for Avatrade. It has a wide range of educational resources to help young investors. Also, multiple trading platforms allow each user to access a platform based on their expertise. Finally, Avatrade has a fairly competitive pricing range, which means most of your profits are retained.
As stated in our online broker reviews, every investor is different and has different aims. We think our rigorous evaluation procedure meets the criteria to the best of our knowledge. Despite outliers, we are confident in our system for evaluating and ranking online brokers based on the most common use cases among online traders and investors.
Best Online Forex Brokers in Germany FAQs
Is Forex trading legal in Germany?
Forex trading is allowed in Germany but is heavily regulated by the BaFIN organization. Although there are no rules governing Forex trading, licensed brokers in any other EU member state may advertise to and accept German traders as part of the EU’s goal of unifying the Eurozone.
It implies that a German trader may operate securely with any MiFID-compliant firm. MiFID is a piece of law that regulates trading within the Eurozone. A German trader should seek a MiFID-compliant broker or one that is EU-licensed and can passport its services across the Eurozone. CySEC in Cyprus, FCA in the United Kingdom, and SMFSA in Switzerland are applicable licenses.
What are retail investor accounts?
The term “retail” or “non-institutional” refers to any investor who isn’t an institution. Everyone deals with a broker, bank, real estate agent and buys and sells debt, equity, or other assets. People in this situation are not acting on behalf of someone else; they handle their own money. Non-institutional investors, on the other hand, are often motivated by personal objectives, such as preparing for retirement, saving for the education of their children, or financing a significant purchase.
Individual investors are typically forced to pay higher fees on their transactions and other associated costs. By definition, the SEC considers retail investors to be inexperienced investors who are protected and banned from making certain hazardous and complicated transactions.
Do forex brokers lose money?
Forex brokers do not lose money since they rely on a consistent revenue stream. They act as an intermediary between traders and liquidity sources such as banks. As a result, they should have no impact on the trader’s profit or loss. At least most of them do not, but some do since they are not the only middleman.
Certain forex brokers choose to trade against their customers because the revenue generated by spread charges is insufficient. It’s an unethical method of purportedly routing orders to liquidity providers. These brokers operate as counterparties rather than enabling traders to compete against genuine market participants.
In this situation, they trade against their customers and may lose money, although not all brokers do so.