List of Brokers with BaFin Regulation

BaFin regulations aim to ensure the safety of client funds and the integrity of the financial markets. They designed their guidelines in accordance with the MiFID directives

As such, trading on a BaFin-regulated broker means having segregated accounts and negative balance protection. These measures are considered mild compared to FCA and CySEC as the German institution doesn't put on the limit for maximum leverage. European traders in need of trading with leverage higher than 30:1 may find what they're looking for in a Bafin-regulated broker.

Additionally, BaFin doesn't explicitly prohibit any bonus offers as a means to promote brokerage services. But that doesn't mean you can expect loose safety measures from the regulator. As a matter of fact, BaFin oversees the obligatory compensation and guarantee scheme plan, designed to safeguard customers' deposits. This mechanism outlines a compensation ceiling of up to €100,000, ensuring that every client is eligible to receive this protection.

The downside is, taxation is high in Germany so it is unlikely that small companies can keep up with the requirement. This leads to the situation where only prominent brokerages apply for BaFin licenses, and they usually don't have the best trading condition for beginners or small-cap traders.

BaFin can investigate every case of reported misconduct and penalize companies according to their involvement in the scam. They also allow consumers to initiate complaints and other reports concerning alleged violations of any regulated firm.

In case of disputes, BaFin encourages companies and clients to reach an out-of-the-court settlement. Should the problems need arbitration, they can either be referred to the Financial Ombudsman or the court.

1.  Go to the search portal of BaFin companies.
   
   
2. Type the broker's name in the Company column of the Search section.
   
   
   
3. Click Search.
   
   
4. If your broker is a registered member, the name will appear in the main section.
   
   
   
5. You can click on the broker's name to get more info about its company registration with BaFin.
   
   
   

Here's a general comparison of BaFin with some other well-known forex regulators:

Keep in mind that the regulatory landscape can change over time, so it's important to conduct up-to-date research before making any decisions.

• BaFIN-regulated brokers need to have at least two financial experts functioning as managers for the head of operations with no negative records or issues in relation to their roles in the company.
• Forex brokers under the regulation of BaFin are required to hold an operating capital from €750,000 to €5 million and beyond. The capital should be proportional to the amount of trading capital held on behalf of their clients.
• Audit reports and financial statements should be submitted periodically to BaFin. They will be scrutinized by the agency to filter any discrepancies or modifications.
• BaFin-regulated brokers need to ensure that they have the financial capacity to anticipate market fluctuations and an efficient insolvency procedure to prevent traders from losing their capital in case of inability to overcome market volatility.
• All brokers should only act as an intermediary between traders and the market. Indulgence in any scams or malpractices that may endanger investors' security of their funds is strictly prohibited.