How to Legally Start Forex Trading in Germany

Best Forex brokers

1

9.4/10

Go to broker

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Minimum deposit:

$50, $100 (for UK clients)

Bonus for deposit:

0%

Regulation:

CySEC, FCA, ASIC

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

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2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Bonus for deposit:

0%

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

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Tips for beginner Forex traders in Germany

Entering the Forex market as a beginner in Germany can be both exciting and daunting. Here are some essential tips to help you navigate this journey with more confidence and understanding:

• Start with a Clear Understanding of Forex Basics:

• Grasp the fundamentals of Forex trading, including how the market operates, currency pairs and how economic factors influence currency values.

• Utilize free educational resources like online courses, webinars and e-books specifically tailored for beginners.

• Develop a olid Trading Plan and Stick to It:

• A trading plan should include your investment goals, risk tolerance, trading strategies and criteria for entering and exiting trades.

• Consistency is key. Stick to your plan and avoid making impulsive decisions based on emotions or market hype.

• Stay Informed and Updated:

• The Forex market is highly influenced by global economic events. Stay updated with financial news and learn how events like interest rate changes, political instability and economic reports affect the market.

• Consider subscribing to financial news websites, following market analysts on social media or using financial news apps.

• Manage Your Risks Wisely:

• Never risk more than you can afford to lose. Use risk management tools like stop-loss orders to protect your investments.

• Understand the concept of leverage and use it cautiously, as it can amplify both gains and losses.

Remember, Forex trading is not a guaranteed path to quick riches. It requires patience, discipline, and continuous learning. As a beginner, focus on building your skills and knowledge gradually, and approach trading with a realistic mindset.

About how much money you need to start trading Forex in Germany, what brokers are available, whether you need to pay taxes and other relevant information, read in the article: Forex trading in Germany: a comprehensive guide

Experienced traders who are ready to trade on funded accounts will surely find this article useful: Best Forex Proprietary Trading Companies in Germany