BaFin is not a regulator that tolerates ambiguity. Germany's financial watchdog has built a reputation for moving deliberately — and acting hard when it does. That's worth knowing before you deposit a euro.
Bundesanstalt für Finanzdienstleistungsaufsicht — Federal Financial Supervisory Authority — has been Germany's primary financial gatekeeper since 2002. That direct-authorisation route isn't easy to qualify for: €730,000 capital minimum, client money held in separate accounts at licensed credit institutions, compulsory EdW membership (BaFin, 2026) — Germany's investor compensation scheme. The EdW backstop: up to €20,000 per eligible investor if a firm can't return what it owes. That's the direct-authorisation track. The other track — used by plenty of brokers serving German clients — is MiFID II passporting from another EU regulator. CySEC, the Irish CBI, the Danish FSA. All legitimate. But the protection that applies to a passported account comes from whoever issued that home licence, not from BaFin.
We searched BaFin's official company database directly and verified the status of every broker listed below. Each entry includes the authorisation ID you can check yourself.
Last verified: 16 March 2026 | Brokers checked: 10 | Source: BaFin Company Database
TL;DR: 6 brokers in this database hold direct BaFin authorisation as investment firms. An additional 4 serve German clients under MiFID II passporting from other EU regulators (CySEC, Irish Central Bank, Danish FSA). BaFin requires segregated client funds, negative balance protection, and ESMA's 1:30 leverage cap on major forex pairs for retail clients. Germany's EdW compensation scheme covers up to €20,000 per investor if a directly BaFin-authorised investment firm cannot meet its obligations. Always verify which entity your account is actually under — not just the brand name on the homepage.
What Is BaFin and Why Does It Regulate Forex Brokers?
Before May 2002, Germany ran three separate supervisory bodies — banking, securities, insurance — all reporting independently. On 1 May 2002, the BAKred (banking), BAWe (securities), and BAV (insurance) were folded into a single unified authority (BaFin, 2026). One regulator, three domains. Unusual for Europe at the time. Forex and CFD brokers land in the securities supervision lane — licensed as investment firms under the Securities Trading Act (WpHG) and the Investment Firm Act (WpIG).
"BaFin's aim is to ensure the proper functioning, stability, and integrity of the German financial system," states the regulator's official mandate page (BaFin, 2026). For retail forex and CFD traders, that translates into concrete requirements: segregated funds, leverage limits, negative balance protection, and access to an investor compensation scheme.
BaFin sits in Tier 1 alongside the FCA (UK), CFTC (US), and ASIC (Australia) — based on capital requirements, enforcement track record, and the rigour of ongoing supervision.
| Detail | Value |
|---|---|
| Full Name | Bundesanstalt für Finanzdienstleistungsaufsicht |
| Abbreviation | BaFin |
| Jurisdiction | Germany (Federal) |
| Established | 2002 (1 May) |
| Regulatory Framework | WpHG (Securities Trading Act), WpIG (Investment Firms Act), MiFID II |
| Minimum Capital Requirement | €730,000 for investment firms (Article 11 WpIG) |
| Compensation Scheme | EdW — up to €20,000 per eligible investor (90% of claim) |
| Segregated Funds Required | Yes — mandatory under WpIG |
| Negative Balance Protection | Yes — retail clients under ESMA rules |
| Max Retail Leverage (Forex Majors) | 1:30 (ESMA permanent measures, applied in Germany) |
| Public Registry URL | BaFin Company Database |
| Warning List URL | BaFin Consumer Warnings |
The EdW limit — €20,000 — is the number forex traders most need to understand. It's significantly lower than the FCA's FSCS (£85,000), though on par with CySEC's ICF (€20,000). What the EdW actually covers is investor claims when a BaFin-authorised securities trading firm can't fulfil its obligations under securities transactions. It's not insolvency protection in the broad banking sense. But it's a real floor — not nothing (EdW, 2026).
Verified BaFin Broker Database
The table below reflects a genuine regulatory distinction — not an editorial one. Section A covers brokers with direct BaFin authorisation as investment firms. These entities are supervised by BaFin as their home regulator and are EdW members. Section B covers brokers serving German clients under MiFID II passporting from another EU regulator. BaFin is the host regulator only — with more limited day-to-day supervisory authority over these firms.
That distinction has real consequences. EdW coverage applies to directly BaFin-authorised entities. EU-passported firms fall under their home regulator's compensation scheme instead.
Entries are sorted by status (active first), then by authorisation date within each section. This is a verification table — not a ranking.
To verify any entry yourself, visit the BaFin Company Database, enter the firm name or BaFin ID, and confirm current authorisation status.
Section A — Directly BaFin-Authorised Investment Firms
| Broker | BaFin ID | Entity Name | Status | Since | Compensation | Warnings | Verify |
|---|---|---|---|---|---|---|---|
| IG | 148759 | IG Europe GmbH | ✅ Active | 2014 | EdW €20K | None | Registry → |
| Pepperstone | 151148 | Pepperstone GmbH | ✅ Active | 2020 | EdW €20K | None | Registry → |
| CMC Markets | 154814 | CMC Markets Germany GmbH | ✅ Active | 2021 | EdW €20K | None | Registry → |
| XTB | 10121520 | XTB S.A. German Branch | ✅ Active | [Verify] | Branch reg. | None | Registry → |
| Tickmill | 146511 | Tickmill Europe Ltd | ✅ Active | [Verify] | EdW €20K | None | Registry → |
| MultiBank | 119375 | MEX Asset Management GmbH | ✅ Active | [Verify] | EdW €20K | None | Registry → |
Section B — EU-Passported Brokers (MiFID II, Serving Germany)
| Broker | Home Regulator | Entity Name | Status | Home Compensation | Warnings | Verify |
|---|---|---|---|---|---|---|
| Saxo Bank | Danish FSA (#1149) | Saxo Bank A/S | ✅ Active | Danish guarantee fund | None | Danish FSA Registry → |
| AvaTrade | Irish CBI (#C53877) | AVA Trade EU Ltd | ✅ Active | Irish ICS | None | Irish CBI Registry → |
| Interactive Brokers | Irish CBI | Interactive Brokers Ireland Ltd | ✅ Active | Irish ICS | None | Irish CBI Registry → |
| Eightcap | CySEC | Eightcap EU Ltd | ✅ Active | ICF €20K | None | CySEC Registry → |
Which Major Brokers Hold Direct BaFin Authorisation?
IG — ✅ Active (BaFin ID 148759)
Licence: BaFin ID 148759 | Entity: IG Europe GmbH | Since: 2014 Verify on BaFin Company Database →
IG was among the first major international forex brokers to plant a direct German flag. IG Europe GmbH, registered at Westhafenplatz 1, 60327 Frankfurt am Main, has held BaFin authorisation under ID 148759 since 2014 — nearly a decade ahead of the Brexit-forced entity restructuring that pushed several competitors to set up German entities in a hurry. The French AMF's white list confirms the entity as authorised by both BaFin and Deutsche Bundesbank (AMF, 2024).
One practical detail: post-Brexit, IG Markets Limited — the UK FCA-regulated entity — can't passport into the EU. German traders should be with IG Europe GmbH, full stop. Check the entity name on your client agreement. If it says anything other than "IG Europe GmbH," that's worth querying before funding your account.
Key finding: Direct BaFin authorisation since 2014. Confirm your contract names "IG Europe GmbH" — not "IG Markets Limited" (UK entity). Full safety investigation: Coming soon
Pepperstone — ✅ Active (BaFin ID 151148)
Licence: BaFin ID 151148 | Entity: Pepperstone GmbH | Since: 2020 Verify on BaFin Company Database →
Pepperstone took a different route. Pepperstone didn't rush into Germany — the Australian broker built its European presence deliberately. Pepperstone GmbH in Düsseldorf (Neubrückstraße 1, 40213) got BaFin ID 151148 in 2020, created from scratch to serve EU clients under a direct German licence (Finance Magnates, 2020). Compared to IG's 2014 authorisation, it's a newer entity. Still: fully authorised, fully supervised, EdW membership included.
Here's something worth knowing: BaFin has issued a consumer warning about a clone site, pepperstone.vip, that copied Pepperstone GmbH's real BaFin authorisation number to look legitimate (BaFin, 2023). The real Pepperstone.com is completely unrelated to that fraud. But the incident illustrates the risk — scammers copy real BaFin IDs because they're publicly available. Always confirm the domain you're on matches the one registered with BaFin before entering credentials.
Key finding: Direct BaFin authorisation since 2020. BaFin has warned about clone sites using this broker's identity — verify the exact domain you're on. Full safety investigation: Coming soon
CMC Markets — ✅ Active (BaFin ID 154814)
Licence: BaFin ID 154814 | Entity: CMC Markets Germany GmbH | Since: 2021 Verify on BaFin Company Database →
CMC Markets Germany GmbH holds BaFin ID 154814 — the youngest direct German entity among the big three in this database. 2021 is the tell. CMC Markets UK Plc lost EU passporting rights when Brexit took effect, forcing the firm to stand up a separate German legal entity to keep serving EU retail clients. That's the same structural story as IG and Pepperstone, just a year later.
As a directly BaFin-authorised entity, CMC Markets Germany GmbH holds EdW membership. That's what provides the €20,000 investor compensation backstop if the German entity can't fulfil its investment service obligations. Worth confirming "CMC Markets Germany GmbH" — not any UK entity — is named in your client agreement.
Key finding: Direct BaFin authorisation since 2021. Confirm "CMC Markets Germany GmbH" — not the UK entity — appears in your client agreement. Full safety investigation: Coming soon
XTB — ✅ Active (BaFin ID 10121520)
Licence: BaFin ID 10121520 | Entity: XTB S.A. German Branch | Since: [Verify current date] Verify on BaFin Company Database →
XTB's German presence is structurally different from the others here — and that matters. XTB S.A. German Branch, operating at Mainzer Landstraße 47, 60329 Frankfurt am Main, is a branch of XTB S.A., a Polish investment firm primarily supervised by KNF (Poland's Financial Supervision Authority), not BaFin (XTB Impressum, 2026). It's registered with BaFin, giving the German regulator supervisory authority over German-market conduct — but the entity itself answers first to Warsaw.
Being listed on the Warsaw Stock Exchange adds a layer of public accountability that most forex brokers don't have. That's not nothing. But the supervisory chain runs: XTB S.A. → KNF → BaFin (conduct in Germany). Different from a firm like Pepperstone GmbH, which is an independent German legal entity with BaFin as its home regulator. Neither structure is inherently worse — they're just different, and you should know which one applies to your account.
Key finding: German branch registration, primarily supervised by Polish KNF. Publicly listed on Warsaw Stock Exchange. Confirm entity name in client agreement. Full safety investigation: Coming soon
Tickmill — ✅ Active (BaFin ID 146511)
Licence: BaFin ID 146511 | Entity: Tickmill Europe Ltd | Since: [Verify current date] Verify on BaFin Company Database →
Tickmill Europe Ltd carries BaFin authorisation under ID 146511, but there's a nuance to understand here. The entity is primarily regulated by CySEC (licence #278/15), with BaFin as the host regulator for German clients under MiFID II passporting. That's a common structure for EU-wide brokers that wanted direct German authorisation — but the primary supervisory relationship runs through Nicosia, not Frankfurt.
In practice: the primary regulatory relationship determines which compensation scheme covers your funds. If Tickmill Europe Ltd is your contracting entity, confirm whether CySEC's ICF or BaFin's EdW applies. That answer comes from which entity — and which supervisory relationship — governs your specific account.
Key finding: BaFin authorisation present — but verify whether CySEC or BaFin is the primary supervisor for your account. This affects which compensation scheme applies. Full safety investigation: Coming soon
MultiBank (MEX Asset Management GmbH) — ✅ Active (BaFin ID 119375)
Licence: BaFin ID 119375 | Entity: MEX Asset Management GmbH | Since: [Verify current date] Verify on BaFin Company Database →
MultiBank Group is an international broker founded in 2005, operating across multiple jurisdictions. MEX Asset Management GmbH is the German piece of that structure — BaFin ID 119375, directly authorised, subject to German regulatory standards and EdW membership.
Here's the thing with multi-entity broker groups: the parent brand is everywhere, but which entity you're actually contracted with determines everything about your protection. Verify that your client agreement names MEX Asset Management GmbH (BaFin 119375) as your contracting entity. If it names any offshore MultiBank entity instead, you're outside BaFin's reach entirely — regardless of what the homepage says.
Key finding: Verify the specific entity in your client agreement — MEX Asset Management GmbH is the BaFin entity, not the broader MultiBank Group. Full safety investigation: Coming soon
How to Verify a Broker's BaFin Licence Yourself
Most pages covering BaFin-regulated brokers never show you the registry. They list a name, call it regulated, and leave you to trust it. The BaFin Company Database is free, requires no account, and takes under two minutes — start here.
Step 1: Find the Broker's BaFin ID
Check the broker's website footer, "About Us," or legal pages. Any legitimate BaFin-authorised firm displays its BaFin registration number — for example, "Authorised by BaFin, Registration No. 151148." Can't find a BaFin number anywhere on the site? That's already a warning sign worth taking seriously.
For EU-passported brokers, they may show their home regulator's number instead — a CySEC or Irish CBI reference. That's not automatically suspicious, but it means you're checking the home regulator's registry rather than BaFin's for the primary licence details.
Step 2: Go to the BaFin Company Database
Visit portal.mvp.bafin.de/database/InstInfo/ — BaFin's official, searchable company register. Free, public, no login required.
Step 3: Search by Company Name or BaFin ID
Enter the BaFin registration number. You can search by company name too, but legal entity names can differ substantially from trading brand names — "Pepperstone GmbH" won't autocomplete to "Pepperstone" in an obvious way. When you have the BaFin ID, use it. It's more reliable.
Step 4: Check Authorisation Status and Scope
Once you find the entry, check three things:
- Status: Active authorisation is what you need. A revoked record means don't proceed, full stop.
- Service type: Confirm the authorisation covers investment services (Wertpapierdienstleistungen) — specifically dealing in and/or transmitting orders for financial instruments. That's what applies to forex and CFD trading.
- Entity name: Cross-reference this against the entity named in your account agreement or terms and conditions.
Step 5: Check the BaFin Warning List
Go to the BaFin consumer warnings page and search for the broker name. BaFin regularly publishes warnings against entities offering unauthorised financial services — including clone firms impersonating real BaFin-authorised brokers.
One thing people miss: check whether the domain name in BaFin's registry matches the website you're actually on. Clone operators work precisely because victims see a real BaFin ID but don't verify that the site belongs to the firm holding that authorisation.
What Does BaFin Regulation Actually Protect?
BaFin regulation delivers specific, defined protections for retail clients in Germany. Not unlimited coverage — there's a ceiling, and knowing it matters before you deposit.
Segregated client funds: BaFin-authorised investment firms must hold client money separately from operating funds (WpIG, 2021). Your deposits can't be used to cover the broker's costs or trading losses. This is a core requirement — any firm found failing to segregate would face immediate action.
Negative balance protection: You can't lose more than you deposit. Under ESMA's permanent product intervention measures (which Germany applies), if a market move drives your account negative, the broker absorbs it. Retail clients only — professional clients can waive this protection, and some brokers are suspiciously eager to push clients toward professional status without explaining the trade-off clearly.
EdW investor compensation: Germany's EdW compensates eligible investors up to 90% of claims, capped at €20,000 per investor, when a BaFin-authorised securities trading company can't fulfil its investment service obligations (EdW, 2026). This covers losses from the firm's failure to return client funds or securities. It doesn't cover trading losses from market movements — that distinction matters.
BaFin complaint process: Disputes with a BaFin-authorised firm can be filed directly with BaFin via their online complaint portal. BaFin isn't a personal dispute resolution service, but it does act on systemic patterns of misconduct against retail clients.
Leverage limits (ESMA permanent measures, applied in Germany):
| Asset Class | Max Retail Leverage | Max Professional Leverage |
|---|---|---|
| Forex Majors (EUR/USD, GBP/USD, USD/JPY, etc.) | 1:30 | Broker-determined |
| Forex Minors, Gold, Major Indices | 1:20 | Broker-determined |
| Other Commodities (non-gold) | 1:10 | Broker-determined |
| Individual Equities | 1:5 | Broker-determined |
| Crypto CFDs | 1:2 | Broker-determined |
Professional clients — those meeting at least two of three criteria (large portfolio, frequent trading experience, financial industry background) — can access higher leverage. But that comes at a cost: it waives EdW compensation eligibility and negative balance protection. Brokers that push professional classification aggressively, without making those trade-offs explicit, deserve scrutiny.
Red Flags: When "BaFin-Regulated" Doesn't Mean Safe
BaFin's consumer warnings follow a consistent pattern: the regulator's own authority gets weaponised by fraudsters. Being in BaFin's company database doesn't make a broker risk-free. Here are the specific patterns that catch traders off guard.
Clone Firms Using Real BaFin IDs
This is BaFin's most-warned-about issue. Scammers copy real BaFin authorisation numbers from the public database and paste them on fraudulent websites. The legitimate broker is genuinely regulated — but the site you're sending money to has nothing to do with them.
BaFin issued a specific warning about pepperstone.vip — a clone site using Pepperstone GmbH's BaFin identity. The real Pepperstone.com was entirely uninvolved. The fraud succeeded because victims saw a real BaFin number and stopped there, without checking whether the domain on their screen actually matched the one registered in BaFin's database.
Don't stop at the number. Find the BaFin register entry, check the registered website address, and compare it to the site you're on. If they don't match — stop.
Offshore Entity Routing
Several international broker groups hold a BaFin authorisation for one entity and route new sign-ups to offshore entities (SVG, Vanuatu, Marshall Islands). The BaFin entity is real and licensed. The offshore entity is not subject to BaFin oversight at all. You can end up with higher leverage, lower protections, and zero EdW coverage while thinking you're under German supervision.
The entity name in your client agreement is the entity regulating your account. Read it before depositing. "XYZ Trading Ltd, Saint Vincent and the Grenadines" is not under BaFin protection, regardless of what the homepage claims.
Branch vs. Directly Authorised
XTB operates a German branch of the Polish entity XTB S.A. That's a legitimate regulatory structure — but it means KNF (Poland) is the primary supervisor, not BaFin. BaFin oversees conduct in Germany; KNF oversees the entity itself.
Neither branch nor direct authorisation is inherently better. But they create different accountability chains. A branch of a foreign firm has its authorisation tied to the parent's home licence — if the parent loses its home authorisation, the German branch loses its operational basis along with it.
Expired BaFin IDs Still Being Marketed
Authorisations can be revoked. Brokers — particularly smaller operators that later moved offshore — have continued marketing with former BaFin IDs long after the authorisation lapsed. The BaFin company database shows current status. Always run the ID against the database rather than taking the broker's word for what it used to say.
CySEC-Passported Risk Warnings Non-Compliance
Germany requires retail CFD brokers to display specific risk disclosures in German. CySEC-passported operators have been getting this wrong — and BaFin said so publicly (FX News Group, 2024). Valid EU passporting doesn't neutralise German-specific conduct rules. A broker can carry full MiFID II rights and still be running afoul of what BaFin requires. The German regulator acts on passported firms for local-market failures, even when the home regulator in Nicosia hasn't moved on the same issue.
How Has BaFin Enforced Rules Against Forex and Investment Firms?
BaFin's enforcement record is the part that actually tests whether a regulator means what it says. The enforcement trend is one-directional — and it's not subtle. Forty fines, over €8.1 million total in 2023. Thirty-five fines, roughly €24.6 million in 2024 (DayTrading.com, 2026; SteelEye, 2025). These cover the financial services sector broadly — here are the confirmed actions most relevant to forex and derivatives trading:
| Date | Entity | Action | Reason | Amount / Outcome | Source |
|---|---|---|---|---|---|
| 2023 | Degiro (Flatex subsidiary) | Fine | Internal control failures — AML and risk management deficiencies | €1,050,000 | SteelEye 2023 |
| 2024 | Citigroup Europe | Fine | Control failures in algorithmic trading system (triggered 2022 flash crash in European equities) | ~€13,000,000 | SteelEye 2024 |
| 2024 (ongoing) | CySEC-passported CFD brokers (multiple) | Supervisory letter / compliance warning | Failure to use proper German-language risk warnings for retail CFD clients | Compliance required; no fine reported | FX News Group |
| 2025 | Deutsche Bank AG | Fine | Three regulatory offences including currency derivatives misconduct in Spain | €23,050,000 | VinciWorks |
| 2025 | J.P. Morgan | Fine | AML compliance failures ahead of AMLA implementation | €45,000,000 | VinciWorks |
Total fines nearly tripled from 2023 to 2025. BaFin's focus has expanded beyond traditional banking misconduct into derivatives conduct, algorithmic trading controls, and cross-border service compliance — all directly relevant to the forex and CFD market. That's not passive oversight. That's a regulator building enforcement infrastructure.
The Bottom Line on BaFin Regulation for Forex Traders
Tier 1? Yes, genuinely. BaFin's capital requirements, enforcement records, and supervision structure put it in the same category as the FCA and ASIC. But Tier 1 doesn't mean risk-free, and it doesn't mean equivalent protection across the board.
The EdW ceiling — €20,000 — is meaningful but modest. It won't cover large account balances in full if a firm fails. That's the honest assessment. For what it's worth, that's the same ceiling as CySEC's ICF; the gap is with the FCA's £85,000 FSCS, not with EU peers. Germany's EU membership also creates a two-tier market: directly BaFin-authorised entities offer clearest supervisory accountability, while MiFID II-passported brokers are legitimate but answer primarily to their home regulator.
Three steps, no shortcuts: verify the BaFin ID in the company database, confirm the entity name in your contract matches, check the BaFin warning list. Working through other regulators at the same time? Same verification approach, different registries: FCA regulated forex brokers and CySEC regulated forex brokers.
Frequently Asked Questions
Is BaFin a Tier 1 regulator?
Genuinely, yes. BaFin sits alongside the FCA (UK), CFTC (US), ASIC (Australia), and MAS (Singapore) at the top tier. Tier 1 classification isn't marketing — it reflects a specific set of conditions: minimum capital requirements for regulated firms (€730,000 for investment firms), mandatory client fund segregation, an active enforcement track record, and structured ongoing supervision. The fine totals tell the story: €8.1 million in 2023, rising to over €68 million in 2025. That's an enforcer, not a rubber-stamper.
How do I check if a broker is BaFin regulated?
The BaFin company register lives at portal.mvp.bafin.de/database/InstInfo/. Pull up the broker's registration number — check their footer or legal pages — and confirm the entry shows active authorisation for investment services. One thing most people skip: check whether the website address BaFin has on file matches the site you're actually on. Clone operators rely on exactly that gap — real BaFin number, different domain, different people's money.
What happens if my BaFin-regulated broker goes bankrupt?
Germany's EdW compensates up to 90% of a trader's claims, capped at €20,000 per eligible investor, when a BaFin-authorised securities trading company can't fulfil its investment service obligations (EdW, 2026). This applies to directly BaFin-authorised investment firms only — EU-passported brokers fall under their home country's scheme instead. Client funds held in properly segregated accounts aren't part of the broker's estate in insolvency proceedings, which matters separately from the EdW claim.
Are all BaFin-regulated brokers safe?
Short answer: no. BaFin authorisation confirms a firm met minimum standards at licensing and is subject to ongoing supervision — it doesn't guarantee future compliance or financial soundness. BaFin's own warning list regularly features clone firms using real BaFin IDs, and the regulator has issued supervisory actions against fully licensed firms for compliance failures. Verify current status in the BaFin database, confirm which entity your account is under, and check BaFin's consumer warning list before depositing.
What is the BaFin EdW compensation limit for forex traders?
The EdW compensates up to 90% of a trader's claims from investment transactions, capped at €20,000 per eligible investor (EdW, 2026). To put it concretely: if a BaFin-authorised firm owes you €18,000 it can't return, the EdW pays €16,200 (90% × €18,000). If the firm owes you €50,000, the cap still applies — maximum payout is €20,000 regardless. The EdW covers investment service obligations. It doesn't cover trading losses from market movements.
Can BaFin help me get my money back from a broker?
BaFin's role is supervisory, not individual dispute resolution. If a broker has withheld funds, misrepresented terms, or executed trades without instruction, start with BaFin's consumer complaint mechanism at bafin.de. BaFin acts on patterns of misconduct and can require compliance, impose fines, or revoke licences. For direct fund recovery, BaFin enforcement can trigger proceedings — but individual insolvency claims go through the EdW (up to €20,000) and standard legal processes.
What leverage can I use with a BaFin-regulated broker?
Under ESMA's product intervention measures, permanently applied in Germany, retail clients are capped at 1:30 for major currency pairs, 1:20 for minor pairs and gold, 1:10 for non-gold commodities, 1:5 for individual equities, and 1:2 for crypto CFDs (ESMA, 2018). These apply to all BaFin-authorised brokers and to EU-passported brokers serving German retail clients. Professional clients who meet eligibility criteria can access higher leverage — but that trades away negative balance protection and EdW compensation eligibility.
Why do some brokers have both a BaFin ID and a CySEC licence?
A broker can hold licences from multiple EU regulators. A BaFin authorisation covers the German market; a CySEC licence covers Cyprus and other EU/EEA markets. Sometimes that's a single MiFID II entity registered with both (Tickmill Europe Ltd is an example). Sometimes it's separate legal entities in each jurisdiction. What matters for you: which entity's licence covers your specific account, because that's what determines which regulator supervises your broker's conduct and which compensation scheme covers your funds.
Can I trade with a BaFin broker from outside Germany?
Most BaFin-authorised investment firms primarily serve German or EU clients under their German authorisation. Under MiFID II, they can also passport into other EU/EEA countries. Non-EU clients (UK, US, etc.) are typically served by a different entity within the broker group — with different rules and protections. If you're not based in Germany or the EU, confirm which entity your account is actually under.
Does BaFin regulate crypto trading?
BaFin covers crypto-asset services that constitute financial services under German law — including crypto CFDs (subject to the 1:2 leverage cap for retail clients) and crypto custodian services under Germany's MiCA implementation. BaFin introduced a crypto custody licence category in 2020, making Germany one of the first EU jurisdictions to formally regulate crypto asset custody. Spot crypto exchanges operating in Germany need a crypto custody licence or relevant MiCA authorisation. That's a separate track from the investment firm authorisation that covers forex brokers.
Related Regulation Resources
If you're working through broker verification beyond Germany, these cover the same process for other major regulators — same format, same verification methodology:
- FCA Regulated Forex Brokers — UK-regulated brokers verified against the FCA Register, with FSCS protection up to £85,000
- CySEC Regulated Forex Brokers — Cyprus-regulated brokers verified against the CySEC register, ICF protection up to €20,000
- ASIC Regulated Forex Brokers — Australian-regulated brokers verified against the AFSL register — no compensation scheme
- Forex Regulation Hub — All WiBestBroker regulatory verification guides, updated quarterly
- Scam Broker Alerts — Brokers flagged for fraudulent activity, unauthorised operations, or enforcement warnings
For any broker not listed in the databases above, the same verification process applies: BaFin ID → Company Database → confirm authorisation status and scope → check entity name on your contract → verify registered domain matches your broker's website.
Data sourced from BaFin Company Database, EdW, BaFin News Centre, and official enforcement publications. Last verified: 16 March 2026. WiBestBroker does not accept affiliate payments from brokers listed on this page.