The economy and FX market of Germany: general information

Today, the German economy is one of the strongest in Europe. In the global ranking, it occupies fifth place in terms of gross output per capita, and third place in terms of total income, belonging to the group of developed countries. The structure of the economy is based on the service sector and industry since the country does not have sufficient mineral reserves. Services account for about 54%, production – for almost 46%, and agribusiness occupies 0.1-1.5% of the national economy.

Despite the fact that in Germany huge areas are devoted to agriculture, employment in agriculture is only about three percent of the able-bodied citizens. The contribution to the total GDP remains small, which is explained by the high degree of industrialization of the country’s economy. However, this does not prevent Germany from occupying a leading (after France) place in the world economy in the production of major crops (rye, oats, barley, wheat, corn, sugar beets, potatoes) and livestock products. High productivity is ensured through the use of innovative methods of agricultural technology and mechanization of labor processes.

One of the important facts is that the share of Germany in the world production of automobiles, electrical engineering, transport, equipment, computers, and other equipment is still kept at a high level and amounts to 7% of GDP. There is probably no person who has not heard of the Volkswagen AG auto concern, which also includes large automotive companies such as Skoda, SEAT, Porsche, and MAN.

The chemical industry in Germany is in demand either: the world-famous concerns Bayer, BASF, and Linde are still among the top five Forbes world leaders in terms of a set of indicators (revenue, profit, capitalization).

Germany is one of the most technologically advanced countries not only in the European Union but also in the world. As a result, foreign investors put up their money in various sectors in Germany and can benefit from the most advanced scientific and technological assistance. In an effort to attract foreign investment, the German government has established a mandatory rule that does not distinguish between local and foreign investors. Foreign investors can take advantage of all the benefits provided to local ones. This also applies to the Forex market, as traders can officially work with many international brokers.

Forex trading and regulations in Germany

Germany is the undisputed leader in Europe in terms of economic development and the size of transactions in the financial markets. To be officially authorized for offering financial services such as Forex in Germany, a broker needs to either be licensed by the local regulatory authority called BaFin (German Federal Financial Review Office) or by other international reputable authorities like FCA, CySEC, ASIC, MAS or IFSC.

In our article, we have considered brokers with all types of regulation, but the main thing that unites them is reliability, proven by millions of clients, and safe trading conditions. Quite a few Forex brokers operating solely in Germany may not have as wide a range of services as the best foreign brokers. More often than not, many German Forex traders prefer regulated international Forex brokers to be able to trade with higher leverage and enjoy other benefits not available to locally regulated brokers. 

If you are new to trading, then there is an amazing tool for you like Copy Trading. It is one of the easiest ways to take advantage of the expertise of other traders. Even those who do not understand how the financial markets work can make money by simply automatically copying professionals. 

Popular online trading instruments in Germany

Germany has always been one of the most economically powerful countries in the world. In addition, the country has always demonstrated a very high level of stability, and most importantly, sustainable growth. If you have a stable internet connection to start trading Forex in Germany, you can be sure of having access to an amazing financial market with many trading tools. 

Currency pairs trading in Germany

Germany stood at the origins of the formation of the EU, and now largely determines the policy of European countries. Therefore, the question of what kind of money is used in Germany today and what currency pairs are traded the most is quite obvious. Of course, this is the euro and the most popular currency pairs such as EUR/USD, EUR/GBP, and EUR/JPY. Traders in Germany also have access to dozens of major and minor combinations as well.

XM Group – the broken included in BaFin – offers over 50 currency pairs that include Majors, Minors and Exotics to choose from. In addition to currency pairs, the broker allows you to trade more than 1000 trading instruments including CFDs, commodities, indices, precious metals, energies, and stocks. The broker offers four types of accounts with negative balance protection, good leverage, and tight spreads: Micro, Standard, XM Ultra Low, and Shares. Besides, there is a special one – a demo account where traders can practice their skills and knowledge.

Besides the BaFin, The company’s activities are fully authorized in the EU by the Netherlands Financial Markets Authority (AFM), and the Finnish Financial Supervisory Authority (FIN). The broker is also licensed by such reputable regulators as ASIC, CySEC, IFSC, and DFSA, which indicates its reliability.

With XM Group, you can trade from anywhere as you get instant access to global markets with the new XM all-in-one mobile app. All it takes is to download the app and jump in with deals.

Commodities trading in Germany

In recent years, a very promising area is trading commodities on the stock exchange, which allows the trader to further increase profits. For example, since Germany is an exporter of refined petroleum, iron fasteners and other iron products, aluminum plating, and petroleum gas, a trader can profit from the price fluctuations of these commodities. If you are thinking about a way to make money on this financial instrument, Forex is the best solution for you.

Besides, an important thing to mention is that Germany ranks third in terms of gold accumulation, which makes gold a popular financial instrument for Forex trading in Germany as well.

Brokers provide great opportunities and favorable conditions, all you have to do is open an account with the broker and start trading.

HF Markets is an international reliable broker that offers a variety of trading instruments, including currency pairs, metals, deposits, stocks, Cryptocurrency, and many others. In particular, HF Markets provides low transaction costs and flexible leverage on Forex Gold trading. You can find more information about this trading instrument in our article.

Due to the fact that HF Markets is licensed by CySEC, the FCA, and the DFSA, the corresponding financial authorities in Cyprus, the UK, and Dubai, it enjoys the trust of millions of clients building its trading environment on transparency and reliability.

To make your trading fast and convenient HF Markets has a mobile app. Use this handy Forex trading app along with your HF MT4/MT5 mobile, desktop, and web platforms to keep abreast of the global financial markets. Moreover, HF Markets created an HFcopy – Copy Trading feature where anyone can join as a follower or as a pro trading strategy provider.

Stocks trading in Germany

The German stock market features a wide range of industries such as chemicals, retail and financial services. Top German stocks by market capitalization based on their industries include technology: SAP, Deutsche Telekom, Wirecard; automotive industry: BMW, Volkswagen, Daimler; pharmaceuticals and chemistry: Bayer, BASF, Merck; consumer goods: Adidas, Henkel; finance: Allianz, Munich Re, Deutsche Bank.

To start trading German stocks, all you need to do is open an account with a trusted broker and dive into the market.

NAGA Markets was founded in Frankfurt (Germany) back in 2015 as a fintech company that provides access to global financial markets. It is also part of NAGA Group AG, a German financial holding listed on the Frankfurt Stock Exchange. It makes the broker popular and sought after among German traders.

NAGA is one of the top-rated brokers that provides access to different asset classes for trading: stocks, forex, ETFs, futures, commodities, and metals. Several options for trading platforms are offered for trading: MetaTrader of both versions (4 and 5), and the author’s platform NAGA Webtrader. All platforms support mobile versions. 

It is also a social investing network where clients of all experience levels can trade, share and copy investments on over 950+ trading instruments. The broker has very competitive trading conditions including tight spreads, low commissions, rapid trade execution speeds, and a variety of flexible account funding options.

NAGA aims to make trading simple and accessible for everyone. To make investment services available to clients in different jurisdictions, NAGA complies with multiple authoritative regulations around the world such as FCA, CySEC, MiFID II, and MiFIR.

Indices trading in Germany

Traders in Germany can choose to trade stock prices through a stock index instead of trading a single stock or several separate ones. This strategy will allow diversify your portfolio and get the maximum profit. The DAX stock index is one of the most popular trading indices in the world and also in Germany. It was founded in 1988 and consists of the largest and most actively traded companies by market cap. DAX includes several industry-leading brands such as Adidas, BMW, and Siemens.

Approximately 75% of the profits made by companies listed in the DAX 30 index came from outside of Germany. In addition, since many of the DAX’s constituents are huge multinational companies with a significant impact on global markets, the index can also be used to assess global trends.

OANDA is one of the largest, oldest, and most reputable Forex brokers in the world. It strives to provide competitive spreads across its full range of Forex and CFD markets, including indices in particular Germany 30, commodities, Cryptocurrencies, metals, and bonds, and more than 100 instruments in total.

The main regulator of the broker is the UK organization – the Financial Conduct Authority (FCA), which opens the broker the opportunity to work in Germany. Besides, brokers hold licenses by such authoritative regulations around the world as FSA, ASIC, and IIROC.

Globally, OANDA offers three account types: demo, Standard, and Advanced Trader, which makes the broker a fine fit for both new and seasoned trades. 

CFDs trading in Germany

CFD, an acronym for Contract for Difference, represents a derivative investment approach. Introduced in Germany in 2006, its acceptance has progressively expanded over recent years. It’s imperative to grasp that while CFDs offer potential opportunities, they also involve certain risks.

In essence, CFD trading does not involve direct ownership of the underlying asset. Instead, it centers around capitalizing on price discrepancies when buying and selling a given financial instrument. This approach provides a means to diversify one’s portfolio, extending beyond German stocks and DAX indices, thereby enhancing the trader’s financial security.

Nonetheless, it’s vital to appreciate the inherent risks associated with CFD trading. Profits can certainly be attainable, but an understanding of potential losses is equally crucial. The price fluctuations that underscore CFDs can work to the trader’s advantage, enabling control over profit levels and facilitating prompt adjustments if circumstances deviate from the intended plan.

As traders delve into CFD trading, it’s paramount to recognize the role of the chosen broker and the instrument itself. Lack of familiarity with either element could lead to potential losses. Thus, comprehensive research and a sound understanding of the trading platform are pivotal in managing risks effectively.

Embarking on the journey of CFD trading, Plus500 emerges as a compelling choice. As a versatile trading platform and a leading provider of Contracts for Difference (CFDs), Plus500 extends a spectrum of trading opportunities across shares, Forex, commodities, Cryptocurrencies (availability subject to regulations), ETFs, and indices, fortified by innovative trading technology.

However, it’s essential to emphasize that trading in the financial markets entails inherent risks. While Plus500 offers a comprehensive range of trading instruments and cutting-edge platforms, it’s crucial to recognize the potential for losses. This is particularly pertinent for traders who may not be well-versed in the dynamics of the chosen broker or the specific instruments they engage with.

The cornerstone of Plus500’s offering is its selection of advanced trading platforms. These platforms cater to various preferences, including a web-based interface, providing a seamless trading experience. Beyond web accessibility, traders can engage through the mobile app, which accommodates Android, iOS, and Windows users, ensuring trading convenience across devices.

For those navigating the complex landscape of CFD trading, Plus500 extends the valuable lifeline of a demo account. This provision isn’t just an introduction to the platform; it’s a bridge to developing refined trading skills. Particularly relevant for those new to trading or uncertain about potential losses, the Plus500 demo account enables skill-building in a risk-free environment.

Cryptocurrency trading in Germany

Among European countries, it was Germany that became one of the first states that launched the legal regulation of Cryptocurrency trading in order to ensure its legitimacy. The regulation of Crypto in Germany began in 2013 by the Decree of the Minister of Finance. Bitcoin was defined as a unit of account, which can be used in private trade relations.

However, the Cryptocurrency itself did not receive the status of a foreign or electronic currency, but received the definition of “private money”. This suggests that, in private, you can make transactions with Cryptocurrency, but there is still no regulation at the interstate level. Starting in 2017, after updating the national regulatory framework, the German federal government defined Bitcoin as a “financial instrument”.

In general, Germany is one of the legitimate countries in Europe in relation to Cryptocurrency transactions, and the registration of a Crypto exchange will not pose any serious difficulties, since there is a clear set of regulatory legal acts regarding Cryptocurrency, in particular, at this stage, bitcoin is also used in the banking sector and for payment in retail chains.

In 2018, Germany became the record holder for the number of Bitcoin investors. According to research by the local bank Postbank, about 30% of the population are ready to invest (or are already investing) in Cryptocurrency assets.

AvaTrade gives you the opportunity to trade one of the most popular Cryptocurrencies 24 hours a day, having the ability to open long or short positions. It has such a range of Crypto as Bitcoin, Bitcoin Cash, Ethereum, Ripple, Dash, Litecoin, Bitcoin Gold, and EOS. In addition to Crypto, 1250 instruments are available to clients: stocks, securities, indices, commodities, currency pairs, and CFDs.

The company holds several regulatory licenses, including ASIC, FSA, Abu Dhabi, and British Virgin Islands regulators.

AvaTrade has several platforms, both automated and manual. The broker offers its own solution, and several third-party Copy trading platforms including ZuluTrade, DupliTrade as well as MetaTrader 4 (MT4) (and in some places MT5). In addition to web platforms with AvaTrade, you can also use a mobile app. The advantages of trading using a mobile app are obvious. With an Internet connection and a mobile software package, the user can carry out trading operations from any corner of the globe.

eToro is another broker that offers many Cryptocurrencies as well a wide range of assets for trading: stocks, indices, and commodities. In terms of regulatory oversight, eToro is licensed by the FCA, ASIC, and CySEC. In over 15 years that the eToro broker has been on the market, it has managed to establish itself in the online trading community as one of the most respected brokers in the industry.

The broker is the perfect choice for passive traders and for those who do not want to check the market 24/7. The platform allows you to trade independently or copy the trades of other participants with the Copy Trading tool. 

Speaking about the mobile app, it is supported by iOS and Android operating systems and provides full-fledged work, combining the possibilities of digital technologies, social communication, and trading.

Top Forex brokers in Germany

If you decide to start trading various financial instruments in Germany, this means that you need a good broker to protect your interests and get good conditions and special instruments. When choosing a Forex broker, there are several criteria to consider, namely its reputation among traders, safety and reliability, service life, regulations, the convenience of payment systems, the trading platform used, etc. A good broker must be licensed by top regulators, which gives them the opportunity to enter the international market.

Offering the best conditions and security, here is a list of the best forex brokers in Germany:

NAGA Markets in Germany

NAGA Markets was founded in Frankfurt (Germany) back in 2015 as a fintech company that provides access to global financial markets. It is also part of NAGA Group AG, a German financial holding listed on the Frankfurt Stock Exchange. It makes the broker popular and sought after among German traders.

NAGA is a fully licensed and regulated broker with over 950 trading instruments and assets. Its clients can trade commodities, Crypto assets, and Forex, and make deals on the markets of futures, precious metals, ETFs, indices, and CFDs.

Brokers provide users trading with minimal risk, even if they are new to trading. NAGA has made this possible with a special automatic Copying feature. NAGA AutoCopy is an innovative tool that allows you to automatically follow the top traders on the platform and learn from their experiences.

Plus500 in Germany

Plus500 is widely recognized as a user-friendly CFD trading platform, equipped with advanced features and a diverse range of risk management tools, making it an enticing option for traders. With an extensive selection of CFD trade instruments, a comprehensive trading guide, and robust mechanisms to enhance trading effectiveness and security, Plus500 provides a conducive environment for traders.

Founded in 2008, Plus500 has amassed over a decade of experience, contributing to its reputation as a dependable broker that garners the trust of its clientele. Regulated by renowned bodies such as ASIC, FCA, CySEC, MAS, and others, the company’s operations adhere to stringent global standards, bolstering its credibility.

However, it’s essential to recognize that engaging in CFD trading involves inherent risks. While Plus500 offers an array of tools and educational resources, it’s vital to acknowledge that trading within financial markets carries the potential for losses. This is especially relevant for those new to the field or those unfamiliar with the broker or specific instruments in use.

Prospective traders must exercise caution and conduct thorough research before participating in trading activities. Plus500’s trading guide and the availability of a demo account are invaluable for newcomers, enabling practice, exposure to real market conditions, and skill development without risking actual funds.

OANDA in Germany 

OANDA is a well-known broker for traders of any level. OANDA offers trading in over 100 instruments including currency pairs, indices, commodities, bonds, and metals. There are 9 base currencies available in the company: EUR, GBP, CHF, USD, CAD, AUD, JPY, HKD, SGD.

The main regulator of the broker is the UK organization – the Financial Conduct Authority (FCA), which opens the broker the opportunity to work in Germany. Besides, brokers hold licenses by such authoritative regulations around the world as FSA, ASIC, and IIROC.

Globally, OANDA offers three account types: demo, Standard, and Advanced Trader, which makes the broker a fine fit for both new and seasoned trades. 

eToro in Germany

eToro is one of the most recognizable and credible brokers in the world held in high regard for its truly trader-oriented features.

eToro broker provides some of the most attractive market conditions: low Forex fees, only $50 deposit for opening a standard account, and low trading and non-trading fees. So no matter if you’re an experienced trader or just a newbie, eToro is something you’d like to check out. You’ll probably like most of what you find out about this broker: CopyTrader feature, Crypto items available for trading, and various trading platforms suitable for any situation possible.

Overall, it’s a primary player in the world of online trading, and it offers a lot of tools and perks to make your trade as comfortable as potentially efficient. Therefore, whether you are a beginner, a seasoned trader, or just want to try CopyTrader – eToro may be an excellent broker to try.

HF Markets in Germany

HF Markets is a primary-league online trading platform that has been providing services to traders all around the world for many years.

Due to the fact that HF Markets is licensed by CySEC, the FCA, and the DFSA, the corresponding financial authorities in Cyprus, the UK, and Dubai, it enjoys the trust of millions of clients building its trading environment on transparency and reliability.

HF Markets offers leverage of up to 1:30, depending on the instrument, as it is the maximum allowed leverage in compliance with regulatory measures. For the 1000+ instruments to choose from, the broker provides unbeatable conditions on precious metals.

AvaTrade in Germany

AvaTrade can surprise you with a huge selection of financial instruments, among which Forex, Cryptocurrencies, CFDs on stocks, commodities, indices, metals, and securities.

Broker is regulated by six international and regional financial authorities, including ASIC, FCA, and CySEC. 

In addition to web platforms with AvaTrade, you can also use a mobile app. If you want to have access to more than 1250 assets, and 24/7 multilingual support all over the globe, then AvaTrade may be your choice.

AVATrade is a broker that provides optimal working conditions for traders with any level of experience. It has such a useful platform as Copy Trading that enables you to copy the performance of successful traders you choose and gain with them the way they trade.

XM Group in Germany

XM Group is a popular Forex broker in Germany with over 1000 trading instruments that can be traded on the MT4/MT5 platforms. The broker also offers a convenient mobile application where you can trade on international markets with a single login on a demo or live account. In the application, users of the MT5 platform can manage their trading accounts and trade all the instruments offered by XM.

Traders can choose the most profitable trading account on unique terms with negative balance protection, good leverage, and tight spreads: Micro, Standard, XM Ultra Low, and Shares.

By registering and verifying an account with several TOP brokers in Germany, you can not only compare different trading platforms to find the most suitable one but also maximize the perks and benefits you get from different brokers. This will allow you to test many trading strategies and set the way to becoming a professional trader.