Forex Regulation in Germany

All financial activities in a country are usually put into the hands of some special agencies or people. They are responsible, though, for different things – like bank operations, currency exchange rate and etc. Alongside these things, a financial regulator also handles the financial trading activity, if such is permitted and proclaimed as an official in the country. Forex market is 100% allowed to be joined by the citizens in Germany. This means that the regulator of all financial services that take place in Germany is also in charge of Forex activity. All financial activity in Germany is handled by BaFIN, which is also known as the Federal Financial Supervisory Authority. About 4,200 financial institutions in Germany ranging from banks, financial services institutions, and insurance companies, as well as Forex brokers, are under the occupation of the mighty, but fair BaFIN. The unified financial regulation system here works quite well, even though we have become witnesses of the really bad practice of this strategy. What BaFIN does is to provide licenses to the German brokers, but also to follow the individual activity on the forex market by both – the brokers` companies and the traders, themselves. This means that BaFin is responsible for the transparency in financial trading, as well as for all the trading accounts traders open when trading in a German broker. All disputes and legal arguments between traders and brokers or between financial companies only are handled by the agency and up to now it shows fantastic and what is more important really fast results, when a problem or inquiry appears. Last, but not least BaFIN is always by your side – if you are a trader, including a beginner, and you need some additional information about a certain broker you would like to join.

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