Germany Binary Options country Report

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Germany Forex country Report
Germany Forex country Report

Being the largest economy in Europe, Germany has naturally recently experienced a huge increase of interest in financial instruments such as binary options. Although a relatively new trend, which has only started 6 years ago, in 2008, binary options have become immensely popular as an investment vehicle of choice across Europe.

The online retail binary options trading market are proven to be the fastest growing financial market in the world and this is also true when it comes to the German online market as well. This expansion is mostly attributed to the ease and simplicity of binary options trading and the potentially very high reward rates it offers.

Below is our dedicated overview of the binary options market in Germany, the general environment and background it operates in, the regulatory framework and the main stakeholders, including suggestions of trusted brokers who are allowed to operate in Germany or offer their services to German traders.

Germany Binary Options Market

Germany had not always been the high flyer it is today in terms of the economic situation in the country. Indeed following its re-unification it has suffered a great stagnation in the beginning of the 2000s. Soaring unemployment figures coupled with low growth figures (around 1%) caused the Federal government to implement a drastic programme of economic reforms, which delivered results and pushed the country out of stagnation also aided by high growth in the world economy in the second half of the 2000s, from which Germany benefited as a leading world exporter.

More recently in 2008 and due to the global economic crisis, the country fell into recession but it proved very resilient and it quickly bounced back. In fact the recovery of the German economy was so amazing that in 2011 it achieved record-breaking figures in its exports, exporting goods worth over $1.3 trillion, the highest figure ever recorded in history by a single country.

Germany might be the strongest EU economy but since its primary markets are located outside of Europe, its economy is not insulated by slower demand for goods globally, which adversely affects the value of German stocks and indices, which in turn also creates price fluctuations across a range of other assets.

It came as a natural development therefore, that in an economy as hot and vibrant binary options trading was soon consolidated and gained increased popularity with literally hundreds of brokers  offering such services to prospective clients The operations of these brokers fall within the scope of work of the Federal Financial Supervisory Authority (BaFin).

The Federal Ministry of Finance of Germany, acting in its capacity as the overarching authority set up in May 2002 the Federal Financial Supervisory Authority (BaFin) and tasked it with the carrying out of the supervisory and regulatory role of financial activities in Germany carried out by banks, insurance funds and all types of financial services providers, including of course forex brokers as well. However, to be able to effectively carry out its role, the BaFin was granted independence which also extends to its own finances. Thus, it does not depend on the Federal Budget but ensures its funding by the payments of the dues levied on the entities it supervises and regulates.

From its two seats in Bonn and Frankfurt and aiming to act in the best interest of the public through ensuring the smooth functioning as well as the stability of Germany’s financial system, BaFin also tries to prevent any illegal businesses and transactions from occurring in the German financial system, while also enforcing the upholding of high levels of professional standards.

Binary Options Regulation in Germany

Financial trading, including binary options trading is considered as legal in Germany, in the sense that  traders are allowed to trade financial instruments online, while brokerages are permitted to offer binary options services in the country. What makes the case of Germany slightly different is the absence of specific legislation on binary options, but traders are free to trade via brokers licensed in other, mainly European, countries.

The lack of specific  binary options laws in Germany indicates that a German trader can deposit as much as they want, trade as much as they want and trade via any broker they like. However, since it is always safer and wiser to trade through properly licensed and regulated brokers, the obvious choice for Germany based traders is to open trading accounts with brokers that have valid licenses in other European jurisdictions, since EU rules and regulations are implemented and have validity in all countries of the Union and aim to protect the rights of all European citizens, irrespective of their country of residence.  To put it neatly: a broker that is safe for a UK trader is safe for a German trader too.

Top Binary Options Brokers in Germany

Many international well established brokers have satellite branches in Germany or accept German investors via the German speaking versions of their global sites, offering dedicated, expert customer support. Moreover, German traders can expect to benefit from numerous promotions offered exclusively to them by various brokers, thus rendering the online trading of binary options in Germany exceptional appealing and potentially highly lucrative.

Opting to register with and trade via brokers that accept German customers while being licensed and regulated in EU based jurisdiction provides the necessary safety net that potential traders will not be scammed by opportunist crooks who enter the online binary options world to deceive traders and make a run with their money.

By picking a trader from our featured trusted Binary Options Brokers list, a Germany based trader ensures that they will be able to trade binary options, easily, confidently and securely.

Therefore,  before making your first deposit check out these brokers if you want to trade legally at reliable service providers:

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, also known among professionals under her nickname “Moneymaker”, is an experienced stock broker and Forex trader. Promoting and guiding new traders to the binary options market is Nancy''s way of saying "thank you" to the industry that helped her realise her dreams.

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