Best Binary Brokers
Home to more than 80 million people, Germany is a highly industrialized nation with the largest economy in Europe. Last year in 2016, it managed to export $1.27 trillion worth of goods and services which helped the country gain an impressive trade surplus of $310 billion. Flushed with savings, it is only natural for investors to want to look for alternative investments which could give them better than the low interest rates than that which they are receiving in their savings. This hunger for better returns could help to explain why binary options have gained such a strong foothold in Germany in recent years.
Since its introduction to the online retail trading sector in 2008, the binary options industry has seen phenomenal growth in the global financial markets. However, this phenomenal growth has also been witnessed in Germany where the financial industry has largely been dominated by the banking sector. The popularity of binary options in Germany has largely been attributed to the high returns that they are able to offer as well as the ease and simplicity of this trading type in Germany.
But the German economy has not always been as strong as it is today. In fact following the reunification of East and West Germany in 1990, the country as a whole suffered from an economic depression. With a low economic growth of 1% and soaring unemployment rates, the German Federal Government was forced to implement a series of economic programs designed to help push the country out of the depression. Aided by high growth in the global economy, Germany was able to benefit from the economic reforms implemented by the German Federal Government and today has become one of the world’s leading exporters.
The success of the economic programs can further be seen in the aftermath of the global financial crisis in 2008. Although the German economic took a hit and suffered a recession, it managed to bound back in a relatively short time proving the economy resilient against economic shocks. In fact, its 2011 exports valued at $1.3 trillion was the highest ever recorded for a single country then. Of course following the success of the industrialized sector of the German economy, it is a natural development that the financial sector will start to grow and hence increasing the popularity of retail online trading.
Best Brokers in Germany
Germany does not have any legal provisions to govern the trading of binaries within the country. Essentially, this means a German based trader is allowed to sign up with any binary broker that he wishes. However in the interest of safety, German traders are highly recommended to trade with properly regulated brokers that are from within the EU. This is because under the EU’s MiFID rules, an authorized broker from an EU member state is permitted to “passport” its license to Germany and operates in Germany using that license. In this way, a German trader will be able to receive the same level of consumer protection that a broker provides to clients in its home country. Below is a list of binary options brokers that are authorized to operate in Germany:
Regulations
The main financial regulatory body in Germany is the Federal Financial Supervisory Authority or BaFIN (short for Bundesanstalt für Finanzdienstleistungsaufsicht). It was established in 2002 by the Federal Ministry of Finance of Germany as the supervision authority over it. BaFIN was created from the merger of 3 other separate agencies, the Federal Banking Supervisory Office, the Federal Supervisory Office for the Securities Trading and the Federal Insurance Supervisory Office. The goal was the creation of an integrated regulatory body to uniform supervision of the Germany financial markets.
Today, BaFIN is in charge of all supervision and regulation of the activities of banks, insurance companies and all financial services providers such as forex brokers and binary options brokers in Germany. But unlike most regulatory bodies which are funded by the Federal Budget, BaFIN is self financing through the payments of fees that it levied on the institutions and companies that it has regulatory supervision over. This is done to give BaFIN a level of self autonomy and independence so it can effectively carry out is responsibilities.
Acting from Bonn and Frankfurt, BaFIN’s main responsibility is ensuring the integrity and stability of the German financial industry. Responsible to both consumers and service providers, BaFIN work to ensure the solvency of financial institutions and companies on the supply side. On the consumer side, it acts to ensure confidence in the financial markets and the companies and institutions behind the markets. In summary, BaFIN’s responsibilities include the following:
- Bank Accounts Supervision
- Banking Industry Supervision
- Insurance Industry Supervision
- Securities Industry Supervision
- Initiation of legal Actions against financial crimes
While the financial industry is tightly regulated by BaFIN in Germany, financial trading such as binaries trading in Germany is legal in general. There are no legal restrictions which prevent German citizens and residents from trading binary options in Germany. In fact, Germany does not have any laws which govern the trading of binaries in the country. And under the European Union’s (EU) goal for the harmonization of the financial markets within the EU, licensed and authorized financial services providers from other EU member states are permitted to operate in Germany legally. In other words, a German trader can transfer funds to and trader with any authorized broker which they choose within the EU.
Deposit methods available in Germany
As a developed economy, the payment system in Germany is well developed and supports a variety of internationally accepted methods of fund transfer. As such a German trader will have no problem funding his trading account with his CySEC binary options broker using bank wire transfer, credit cards and eWallets.
FAQ
- Is it legal to trade binaries in Germany?
Yes. There is no legal restriction that would prevent an individual in Germany from trading binary options.
- Are binaries regulated in Germany?
No. Binary options trading is not regulated in Germany.
- How to trade binaries in Germany?
To start trading in Germany, you first need to sign up with binary options broker and open a trading account. After you have funded your trading account, you can immediately begin trading binaries on the trading platform provided by your broker.
