Examples
- Pepperstone GmbH — BaFin; 72.9% of retail CFD accounts lose money (EU)
- IG Europe GmbH — BaFin; 74% of retail CFD accounts lose money
Why brokers set up in Germany
After Brexit, UK-based groups needed EU subsidiaries to keep serving EU clients. Germany — Europe's largest economy, with a respected regulator — was a natural choice for some, alongside Cyprus and Ireland.
Brokers with BaFin entities
| Broker | German entity | Platforms | Retail loss rate |
|---|---|---|---|
| Pepperstone | Pepperstone GmbH | MT4, MT5, cTrader, TradingView | 72.9% |
| IG | IG Europe GmbH | IG platform, MT4, ProRealTime | 74% |
Data checked October 2026 on the brokers' EU websites. Confirm which entity will hold your account.
What BaFin supervision means
- ESMA-based retail protections
- German ban on additional payment obligations for retail CFD clients
- Client money segregation and German investor compensation arrangements
How to verify
Search the firm in BaFin's company database and compare the details with the broker's website. See how to verify a broker.
Frequently asked questions
Which major brokers have BaFin-regulated entities?
Examples include Pepperstone (Pepperstone GmbH) and IG (IG Europe GmbH).
Do I need a BaFin broker if I live in Germany?
No. Brokers authorised elsewhere in the EEA can passport into Germany. A BaFin entity may still be preferable for German-language service and familiarity.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.