BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht), the Federal Financial Supervisory Authority, is Germany’s integrated regulator for banks, insurers, and financial services firms including forex and CFD brokers. As an EU regulator it applies the MiFID II framework.
What BaFin regulation means for traders
- ESMA-aligned leverage caps — 30:1 on major FX pairs for retail clients, lower on other assets.
- Segregated client funds kept separate from the firm’s own money.
- Negative balance protection for retail clients.
- Strong conduct oversight — BaFin has historically imposed product restrictions to protect retail investors.
How to verify a BaFin broker
Authorised firms appear in BaFin’s company database on the official BaFin website. Because many brokers operate multiple EU entities, confirm the specific entity that holds your account — only the BaFin-supervised entity carries these protections.
In short
BaFin is a highly regarded tier-one European regulator. Its oversight gives traders MiFID II-level protections, though it does not reduce the inherent risk of leveraged trading. See regulated brokers in our broker reviews.