Brokerage license in Germany

Obtaining a brokerage license gives the opportunity to carry out activities, subject to low taxation, while also submitting minimum reporting statements, in various countries via the Internet. In the German Forex market, supervision of the activities of participants is carried out by such organization as the BaFin (German Federal Financial Supervisory Authority).

The BaFin is the most stringent regulator in Europe. It controls the activity of brokers in real-time mode, monitors compliance with the standards and ensures the stable functioning of financial markets.

If the company managed to get permission for brokerage activity in Germany, it can confidently be referred to the list of the most reliable market participants, which conducts absolutely "transparent" and safe activities for investors.

Forex license in Germany: features of obtaining

Obtaining a brokerage license in Germany is subject to the observance of various standards developed by the BaFin. Legal regulation of the financial services market of the country is characterized by a complex multi-level structure and has an extensive list of normative acts. First of all, the regulatory framework of the BaFin is aimed at:

  • Combating insider trading and illegal manipulation, monopolization of the financial market;
  • Protection of interests of investors and compliance with financial obligations by brokers.
  • Full disclosure of financial statements and compulsory provision of information required by and necessary for the BaFin, investors and general public by the financial institutions.

The Federal Financial Supervisory Authority grants brokerage licenses only to companies that are registered on the territory of the country. In order to obtain permission for activity, the company must send a full package of documents to the BaFin, which in addition to the constituent documents (Charter/bylaws, internal regulations/instructions, etc.) includes business plan and documentation that confirms professional competence and ability to fulfill financial obligations.

After receipt of the application, the BaFin conducts an audit of the broker. In case of a positive decision, license is issued and brokerage company becomes full-fledged participant in the German brokerage market. Despite the complexity of obtaining permission from the BaFin, company with such license is the leader of brokerage market and an attractive entity for investors.

The cost of a brokerage license in Germany

It is almost impossible to independently obtain permission to conduct brokerage activities in Germany without knowing the nuances of the legislation of this country. Competent legal assistance significantly simplifies and accelerates the procedure. Germany is one of the most prestigious world jurisdictions, therefore it will be more expensive to obtain brokerage license in this country than in the offshore zone. But if the company carefully monitors its reputation status, the expenses pale into insignificance.

Upon registration, the company must have sufficient amount of paid-up authorized capital. In addition, it should be noted that the BaFin is financed independently of the federal budget, through donations and contributions from controlled companies. This expense item must also be evaluated before deciding whether to obtain a brokerage license from the German Federal Financial Supervisory Authority.

Forex license in Germany: assistance in obtaining

Law&Trust International exists on the market within a long period and renders services in all legal spheres of the international market. Highly qualified specialists provide comprehensive assistance in obtaining brokerage license in Germany and guarantee compliance with the principles of confidentiality and legality to the clients.

Individual approach to each client and extensive international connections help us to solve even the most incredible non-standard situations. We are reliable and efficient, and our prices are reasonable and relevant.

 

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