The Legal Aspects of Binary Options Trading in Germany


Like most other countries, binary trading is very popular in Germany too. Each year, more and more Germans are entering into the exciting world of binary trading. However, most of them are confused about the legal status of binary trading in Germany.

If you are one of them, you have come to the right place. In today’s post, I will discuss the legal aspect of binary trading in Germany. Let’s get started with the most basic question.

Is Binary Options Trading Allowed in Germany?

In a word, yes. Being a German, you are legally allowed to do binary trading. There are two ways to do this, they are –

  1. Individual Trading: You can open account with a broker and continue trading individually.
  2. Trading Service: You can open a financial company and offer trading services for other people.


As there are no specific German laws, you have unlimited freedom in regards to binary options trading. That means you can invest as much as you want and trade with any broker. However, any profit you make might be subject to income taxes. Discuss with your tax lawyer about that issue.

How to Choose a Broker?

When it comes to choosing a broker, you should be very careful. An ideal broker should be helpful, professional and reliable. They should always be able to guide you in case of any problems. Since there are no local laws about the binary option brokers, you need to take your time and choose the right broker.



When searching for a broker, ask your friends and family whether they personally know about a good broker. If they do, collect the name and do some research about the companies. Read customer reviews and look for any scam reports about them. Also make sure that the broker is registered in an EU country. For example, BDSwiss is registered in Cyprus. Brokers registered in the USA or UK are also reliable.

Is It Safe to Trade With Foreign Brokers?

There are lots of foreign brokers offering binary option trading service in Germany. It’s impossible to declare all of them safe or unsafe. The answer to this question depends on the individual brokers.

To be certain, find out where the broker is registered. If it is registered in any EU country, you can rely on that company. A company registered in any EU country has to follow the European Union regulations. That means doing business with that company is safe for any German individual.

And if a broker is not registered in any EU country, USA or UK, stay away from that broker.

Is There Any Local Law?

Unfortunately, Germany does not have any local law regarding binary option trading yet.USA was the first country which introduced specific financial investing laws. Other countries including UK, Italy, Cyprus and Malta soon followed suit. Several other countries are now in the process of formulating their own financial investment laws.

Being one of the leaders in the business and finance world, Germany is expected to have such rules anytime soon. However, Germans are still covered by the laws of the EU.That means you can easily continue binary trading from Germany without any legal consequences.

Final Words

Trading binary options is an attractive and interesting field for financial investment. Features like higher yields and shorter duration have made it more popular among the general people. If you live in Germany, you can easily get your binary options career started with a small investment. It is completely legal for Germans.