Offers one way to trade: Forex
Financial Conduct Autority, Cy...
Popular for BaFin!
2 traders clicked on CFI Markets this month.
The Ultimate Guide to
Choosing a Broker
Not sure which broker is right for you?
Don’t worry - we’ve got you covered. In this guide, you’ll learn:
- Why CFI Markets scored high for bafin (Jump to section)
- Who CFI Markets is (and isn’t) suitable for (Jump to section)
- An in-depth feature comparison of the top #3 brokers (Jump to section)
- An overview on bafin (Jump to section)
What is the Best Trading Platform
CFI Markets scored best in our review of the top brokers for bafin, which takes into account 120+ factors across eight categories. Here's the full list of all the brokers we considered.
The following brokers allow bafin on their platform:
- CFI Markets
Here are some areas where CFI Markets scored highly in:
- 6+ years in business
- Offers + instruments
- A range of platform inc. MT4, Mac, Tablet & Mobile apps
- 24/7 customer service
- Tight spreads from pips
- Used by + traders
- Allows hedging
- 1 languages
- Leverage up to 1:200
CFI Markets offers one way to trade: Forex. If you wanted to trade EURUSD through copy trading or other means, skip to part two.
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
CFI Markets have a B trust score, which is good. This is largely down to them being regulated by Financial Conduct Autority, CySEC, BaFIN, segregating client funds, being established for over 6 years, and much more. For comparison:
Trust Score comparsion
|Regulated by||Financial Conduct Autority, CySEC, BaFIN|
|Uses tier 1 banks|
|Segregates client funds|
The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.
Who CFI Markets is (& Isn’t)
As mentioned, CFI Markets allows you to trade in one way: Forex.
- CFD Trading
- Forex Trading
CFI Markets offer a wide range of instruments to trade including forex pairs, indices, and many other asset classes. In the following section we’ve listed CFI Markets’s spreads for a range of popular instruments. You can also see a more detailed breakdown of how CFI Markets’s spreads compare in this CFI Markets review
Finally, CFI Markets isn't available in the following countries: .
A Comparison of CFI Markets vs. vs.
Want to see how CFI Markets stacks up against and ? We've compared their spreads, features, and key information below.
Spread & fee comparsionThe spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
|FTSE 100 Spread|
Comparison of account & trading features
|Accounts offered||Mini account, Islamic account, standard account, VIP account|
|Platforms||MT4, Mac, Tablet & Mobile apps|
|Risk management features||Limit order, one click trading and trailing stops|
|Funding methods||Credit cards, Bank transfer, PayPal, Neteller,|
Federal Financial Supervisory Authority – BaFin
BaFin is the primary institution in Germany responsible for the supervision of financial services, such as securities trading.
BaFin operates autonomously, on a set of by-laws that govern its organisation, structure, rights, and obligations. It also strictly adheres to its mission statement, which states that BaFin’s function is to limit risks to the German financial system at both the national and international level and to ensure that Germany as a financial centre continues to function properly and that its integrity is preserved.”
History of BaFin
The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – or BaFin as it is better known), was founded on 1st May, 2002 when the Federal Banking Supervisory office merged with the Federal Insurance Supervisory Office and the Federal Securities Supervisory Office.
The passing of the Financial Services and Integration Act (Gesetz über die integrierte Finanzaufsicht, or FinDAG) became the basis for the foundation of BaFin. The purpose of this legislation was to form a single, central financial regulator that could oversee all financial markets and institutions. The formation of BaFin ensured all-encompassing supervision of financial service providers, credit institutions, banks, stock exchanges, insurance companies, and brokers. This model was designed to provide greater transparency and manageability, as well as to ensure that all financial activities were regulated.
From November 2014, a Single Supervisory Mechanism (SSM) was put in place to supervise significant institutions throughout the Eurozone. This means that for the German institutions that fall within the criteria for supervision from the SSM, BaFin has been working closely with the European Central Bank (ECB) to carry out its supervisory functions.
BaFin plays a vital role in maintaining an environment of trust between financial institutions and their customers. It operates in the public interest, with its primary motive being the proper integrity, functioning, and stability of the financial system in Germany. The following objectives and responsibilities are defined in the regulator’s mission statement:
A focus on systemic importance and risk
A distinctly European and international identity
Collective consumer protection
provision of specialist advice to national, European and international decision-makers
Clarity and transparency
Through the mission statement, BaFin strives to establish Germany as a stable financial centre on a global level and to solidify consumer protection through regulations.
BaFin are responsible for ensuring that providers are acting in the best interests of their clients and that they remain solvent. This, in turn, helps them to carry out their duties towards clients and consumers, ensuring their confidence in providers of financial services, as well as in the financial markets and the companies operating them.
Role of BaFin in the Forex/CFD online trading industry
BaFin is responsible for the supervision of all financial institutions operating in Germany, including Forex/CFD (contracts for difference) brokers. In order to offer their services in Germany, brokers need to obtain authorisation from BaFin.
BaFin has significant concerns regarding CFDs with an additional payments obligation and issued a General Administrative Act restricting the marketing and distribution of such products.
A unique characteristic of BaFin as a financial regulatory body is that it offers assistance with customer complaints against financial service providers. The majority of prominent European regulators, including the CySEC in Cyprus and the FCA in the UK, do not offer such assistance.
Advantages of Using a BaFin Regulated FX Broker
BaFin have one of the most stringent regulatory policies in the EU. To qualify for authorisation by BaFin, brokers are required to meet the highest standards. All brokers are directly supervised by BaFin and are required to adhere to the guidelines that form a part of the German Securities Trading Act. Since the central powers for regulation have been vested in BaFin, it has been remarkably successful in reducing financial fraud, which in turn has led to a growth in the trust and confidence in financial markets from consumers.
BaFin’s strict regulation rules require a broker to have a minimum capital of €750,000, solid credit worthiness, periodic audits, and financial statements to monitor their conduct.
Popular online brokers, XTB, are authorised and supervised by BaFin. IG Markets also provide their services in Germany with aspects of their provision governed by the German regulator, making them suitable for traders from Germany.
Overall, BaFin has been remarkably successful in its aim to make Germany a stable financial market. Since its formation in 2001, it has grown its sphere of operations and as of now, it is responsible for the supervision of all financial institutions in Germany.
Due to the central nature of power and the customer-oriented approach of BaFin, it has dramatically improved the consumers’ confidence in the financial markets.
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