If you are looking for a suitable broker - for whatever type of securities - you should pay attention to these warning signals:
No imprint
Promises of high returns and "easy" profits
No warnings, risk warnings for securities trading
Negative user experiences, warnings from the consumer advice centre
Poor customer service, no German contact persons
No deposit protection
No licensing by independent control institutes (BaFin, CySEC, FCA)
Customer service & availability
24/7 customer service is not a must, but availability must be there.
German customer service is not a must, but a clear sign of seriousness
Bad customer reviews on service can be a bad sign
A good, reputable broker is committed. Customer service does not always have to be available 24/7, but accessibility is important. Customer opinions also count here. If there is no contact person, or if no one answers the telephone number or e-mail address in the imprint, then you can assume that it is not a trustworthy provider.
Regulation and deposit protection
Within the EU, a deposit guarantee of €100,000 must be guaranteed.
Outside the EU, different rules apply. Your money may not be protected at all
Many CFD, Forex or crypto brokers are based in Cyprus. Here there is a legal deposit guarantee of 20.000€.
Without licensors such as BaFin (Germany), FCA (Great Britain) and CySEC (Cyprus), caution is advised.
The protection of one's own assets is very important and in case of insolvency of the company or embezzlement one wants to know that one's money is in good hands.
We advise against providers who explicitly do not provide any information on deposit protection. The €100,000 deposit guarantee, which is compulsory in the EU, does not apply in every country. This is especially important if you have large sums in accounts that are not in the EU.
An example is Cyprus. Many providers like exness forex broker login for CFD, Forex and crypto trading have their headquarters in Cyprus.
The reason for this is that Cyprus has different rules on the financial market than the EU. Cyprus is one of the few countries that allow and control e.g. binary options brokers.
CySEC
In Cyprus, financial companies are controlled by CySEC. This has strict regulations and controls. A broker that has received a licence from CySEC is not necessarily better than others, but it is a good sign.
FCA
Other brokers are often based in the UK. There, the FCA regulates all financial firms. The independent institute is considered strict and highly respected. A broker licensed by the FCA is more reputable than others.
BaFin
In Germany, BaFin controls what happens in the financial sector. It regularly and independently controls the quality and seriousness of financial companies. BaFin enjoys a good reputation worldwide. A BaFin licence is practically indispensable for the classic trading of ETFs, funds, shares and certificates. Risky financial transactions such as CFDs, Forex or binary options are almost not recognised by BaFin at all because the risk of loss is very high.
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