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# Safe Online Broker: How to Verify License and Authorization in Germany
When evaluating online brokers operating in Germany, the most important first step is independent verification. A broker's marketing website, brand name, and sales pitch tell only part of the story. The regulatory truth — the firm's actual legal authorization and scope of business — lives in one place: the BaFin Company Database.
For regulated forex brokers and CFD providers, the central check is the authorised legal entity serving clients in Germany—not simply a BaFin reference. Many fraudulent or clone websites use confusingly similar brand names to real, authorized firms. BaFin warns that identity misuse can occur on websites that present contradictory company information. The only protection against this is direct verification of the actual legal entity.
Before banks, financial services providers, asset management companies, insurers or pension funds can commence operations, they need written authorisation from BaFin. You can search for companies which hold an authorisation by clicking the Database of companies link. In addition to the name and address of a particular company, the search results will also provide information on its activities and the types of authorisation it holds.
Start at the official BaFin Unternehmenssuche (Company Search). Enter the legal entity name of the broker — not its brand name. For example, if a broker trades as "TradePro Germany," search for its registered legal entity, which might be "TradePro Financial Services GmbH" or similar.
If you wish to search for a particular part of a company name other than the beginning, please enter the wildcard * before the search term. This allows flexible searching if you're unsure of the exact legal name.
When the database returns a match, it will show:
1. Match the legal entity to the website: The broker's Terms & Conditions or About Us page should name the same legal entity that appears in BaFin's database. If the website refers to a different company, this is a red flag.
2. Check authorization type and scope: Not all authorized firms can offer all products. A firm licensed only for securities brokerage cannot legally offer derivatives or forex trading to retail clients. Verify that the broker's claimed services match its authorized scope.
3. Verify ongoing authorization: At the moment only active authorisations under the German Investment Act (InvG) and KAGB are displayed. An active listing means the firm currently holds a valid authorization. Absence from the database means the firm is not authorized in Germany.
Verification doesn't stop at finding the legal entity in BaFin's records. Read the broker's Key Information Documents (PIDs under MiFID II) and Terms & Conditions — these are legally binding disclosures that reveal how client funds are held, what protections apply, and what costs are charged. Deposits of retail clients, partnerships and corporations are guaranteed up to the amount of €100,000 per depositor under Germany's deposit protection scheme, but this protection applies only to eligible deposit business at authorized credit institutions, not to all brokers or all account types.
Structured broker evaluation rests on this same foundation: public regulatory data, independently verified. StockBrokerAnalyzer.com exists to help investors understand how to evaluate brokerage platforms using publicly available information and transparent, repeatable criteria. Unlike casual broker reviews or affiliate-driven comparisons, the site focuses on how the brokerage industry actually works—regulation, investor protection, account operations, and the mechanisms that matter to your money. Instead, it's a knowledge centre explaining what to look for and how to verify broker claims independently using official regulatory sources.
Before funding any brokerage account, use the BaFin Company Database to verify the broker's legal entity, authorization status, and permitted scope of business. A few minutes of independent verification can prevent costly mistakes. The database is free, current, and maintained by Germany's financial regulator — it is your most reliable source for the facts that matter.
Analysis, not investment advice.
