Bafin warns against foreign trading platforms

Federal Financial Supervisory Authority (Bafin) has warned against entering into transactions, particularly involving CFDs (contracts for difference), binary options and so-called forex-trading, via online trading platforms operated by unlicensed providers.

The regulator has named three providers of illegal trading platforms: Gum Ltd. ( and Pairs Ltd. (, both based in the Marshall Islands. The third company is the BP1 LP ( based in UK.

All platforms lack the permission to trade required under section 32 (1) KWG.

“If a website is in German, offers customer support in German and German telephone numbers are provided, this does not necessarily mean the company is domiciled in Germany,” said the authority.

The operating companies usually do not hold authorisation to target the German market or to conduct business in Germany.

Ridhima Sharma
Ridhima Sharma speaks German and is DACH Correspondent for InvestmentEurope. She has more than 8 years of experience in the media industry. Before joining us, she was working in India and covering automotive and lifestyle sectors. Over the years many of her stories have been published in various magazines across India.

Read more from Ridhima Sharma

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