What Changes from 2025?
The Federal Financial Supervisory Authority (BaFin) has announced new regulations for trading derivatives and options. These take effect on January 1, 2025 and primarily affect retail investors.
Important to know:
The new regulations aim to better protect retail investors from risks and increase transparency in options trading. Some changes may affect your trading strategy.
The 5 Most Important Changes
Extended Suitability Assessment
From 2025, brokers must conduct a more comprehensive assessment of retail investors' knowledge and experience before granting access to options trading.
What does this mean for you?
- ▸More detailed questionnaire when opening account
- ▸Proof of basic knowledge required
- ▸Possible 24-hour waiting period before first trade
Leverage Restrictions for New Customers
New customers without proven experience are subject to stricter leverage restrictions for the first 6 months.
First 6 months:
- • Max. leverage: 1:10
- • Max. position: 5% of capital
After 6 months:
- • Normal limits
- • With proven experience
Extended Risk Warnings
Brokers must display clear risk warnings before each trade, especially for complex strategies.
New Warning Requirements:
- ▸Warning when position size > 5% of capital
- ▸Notice of maximum loss before trade
- ▸Daily risk summary via email
Improved Cost Breakdown
All costs (spreads, commissions, financing costs) must be displayed transparently and in real-time.
Advantage: You immediately see what costs are incurred in a trade and can make better decisions.
Negative Balance Protection Mandatory
All brokers must offer negative balance protection. You cannot lose more than your deposit.
This protects you:
Even in extreme market movements (e.g., flash crash) you can lose at most your deposit – margin calls are excluded.
Impact on Trading Strategies
Still Allowed
- ▸Covered Calls: No restrictions
- ▸Credit Spreads: Tradeable unchanged
- ▸Iron Condors: Still possible
- ▸Long Options: No new restrictions
With Restrictions
- ▸Naked Options: Higher margin requirements
- ▸Leveraged Products: Max. 1:10 for new customers
- ▸Futures: Additional proof of experience required
Implementation Timeline
Entry into Force
All main regulations take effect. Brokers must implement new requirements.
Existing Customer Review
Brokers contact existing customers for updated suitability assessment.
Full Implementation
All brokers must be fully compliant. BaFin begins controls.
What You Should Do Now
1. Review Your Broker Account
Make sure your experience and knowledge information is up to date. Use brokers like Libertex that are already BaFin-compliant.
2. Document Your Trades
A trading journal helps with suitability assessment and shows your experience.
3. Use Educational Resources
Many brokers offer free courses. These can help with suitability assessment.
4. Adapt Your Strategy
If you're a new customer: Focus on conservative strategies like covered calls in the first 6 months.
Frequently Asked Questions
Do the regulations also affect existing customers?
Yes, partially. Existing customers must undergo a new suitability assessment but have no waiting periods. Leverage restrictions only apply to new customers from 2025.
Can I still trade with EU brokers?
Yes. BaFin regulations apply to all brokers offering services to German customers – regardless of location.
What happens if regulations are violated?
Brokers can be fined up to 5 million euros. Retail investors bear no direct responsibility but should know the regulations.
Trade BaFin-Compliant with Libertex
Libertex already meets all new BaFin requirements. Start safely and regulated!
Open Account NowNotice: This article is for informational purposes only and does not constitute legal advice. The regulations presented may change. Please check directly with your broker and on the BaFin website for current regulations.