Germany's leveraged trading market has reversed course, growing 3% to reach 63,000 active CFD and forex traders in the 12 months to February 2025, according to a new report from market research firm Investment Trends.

The increase marks the first positive growth after three consecutive years of contraction following the pandemic-driven peak in 2021.

German CFD/FX Trading Market Grows for First Time in Three Years

The number of traders in Germany's CFD/FX market remains 25% below the COVID-era high of 84,000 recorded in March 2021, but the latest figures suggest the market may finally be stabilizing after a prolonged adjustment period.

"This marks an important turning point for Germany's CFD/FX market," said Lorenzo Vignati, Associate Research Director at Investment Trends. "The market has weathered a difficult period of contraction, but we're now seeing signs of sustainable recovery."

However, 63,000 is still a relatively small number compared to the 1.8 million active online investors in Germany, according to a separate report by Investment Trends published in early April. The report also showed that as many as 16% of respondents had changed or were in the process of changing their broker.

The rebound in FX/CFDs client base has been driven by a combination of factors, including the reactivation of dormant traders and improved retention rates. The report, based on a survey of 11,680 investors conducted between January and February 2025, revealed changing dynamics in how new participants enter the leveraged trading market.

From ETFs to CFDs

While shares and ETFs remain the primary gateway to trading for most Germans (72%), the pathways are diversifying. Among new entrants to CFD/FX trading, 33% now come with experience in listed derivatives and 27% arrive from cryptocurrency markets – signaling an evolution in trader profiles and expectations.

"The profile of the new leveraged trader in Germany is evolving," Vignati noted. "They're arriving more informed, more product-aware, and with different expectations of what a trading platform should deliver."

The German market's recovery comes after a period of significant volatility. After reaching a pandemic-driven peak of 84,000 traders in March 2021, the market experienced three consecutive years of decline, with dormancy rates fluctuating between 37% and 39%. This year's positive growth suggests the market may have found its footing after the extended correction period.

“Cross-Sell Appetite in Germany Is Strong”

The report also highlighted significant untapped potential for brokers to cross-sell products. Despite 84% of German CFD/FX traders expressing openness to using additional services from their main provider, only 26% of multi-asset traders currently consolidate their trading and investing on a single platform.

This disconnect points to a substantial opportunity for trading platforms that can create more seamless experiences.

"Cross-sell appetite in Germany is strong, but the experience gap is real," said Vignati. "To unlock value, providers need to build platforms that genuinely integrate trading and investing."

Moreover, the German leveraged trading market has demonstrated resilience over the long term, growing from 51,000 traders in April 2012 to the current 63,000 – representing 23.5% growth over 13 years despite significant fluctuations along the way.

Germany vs. the Rest of the World

How does the German CFD market compare to other major jurisdictions? In Hong Kong, around 100,000 individuals are engaged in trading such instruments.

Germany, however, fares better than Singapore, where only 38,000 people executed leveraged trades in 2024. The popularity of the FX/CFD market is also declining in France, where 29,000 people currently trade these instruments—down from a peak of 38,000 during the pandemic.