Forex trading in Denmark continues to expand, led by its national champion, the global financial firm Saxo Bank.
Before Danish Forex traders can open accounts with some of the best Forex brokers in Denmark, they must understand what to look for. They also need to consider the regulatory environment dictated by the ESMA, learn about applicable taxes, and explore the pros and cons of Forex trading in Denmark.
I have outlined the core aspects and provided a brief guide on getting started to avoid beginner mistakes and shorten the learning curve. Are you ready to start Forex trading in Denmark? Read this guide to jumpstart your journey and get ahead of the crowd.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- Eightcap, Competitive pricing + excellent daily videos.
- ACY Securities, Swap-free trading with the MT5 trading platform.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingI rank BlackBull Markets among the best Forex brokers in Denmark as it delivers a competitive ECN environment with commission-based accounts featuring trading fees between $4.00 and $6.00 per lot. Traders also benefit from institutional-grade trading conditions with Equinix servers located in New York (NY4), London (LD5), and Tokyo (TY3), resulting in an average order execution speed of less than 75 milliseconds.
BlackBull Markets provides ultra-deep liquidity via the data feeds of 66+ third-party providers. BlackBull Markets CopyTrader caters to copy traders alongside ZuluTrade and Myfxbook Autotrade. MT4, MT5, and cTrader cater to algorithmic traders, while social traders get TradingView.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap upgrades MT5 with its FlashTrader plugin, offering active traders an advantage. The AI-powered economic calendar ensures traders have an edge in navigating economic events. Social traders can connect their Eightcap trading accounts to TradingView, where 50M+ peers share ideas, exchange trading recommendations, and discuss the financial markets. It makes Eightcap one of the best Forex brokers in Denmark.
The reasonable €100 minimum deposit requirement, payable via bank wires or credit/debit cards, offers traders access to the Raw account. It features minimum spreads of 0.1 pips for a commission of $7.00 per 1.0 standard round and a balanced asset selection.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
ACY Securities
In Summary Swap-free trading with the MT5 trading platformACY Securities offers traders a unique competitive advantage via Capitalise AI, allowing traders to deploy algorithmic strategies in a code-free environment. With an average order execution speed of under 30 milliseconds, deep liquidity, and a well-balanced asset selection, ACY Securities ranks among the best Forex brokers in Denmark. For a $200 minimum deposit, traders receive competitive Forex costs starting with raw spreads from 0.0 pips for a $6.00 commission per 1.0 standard round lot.
Beginner traders get education and research, while copy traders can use third-party provider SoFinX, which has 1,200+ signal providers. MT4 and MT5 cater to algorithmic traders.
Pros & Cons
- Large repository of daily analysis and educational content
- Low spreads starting at 0 pips in the Spread Zero account
- 16 payment processors, including cryptocurrencies
- Competitive trading fees in its commission-based accounts
- Only 1 regulator
FXTM
In Summary Best all-around broker with high floating leverage and fast executionI consider FXTM among the best Forex brokers in Denmark due to the cutting-edge price improvement technology, lowering fees by an average of $3.00 per lot, applicable on 97.18% of all trades. Deep liquidity ensures excellent order execution with an average execution time of 0.071 seconds. Traders get raw spreads from 0.0 pips with a commission of $7.00 per 1.0 standard round lot for a $200 minimum deposit.
In addition to MT4 and MT5, FXTM developed mobile and copy trading apps, FXTM Trader and FXTM Invest. Traders can also sign up to receive actionable trading signals from the Acuity Signal Centre.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets offers Danish Forex traders three DKK currency pairs, including the USD/DKK. Traders get raw spreads from 0.0 pips and average spreads of 9.4 pips or $9.40 per 1.0 standard round lot for a commission of $6.00 per 1.0 standard round lot in the FP Markets Raw account. FP Markets upgrades MT4 and MT5 via a 12-plugin package, placing it among the best Forex brokers in Denmark.
Traders can use cTrader or IRESS and the MT4/MT5 platforms. Social traders can connect with 50M+ peers at TradingView. The minimum deposit is $50, and the maximum leverage is 1:30, payable via five payment processors.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Top Denmark Forex Brokers Comparison
| | | | | |
Regulators | FMA, FSA | ASIC, CySEC, FCA, SCB | ASIC | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA |
Year Established | 2014 | 2009 | 2011 | 2011 | 2005 |
Execution Type(s) | ECN/STP, No Dealing Desk | ECN/STP, Market Maker | ECN/STP, Market Maker | ECN/STP, Market Maker | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.3 pips | 1.0 pips | 1.1 pips ($11.00) | 0.1 pips | 1.2 pips |
Average Trading Cost GBP/USD | 2.0 pips | 1.2 pips | 1.1 pips ($11.00) | 0.2 pips | 1.4 pips |
Average Trading Cost Gold | $0.90 | $0.12 | $0.15 | $0.18 | $0.16 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Trading View | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5 | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Forex Trading in Denmark
Denmark ranks among the happiest and healthiest countries, which many attribute to its exceptional educational and healthcare system. Therefore, Danish Forex traders are well-educated and commit to higher deposits, making Denmark a core market for many brokers. Saxo Bank is the local champion, but Denmark has few domestic online Forex trading brokers. The best Forex brokers in Denmark are headquartered outside of the country. However, they offer Forex traders in Denmark a competitive edge, focusing on algorithmic and copy trading.
How to Start Forex Trading in Denmark
Before trading with the best Forex brokers in Denmark, beginners should consider my tips below to shorten their learning curve and highlight areas of study they must focus on.
Here are my Forex trading tips:
1. Make in-depth education a priority.
2. Approach and respect Forex trading as a highly skilled profession.
3. Master trading psychology, as it separates up to 90% of unprofitable traders from profitable ones.
4. Understand the relationship between leverage and risk management.
5. Leverage will magnify profits and losses.
6. Risk management is as important as a trading strategy.
7. Define a trading strategy that reflects your personality.
8. Low trading fees determine a competitive trading environment.
9. Learn proper Take Profit and Stop Loss placement.
How to Choose a Forex Broker in Denmark
I focused on the below aspects during my research to determine the best Forex brokers in Denmark.
Traders should look for the following:
- Regulation - A clean regulatory track record spanning 10+ years.
- Low trading fees - Competitive trading fees and low swap rates, including positive ones.
- Trading platforms - Algorithmic and copy trading capabilities and a leading mobile trading app.
- Asset diversity - A balanced choice of liquid trading instruments.
- Deposits/Withdrawals - Zero deposit fees and low minimum requirements.
Forex Trading Regulations in Denmark
Danish Financial Supervisory Authority (DFSA) is the domestic financial regulator that ensures all physically present Forex brokers comply with the European Securities and Markets Authority (ESMA) rules and regulations, including the Markets in Financial Instruments Directive II (MiFID II).
The DFSA does not require offshore Forex brokers to hold a license from the DFSA or to have a physical presence in Denmark or the EU. Therefore, the best Forex brokers in Denmark cater to Danish Forex traders from well-regulated offshore jurisdictions.
How Much is Forex Leverage in Denmark?
Since 2018, per ESMA restrictions, retail Forex leverage maxes out at 1:30, while professional accounts get the industry standard of 1:500. Therefore, Danish Forex traders who trade with Forex brokers that operate within the ESMA will trade with a maximum Forex leverage of 1:30. The best Forex brokers in Denmark that operate outside the EU have no upper theoretical upper limit, while generally applying the 1:500 industry-standard.
Forex Trading Taxation in Denmark
Trading with the best Forex brokers in Denmark will offer Danish Forex traders a competitive edge that can help improve profitability. Denmark is a high-tax country and often tops the list of the highest personal taxes, nearing 50% of income in the highest bracket of the progressive income tax system.
During my research to determine the best Forex brokers in Denmark, I found that Denmark taxes Forex income as capital gains, which has a tax rate of 22%, identical to the corporate tax rate. I urge Danish Forex traders to consult a licensed professional for up-to-date tax advice, to improve tax efficiency, and to ensure total compliance with the Danish tax code.
Pros and Cons of Forex Trading in Denmark
Traders should consider the pros and cons of Forex trading in Denmark before funding a trading account with the best Forex brokers in Denmark.
The Pros of Forex Trading in Denmark
- Sufficient trading capital.
- Well-educated trader base.
- Ideal time zone to trade during the most liquid trading periods.
- High-speed and stable internet connection.
- Excellent trading infrastructure.
The Cons of Forex Trading in Denmark
- Restrictive retail leverage if the Forex broker has a physical presence in Denmark.
- Few brokers with products and services in Danish.
- The availability of domestic assets is limited, with few DKK currency crosses at select Forex brokers.
- High trading fees for DKK currency crosses.
Bottom Line
Denmark is a small Forex market but ranks among the wealthiest based on average deposit capabilities by Danish Forex traders. The best Forex brokers in Denmark are well-regulated offshore brokers who consider Denmark a core market. They offer copy trading and social trading. In addition, they offer algorithmic or automated trading and mobile apps.
