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.
- FP Markets, ECN trading with leverage up to 1:500.
- Pepperstone, Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platform.
- Axi, Spreads starting from 0.0 pips + 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
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
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformPepperstone, founded in 2010 and headquartered and regulated in Australia, the U.K., and Dubai, is probably the most well-known ECN Forex broker in the world. As an ECN broker, Pepperstone offers raw spreads and low commissions. Taken together, Pepperstone’s “Razor” account offers one of the most competitive costs of trading in Forex that you will find anywhere. In addition to their global headquarters in Australia, Pepperstone also have presences in London, England, where they enjoy full regulation by the Financial Conduct Authority (FCA), and in Dubai, where they are regulated by the Dubai Financial Services Authority (DFSA). Pepperstone is also regulated by the Cyprus Securities And Exchange Commission (CySEC) in Cyprus, the Capital Markets Authority of Kenya (CMA) in Kenya, the Securities Commission of The Bahamas (SCB) in The Bahamas and the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in Germany.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
Axi
In Summary Spreads starting from 0.0 pips + leverage up to 1:500Pros & Cons
- No minimum deposit and high leverage for most international traders
- Autochartist plugin for MT4 and API trading for algorithmic traders
- AI-powered third-party trading analytics platform PsyQuation
- Excellent trading costs and social trading plus educational resources in 24 languages
- Limited asset selection
Top Denmark Forex Brokers Comparison
| | | | | |
Regulators | FMA, FSA | ASIC, CySEC, FCA, SCB | ASIC, CMA, CySEC, FSCA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | N/A |
Year Established | 2014 | 2009 | 2005 | 2010 | 2007 |
Execution Type(s) | ECN/STP, No Dealing Desk | ECN/STP, Market Maker | ECN/STP | No Dealing Desk, NDD | ECN/STP, Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.3 pips | 1.0 pips | 1.2 pips | 1.1 pips | 1.2 pips |
Average Trading Cost GBP/USD | 2.0 pips | 1.2 pips | 1.4 pips | 1.4 pips | 1.3 pips |
Average Trading Cost Gold | $0.90 | $0.12 | $0.16 | $0.15 | $0.16 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Trading View | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, Web-based, ATpro platforms |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Visit Website | Visit Website | Get Started Visit Website75-95% of traders on margin lose | 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.
