Forex Trading in Denmark

Contributor, Benzinga

Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.com or CedarFX.

Denmark and the other Nordic countries in the European Union (EU) all have very strict financial regulations that pertain to the forex market. While this may limit the number of brokers willing to deal with Danish clients, the big benefit to Danish traders includes the security of their funds and the solvency and reliability of the forex brokers that accept clients from Denmark. 

Keep in mind that not all forex brokers are created equal, so determine your needs as a trader first before selecting a broker to trade through. Once you know your needs, you have a higher likelihood of finding the right broker to fulfill them. 

If you think you’re prepared to start trading forex from Denmark, then the next step is to formulate a viable trading strategy that you can incorporate into a trading plan. Keep reading for more info on how to trade forex from Denmark and find the best online forex broker that accepts Danish clients.  

Get Started with Forex in Denmark

Getting started as a forex trader in Denmark is relatively easy. Just follow the simple steps to open a brokerage account outlined below so that you can trade forex online. 

  1. Obtain a reliable device such as a smartphone, tablet or computer that you can connect to the internet. 
  2. Research which online forex brokers accept clients from Denmark. 
  3. Apply for and open a margin account with the broker of your choice. 
  4. Use a deposit method accepted by the broker to fund your account.
  5. Download the broker’s proprietary trading platform software or get access to another platform that the broker supports. 
  6. Make your first trade. 

Once you’ve completed these steps, you’ll have a funded trading account with an online forex broker, so you’ll be ready to trade currencies from Denmark. 

Denmark Forex Trading Strategies

The next key step consists of developing a profitable trading strategy to improve your chances of success when trading forex. Your choice of strategy could depend on your level of experience, your personality type and the time available for you to trade. 

Some of the most popular trading strategies that have yielded positive results for traders are listed below:

Day trading: This strategy limits all of the trader’s transactions to a single trading session. Day trading involves using a variety of trading techniques, although all trades are closed at the end of the trading session to avoid additional overnight risk. 

News trading: News traders try to profit from strong moves in exchange rates often seen after the release of sensitive economic or other news.

Scalping: This technique aims to profit from extremely short-term market moves. The scalper typically enters and exits the market quickly to capture small profits. 

Swing trading: Also known as momentum trading, swing traders generally use momentum technical indicators like the relative strength index (RSI) to anticipate highs and lows in the market so that they can position accordingly. Since the strategy has no time constraints, swing traders can take overnight positions.

Trend trading: Identifying an overall trend and taking a position in the market is the basis for this often long-term strategy. Trend traders typically establish positions along with the trend and stay in the trade until the end of the trend when they close out their positions.

Forex Trading Example in Denmark

Denmark’s national currency is the Danish krone that has the ISO code DKK and the currency sign “kr.” The Danish krone is further broken down into 100 smaller units known as øre. 

The krone is pegged to the EU’s euro within the ERM II, and the Danish central bank, known as Danmarks Nationalbank, issues the krone and manages its value. According to the Bank for International Settlements (BIS), the DKK ranked 22nd in forex market turnover with a market share of 0.6% among global currencies in April 2019.

A recent quote for the USD/DKK exchange rate was 6.50 Danish krone to 1 U.S. dollar. If you expect the USD/DKK exchange rate to rise in future, then you could buy 100,000 U.S. dollars versus the Danish krone today at that 6.50 exchange rate. 

If your view turns out to be correct and the USD/DKK exchange rate rallies to 6.55, then your trading gains could be computed as follows:

100,000 USD x (6.55-6.50 DKK/USD) = 5,000 DKK

To convert that amount of Danish krone to U.S. dollars, you would use this calculation:

5,000 DKK ÷ 6.55 DKK/USD = 763.36 USD

On the other hand, if your view turned out to be wrong and the USD/DKK exchange rate fell to 6.45, your trading loss would be calculated as follows:

100,000 USD x (6.45-6.50 DKK/USD) = -5,000 DKK

When converted into U.S. dollars at the current exchange rate, that loss would be:

-5,000 DKK ÷ 6.45 DKK/USD = -775.19 USD

Making Money with Forex in Denmark

The key to making money trading forex from Denmark involves developing a successful trading plan. The core of this plan should consist of a profitable trading strategy, but you’ll also need sound rules for position sizing and managing your money, as well as the discipline required to stick to your plan. 

Coming up with a good trading strategy incorporated into a decent trading plan takes time and effort, but you’ll find the rewards worthwhile. Remember, strategies that show initial promise might ultimately yield lackluster results as market conditions shift.

If all of that advance planning lies outside your current skill set, then you can also easily get started trading forex by following a forex trader with a proven track record. All you will need to do is open an account with a broker that supports that form of copy trading. 

Best Online Forex Brokers in Denmark

If you’re based in Denmark, your options for a forex broker include many top-level online brokers that meet the strict requirements of the local regulatory authority, Finanstilsynet or the Danish Financial Supervisory Authority (FSA). Danish FSA-regulated forex brokers can be found on the FSA Company Register. 

Even if the broker lacks oversight from the Danish FSA, under EU law Danish traders can still access the forex market through any broker regulated in another EU jurisdiction within the European Economic Area. Furthermore, the European Securities and Markets Authority (ESMA) provides considerable protection for traders within the framework of its Market in Financial Instruments Directive II (MiFID II) and Markets in Financial Instruments Regulation (MiFIR).

If you’ve never traded or are completely unfamiliar with the forex market, many of the top forex brokers offer excellent educational resources. You can browse among the following online brokers available to Danish traders to find the one best suited for your needs and experience level. 

Get started securely through AvaTrade’s website
Account Minimum
100 EURO
Pairs Offered
50+
1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
get started securely through eToro’s website
Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Account Minimum
$50 USD
Pairs Offered
47
1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
get started securely through FOREX.com’s website
Account Minimum
$100
Pairs Offered
80+
1 Minute Review

FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
get started securely through IG Markets’s website
Account Minimum
$250
Pairs Offered
87
1 Minute Review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.  

Best For
  • New forex traders who are still learning the ropes
  • Traders who prefer a simple, clean interface
  • Forex traders who trade primarily on a tablet
Pros
  • Easy-to-navigate platform is easy for beginners to master
  • Mobile and tablet platforms offer full functionality of the desktop version
  • Margin rates are easy to understand and affordable
  • Access to over 80 currency pairs
Cons
  • U.S. traders can currently only trade forex
  • Customer service options are lacking
  • No 2-factor authentication on mobile
get started securely through Saxo Bank’s website
Account Minimum
Depends on region
Pairs Offered
200
1 Minute Review

Saxo Bank lets traders trade on a high-performing platform with access to over 40,000 financial products, plus everything needed to make an informed decision about putting plans into action. At Saxo Bank, you navigate market turns via curated investment themes, expert market commentary, alerts to your phone, charting tools and in-depth webinars.

Best For
  • Serious forex traders
  • Investors seeking a one-stop-shop for standard, crypto and derivative investments
  • Inquisitive learners
Pros
  • Abundant, broad, unparallelled market analysis and insight
  • Investment platforms that outstrip competitors
  • Free trial with accessible demos
  • Unique analytics tools, like Thought Starters, offering exclusive trading approaches
  • Several platforms fit for beginning investors to day traders
Cons
  • Not available to U.S. & Canadian clients
  • Extensive options, platforms and research tips could overwhelm users
get started securely through FXCM’s website
Account Minimum
$/€/£300
Pairs Offered
40
1 Minute Review

Founded in 1999, London-based Forex Capital Markets or FXCM is a major international online forex and contracts for difference (CFD) broker that also provides spread betting and related services. The broker offers its clients innovative trading tools, proprietary data and premium educational resources. In addition, FXCM provides retail brokers, emerging market banks and small hedge funds access to wholesale execution and liquidity through FXCM Pro, while medium- and high-frequency funds can access FXCM’s quality brokerage services via FXCM Prime. 

You can choose from among several excellent trading platforms and can access copy trading through FXCM’s social trading platform and automated trading via FXCM Apps and MetaTrader4 (MT4). If you want to trade assets other than forex, FXCM also offers CFD trading in shares, metals, oil, commodities, indices and cryptocurrencies.  

Best For
  • Traders who prefer advanced trading platforms and tools
  • Active or high-volume traders
  • Traders who require superior customer support
Pros
  • Multiple trading platforms, including MT4
  • Quality pricing and execution services
  • Extensive educational resources
Cons
  • Does not accept clients from the U.S.
Get started securely through Pepperstone’s website
Account Minimum
AUD$200 or equivalent
Pairs Offered
60+
1 Minute Review

Pepperstone is an Australian broker focused on providing international forex, CFD and cryptocurrency trading. Though U.S. traders currently cannot open an account with Pepperstone, the broker remains an affordable and comprehensive option for international traders. 

Pepperstone offers traders access to over 61 forex markets, over 60 CFDs for index funds and stocks and 5 cryptocurrencies. Leverage options with Pepperstone are extensive; you may qualify for up to 500:1 leverage when trading currencies and up to 5:1 leverage when trading cryptocurrencies, for example.

There are a few areas where Pepperstone can afford to improve. We’d love to see Pepperstone add its own trading platform in the future instead of relying entirely on 3rd-party platforms. We’d also love to see direct stock and fund purchase options in the future. Despite these flaws, Pepperstone remains a very strong choice for international traders.

Best For
  • International traders interested in trading CFDs from foreign markets and currencies
  • Traders who are already familiar with the MetaTrader or cTrader platforms
  • Traders who are looking for leverage when trading cryptocurrencies
Pros
  • Access to over 61 forex pairs and over 60 stock CFDs
  • Leverage available for both forex and cryptocurrency trading
  • Wide range of educational tools and courses that both beginners and experts can use
  • 24/7 customer service
Cons
  • Not currently available to U.S. traders
  • No option to purchase stocks, bonds or mutual funds directly; only CFDs are available
get started securely through Vantage’s website
Account Minimum
$200 – $20,000 depending on account type
Pairs Offered
40+
1 Minute Review

Vantage FX offers services that grant clients fast access to the global forex market and share CFDs through its MetaTrader platform suite, WebTrader and proprietary mobile app. Additional investment instruments in its offering include indices, commodities and cryptocurrencies. However, the company still trails behind other key industry leaders in the area of research and educational material as well as mobile app capability.

Best For
  • Traders that trade medium to high volume
  • Traders who want top-tier liquidity
  • Beginner traders who require access to financial markets
  • Intermediate and advanced traders with a small amount of capital
  • Islamic traders
  • Scalpers, swingers and long-term traders
Pros
  • Low trading fees
  • 50% welcome bonus
  • Fast trade execution
  • Free forex signals
  • Negative balance protection
  • 24 hours support
  • Fast account opening
  • Easy deposit and withdrawal
  • ASIC, CIMA, FCA and VFSC Regulation
Cons
  • No Canadian or US clients due to CFTC regulations
  • Product range could be increased
get started securely through Moneta Markets’s website
Account Minimum
$50
Pairs Offered
45+
1 Minute Review

Moneta Markets allows users to trade on primary financial instruments that include forex, share CFDs, indices, commodities and cryptocurrencies through their custom web and mobile platforms. However, due to CFTC regulations that make it impossible for US citizens to trade with offshore brokers, the platform is unavailable for US traders.

Best For
  • Beginners, intermediate and advanced traders
  • Scalpers, swingers and long-term traders
  • Traders looking for an all-in-one trading platform.
  • Islamic traders looking for a swap-free trading platform.
Pros
  • 4 platforms: MT4, MT5, next-gen WebTrader and AppTrader platforms
  • Wide range of financial instruments
  • Outstanding analytical and educational tools
  • Very competitive low spreads
  • 50% deposit bonus on $500+ live trading account
  • $0 deposit fees
  • It does not require any download
Cons
  • Unavailable for US clients
  • Offshore regulators may not guarantee adequate protection
get started securely through Eightcap Forex’s website
Account Minimum
£/€/$100
Pairs Offered
40+
1 Minute Review

Eightcap forex is an Australia based forex and CFD broker with an offshore entity in Vanatau. The broker supports the MetaTrader 4 and 5 trading platforms and lets you trade over 200 financial instruments that include forex pairs and some CFDs on shares, indices and commodities. The broker offers customer support in several languages and caters to traders at all levels of expertise. You can trade through Eightcap in over 194 countries worldwide, but not if you are based in the US. 

Best For
  • MetaTrader 4 and 5 traders
  • Active traders looking for low costs
  • Traders looking to automate their strategies
Pros
  • MetaTrader 4 and 5 trading platforms
  • Low forex dealing spreads
  • Free deposit and withdrawals
  • Up to 500:1 leverage available to some traders
Cons
  • No U.S. clients accepted
  • No negative balance protection

Is Trading Forex from Denmark for You?

No matter whether you wish to trade forex from Denmark or anywhere else, you’ll need market knowledge, a successful trading strategy and enough discipline to follow your trading plan. Traders who meet those requirements generally stand a far better chance of trading forex profitably. 

Any broker you select to trade through from Denmark should have strict oversight by a respectable financial regulator. You can browse through our list of recommended brokers today to start the process of opening a forex trading account.

Get a Forex Pro on Your Side

FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade. 

You can also tap into:

  • EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
  • Powerful, purpose-built currency trading platforms
  • Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program

Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.