| Updated: September 3, 2024If you are a Danish forex trader tired of dealing with shady brokers, this is just the right page for you. Best Brokers has compiled a list of the top-rated forex brokers catering to traders from Denmark. Our ranking is based on extensive analysis that covers all vital aspects of broker operations, including pricing, trading software, market coverage, regulatory compliance, and overall reputability.
The members of our research team collected data across all these parameters to arrive at their final ranking of the best brokers Danes can trade with. The brokers shortlisted below all offer competitive pricing, fair trading conditions, and superior speed of order execution.
They cater to traders from the Nordic country with a versatile range of forex majors, crosses, and exotic currency pairs tradable at tight bid-ask spreads. The toplist is based on empirical data as our research team tested all recommended brokers via live accounts to ensure their services are on par with our high expectations.
Fusion Markets74-89% of retail CFD accounts lose money
FP Markets73.85% of retail investor accounts lose money
Pepperstone75.5% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Capital.com75% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
Tickmill70% of retail investor accounts lose money
XTB80% of retail investor accounts lose money
WeBullDenmark Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. FP Markets | 7,092 | 4.8 ⭐ |
| 3. Pepperstone | 2,789 | 4.7 ⭐ |
| 4. Global Prime | 161 | 4.4 ⭐ |
| 5. Capital.com | 11,249 | 4.3 ⭐ |
| 6. Eightcap | 2,668 | 4.2 ⭐ |
| 7. eToro | 25,095 | 4.2 ⭐ |
| 8. XTB | 1,311 | 3.7 ⭐ |
| 9. Tickmill | 835 | 3.7 ⭐ |
| 10. WeBull | 244 | 1.5 ⭐ |
Denmark Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Tickmill | 0.1 | 0.1 | 0.4 | 0.3 |
| 2. FP Markets | 1.1 | 0.30 | 0.20 | 1.2 |
| 3. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 4. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 5. Capital.com | 0.6 | 10 | 2 | 1.3 |
| 6. XTB | 0.9 | 14 | 1.3 | 2.2 |
| 7. Pepperstone | 1.00 (min) | 1.0 | 1.2 | 1.00 (min) |
| 8. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
| 9. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 10. WeBull | N/A | N/A | N/A | N/A |
Denmark Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. eToro | $0 |
| 2. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| 3. XTB | $0 |
| 4. Capital.com | $0 |
| 5. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 6. FP Markets | $0 Standard Account; $6 round turn on Pro Account |
| 7. Tickmill | $0 on Classic Account; $3 per side on Raw Account |
| 8. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 9. Pepperstone | $0 (Standard Account), $7 round-turn (Razor Account) |
| 10. WeBull | N/A |
Important Note: Online brokers must acquire authorization from the Danish Financial Supervisory Authority or another accredited EU financial regulator to legally offer spot forex trading and contracts for difference (CFDs) to residents of the country.
Top 10 FX Brokers in Denmark
Fusion Markets Broker Details Supports Danish No Denmark Currency (DKK) No Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade Trustpilot Rating 4.9 out of 1,862 reviews Number of Forex Pairs to Trade 90+ Leverage Forex & Metals: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencies: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.07
USDJPY: 0.13
EURGBP: 0.23
GBPUSD: 1.01Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
Global Prime Broker Details Supports Danish No Denmark Currency (DKK) No Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.4 out of 161 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencies: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
FP Markets Broker Details Supports Danish No Denmark Currency (DKK) No Regulators ASIC, CySEC, FSA (Seychelles), FSCA Min Deposit $50 (AU$100) Trading Platforms MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView Trustpilot Rating 4.8 out of 7,092 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 1.1
USDJPY: 0.30
EURGBP: 0.20
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Standard Account; $6 round turn on Pro Account Deposit Methods Visa, Mastercard, Neteller, Bank Transfer, Skill, Sticpay, Fasapay, Virtual Pay, Perfect Money, Pagsmile, Dragonpay, Crypto, Apple Pay, Google Pay, Online Banking, Broker to Broker Withdrawal Methods Visa, Mastercard, Bank Wire, Neteller, Skrill, Paytrust88, PayPal Key Pros
- Offers plenty of educational trading tools
- Broker with competitive spreads
- Allows easy trading on the go
- Regulated by reputable authorities
- Offers a decent number of currency pairs
Key Cons
- Supported trading platforms are a tad outdated
- Could expand selection of products
- No negative balance and investor protection for clients under ASIC
Pepperstone Broker Details Supports Danish No Denmark Currency (DKK) No Regulators UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA Min Deposit $0 Trading Platforms TradingView, MT5, MT4, cTrader Trustpilot Rating 4.7 out of 2,789 reviews Number of Forex Pairs to Trade 90+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.0
EURGBP: 1.2
GBPUSD: 1.00 (min)Forex Commission per Lot per Trade $0 (Standard Account), $7 round-turn (Razor Account) Deposit Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill Key Pros
- Winner of multiple industry awards
- Commission-free FX trades via standard accounts
- Over 1,200 instruments across all major asset classes
- Competitive spreads on FX trades via Razor accounts
- Seamless withdrawals within 1 to 3 workdays
Key Cons
- A somewhat limited range of deposit and withdrawal options
- High swap rates on overnight positions
eToro Broker Details Supports Danish Yes Denmark Currency (DKK) No Regulators FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN Min Deposit $50 or $100 based on country ($10 for the UK) Trading Platforms eToro Investing, eToro App, TradingView, eToro CopyTrader Trustpilot Rating 4.2 out of 25,095 reviews Number of Forex Pairs to Trade 55 Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: Up to 1:2 (European and Australian Retail traders) Up to 1:5 (Pro and FSA traders)Spread EURUSD: 1.0
USDJPY: 1.0
EURGBP: 1.5
GBPUSD: 2.0Forex Commission per Lot per Trade $0 Deposit Methods eToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDeal, Klarna, Bank Transfer, Trustly, Przelewy24 Withdrawal Methods PayPal, Skrill, Visa, Mastercard, Neteller, Trustly, Bank Transfer Key Pros
- Offers trading with over 5,000 instruments
- Ideal for social and copy trading
- No commissions on forex trades
- Effortless registration process
- Offers negative balance protection
Key Cons
- Withdrawals are subject to additional processing fees ($5)
- USD is the only base account currency
- Charges inactivity fees on dormant accounts
Tickmill Broker Details Supports Danish No Denmark Currency (DKK) No Regulators CySEC (No. 278/15), FCA (733772), CONSOB (No.4310), BaFin (No.146511), ACPR (No.75473), CNVM (No.4082), FSA Seychelles (SD 008), FSCA (FSP 49464) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, ZuluTrade Trustpilot Rating 3.7 out of 835 reviews Number of Forex Pairs to Trade 62 Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.1
USDJPY: 0.1
EURGBP: 0.4
GBPUSD: 0.3Forex Commission per Lot per Trade $0 on Classic Account; $3 per side on Raw Account Deposit Methods Bank Transfer, Skrill, Mastercard, Visa, PayPal, Przelewy24, Neteller, Trustly Withdrawal Methods Mastercard, Visa, Skrill, Neteller, Przelewy24, PayPal, Bank Transfer Key Pros
- Offers swap-free accounts for Islamic customers
- No commissions on FX trades via Classic accounts
- Global presence in over 180 countries
- FX spreads from zero pips on Raw accounts
- Swift order execution with no requotes
Key Cons
- Could use more base account currencies
- Bank-transfer deposits below $5,000 incur extra fees
Eightcap Broker Details Supports Danish No Denmark Currency (DKK) No Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, TradingView Trustpilot Rating 4.2 out of 2,668 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.1
EURGBP: 1
GBPUSD: 1Forex Commission per Lot per Trade $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac Key Pros
- Commission-free FX trading via standard accounts
- Spreads from 0 pips on major currency pairs
- Accepts cryptocurrency deposits
- Fantastic variety of deposit and withdrawal methods
- Insights section with webinars, trade ideas, and weekly forecasts
Key Cons
- Below-average range of tradable instruments
- Crypto withdrawals incur transaction fees
WeBull Broker Details Supports Danish No Denmark Currency (DKK) No Regulators SEC, FINRA, SFC Min Deposit $0 Trading Platforms Webull Desktop, WebTrade, WeBull Mobile App Trustpilot Rating 1.5 out of 244 reviews Number of Forex Pairs to Trade N/A Leverage Forex & Metals: N/A
Index CFDs: N/A
Cryptocurrencies: N/ASpread EURUSD: N/A
USDJPY: N/A
EURGBP: N/A
GBPUSD: N/AForex Commission per Lot per Trade N/A Deposit Methods ACH, Bank Wire Withdrawal Methods Bank Wire Key Pros
- Regulated and trustworthy broker website
- Offers proprietary platform suitable for beginners and experienced traders
- Enables smooth trading on the go via the Webull app
- ACH deposits allow real-time verification for faster transactions
- There is no minimum set on deposits
Key Cons
- Does not support popular platforms like MT4 and MT5
- Crypto trading has been moved to a separate account type
- Does not offer Forex trading options
XTB Broker Details Supports Danish Yes Denmark Currency (DKK) No Regulators FCA (License No. FRN 522157), CySEC (License No.169/12), FSC (FSC License No.: 000302/438), IFSC (License No.: 000302/46.), KNF (N/A), CNMV (N/A), BaFin (N/A), FSCA (N/A), FSA (N/A) Min Deposit $250 Trading Platforms xStation 5, xStation Mobile Trustpilot Rating 3.7 out of 1,311 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.9
USDJPY: 14
EURGBP: 1.3
GBPUSD: 2.2Forex Commission per Lot per Trade $0 Deposit Methods Visa, Maestro, Mastercard, Bank Transfer, Neteller, Skrill, PayPal, Ecommpay, PayU Withdrawal Methods Bank Transfers, Visa, Mastercard, Skrill Key Pros
- Bears the seal of approval of both the FCA and the KNF, along with other regulators
- Mobile-friendly platform
- Offers negative balance protection
- Standard users are not charged commission when it comes to forex
- Low fees
Key Cons
- Traders from the US cannot register and trade at XTB
- No support for MT5 and other popular platforms
- Withdrawals under certain thresholds are accompanied by fees
Capital.com Broker Details Supports Danish No Denmark Currency (DKK) No Regulators ASIC, FCA, CySEC, SCB, MiFID Min Deposit $20 Trading Platforms MetaTrader 4, TradingView Trustpilot Rating 4.3 out of 11,249 reviews Number of Forex Pairs to Trade 125+ Leverage Forex & Metals: 1:30
Index CFDs: 1:20
Cryptocurrencies: 1:2Spread EURUSD: 0.6
USDJPY: 10
EURGBP: 2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Bank transfers, VISA, MasterCard, Maestro, Apple Pay, PayPal, Neteller, Skrill, Sofort, Przelewy, TrueLayer, iDEAL, Trustly, SPEI Withdrawal Methods Bank transfers, bank cards, Apple Pay, PayPal, Neteller, Skrill, Sofort, Trustly Key Pros
- Trusted by 580K+ traders across the globe
- Trading guides for beginner, intermediate, and advanced traders
- Mobile apps for Android and iOS devices
- Low FX fees built into the spread
- Negative balance protection
Key Cons
- There is an inactivity fee after 1 year
- No two-step login
- No price alerts on the web platform
Is Forex Trading Legal in Denmark?
Denmark consistently ranks among the world’s most affluent countries, boasting a thriving economy primarily driven by the financial, manufacturing, and service industries. This makes it an appealing destination for investors and financial services providers alike, including many forex brokers. Foreign exchange trading is legal and stringently regulated in the Nordic country but its provision requires authorization from the Danish Financial Supervisory Authority (DFSA).
DFSA-authorized brokers uphold some of the highest possible standards of service, offering fair trading conditions, transparent pricing, and flawless order execution. Compliant companies rely on robust mechanisms for consumer protection to safeguard local retail traders and their investments. Brokers seeking authorization from the local financial watchdog must set up registered offices in the country.
Companies must also meet a minimum capital threshold to gain authorization from the DFSA and maintain sufficient liquidity throughout their operations. All authorized firms adhere to strict regulatory policies of client funds segregation and protect retail traders through mechanisms like negative balance protection and leverage caps. Denmark moved to ban currency binary options in 2019 due to the high level of risk involved in trading with such short-term speculative instruments.
Forex Trading Regulators in Denmark
The Danish Financial Supervisory Authority (DFSA) oversees the operations of all financial services providers in Denmark. The regulatory body was established in the late 1980s, following the merger of two other supervisory authorities. It currently falls under the remit of the Danish Ministry of Economic and Business Affairs.
The DFSA monitors the operations of all participants in the local financial markets, including but not limited to insurance, securities, and forex brokers, pension funds, banks, investment companies, and stock exchanges. Beyond oversight, the watchdog publishes guidelines for market participants to follow, issues warnings for regulatory violations, and monitors registered entities for compliance.
It actively works to maintain the orderly operation of the local financial system and bolster market confidence. Ensuring high levels of consumer protection and preventing illegal activities like money laundering and terrorist financing also fall within the regulatory scope of the DFSA. As part of the European Securities and Markets Authority (ESMA), the DFSA observes for compliance with the Markets in Financial Instruments Directive of 2014 (MiFID II).
The main objective of this legislation is to harmonize financial regulations across the European Union (EU) and the European Economic Area (EEA). Since Denmark is a member of both, the DFSA allows forex brokers licensed in other European countries to provide cross-border trading through a passporting regime. This basically means Danes can legally trade at any EU-regulated brokerage whether it carries the stamp of approval of CySEC, BaFin, AMF, or DFSA as they all uphold the same high standards of service under MiFID.
How to Identify Authorized Forex Brokers in Denmark
Finding a reliable and adequately regulated online broker is a vital step toward steering clear of forex scams. Danes can easily confirm whether their chosen brokerage operates legally in their country by visiting the official website of the Danish Financial Supervisory Authority. The DFSA maintains a registry of all companies authorized to undertake financial activities on Danish soil.
If a broker is supervised by or registered with the watchdog, its profile will appear in the database, alongside the company’s registration number, registration date, address, and country of origin. Danish traders can report unauthorized entities targeting clients from the local market via the whistleblower form on DFSA’s website.
Denmark Brokers Security
Danes have nothing to worry about when trading forex with MiFID-compliant brokers as these companies ensure the highest possible levels of investor protection. Danish retail customers have access to negative balance protection safeguarding them against slipping into debt.
- No Commingling of Operational and Client Funds
Authorized Danish brokers cannot commingle their operating capital with the funds deposited in customer accounts. Client assets are stored separately in segregated accounts at approved European banks. The measure prevents financial services providers from misusing the funds of their customers and ensures traders can retrieve their assets in the event of broker insolvency.
- Participation in Investor Compensation Schemes
While we are on the subject of financial collapses, regulated brokers serving the Danish market must also participate in investor compensation schemes as required by Directive 97/9/EC adopted by the European Parliament in 1997. Traders are entitled to compensation when brokerage firms cannot return their funds due to administrative malpractices, operational errors, or bankruptcy in the worst-case scenario.
Customers are eligible for a minimum compensation of €20,000 (approximately 150,000 DKK) when trading at authorized brokers. It is worth mentioning compensation schemes do not cover financial losses resulting from trading on margin with high-risk instruments like contracts for difference. In other words, Danish CFD traders cannot expect any reimbursements when the markets move abruptly against their leveraged positions.
- Automatic Margin Closeouts
Authorized Danish brokers must enforce automatic margin closeouts of leveraged positions when the equity of retail trading accounts declines to 50%. The minimum margin threshold must be maintained at all times when traders have open leveraged positions in their accounts. Coupled with negative balance protection, margin closeouts are highly effective at preventing traders from getting into debt.
- CFD Risk Disclosures
Another requirement Dane-friendly forex brokers must satisfy is to warn retail clients about the high risk inherent to trading derivatives with leverage. Regulated brokerages achieve this by publishing standardized risk disclosures that read something like this:
“CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.”
Risk disclosure banners must appear at all times regardless of which page of a broker’s website traders access. As you can see in the example above, the disclosure must contain the percentage of retail accounts that have lost money through leveraged trading with the respective brokers. This information should be accurate and up-to-date.
Negative Balance Protection at Danish Brokers
DFSA-compliant brokers must provide negative balance protection to all retail investors using leverage. The purpose of this measure is to prevent unversed traders from owing enormous amounts of money to their brokers when closing their leveraged CFD positions at a loss. This usually results from unexpected market volatility that causes forex prices to sway against your trades abruptly.
With negative balance protection in place, brokers close the losing positions of customers before their balance goes into the red. Properly regulated brokers absorb traders’ excess losses, if any, and reset their account balance to zero. This risk-management tool saves Danes from racking up excessive losses and losing more than what they have deposited in their live accounts. Professional traders are ineligible for negative balance protection on the assumption they are well aware of the financial risks associated with leveraged trading.
Taxes on Forex Trading in Denmark
Trading profits are taxable under the provisions of Denmark’s Capital Gains Tax Act but the exact rates vary based on how much you gain and what you trade. Capital income taxes are levied on earnings from forex, shares, and other securities. Tax rates start at 27% for capital income of up to 58,900 DKK and reach 42% for profits exceeding this threshold.
Losses sustained through trading are deductible up to a specific amount. Brokers authorized in the country typically report the capital gains of their customers to the local tax authorities. However, the onus of reporting your earnings is on you when using the services of offshore brokers licensed outside Europe. We recommend you consult with a local tax advisor to prevent finding yourself on the wrong side of Danish tax law.
Leverage Comparison at Locally Regulated and Offshore Brokers
CFD providers enable retail clients to artificially amplify the size of their positions by using leverage. This way, traders can increase their market exposure even when having limited capital at their disposal. Multiplying your purchasing power can significantly inflate your profits from successful trades when you make informed decisions and the forex market performs according to your expectations.
On the downside, the same goes for your losses since using leverage is practically the same as borrowing money from your broker to open larger positions. In an attempt to prevent retail clients from racking up enormous debt, ESMA introduced caps on the maximum leverage retail clients can use at MiFID-compliant brokers. Retail leverage restrictions overlap across all EU brokers whether they fall under the regulatory remit of the DFSA, BaFin, CySEC, etc.
- 30:1 for forex majors
- 20:1 for all other forex pairs, major indices (eg. NASDAQ 100, FTSE 100), and gold
- 10:1 for all other commodities and non-major indices
- 5:1 for stock market trades
- 2:1 for trades involving cryptocurrencies
Leverage caps vary across the board proportionally to the volatility of the underlying assets traders invest in. The riskier a given financial instrument is, the lower its leverage cap, and vice versa. Forex majors like EUR/USD are eligible for a maximum retail leverage of 30:1 because they boast the highest liquidity, which leads to lower volatility in turn.
Some Danes prefer to move their business offshore where leverage caps are considerably higher due to differences in regulatory requirements. Offshore brokers registered in countries like Vanuatu, the British Virgin Islands, and the Seychelles sometimes offer leverage ratios of up to 5000:1 for major currency pairs. We strongly advise Danes to double-check whether their preferred offshore broker offers negative balance protection before using such unreasonably high leverage.
Professional Trader Requirements in Denmark
Traders from Denmark have the opportunity to use higher leverage provided they qualify for professional trading accounts. Only experienced traders are eligible for upgrading to professional account status. Applicants interested in doing so must meet at least two of the following three criteria:
- To have made ten or more large-volume trades per quarter over the past year
- To have an investment portfolio valued at more than €500,000 (around 3.7 million in Danish kroner)
- To have been professionally occupied in the financial sector for at least 12 months
Your trades must have a nominal value of €50,000 (around 373,000 DKK) or more to qualify as high-volume transactions. Upgrading to a professional status comes with various benefits but traders should not forget they give up some of the prerogatives reserved for retail clients. Trading professionally requires greater accountability as it comes with fewer protections compared to those available to retail customers. For example, professional traders are excluded from negative balance protection and investor compensation schemes.
Trading Platforms at Danish Brokers
MiFID and DFSA-compliant brokers often implement award-winning third-party platforms like MetaTrader 4 and MetaTrader 5, although some run on proprietary software built in-house. What makes a good trading platform is subjective, however, as it all depends on one’s individual requirements, trading style, and investment goals. One man’s ceiling is another man’s floor, so to speak.
With that said, all great trading terminals share common traits like access to accurate real-time price quotes, lightning-fast order execution, customizable dashboards, and intuitive interfaces. They typically offer tools for automated trading and enable users to backtest new strategies in a risk-free manner.
Most Dane-friendly online brokers usually enable their clients to connect their live accounts to MetaTrader 4 (MT4) and/or MetaTrader 5 (MT5). MT4 is a perfect fit for rookie forex traders due to its user-friendly interface and broad support across online brokerages. MT4 was designed specifically with the needs of forex traders in mind, although it facilitates trading with other financial instruments as well.
Its successor MT5 comes with enhanced capabilities, improved charting tools, and additional tools for advanced technical analysis. MT5 offers slightly better order execution than its predecessor but the interface is less intuitive, making it harder for novice traders to find their way around.
TradingView also ensures reliable order execution on top of facilitating advanced charting analysis. It doubles as a social trading platform, which renders it ideal for Danes looking to exchange ideas and strategies with expert traders around the globe. NinjaTrader is yet another robust platform with excellent customization features geared specifically to the needs of active traders. We recommend Danish traders test all platforms mentioned in this section for free so they can better determine which one corresponds to their needs and individual trading style.
We recommend Danish traders do some research on their own to acquaint themselves with their local forex trading regulations. Feel free to check the links below for further information on DFSA regulations, licensees, and complaint filing procedures.
- DFSA (Danish Financial Supervisory Authority) supervises forex brokers and other financial services providers to ensure high consumer protection and trust levels in the local financial market.
- The DFSA register contains detailed information about all brokers and financial services providers licensed to service consumers in the country. Consumers can search companies by name, CVR number, and FT-ID. We recommend you check this register if suspecting you are dealing with an unauthorized broker.
- Visit the DFSA contact page if seeking to contact the Danish regulatory body. You can use the default contact form, send a regular email, or call over the phone.
- File a complaint with the Complaint Board of Danish Securities and Brokering Companies to resolve an issue with a local brokerage. Danes must submit their complaints online to gain access to the complaint portal.
- Browse warnings by other EU and EEA regulatory bodies to avoid suspicious and unauthorized forex brokerages.