| Updated: November 27, 2024Looking to venture into forex trading but cannot find a reliable broker serving customers from Sweden? Look no further than this page. Our research team tested dozens of trading sites to create this list of the most trusted forex brokers for Swedish traders. The hands-on analysis we conducted revealed the brokers shortlisted below offer the tightest spreads, the fastest order execution, and the best forex trading conditions overall.
We singled out the brokers recommended below based on a host of additional factors, including range of tradable currency pairs, financing costs, software, educational content, and overall track record in the Swedish retail trading community. The members of our team opened live trading accounts with all recommended brokers to assess their services based on first-hand experience. All shortlisted brokers consistently keep on high standards of transparency, fairness, and regulatory compliance in Sweden.
Fusion Markets74-89% of retail CFD accounts lose money
Global Prime74-89% of retail CFD accounts lose money
easyMarkets71% of retail investor accounts lose money
IC Markets70.64% of retail investor accounts lose money
AvaTrade76% of retail investor accounts lose money
City Index69% of retail investor accounts lose money
FxPro74% of retail investor accounts lose money
Admirals73% of retail investor accounts lose money
Swissquote61% of retail investor accounts lose money
Iron FX67.62% of retail investor accounts lose moneySwedish Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. IC Markets | 39,709 | 4.5 ⭐ |
| 3. easyMarkets | 1,667 | 4.5 ⭐ |
| 4. Global Prime | 161 | 4.5 ⭐ |
| 5. AvaTrade | 8,855 | 4.4 ⭐ |
| 6. City Index | 334 | 4.2 ⭐ |
| 7. FxPro | 434 | 4.0 ⭐ |
| 8. Admirals | 1,851 | 3.9 ⭐ |
| 9. Swissquote | 2,877 | 3.8 ⭐ |
| 10. Iron FX | 0 | N/A ⭐ |
Swedish Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Admirals | 0.1 | 10 | 0.00003 | 1.00 |
| 2. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 3. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 4. FxPro | 0.25 | 0.38 |
| 0.37 |
| 5. Iron FX | 0.7 | 0.4 | 0.9 | 0.8 |
| 6. easyMarkets | 0.7 | 1.0 | 1.0 | 0.9 |
| 7. IC Markets | 0.8 | 0.8 |
| 0.8 |
| 8. AvaTrade | 0.9 | 1.3 | 1.2 | 1.3 |
| 9. City Index | 1.1 | 1.8 | 1.6 | 2 |
| 10. Swissquote | 1.0 | 0.6 | 1.2 | 1.0 |
Swedish Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. AvaTrade | $0 |
| 2. easyMarkets | $0 |
| 3. City Index | $0 |
| 4. Iron FX | $0 |
| 5. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 6. Admirals | $3 per lot |
| 7. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 8. FxPro | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
| 9. IC Markets | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
| 10. Swissquote |
|
Important Note: Forex brokers domiciled in the EU and the EEA are not required to obtain authorization from Sweden’s Financial Supervisory Authority to carry out trades on behalf of Swedish residents. They can legally conduct business in the country with licenses granted from the financial regulators of other EU and EEA member states through a passport system. Nevertheless, trading forex with Sweden-authorized brokers is always preferable.
Top 10 FX Brokers in Sweden
Fusion Markets Broker Details Supports Swedish No Sweden Currency (SEK) No Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.9 out of 1,862 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 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, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay 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 Swedish No Sweden Currency (SEK) No Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.5 out of 161 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: 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
AvaTrade Broker Details Supports Swedish Yes Sweden Currency (SEK) No Regulators FFAJ (License No.1574),CySEC (No. 347/17) ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC (No.406684), JFSA (No. 1662) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial, AvaOptions, DupliTrade Trustpilot Rating 4.4 out of 8,855 reviews Number of CFD Forex Pairs to Trade 53 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 for EU residents 1:25 for non-EU residentsSpread EURUSD: 0.9
USDJPY: 1.3
EURGBP: 1.2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Withdrawal Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Key Pros
- Regulated by 9 jurisdictions in 6 continents
- Offers various trading platforms suitable for beginners and expert traders
- Enables smooth mobile forex trading via dedicated app
- Offers 55 forex options and numerous CFDs
- Easy copy trading via the AvaSocial platform
Key Cons
- Retail account pricing trails behind top brokers’ offerings
- Desktop platform may seem a tad outdated
- Many payment solutions are country-specific
easyMarkets Broker Details Supports Swedish No Sweden Currency (SEK) Yes Regulators CySEC (license no. 079/07), ASIC (license no. 246566), FSA (license no. SD056), and FSC (license no. SIBA/L/20/1135). Min Deposit $100 Trading Platforms easyMarkets, MetaTrader 4, MetaTrader 5, TradingView Trustpilot Rating 4.5 out of 1,667 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.7
USDJPY: 1.0
EURGBP: 1.0
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Withdrawal Methods Visa, Mastercard, JCB, Amex, Skrill, Neteller, Fasapay, Sofort, iDEAL, Web Money, BPay, Bank Transfer Key Pros
- Offers tight spreads and low fees
- Supports trading of over 60 currency pairs
- Regulated by several reputable authorities
- Supports a wide range of payment methods
- Offers a proprietary platform
Key Cons
- Number of supported products is somewhat limited
- Does not offer copy trading platform
- Traders from certain countries may have access to fewer payment methods
Admirals Broker Details Supports Swedish No Sweden Currency (SEK) No Regulators CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311), EFSA (No. 4.1-1/46), CMA (No. 178), CIRO, FSA (No.SD073) Min Deposit $100 ($1 for Invest MT5 Account) Trading Platforms MT4, MT5, WebTrader, MT Supreme Edition, StereoTrader Trustpilot Rating 3.9 out of 1,851 reviews Number of CFD Forex Pairs to Trade 82 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.1
USDJPY: 10
EURGBP: 0.00003
GBPUSD: 1.00Forex Commission per Lot per Trade $3 per lot Deposit Methods Visa, Mastercard, Skrill, Klarna, Bank Transfer, PayPal, Neteller, iDeal, POLi, Perfect Money, Cryptocurrencies Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Neteller, Skrill, Perfect Money Key Pros
- Over 8,000 markets available
- 80 forex pairs tradable through CFDs
- Swap-free forex accounts for Islamic customers
- Offers forex trading in micro lots
- No fees on deposits
Key Cons
- Only one free withdrawal per calendar month
- Does not trade publicly on a stock exchange
City Index Broker Details Supports Swedish No Sweden Currency (SEK) No Regulators FCA (No. 446717), CySEC (No. 400/21), MAS, ASIC Min Deposit $0 Trading Platforms MT4, WebTrader, Trading App, TradingView Trustpilot Rating 4.2 out of 334 reviews Number of CFD Forex Pairs to Trade 84 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.1
USDJPY: 1.8
EURGBP: 1.6
GBPUSD: 2Forex Commission per Lot per Trade $0 Deposit Methods Visa, Visa Electron, Mastercard, Maestro, PayNow, Bank Transfer, Online Banking, PayPal, PayID, BPAY, EFT Withdrawal Methods Mastercard, Visa, Visa Electron, Maestro, PayPal, Bank Transfer Key Pros
- No commissions on spot forex and CFD trades
- Lightning-fast speed of order execution
- Long track record spanning over 40 years
- Over 1 million registered customers
- Excels in delivering quality educational content
Key Cons
- No support for MT5 for the time being
- Higher min. deposit requirements compared to rival brokers
- Stores client funds in top-tier banks like J.P. Morgan
Swissquote Broker Details Supports Swedish No Sweden Currency (SEK) Yes Regulators FCA, MFSA, FINMA, DFSA, MAS, CySEC, FSC, FSCA Min Deposit $1,000 Trading Platforms CFXD, MetaTrader 4, MetaTrader5 Trustpilot Rating 3.8 out of 2,877 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.0
USDJPY: 0.6
EURGBP: 1.2
GBPUSD: 1.0Forex Commission per Lot per Trade - $/€0 on Premium and Prime Accounts;
- $/€2.5 per side per lot for Elite Accounts
Deposit Methods Visa, Mastercard, Bank Transfer, Online Banking Withdrawal Methods Visa, Mastercard, Bank Transfer, Online Banking Key Pros
- Publicly traded reputable brand
- Broker with extensive experience in trading
- Offers competitively low spreads
- Supports various trading platforms
- Forex traders can choose from over 80 currency pairs
Key Cons
- Traders must pay an inactivity fee
- Desktop trading platform looks a bit outdated
- Trading fees tend to be higher
FxPro Broker Details Supports Swedish Yes Sweden Currency (SEK) No Regulators FCA (No. 45052), CySEC (No. 078/07), SCB (No. SIA-F184), FSCA (No.45052) Min Deposit $100 Trading Platforms MT4, MT5, cTrader, FxPro Edge (proprietary) Trustpilot Rating 4.0 out of 434 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.25
USDJPY: 0.38
EURGBP:- 0.1 (MT4)
- 1.3 (MT5)
GBPUSD: 0.37Forex Commission per Lot per Trade $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts Deposit Methods Visa, Mastercard, Maestro, Bank Transfer, Neteller, PayPal, Skrill, Union Pay Withdrawal Methods Bank Transfer, Mastercard, Visa, Union Pay, Maestro, PayPal, Skrill, Neteller Key Pros
- Over 2,100 CFDs across six asset classes
- Zero fees on deposits and withdrawals
- Floating spreads with no commissions on MT4 FX trades
- Winner of over 100 industry awards
- Fills orders within less than 13 milliseconds
Key Cons
- FX spreads are slightly higher than industry averages
- Charges maintenance fees after six months of inactivity
IC Markets Broker Details Supports Swedish No Sweden Currency (SEK) No Regulators FSA (Seychelles), CySEC, ASIC Min Deposit $200 Trading Platforms MetaTrader4, MetaTrader5, cTrader, ZuluTrade Trustpilot Rating 4.5 out of 39,709 reviews Number of CFD Forex Pairs to Trade 61 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: Up to 1:2 (Retail); Up to 1:5 (Pro)Spread EURUSD: 0.8
USDJPY: 0.8
EURGBP:- 0.00 (Raw)
- 1.00 (Standard)
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT Deposit Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, CardPay, Bpay, FasaPay, Poli, RapidPay, Klarna, Nuvei Withdrawal Methods Bank transfer, Visa, Mastercard, PayPal, Skrill, Neteller, Visa Direct, SafeCharge, Transact365, eCommPay, FasaPay, Poli, RapidPay, Klarna Key Pros
- Offers a large number of forex pairs to trade
- Great for forex traders due to low spreads
- Supports all industry-standard trading platforms
- Supports a wide range of payment solutions
- Low forex trading commission
Key Cons
- Non-EU customers have no investor protection
- Not listed on stock exchange
- List of products can be further expanded
Iron FX Broker Details Supports Swedish No Sweden Currency (SEK) No Regulators FCA (licensing no. 585561), FSCA (licensing no. 45276) Min Deposit $100 Trading Platforms MetaTrader 4, WebTrader, VPS, PMAM, TradeCopier, Mobile App Trustpilot Rating N/A out of N/A reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.7
USDJPY: 0.4
EURGBP: 0.9
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Wire, Skrill, Neteller, China Union Pay, Fasapay, Perfect Money, Bitwallet, Paysafecard Withdrawal Methods Bank Wire Key Pros
- Offers a wide selection of trading instruments
- Supports several popular trading platforms
- Enables easy trading on the go via dedicated app
- Supports various deposit methods
- Traders can choose from 7 different account types
Key Cons
- Bahamas entity operates with no license
- Trustpilot score not available due to many fake review detected
- Withdrawals are possible only via bank wire
Is Forex Trading Legal in Sweden?
Swedes can legally engage in forex trading on condition they do so at brokerage firms operating with licenses from the Swedish Financial Supervisory Authority or another financial regulator based in a member state of the European Union (EU) or the European Economic Area (EEA). Licenses issued by national competent authorities like CySEC (Cyprus), BaFin (Germany), FI-FSA (Finland), and AMF (France), among others, all hold legal weight in Sweden. These watchdogs adhere to the requirements outlined in the Markets in Financial Instruments Directive 2014 (MiFID II), which serves as a standardized rulebook for all financial services providers operating in the EU and the EEA.
Trading forex through local banks is also a legal option for Swedish residents. Forex brokers must satisfy various criteria to receive operational authorization in the Nordic country. European-based brokers must meet minimum capital requirements ranging from €50,000 to €730,000, a threshold they should always maintain. The firms must also have sufficient funding to meet their operating expenses until they manage to reach profitability.
Customers of Sweden-authorized brokers should have access to transparent pricing. Brokers must fill their orders at the best possible bid-ask spreads. Various mechanisms for consumer protection should be in place, including retail leverage caps, negative balance protection, automated margin closeouts, and standardized risk warnings for CFD trading.
There are various ways to legally trade forex in the country, including spot trading and derivative trading through CFDs, forex options, and futures. Marketing and distributing binary options to non-professional traders in Sweden is prohibited, although some residents engage in binary options trading at offshore brokerages at their own risk.
Forex Trading Regulators in Sweden
The Swedish Financial Supervisory Authority (Finansinspektionen) regulates all financial services providers in the country under the provisions of the Securities Market Act (2007:528). The legislation is based on MiFID II so most of the rules it contains overlap with EU regulations. The Stockholm-based watchdog assumed its regulatory responsibilities after the merger of the Bank Inspectorate and the Insurance Supervision Authority in 1991. It falls under the umbrella of the Swedish Ministry of Finance.
The primary tasks of Finansinspektionen are ensuring the stability of the local financial system and overseeing the operations of all authorized market participants, including local banks, insurance companies, and firms facilitating trading in securities. Finansinspektionen issues operating permits to approved forex broking companies and monitors them for compliance with local laws and MiFID II.
Ensuring high levels of consumer protection is another important responsibility of Finansinspektionen. The regulator achieves this by imposing restrictions on leveraged trading with derivatives and ensuring authorized brokers act in the best interests of their clients. Finansinspektionen has the remit to issue warnings and levy fines on brokers for non-compliance, revoking their licenses in cases of repeated or severe transgressions.
Brokerages licensed in other EU and EEA member states can also legally service Swedish traders as long as they cover the requirements outlined in Chapter 4 of the Securities Market Act. Such companies are not necessarily required to obtain licenses from the Swedish regulator. However, Finansinspektionen must receive official notifications from the respective EU regulatory bodies before the brokers in question commence operations in Sweden.
How to Identify Forex Brokers Authorized in Sweden
Although not obligatory, trading with brokers regulated by Finansinspektionen is advisable if you reside in Sweden. Locally licensed forex broking firms maintain high standards of security, price transparency, and consumer protection, ensuring fair trading conditions for all Swedes. Identifying Sweden-authorized brokers is beyond simple since this information is easily verifiable at Finansinspektionen’s website.
The Swedish regulator runs an official company register of all local and cross-border businesses sanctioned to offer financial services in the Nordic country. If your broker is featured in the database, its name will come up in the search results, alongside its registered address, corporate ID number, and license status (active, revoked, etc). Swedes can search authorized brokerage firms by name, identification number, or area. The advanced search functionality enables you to look up companies based on their home country.
Finansinspektionen also maintains a warning list of entities providing trading and financial services without due authorization. Clone firms illegally borrowing the names of regulated companies for fraudulent purposes are also featured on Finansinspektionen’s investor warning list. Feel free to check it upon suspicion your broker operates outside the regulatory frameworks of Sweden and the EU.
Security at Swedish Brokers
Security should be your last concern if you trade forex at Sweden-compliant brokers. Broking firms authorized to serve customers from the Swedish market maintain high standards of investor protection and transparency. Segregating client funds from broking companies’ operational capital is a standard practice mandated by Swedish and EU financial regulations. It ensures client assets remain well-protected at all times, even in the unlikely event of broker insolvency. Swedish traders can have their peace of mind as their money is stored in segregated accounts at tier-one banks based in Europe.
Retail clients are also entitled to investor compensation of up to SEK 250,000 (€20,000) per person if a regulated broker is unable to return their assets due to bankruptcy or other financial challenges. Trading with derivatives like CFDs is a risky endeavor, especially for unversed retail traders who often underestimate the financial dangers associated with using excessive leverage.
Sweden-authorized broking firms implement maximum leverage caps (1:30) to at least partially mitigate the risk of margin trading. Automatic margin closeout rules are in place on a per-account basis, meaning that clients’ equity must cover at least 50% of the margin necessary to maintain their leveraged positions open.
Brokers must additionally post standardized warnings on their websites to inform retail traders about the risk of losing money when trading CFDs with leverage. Regulated firms cannot actively encourage retail clients to invest in complex leveraged derivatives. The aggressive advertising of such high-risk products is also prohibited in Sweden (and the EU as a whole).
Negative Balance Protection at Swedish Brokers
Negative balance protection is another fundamental practice mandated by EU financial watchdogs, including Finansinspektionen. This safeguard prevents traders from losing more money than their available balance. Without negative balance protection, traders risk becoming indebted to their brokers when the markets gap or move abruptly against their leveraged CFD positions. Should this happen, regulated brokers will reset their balance to zero and traders will sustain no residual losses. This mechanism goes hand in hand with the automated margin closeouts we discussed in the previous section.
Taxes on Forex Trading Profits in Sweden
Before you venture into the exciting (and hopefully lucrative) world of forex trading, you should consider using the services of a professional tax advisor. Profits derived from successful forex trades are liable for capital gains taxes in Sweden. The rate is set at 30% and applies to currency trades and derivatives, including options, futures contracts, and leveraged contracts for difference. Residents of the Nordic country are responsible for reporting their taxes themselves and must do so via Form K4, Section C. Swedish traders have until May 2nd of the respective tax year to report their profits. Losses are deductible against a trader’s capital gains up to 70%.
Leverage Comparison at Sweden-Regulated and Offshore Brokers
Finansinspektionen-approved brokers can provide leverage but certain restrictions are in place to protect non-professional clients. Leverage is a useful tool because it enables traders to open bigger positions with a smaller capital overlay, inflating their market exposure and any resulting profits. But there are two sides to every coin and leverage is no exception. Traders can sustain enormous losses if a CFD market gaps or moves quickly in an unfavorable direction.
To prevent clueless retail customers from losing their shirts, Sweden-authorized brokers restrict the maximum leverage on retail accounts to 1:30 for major forex pairs and 1:20 for forex crosses, exotic pairs, gold, and major stock market indices. These ratios drop even further down for other asset classes proportionately to their volatility.
Leverage is capped at 1:10 for all commodities bar gold and non-major stock market indices, 1:5 for individual stocks, and 1:2 for cryptocurrencies. These restrictions apply in all EU and EEA member states as they all adhere to MiFID regulations.
The Australian financial regulator ASIC enforced the same caps on its licensees in 2021 as part of its product intervention. Other watchdogs like Japan’s FSA have introduced even more significant cuts, capping leverage ratios for currency pairs at 1:25. We should point out that professional traders in Sweden can benefit from higher leverage rates of 1:400 or 1:500. Continue reading for further information on how to qualify for a professional trading account at Swedish brokers.
Professional Trader Requirements in Sweden
If forex trading is your prime source of income, you should consider applying for a professional trading account at your Swedish broker. Applicants must cover several requirements to become eligible, starting with a large enough investment portfolio valued at least €500,000 in cash and financial instruments. To prove this, traders must provide recent bank statements from other regulated brokers with whom they hold accounts.
Trading frequency and trade size also bear consideration. Clients should have executed no fewer than ten large-size trades (€50,000 each) in leveraged instruments per quarter in the last twelve months prior to application. Professional traders must demonstrate greater accountability and have sufficient knowledge of derivative trading. They must have at least one year of professional experience in working in the financial industry.
Clients who satisfy the criteria will benefit from higher leverage caps and lower minimum margin requirements but these benefits come at the expense of losing their access to negative balance protection and investor compensation.
Trading Platforms at Swedish Brokers
While regulatory compliance, tight spreads, and low financing costs are all important factors to consider, Swedish traders should also pay attention to the trading platforms brokers rely on to fill their forex orders. Becoming a successful trader requires a good deal of analysis and market research. A good trading platform comes bundled with a robust range of tools for technical and fundamental analysis.
MetaTrader 4 (MT4) is ideal for this purpose as it offers 30 built-in technical indicators, hundreds of custom ones, and great charting tools. Many Sweden brokers have adopted this platform, and unsurprisingly so. MT4 supports trading across multiple asset classes, including forex, not to mention its user-friendly interface greatly streamlines the trading process for inexperienced users.
If you are looking for a slightly better speed of order execution, a richer range of features, and more tradable instruments, you should perhaps consider switching to MetaTrader 5 (MT5). MT5 has additional technical indicators, graphical objects, more widgets, and enhanced charting capabilities. All these features render it a great fit for seasoned traders but this comes at the expense of a slightly overcrowded interface that is unlikely to appeal to inexperienced traders.
TradingView is another popular choice among Swedish traders doing business with authorized brokers, although it is less broadly available. It offers multiple timeframes and quick order execution, coupled with advanced filtering options for market screening. Users can connect with other investors around the globe as TradingView is home to a thriving social-trading community. As usual, we recommend you give your chosen platform a test drive before you connect it to your live account. Most of these platforms either have demo versions or offer free trials for a limited period.
To further provide clarity on the way the forex sector in Sweden is regulated, we have listed several links that can help traders establish the regulatory status of forex brokers and find more information on any trading-related question they might have:
- Financial Supervisory Authority: To be able to legally offer forex trading and other financial services to Swedish traders, retail brokers are required to be licensed by FSA, which is the official regulatory body in Sweden.
- Official company register: This page on the official website of the regulator allows traders to verify the license of any broker claiming to be authorized to operate in Sweden.
- Warning list: The Swedish forex regulator also offers investor protection thanks to its warning list, covering the latest updates on companies that have breached regulatory measures.
- In addition to FSA-regulated brokers, Swedish traders can also join trading providers that have been licensed by CySEC, BaFin, FI-FSA, AMF, or any other reputable regulator located in the EU or EEA.
- Swedish forex traders who join an FSA-regulated broker or another entity licensed within the EU or EEA will have access to a wide range of investor protection tools. The reason for this is that all of the aforementioned regulators require brokers to follow the MiFID II directives imposed by ESMA.
- Additionally, Swedish traders can also trust brokers licensed by other tier-1 regulators like FCA and FINMA, both of which impose a range of measures that offer additional protection to forex traders.
- Finansinspektionen has built a presence on social media platforms like Instagram, Facebook, X, and LinkedIn. We recommend you follow the regulator on these platforms to keep up with important regulatory announcements, news, and investor alerts. The watchdog also has an active YouTube channel with over 230 uploaded videos, including informative podcasts in Swedish.