All You Need to Know to find the best Forex Broker In Norway

Norway is located on the western portion of the Scandinavian Peninsula in Northern Europe. The country shares land borders with Sweden, Finland and Russia, and has a maritime border with Denmark. The country has one of the strongest economies in the region. Norway manages to maintain high standards of living for its citizens and make a variety of sectors of the national economy thrive.

In this guide we’ll dive deep into the world Norway FX and CFD (Contracts for Difference) market, and will examine and list down the best Forex brokers in Norway, discuss the local and European regulations, popular trading platforms and more.

Recommended Forex and CFD brokers in Norway

Choosing the right broker is the single most important – and probably the hardest decision that both the beginners and experienced traders are faced with. Whether or not your broker is reliable, qualified, and client-oriented will, in the long run, define your opportunities for profits. Should you make the wrong choice, what you might end up with is a lot of unnecessary stress at best, or, in the worst-case scenario. To help you in the selection process, we’ve created the top list of brokers that accept traders from Norway.

Forex trading regulations in Norway

Forex and CFD trading in the country is regulated by Finanstilsynet or the Financial Supervisory Authority of Norway (FSA). The regulatory body was established in 1986 to function under the direct supervision from the Norwegian Ministry of Finance. The area of its responsibilities is quite extensive, as it oversees the proper functioning of banks, insurance, and finance companies, e-money institutions, audit and accountancy firms, markets for financial instruments, and, of course, the Forex trading brokers in Norway.

The main goal of this entity is to sustain the overall supervision of the financial sector and facilitate customer protection in every sector that it is directly responsible for. The FSA does so by combining cooperation and communication with the relevant actors, imposing regulatory measures for the sectors’ development, issuing licenses, and supervising and monitoring the functioning of the actors involved in each individual sector. Below, we will focus on the key regulatory measures that have translated into the rapid development of the Norwegian FX market.

How brokers obtain the FSA license

One of the main ways in which regulatory bodies from all over the world are regulating their respective Forex trading markets is by issuing licenses to the local brokers. Now, it is necessary to note that such licenses are not compulsory. Residents of Norway can open accounts with internationally regulated brokers. However, if the broker is looking to increase its prestige and attract more clients  – it is definitely a good idea to obtain one.

Available leverage in Norway

Norway is an EU member state. Which means that the European Forex and CFD trading regulations are shared in the country. The Markets in Financial Instruments Directive (MiFID) is a legal act that governs the equities market in the European Union.

The maximum available leverage that brokers can offer in Europe is strictly limited. High leverage is dangerous for beginner traders, and to protect their safety, there are the following leverage caps in the EU:

• 30:1 _ for major currency pairs
• 20:1 _ for non-major currency pairs, gold and major indices
• 10:1 _ for commodities other than gold and non-major equity indices
• 5:1 _ for individual equities and other reference values
• 2:1 _ for cryptocurrencies;

Ban on bonuses and promotions

Bonuses and promotions are used by the brokers to expand and sustain their respective client base. They can also be very beneficial for the traders, as the bonuses can be used to kick-start trading. For that reason, many traders pay extra attention to what various brokers have to offer in that regard, and ultimately, it can become a single most important deciding factor. There are two main types of bonuses that brokers offer: welcome bonuses, and refill bonuses. Welcome bonuses have used a sign of gratitude and are gifted upon the trader joining the broker or after the first deposit is made. In turn, refill bonuses are tokens of appreciation issued periodically to the returning traders.

In Norway, as with the other European countries, the provision of such bonuses is prohibited, due to their role of attracting people into something that can potentially be a risky enterprise. Moreover, chasing a bonus instead of focusing on trading the right way can lead to significant losses.

Popular trading platforms in Norway

Choosing a suitable platform is essential for successful trading. Some brokers have created custom-built platforms, while most offer third party software, such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader.

The MT4 and cTrader offer access to FX, crypto derivatives, indices, and commodities. While MT5 provides access to a wider range of instrument classes. In addition to already mentioned instruments, with MT5, you can access bonds, futures, and stocks.

These platforms can be installed on mobile, desktop computer, and offer web trading terminals. They are highly capable and reliable. In addition, they support algorithmic trading, and enable traders to conduct comprehensive technical analysis.

Summary

Overall, we can say that Forex and CFD trading in Norway is strictly regulated. In addition to the local regulator, Norway is a member of the EU and European regulations are also applied in the country. However, there are only a handful of local brokers to choose from, which is why we have compared various international brokers that provide financial services to the residents of Norway and created the top list. Traders should consider reputable brokers with good trading conditions, such as: XM, exness, Plus500, and others.

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