Our selection of best Forex brokers in Sweden

The Kingdom of Sweden is one of the largest Nordic countries located in the North of Europe. One can argue that it combines the best of the two worlds – the admiration and careful protection of the country’s customs and traditions that are so common among the European states, and the Nordic dedication to order, efficiency, and high standards of living. The country is known for its picturesque nature, colorful festivities, rich history, and vibrant culture that attracts thousands of tourists every year. On top of that, there is no doubt that the Swedish economy is one of the strongest and most stable in the region.

Financial investing, trading currency pairs and CFDs (Contracts for Difference) is popular among Swedish population. One of the very first steps beginners have to make includes finding a reliable broker with good trading conditions. Our guide is created to aid traders in this process.

Our selection of top Forex brokers in Sweden

First, traders need to think about what are they looking for. Traders that wish to swing trade or position trade, are typically searching for brokers with low commissions. As for traders that wish to be more active, they prefer low spreads. In addition, regulations, trading platforms, fees, available assets and customer support needs to be taken into account. What makes the selection process even more difficult is that there are so many brokers to choose from. We’ve compared trading conditions of many different brokers and created the top list.

Forex trading regulations in Sweden

Finansinspektionen or the Swedish Financial Supervisory Authority (FI) is the main financial regulator that supervised Forex and CFD trading in the country. The regulator was created back in 1991, as a result of the merging of the two separate bodies – The Insurance Supervisory Authority and the Bank Inspectorate. This entity was originally aimed to become the single integrated body with an extensive scope of responsibilities over the various statements of the Swedish financial sector, and reporting directly to the Swedish Ministry of Finance. The main goal of this regulatory body is to ensure customer protection, security, efficiency, and sustainable development of the banking, insurance, securities market, and, of course, the local Forex trading market.

In addition, it should be mentioned that Sweden is a part of the European Union since 1995, and the Forex rules and regulations of the EU are also applied in Sweden. The Europe’s Markets in Financial Instruments Directive (MiFID), in particular, regulated financial trading in Europe.

The maximum leverage cap

Leverage helps traders increase their purchasing power, which can help increase returns. However, when misused, high leverage can destroy trading balance quickly. In accordance with restrictions and guidelines issued by the European regulatory bodies, there are limitations on maximum available leverage in Sweden. Different asset classes have different leverage cap:

• 30:1 for major FX currency pairs
• 20:1 for non-major currencies, 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

The provision of bonuses and promotions is a proven and efficient technique that brokers from all over the world use to attract more traders. There are two main types of promotions that brokers offer, namely the refill and the welcome bonuses. Welcome bonuses are used to show gratitude to the new trader and are issued upon the trader signing up with the brokerage, or after the first deposit is made. On the other hand, refill bonuses are a token of appreciation of the returning clients, and are, therefore, gifted periodically and are often announced by the broker in advance.

Bonuses and promotions in Forex market are not allowed in EU. Financial trading carries risks, and promotions often urge traders to over trade. The goal of every trader should be to trade the right way, and the money will follow. Trading competitions, bonuses, and promotions often promote gambling like approach to trading, which is why they are banned in Sweden.

Popular trading platforms in Sweden

For successful trading, it’s essential for traders to choose the right trading platform. Some of the most popular trading platforms in Sweden are:

• MetaTrader 4 (MT4) – this software was designed in 2005. MT4 is highly reliable and is mainly used for Forex trading.
• MetaTrader 5 (MT5) – MT5 has more advanced capabilities than MT4. The platform was released in 2010. MT5 is a multi-asset platform.
• cTrader – cTrader is one of the best intraday trading platforms. If offers access to raw ECN (Electronic Communications Network) trading. On the downside, cTrader is not for trading stocks, bonds, and futures.

Summary

Overall, we can safely say that Forex and CFD trading in Sweden is well-regulated. Local regulatory authorities and EU regulatory bodies ensure that traders are protected against fredualant behaivour from brokers. Residents of Sweden can open accounts with local or international brokers. Our top list includes the best global brokers that offer great trading conditions to their clients, such as: XM, Plus500, AvaTrade, and others.

FAQs on our selection of the best Forex brokers in Sweden