A guide to finding the best Forex brokers in Iceland

Nordic countries are always regarded as a phenomenon of a kind, as a defining theme for most of them seems to be a success story of a strong and stable economy, and high standards of living – and Iceland is no exception. With a total territory of 102, 775 square kilometers, the country only has a population of over 372 thousand people, which makes it the most sparsely populated country in the region. Most of the population resides in the capital  – Reykjavík, which is regarded as the financial and economic center of Iceland.

As we have already mentioned, the national economy of Iceland is quite strong. This is particularly impressive since the country has made a long way to grow into what seems to be one of the strongest economies in the region, all while being regarded as one of the poorest in the 20th century.

The main component of the national economy is fishing, which makes up 40% of the countries export. On top of that, Iceland is the world’s largest producer of electricity. In an attempt to diversify the economy, the Icelandic government has put a significant investment in the development of the country’s science and technology sector, as well as the tourism industry, which is already catering to a significant number of visitors from all over the world.

Investing and financial trading is becoming more and more popular among the residents of Iceland. However, choosing the correct broker is never easy. In this guide, we’ll discuss how to select the best broker, regulations, popular platforms and more.

A list of the best Forex brokers in Iceland

Finding the perfect broker consists of several stages. Firstly, you need to think about what you are looking for. If you are a day trader, you need a broker with low spreads, if you are a swing or position trader, you will benefit from choosing a low commission broker. There are so many brokers to compare, that the task of finding “the best” becomes super difficult. To aid you in the selection process, we have assessed many brokers and created the top list.

Forex trading regulations in Iceland

Forex and CFD (Contracts for Difference) trading is regulated by the Financial Supervisory Authority of Iceland, also known as Fjármálaeftirlitið (FME). This entity is an extension of the Central Bank of Iceland, and its main aim is to ensure sustainable development and safety of the country’s financial market.

The FME oversees and regulates financial brokers and institutions in Iceland. The regulator licenses brokerages and makes sure that regulations are being followed. However, it should be mentioned that the regulator is not highly experienced, and you will not be able to find plenty of local brokers that have acquired the license from the FME. On the upside, residents of Iceland are able to open accounts with globally regulated brokers.

Popular trading platforms and payment methods in Iceland

Choosing your trading platform carefully is essential for successful trading. Trading platforms differ from one another by interface, access to assets, capabilities, and reliability. The most popular platforms in Iceland and across the world are cTrader, MetaTrader 4 (MT4), and MetaTrader 5 (MT5). The cTrader and MT4 are mainly used in Forex, commodities, and indices trading, while MT5 is a multi-asset platform. In addition to Forex and CFDs, MT5 enables traders to trade bonds, futures, and stocks.

There are various payment methods available in Iceland. You can choose anything from debit and credit cards (Visa, MasterCard) to e-wallets and PayPal. In addition, bank wire transfers are also often used. However, when deposits are made using bank transfers, the process can take several working days. On the other hand, most online options are instant.

Summary

Overall, we can say that Forex trading is legal in Iceland and well regulated. However, there is a limited number of local brokers, which is why we recommend residents of Iceland to consider opening accounts with internationally regulated brokers such as XM, exness, AvaTrade, and others. You can check reviews on each broker by pressing on their logo from the list above. These international brokers offer great trading conditions and are highly reputable.

FAQs on finding the best Forex brokers in Iceland