Our selection of best brokers in Sweden, and how we got them

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, with the country’s  GDP reaching over 528, 620 billion USD.

When it comes to the Forex trading market, one will be surprised to find out that is actually quite big in Swede. Although this might seem like a surprise at first, many experienced traders will be able to confirm that over 2.3% of the world’s trading operations are conducted with the Swedish Krona. It is, therefore, clear that such a major player of the global FX market cannot be overlooked. In the guide that you are about to read we will go into more detail about the best Forex brokers in Sweden, the regulatory body that is behind the country’s Forex trading success, and the opportunities for profit that the Swedish citizens can enjoy.

Our selection of top Forex brokers in Sweden

As an experienced trader or someone who is only just thinking about getting into trading Forex, you probably know that the process of choosing the brokerage to join is never easy. Many people find various methods of going about the procedure of choosing the broker, with the methods that can often be surprising. Nevertheless, one common factor in the vast variety of such strategies is a significant amount of research, time, and effort that the process requires. Moreover, it is common knowledge that there is a little room for mistake when choosing the broker that best suits your needs, as the failure to do so might ultimately result in significant financial losses, or even the trader falling a victim to some scam scheme. For the purpose of making this procedure a little easier and a little more stress-free for you, we have created a list of the best Forex brokers in Sweden with some breakdown of the tools that they offer and the opportunities for profits that come with joining them. We hope that this top Forex brokers list will be in some way beneficial, and can at least be used as a point of reference while you make your final decision on which brokerage to join.

XM Group

XM Group Forex Review

Minimum deposit

5 USD

Licences

CySEC, IFSC, ASIC

Maximum leverage

1:30*

US Clients

No

Forex.com

Forex.com Review

Minimum deposit

100 currency units

Licences

CIMA, FCA, NFA

Maximum leverage

1:200

US Clients

Yes

IQ Option

IQ Option Review – can the broker be trusted?

Minimum deposit

10 USD

Licences

CySEC

Maximum leverage

1:1000

US Clients

No

What does it take to get started with Swedish Forex brokers?

As in most of the countries across the world, the basic requirement that the potential trader has to meet is being considered an adult by the law. Having met that, as well as the standards issued by the broker of your choice, you will be able to start trading in no time.

The process of joining a broker is completely free of charge or any additional fees. The only financial input required from you will be the deposit of the funds that will later be used for your consequent trading sessions. The minimum required deposit varies, even among the best Forex brokers in Sweden, and can both be as little as 5 USD and all the way up to 500 USD.

Financial safety with Forex brokers in Sweden

Safety and proper regulation of the Forex trading market is one of the most important factors that end up determining its attractiveness to the traders, and, by definition, its subsequent growth and expansion. A variety of regulatory bodies exist in almost every Forex trading country across the world for the purpose of making the overall functioning of the market smooth, transparent, and accountable.

When it comes to Sweden, we are happy to report that this major Forex trading country provides one of the world’s safest environments to the traders and the brokers alike. The ability to ensure sustainable security and customer protection can probably be listed as one of the reasons for the country’s FX market growth and the widely acknowledged prestige and quality of the Forex trading brokers in Sweden.

The local regulatory body successfully combines the strategy tailored specifically for the Swedish FX market and the recommendations and standards issued by Europe’s Markets in Financial Instruments  Directive (MiFID). Below we will have a closer look at what the main regulatory body in Sweden is and what are the measures that it implements to facilitate the country’s undoubtful success in Forex trading.

Swedish Financial Supervisory Authority (FI) – Is it trustworthy?

Finansinspektionen or the Swedish Financial Supervisory Authority (FI) 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 the upcoming sections, we will assess the specific regulations that the FI puts forward for the purpose of enhancing the Swedish FX market and the ways in which regulated Forex brokers operate, however, as for now, we can state, with all confidence that this body does a terrific job of performing its key functions. It seems like the key to the enormous success of the Forex trading in Sweden is the FI’s ability to both reinforce customer protection at all times, and consistently contribute towards the market’s development – and here is how.

How brokers get the FI license

One of the FI’s main functions is licensing of the local brokers. The procedure of obtaining the official FI license is quite complex and time-consuming, however, many Forex trading brokers in Sweden decide to go through with it – and why is that? The answer is simple – the official license from the Swedish government immediately raises the broker’s prestige, and, by definition, its attractiveness to the local traders. In turn, what it means for the latter is that in case of a violation conducted by the official FI licensee, the government will be likely to step in on the behalf of the broker.

It is, however, necessary to note that not all of the brokers that offer their services in Sweden are licensed by the FI. This is hardly a surprise since Sweden is a part of the European Union (EU), and, thus, is subject to the regulations issued by the MiFID. According to the latter, brokers that are not based in Sweden and possess a license from any other EU-based regulatory body are allowed to provide their services in the country. If the license is granted by a reputable body, such as the Cyprus-based CySEC or the UK’s FCA, there is little to no security concern, however, for the purpose of getting extra support from the local government, one should consider joining FI regulated Forex brokers in Sweden.

Restrictions on trading features

The maximum leverage cap

As in many other countries in Europe and across the world, Sweden has introduced a cap on the leverages that Forex trading brokers in Sweden can provide to their respective customers. In abidance with the recommendations issued by the European Securities and Markets Authority (ESMA), the FI has introduced a limitation of a maximum of 50:1 leverage available in the country. Although this might seem very small at the first glance, we can reassure you that it is actually much higher than the maximum allowed leverages in other EU countries, where it can often reach a total of 30:1.

But what is the point of introducing limitations on leverage anyways, you might be asking. Well, there is no simple answer to that, since the idea of leverages in trading is very controversial and has been subjected to numerous debates in the last few years. It is certainly true that the experienced trader can derive lucrative profits from incorporating leverages into their respective trading sessions and get high returns without having to invest large deposits. On the other hand, beginners, who can be lured in by the potentially high profits, but lacking in knowledge and skill to properly use them might end up with devastating losses and indebted to their respective brokers. Although trading is only accessible to the legal adults, who, as some can argue, are perfectly capable of making their own decision of whether or not to take on such risk, the regulatory bodies and policymakers largely agree that the caps are necessary to protect people from the unnecessary losses.

Restrictions On CFDs

As in the case with leverages, Contracts For Difference (CFDs) have also been the cause of great controversy among the FX market experts and relevant authorities. While the CFDs too can translate into high returns, it has also long been known that incorporating CFDs into the trading sessions made up for a large chunk of the overall Forex trading losses. Many countries are seriously considering banning CFDs altogether, while others are looking to implement some measures to limit the negative impact that they might have on the local FX markets.

When it comes to Sweden, it also very careful in its approach to the CFDs provided by the local brokers. The FI banned the promotion and selling of some of the high-risk CFDs completely. Moreover, the Forex trading brokers in Sweden that are offering CFDs are obliged to provide traders with full disclaimers of the potential risks involved with using them, as well as create and publish regular reports that both explain how the CFDs and list accurate success rates of the traders using them. Such an elaborate preventive measure once again shows that the FI is extremely committed to customer protection.

Fund protection mechanisms

On top of introducing the restrictions on the leverages that the Forex trading brokers in Sweden can provide to their clients, the FI implements an additional measure that acts as yet another layer of security for the traders. Negative balance protection is designed specifically for traders who prefer to use leverages. As previously mentioned, such a tool of trading can both be the cause of lucrative profits and devastating losses, that leave the trader with even less money than they originally invested and, often indebted to their respective broker. For the purpose of preventing the trader from undergoing such an unfortunate turn of events, the FI requires regulated Forex brokers in Sweden to ensure that their traders cannot lose more then they have deposited. Such measure works great both for the experienced traders who prefer to elevate their trading sessions with the leverages and for the beginners who are not yet confident and knowledgeable of the market.

Along with that, there are also two important fund protection mechanisms, such as account segregation and fund insurance policy. The former ensures that your deposits are stored on separate bank accounts and the broker cannot use them for its own purposes; the latter maintains that should any kind of dispute arise between you and your broker, there’s always going to be a fund pool to compensate for your losses.

Do Swedish brokers feature 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 to join them. There are two main kinds of bonuses that the broker can 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.

For many traders looking for the broker, the provision of such bonuses is the single most important factor in deciding which brokerage to choose. We, therefore, have to warn you that the provision of such bonuses in Sweden is prohibited as a form of aggressive marketing of a potentially risky financial investment. However, Forex trading brokers in Sweden provide a variety of other tools that can ultimately boost your trading session – such as leverages and CFDs that we mentioned earlier.

Key takeaways for the best Forex brokers in Sweden

If you have read this page all the way down to here, what you are probably looking for is a simple answer of whether or not you should start trading with the Forex trading brokers in Sweden. To put it shortly – yes, we most definitely recommend trying it out if you have already been thinking about the FX market in Sweden. The latter makes up for a large chunk of the world’s Forex market, and, thus, offers some of the best opportunities to its traders. Moreover, the Swedish regulatory environment is very reassuring, and every regulation that is currently placed upon the local FX market demonstrates the FI’s commitment to customer protection and market development. In conclusion, we can easily say that if you are a Swedish citizen, it is definitely worth exploring what the Forex trading market in your country can do for you in terms of some extra cash or even a potential full-time job.