Binary Options Trading in Denmark
Denmark is home to a very sophisticated and advanced economic system with trustworthy and secure regulations in place. The high priority of protecting investors makes Denmark an excellent country for trading binary options. With the large number of binary options scams floating around, investors can feel safe while participating in the trading of binary options in Denmark. The country offers a substantial list of highly reputable and regulated brokerages for trading binary options.
Binary options trading is completely legal in Denmark; however, it is not regulated. Even though there is a lack of regulation, the financial brokerages in Denmark offering binary options are regulated and trustworthy. The Danish FSA (Financial Supervisor Authority) regulates the financial markets in Denmark, and provides their services to all binary options trading platforms. They issue warnings for fraudulent binary options platforms, and have strict procedures and regulations for the brokerages regulated in Denmark.
Even though binary options trading is not regulated in Denmark, it is still a preferred country for trading binary options over many others that are not regulated. Investors choose Denmark because of the secure and strict policies the brokerages follow, allowing binary options traders to feel safe with their investments.
Recommended Binary Brokers in Denmark
Currency Pairs & Spread
Most binary options traders in Denmark prefer to trade the most popular, ‘Major’ currencies. This is because they offer the tightest spreads, allowing for greater profits. These top currency pairs include EUR/USD, USD/JPY, GBP/USD, USD/CHF. Some traders prefer a different game and trade currencies which are less known. These currency pairs are referred to as ‘Crosses’, and the rarest being called ‘Exotics’. These pairs tend to have larger spreads, but can still be very profitable for informed and experienced traders. Some of these lesser known currencies include: EUR, JPY, GBP, and CHF (Crosses), and MXN, TRY, THB, SGD (Exotics). As well the trading of digital currencies such as BTC (bitcoin) are in the class of ‘Exotics’.
Trading Platforms
Denmark traders are fortunate to have some highly reputable binary options trading platforms considering it is unregulated within the region. Though binary options are not regulated, the top brokerages that offer these platforms are licenced and regulated in Denmark. This means they are highly reputable and trustworthy due to the strict licencing processes of the Danish FSA.
All the best trading platforms offer mobile and desktop applications which provides investors access to the platform from anywhere. As well, the platforms offer intuitive design and usability for executing trades, technical and analytical analysis, and market research. These platforms also boast powerful and technical software for a seamless trading process.
Bonuses
Most brokers offer bonuses to their clients in hopes to entice them to sign up or stay with the brokerage. The bonuses range from brokerage to brokerage, but generally include the following bonus types:
- Welcome Bonus – This is the most common type of bonus, usually receiving an amount of money just for joining a brokerage and making an initial deposit.
- No Deposit Bonus – Another bonus, like the welcome bonus, rewards you with money just for signing up and doesn’t even require a deposit.
- Mobile Bonuses – This is a bonus for downloading a brokerages mobile application and using it.
- Refer a Friend Bonus – Receive money for getting a friend to sign up, they may be required to make an initial deposit
In some cases, binary options brokerages do not offer any bonuses. This however may not impact the popularity of the firm. One of the top brokerages in Denmark, ‘Saxobank’, does not offer any bonuses and is still widely used due to its reputation. With that in mind, some brokerages will offer enticing bonuses, but in return have certain drawbacks such as hidden fees and higher commissions. It’s important to fully understand what the brokerage offers in terms of fees and commissions in addition to bonuses.
Deposit and Withdrawal Options
Binary option traders in Denmark have a slew of options when it comes to deposits and withdrawals. We will touch up on the most popular and secure methods below.
- Bank Wire Transfers – Most anyone from anywhere in the world can complete a bank wire transfer. There are no restrictions with the use of bank wire transactions.
- Credit Card – This option proves to be quite simple for investors, but comes with some restrictions. Only residents from certain countries are aloud to use credit cards for many Danish platforms. Also, transaction limits do exist.
- Securities Transfers – An option available for those who intend on making very large deposits or withdrawals. It depends on the account type and the minimum deposit amount.
- E-Wallet Providers – Another popular method among Danish investors. Popular online money transfer options in Denmark include; PayPal, Neteller, and Skrill.
Legality & Regulations
The forex brokers in Denmark are highly regulated and provide professional and competent services to investors. Brokerages operating within Denmark are under strict regulation and incur various supervisions to ensure competence with the regulations by the Danish FSA, Financial Supervisory Authority. This authority provides the licencing and strict supervision of all financial brokerages in Denmark. The Danish FSA was established in 1988, by the Danish government and acts within the ministry of Economic and Business Affairs. As well, the FSA is apart of the CESR (Committee of European Securities Regulators). These regulatory powers provide stable and secure financial brokerages in Denmark.
However, the trading of binary options is unregulated in Denmark, just as in most of Europe. While being unregulated, there is still a certain level of security with binary options trading in Denmark. The Danish FSA protects investors by providing warning lists of fraudulent international brokerages.
FAQ
- Are binary options legal in Denmark?
Yes, the trading of binary options is legal in Denmark. However, like most of Europe, the practice is unregulated.
- Are binary options regulated in Denmark?
No, it is unregulated. However, they are somewhat overseen and looked out for by the Danish FSA.
- How can I trade binary options in Denmark?
First you must open an account with an investment firm offering binary options trading. Its is really quite simple, and can be done online in a few simple steps. Some companies do not even require a deposit to start trading.
- Is it safe to trade binary options?
When trading binary options with a brokerage operating out of Denmark, it is safe. They should be reputable company operating under the Danish FSA.
Best Brokers in Denmark?
With the strict regulatory provisions required by all financial trading brokerages in Denmark, there are many competent firms to choose from. In terms of binary options trading, the most common and best binary options platform from Denmark is SaxoTrader, provided by Saxobank. It’s a Danish investment bank founded in 1992, and is known as one of the top 10 binary options brokerages in the world. They offer an impressive and secure platform for binary options traders in Denmark.
Conclusion
This article has attempted to shine light on the binary options market in Denmark. We have overviewed the legality and regulations pertaining to the financial markets and trading of binary options in Denmark. From this we have established that brokerages operating in Denmark are in fact highly regulated and reputable. Though binary options are unregulated in Denmark, it seems to be a safe country to participate in the trading of binary options.