Best FSA Forex Brokers In Denmark
Forex trading is not such a new thing. Big banks and large companies have been doing it for years. However, the introduction of online Forex trading platforms means that people just like you have a chance to participate. But before you start watching the news, analyzing charts and signals, even before you open a trading account, the first thing you need to do is find the best Forex brokers in Denmark. As a worldwide industry, Forex trading is largely unregulated, at least on a global scale by one single entity. Instead, individual countries are left to regulate the industry on a more local basis. A number of countries have a regulatory body, in charge of supervising financial markets and all participants, and some are better known than others. You may be wondering who is in charge of overseeing Forex brokers in Denmark, so let’s explain.
The Danish FSA is responsible for supervising financial markets
The Danish Financial Supervisory Authority (DFSA), also known as Finanstilsynet in Danish, is the regulatory arm of the Danish government responsible for regulating financial markets in Denmark. It is part of the Ministry of Economic and Business Affairs, but also acts as secretariat for the Danish Securities Council, the Money and Pension Panel and the Financial Business Council. It was first created in 1988 when the Supervisory Authority for Banks and Savings Banks and the Insurance Supervisory Authority merged. Further responsibilities were added in 1990 when the Supervisory Authority for Mortgage Credit Institutions was transferred to the DFSA.
Best and Most Trusted Forex Brokers in 2018
What are the functions of the Danish FSA?
All Danish FSA regulated brokers, along with all regulated financial service providers are regulated and supervised by the Danish Financial Supervision Authority. The Authority is also responsible for the collection of all participants statistics. The entities in question include banks, stock exchanges, clearing and registration organizations, securities and money market brokers, pension funds, insurance companies and brokers, investment associations and investment associations. By way of regulation the DFSA aims to:
- Improve the opportunities for consumers to compare prices and products being offered by different companies
- Encourage management consideration of risk profiles
- Strengthen the role of the market as a disciplinary aspect by making the financial markets more transparent
Forex brokers in Denmark should appear on a list of supervised entities
When you’re looking for a Forex broker in Denmark, or indeed any other type of financial provider always spend some time doing your own research. You should, of course, be looking for a Danish FSA regulated broker and there should be some mention of regulation on the provider’s website. You may well find the details and a license number, but don’t take it as read that the information is true. A common ploy for scam brokers is to claim they are regulated when in fact they are not. One very good reason to double-check any information you find. You’ll be able to check the following information:
- Company name
- Registered address
- Home country
- Registration number
- The date the company became registered with the DFSA
- Type of business
The Danish FSA and its commitment to international and European regulation
Finanstilsynet (DFSA) is actively involved in developing European and international regulatory standards for the financial markets industry. As such it has become a member of the Committee of European Securities Regulators (CESR), and also a member of the International Organization of Securities Commissions (IOSCO).
What is the CESR?
It is the Committee of European Securities Regulators which was an independent committee which was established by the European Commission in 2001. In 2011, it was replaced by the European System of Financial Supervision. The European System of Financial Supervision operates as a framework for financial supervision in the EU. All national supervisory authorities of EU member states are members along with European Supervisory Authorities, the European Systemic Risk Board, and the Joint Committee of the European European Supervisory Authorities. This supervisory body was created following the financial crisis of 2007-08.
What is the IOSCO?
This is an association of organizations which are responsible for regulating securities and futures markets of the world. The organization has members from more than 100 different countries, who are responsible for regulating more than 95% of the world’s securities markets. The aim of the organization is to help members promote high regulatory standards and act as a forum so that members are able to cooperate with each other and other international organizations.
Why it’s important to choose a Danish FSA regulated Forex broker
It’s important to choose a regulated broker wherever in the world you may be trading. Those of you living in Denmark should be looking for Danish FSA regulated brokers. Most brokers will be only too happy to comply with the regulatory agency of its own country, and a number will register with regulatory bodies in other countries as well. There will, however, be a selection that chooses to remain unregulated and follow nobody’s rules. The Forex market is huge. In fact, it is one of the biggest financial markets in the world. Just to put that in perspective, it has an average daily turnover of more than $4 trillion. Unfortunately, there is no one centralized agency which is responsible for the market as a whole. Countries are given the task of supervising Forex markets in their own countries instead. Country specific regulators are also responsible for awarding licenses to those who comply with regulations when offering financial services. The advantages of choosing a regulated Forex broker include:
- Regulated Forex brokers will operate in accordance with recognized industry standard regulations. This means there is increased safety, security, and reliability.
- Regulated brokers tend not to use unethical business practices in order to make more money.
- Regulated brokers have to keep client funds in segregated accounts, and to keep sufficient funds to ensure the execution and completion of contracts.
- Regulated brokers have to submit to regular audits, evaluations, and reviews, which increases the likelihood of them following the rules.
Whether or not you decide to choose a regulated broker is, of course, your decision. However, we should point out you will benefit from increased protection and be at a much lower risk of losing it all to a scam.