Last update: 28 August 2020
6 min read

Best FSA Forex Brokers In Denmark

Do you need to find the best brokers regulated by the Danish FSA? You’re in the right place – our experts are here to pinpoint the very best Danish FSA regulated brokers, and we’ll also give you some key information about how the Danish FSA works.

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 opening trading accounts, the first thing you need to do is find the best forex brokers in Denmark.

There is no one single entity that regulates trading across the world. 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. Here, we’ll explain how the Danish FSA works.

If you can’t find many DFSA regulated brokers, try some of the best CySEC regulated brokers:

  • Hot Forex
  • XTB
  • HYCM
  • XM
  • Plus500
  • FXTM

Best and most trusted forex brokers in April 2024

What is a Danish FSA regulated broker – and where can I find the best ones?

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 for the best experience.

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. These are the ones to avoid.

The best Danish FSA regulated brokers

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 single centralized agency which is responsible for the market as a whole. Countries are given the task of supervising 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.

In Denmark, this is the DFSA. And our experts believe Hot Forex is one of the best Danish FSA regulated brokers you can find.

Is it safe to use a Danish FSA regulated broker?

It’s much safer to use any of the best brokers regulated by the Danish FSA as opposed to an unregulated one. There are many advantages of choosing a regulated broker. For example, regulated brokers:

  • Will operate in accordance with recognized industry standard regulations. This means there is increased safety, security, and reliability.
  • Tend not to use unethical business practices in order to make more money.
  • Have to keep client funds in segregated accounts, and to keep sufficient funds to ensure the execution and completion of contracts.
  • 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.

What is the Danish FSA?

Danish Financial Supervisory Authority logoThe 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.

The DFSA 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.

What are the functions of the Danish FSA?

All Danish FSA regulated brokers are 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

What if I need to complain to the Danish FSA?

If possible, you should always try to resolve your issues with the broker directly. This is usually the quickest and easiest way to solve things. If that doesn’t work, you may wish to escalate your complaint to the Danish FSA directly. In the past, they’ve launched very serious investigations into the likes of Danske Bank – so you know they’ll take your complaint seriously.

Brokers in Denmark should appear on a list of supervised entities

When you’re looking for a broker in Denmark, 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. That’s why it’s important 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
  • Permits

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?

CESR stands for Committee of European Securities Regulators. It 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 to act as a forum so that members are able to cooperate with each other and other international organizations.

Frequently Asked Questions (FAQs)

What is the Danish FSA? Arrow
What does the Danish FSA do? Arrow
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