Detailed guide to the best Forex brokers in Iceland

Contents

1 What are the best Forex brokers in Iceland?
2 What the main Forex trading regulators in Iceland?
3 What is the national currency of Iceland?
4 What are the most popular payment methods in Iceland?
5 What are the traidng platforms that you will come across while FX trading in Iceland?
6 Should you trade Forex in Iceland?

Iceland is a nordic country island country in Europe, wich a population of 364,134 of population. The country is considered to be the most sparsely populated country in Europe. The economy of the country is very strong, however, Forex trading is not that popular among citizens. Because of the heavily regulated market, however, traidng in the country is considered to be very safe and secure.

Just like other Scandinavian countries, the field os not that popular in Iceland. The majority of the people are living in the capital city, which means that most of the traders in the country are also from there. The country has a main regulatory body, which is in charge of all the companies operating in the local financial markets, including Forex, Financial Supervisory Authority, FME.

The country is not a member of the European Union, hwoever, it is still very integrated into the EU with the help of the European Economic Area, EEA and the Schengen Agreement. Because of this, all of the rules in the country are controlled on the EU level by the European Securities and Markets Authority, ESMA.

If you want to start FX trading in Iceland, you have come to the right place! In today’s guide, we will be talking about everything that you need to know about this very interesting field and the opportunities that you can have as a Forex trader.

What are the best Forex brokers in Iceland?

Because of the fact that there are a lot of regulations in the country, not so many brokers are able to offer services to the citizens of the country. Because of that, finding the best Forex broker in the country is a very hard thing to do. To make your job a lot easier, we have done very intensive research and finally were able to come up with a list of the best Forex brokers in the country.

You can access a list below while working on this, we made sure to focus on everything starting from regulations, to payment methods, to trading platforms.

Our Top Rated Broker

Licences

FCA, CySEC, IFSC, ASIC, DFSA

Min. depo

Leverage

1:888

Platform

MT4, MT5, WebTrader

XM

AvaTrade Review – Broker of choice since 2005

Licences

ASIC, FSA, FSCA, FFAJ, FSRA, FSC

Min. depo

100 USD

Leverage

400:1

Platform

MT4, MT5

AvaTrade

Licences

FCA, ASIC, CySEC, FSCA, FMA, MAS

Min. depo

$100

Leverage

1:30

Platform

WebTrader, Windows 10 Trader

Plus500

What the main Forex trading regulators in Iceland?

Regulations are probably one of the most important parts of a successful Forex trading experience. There are many people who might tell you that they are not important at all and all they do is that they prevent the field from further development, however, we believe that regulations are actually something that can help the field to develop.

It is especially true for Forex trading. There are a number of Forex brokers around the world who are not authorized by any governing bodies, which makes traidng with them a very challenging and scary thing to do. We have all heard about the horror stories about people who have gotten lied to by scam companies and who lost all of their money for nothing. If you do not want to become one of those stories, make sure to always trade with a well-regulated Forex broker.

In Iceland, the field of Forex is very much regulated. In addition to the local regulations that are in place in the country, brokers in Iceland also have to follow guidelines from Europe, because the country is a member of the European Economic Area. The main regulatory body in the country, however, is the Financial Supervisory Authority, FME, which controls the whole Forex trading market and sets out a list of rules that every financial institution in the country has to follow, including Forex brokers in Iceland.

Another body that oversees the field of Forex in Iceland is the Central Bank of the country, the bank also sets out the monetary policy of the country and has been very strict about the foreign exchange ever since the banking system collapsed in 2008. The Central Bank is an independent institution that is owned by the State and operates under the auspices of the Prime Minister of Iceland.

The main objective of the Central Bank is to promote price stability, financial stability, and sound and secure financial activities. In addition, since 2020, the Central Bank is responsible for the tasks entrusted by law and Governmental directives to the Financial Supervisory Authority, and the financial supervision os now also part of the Central Bank.

Is Forex trading safe in Iceland?

Because of the regulatory frame of the field, FX trading in Iceland is considered to be very much a safe experience. The regulations that are in place make sure that you and your funds can always stay safe, and they also help you to be able to have the ability to do something if something goes wrong.

However, the fact that the field is well-regulated does not mean that you should trust every company on the market. There still are a number of things that you should do, including:

Make sure that the information that is provided by the broker is accurate, by contacting the regulatory body directly. In most cases, they have a list of brokers that own their authorization
In addition, make sure to trade with companies that own both local and international regulations
Avoid traidng with companies with high leverage. It is not legal to trade with high leverage in Europe, and if a certain broker offers you this opportunity, they most probably are not legit

What is the national currency of Iceland?

Icelandic króna is the national currency of the country, with a code of ISK. The country actually represents the second smallest country by population, after Seychelles, to have its own currency and monetary policy. In financial markets, the currency many times referred to as the Icelandic Crown. The price and stability of the currency are regulated and controlled by the Central Bank of Iceland.

Although it is not that actively traded worldwide, you will come across many Icelandic Forex traders using ISK while trading. We would recommend to always try and trade with Forex brokers that allow payments in this currency, even if you are not planning to use it for trading. By doing so, you can make sure to avoid paying huge amounts of fees on money exchanges.

If you decide to trade with ISK, it means that you will be trading exotic currency pairs. In most cases, ISK is traded in pairs with the USD. However, if you are a beginner, we would recommend starting trading with major currency pairs, since they are a lot easier to use.

What are the most popular payment methods in Iceland?

The payment method that you choose to use for Forex traidng is a very important thing for successful Forex trading. In this regard, the Icelandic Forex traidng market offers a lot. In general, you can use most of the popular payment methods in Iceland, such as credit/debit cards, E-Wallets, online payment solutions, etc.

You can use everything between MasterCard to PayPal, and many others that you would use in a list of countries around the world. Also, you can use SEPA, the SInge Euro Payments Area Direct Debit, which is a payment arrangement where the payer authorizes a creditor to collect payments from their bank account through a singed mandate, this payment method is becoming increasingly popular in Iceland.

What are the traidng platforms that you will come across while FX trading in Iceland?

There are many different traidng platforms available around the world, however, the most popular one, both in Iceland and worldwide, seems to be the MetaTrader 4. MT4 is a platform that was developed 15 years ago by a Russian company called MetaQuotes. The platform has become very popular around the world very fast, and as of today, more than 90 percent of all Forex brokers are offering this platform.

One of the reasons why MT4 is so popular is that it offers access to a huge traidng market, with several dozen currency pairs available for Forex traders at any time. Also, MT4 was able to get a huge following, as a result of which traders are able to get the help that they need online very easily.

Another popular trading platform is MetaTrader 5, which was created to further develop the trading tools that the older version already had. Many Forex brokers in Iceland are also using cTrader. Also, it is a very popular thing around the world for brokers to have their own trading platform, however, MT4 still stays to be the most trustworthy and used trading software around the world.

Can you trade Forex via mobile phone in Iceland?

Over the last few years, mobile trading has become very popular around the world and in Iceland as well. This is very important for many traders, especially for those who are always on the go and travel a lot. For these types of traders, having the opportunity to trade Forex via their smartphones is something that changes everything and ensures that they can always stay in touch with the market.

There are many FX brokers in Iceland that offer traders platforms that can be used on smartphones, mostly this happens thanks to the newer version of traidng platfroms which are created and designed especially for smartphones. This is a very great opportunity for everyone, since you can always stay in touch with the traidng market, and in case there is some type of movement, you won’t have to get back home to your computer to start trading.

While working on this guide, we came across many brokers that stand out from the rest. Below, you can see those that caught our attention the most. These FX brokers really seem to be offering the greatest trading environment to their clients.

XM

Min. Depo

Licences

FCA, CySEC, IFSC, ASIC, DFSA

Leverage

1:888

Platforms

MT4, MT5, WebTrader

AvaTrade

Min. Depo

100 USD

Licences

ASIC, FSA, FSCA, FFAJ, FSRA, FSC

Leverage

400:1

Platforms

MT4, MT5

Min. Depo

Licences

FSA, FSCA

Leverage

1:1000

Platforms

MT5,

Should you trade Forex in Iceland?

We believe that because of the steps that the government of the country has taken in recent years it is safe to say that you should not avoid Forex traidng in Iceland. The country offers a very safe and secure environment to Forex traders which can help you to be even more successful.

Although the field is not that popular in the country and there are very few brokers that offer services locally, you can always find one that can work perfectly for you. In case you are not able to find any trustworthy local Forex brokers, you can also look for those that work internationally and also offer services to the citizens of the country.