Steps to get started in the Forex trading market in Finland
Finland represents one of the most successful economies in the European Union. The younger generation of the country is highly interested in the modern financial market, including Forex trading.
There are thousands of people who are trading Forex in the country very actively, making it a very popular destination for internationally exclaimed Forex brokers. Since the country is an EU/EEA member state, it has a heavily regulated Forex trading market.
The country strictly follows the main regulatory agency of the European Union, ESMA, because of which Forex trading is regarded to be a safe and secure venture in Finland. In today’s guide to Forex trading in Finland, we are going to discuss all the important aspects of the Forex trading market of the country.
So, if you are looking for the best Forex brokers in Finland, follow our comprehensive guide as we discover everything that there is to know about the Forex trading market of the country.
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When it comes to Forex trading, the safety and security of your funds should be your number one concern. Over the years, the Forex trading laws have changed very much in Finland. As of today, the country has one of the strictest regulatory frameworks around the world.
This is mostly due to the fact that Finland is an EU-member country, which means that it has to strictly follow the regulatory framework and rules set out by ESMA. The European Securities and Markets Authority is the main regulatory agency of the European Union and controls the whole financial market of the region.
Because Finland has such a strict regulatory framework, trading Forex here is considered to be safe and secure for local traders. There are numerous restrictions as well as requirements that the country has for Forex brokers to maintain the stability as well as safety and security of the local traders.
Forex trading regulator of Finland
To better handle the Forex trading market in the country, Finland has created a special regulatory body to better control the financial markets of the country. The Forex trading market in Finland is regulated by the Finnish Financial Supervisory Authority or simply known as FIN-FSA. The regulatory agency is responsible for the local financial markets, including Forex trading.
The regulatory agency was established in 2009 by merging the former Financial Supervision Authority and the Insurance Supervisory Authority. The regulatory agency operates in connection with the Bank of Finland to take care of the country’s financial markets.
The regulatory body of the country is working very hard to make the financial markets of the country safer as well as more secure for local traders. It is required to give out licenses to the brokers and control the way the brokers do business.
The regulatory body very strictly and closely follows the activities of the Forex brokers in the country and makes sure that every participant of the market strictly adheres to the safety standards of Forex trading.
Forex trading laws in Finland
The Finnish Financial Supervisory Authority is required to control the whole financial market of the country. It has created a very strict and straightforward set of rules that every broker is required to follow closely.
As we have already said, the country is an EU-member state, which means that the regulatory framework of the country strictly adheres to the ESMA standards. Every regulatory agency in the European Union is required to follow the ESMA rules according to the MiFID II directive. The main aim of the directive was to make the financial markets in the EU-member states more coherent.
Because of the regulatory agency of the EU, Finland has several strict requirements for the brokers in the country. Among many other rules, the Finnish regulator restricts offering high leverage. For example, Forex traders are only able to use the leverage of a maximum of 1:30, while crypto traders can’t use leverage higher than 1:2.
Forex brokers in Finland are also restricted from offering local traders in the country any type of bonuses and promotions. This is also because of the ESMA and its requirements. The regulatory body also requires the Forex brokers to maintain a minimum capital of €125,000 and the brokers are also required to provide the regulatory agency with annual reports about their services.
Because the country has such strict regulations, it is considered to be a safe place for Forex trading.
How safe is it to trade Forex in Finland?
Forex trading in Finland is considered to be very safe because of the strict regulatory framework of the country. The regulatory agency of Finland is very strict when it comes to enforcing the rules about Forex trading and it is always ready to take necessary steps to ensure the safety and security of the local traders.
Because of the rules of ESMA, Forex brokers are not required to be registered locally in the country. This means that any broker that owns a license from the EU-member country has the right to offer traders from Finland services.
Due to this fact, traders of Finland should not have a hard time finding a trustworthy and safe Forex broker. There are numerous top-tier regulatory agencies in the region, adhering to the highest standards of the market.
Steps to start trading Forex in Finland
There are several steps that a trader should take to start trading in the country. First of all, you will have to find a trustworthy Forex broker. If you want to trade with a locally regulated Forex broker, you can check the regulatory status of a broker with the Finnish Financial Supervisory Authority.
After you have found a regulated Forex broker, it is time for you to open a trading account. In most cases, Forex brokers in Finland offer traders different types of accounts, created to make Forex trading easier.
Most popular Forex software in Finland
Once you have found a Forex broker that fits your needs and owns a license, you can continue by choosing the trading platform that fits your needs best. There are numerous Forex trading platforms available for Finnish traders, among the most popular ones are MetaTrader 4, MetaTrader 5, cTrader, and many others.
MT4 and MT5 were developed by the same software company called MetaQuotes. MT4 is the most popular platform in the country, used by a huge majority of traders. Traders in the country can also use custom-made trading platforms offered by brokers.
Mobile trading is also available in Finland. In fact, it is very popular as it offers local traders the ability to always stay connected with the market no matter where they are.
The best Forex payment methods in Finland
The most popular payment method for Forex trading in Finland is by far credit/debit cards. Local traders mostly deposit funds on their trading accounts using Visa or MasterCard. Direct bank transfers are also very popular among Finnish Forex traders.
Online payment solutions are also largely used by local Forex traders in the country. Internationally well-known payment solutions, such as PayPal for example, are also available in the country.
Online banking is very popular in Finland and there are numerous online banking solutions available for Forex traders in Finland.
The national currency of Finland
The national currency of the country is Euro, which is very popular in the Forex trading market. Euro is one of the most traded currencies around the world, in fact, the EUR/USD pair is the most traded pair in the market. The pair is mostly known for having tighter spreads and higher liquidity.
Euro is the national currency of 19 countries out of the 27 member states of the European Union. The currency represents the second-largest as well as the second most traded currency in the Forex trading market after the US dollar. It is also the second-largest reserve currency.
Final thoughts on Forex trading in Finland
Finland represents a great place for Forex trading for several reasons. The market has developed dramatically in recent years and the interest of the people in the market is increasing annually.
Because Finland is an EU-member state, the Forex brokers in the country are required to strictly follow the general guidelines and rules established by the regulatory agency of the region, ESMA.
The strict rules that the country’s Forex brokers have to follow make the market safer and more secure for the local Forex traders.