Forex trading is legal in Denmark and operates under a comprehensive regulatory framework governed by the Danish Financial Supervisory Authority. The DFSA supervises financial companies and ensures compliance with financial legislation, including consumer and investor protection, anti-money laundering, and ensuring well-functioning financial markets (1). As a European Union member, Denmark has aligned its legislative framework with European laws regarding financial markets, particularly implementing the Markets in Financial Instruments Directive (MiFID II) (2).
All forex brokers who wish to offer their services to Danish traders must obtain a license from the DFSA to operate legally within the country. However, under EU law, forex brokers regulated in another European Economic Area jurisdiction can also offer their services to traders based in Denmark through passporting rights (2). Danmarks Nationalbank plays a complementary role by managing the foreign exchange market, using active market participants as counterparties in intervention transactions to maintain Denmark's fixed exchange rate policy against the euro (1).
"We supervise financial companies and ensure compliance with financial legislation. This includes, among other things, consumer and investor protection, anti-money laundering and ensuring well-functioning financial markets."
Denmark implements strict leverage restrictions aligned with regulations established by the European Securities and Markets Authority. The maximum leverage allowed is 30:1 for major currency pairs, 20:1 for non-major currency pairs and gold, 10:1 for commodities, 5:1 for individual equities, and 2:1 for cryptocurrencies (2). All brokers must implement margin close-out rules, negative balance protection for retail client accounts, and display standardized risk warnings while being prohibited from offering trading incentives such as bonuses (2).
Source:
https://www.dfsa.dk
https://www.nationalbanken.dk/en/what-we-do/stable-prices-monetary-policy-and-the-danish-economy/danmarks-nationalbank-s-intervention-counterparties-and-the-fx-global-code
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
