Denmark Forex Trading Brokers

July 5, 2013 7:41 am

denamrk_forexHere you will find a list with the best Danish Forex brokers. Speaking of forex market in Denmark, there are a couple of things you need to know. First, the central bank of the country is Denmark’s National Bank and it is entirely responsible for the monetary policy. The national bank of Denmark also conducts the monetary policy by following strict rules and setting the interest rates, i.e. the current-account rate, the discount rate, the lending rate and the interest rate of certificates of deposits.

The interest rates are also determined by the Board of Governors of Denmark’s national bank, and they can be changed at any time the governors decide. The interest rates are guiding the short-term interest rates in the Danish money market plus the deposits and lending rates.

Interesting fact is Denmark maintains a fixed-exchange rate policy in the euro zone. This automatically leads to the fact that the main goal of the foreign exchange and monetary policy is to keep the local currency – krone, as stable as possible. The price stability is also really important and it has to be maintained properly in order to avoid inflation. By keeping the krone stable the inflation stays low.

Forex Brokers in Denmark

The whole price stability can be easily maintained by adjusting the monetary policy interest rates. The national bank of Denmark constantly increases its interest rates relative to the interest rates of the ECB. When the opposite happens, and Denmark decides to lower its interest rates relative to the ECB ones, the krone will weaken. This means that you have to be really careful when it comes to news related to those things because they are of a much attention to the forex market.

Denmark is actually trying to stabilize its market by selling and buying foreign currency on the market. As long as this happens and the national bank sells foreign currency, the krone will be “stable. But if this changes, then the currency will start weakening.

The monetary policy of Denmark’s National Bank solely aims at krone stabilization towards the euro. The government is doing its best to maintain the current rates, this is why if you want to participate in the forex market in Denmark you have to be aware of those things.

Here are some brokers you can use in Denmark:

XM.com
Think Forex
eToro
Markets.com

Take a look at all of them and decide which one will meet your needs.

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