Denmark

Denmark applies the European rulebook through Finanstilsynet, the Danish Financial Supervisory Authority, and is also the home of Saxo Bank, one of the larger multi-asset brokers serving Europe. The feature that distinguishes it for traders, though, is fiscal.

Mark-to-market taxation

Danish tax on finansielle kontrakter — financial contracts, including CFDs and forex positions — generally applies the lagerprincip: the inventory principle. Positions are valued at the end of the tax year, and the change in value is taxed whether or not you have closed anything.

The consequence is real and catches traders out. A large unrealised gain on 31 December is taxable income for that year. If the position then reverses in January, you owe tax on a profit you no longer have, and the loss lands in a different tax year with its own rules on how it may be used. Losses on financial contracts are subject to restrictions on what they can be offset against, which makes the timing worse rather than better.

Anyone trading actively from Denmark should understand this before the first year end, not after it, and should hold enough liquidity outside the market to meet a bill on gains that may since have evaporated. A Danish revisor is worth the fee.

Trading conditions

The ESMA caps apply in full — 30:1 on major currency pairs, 20:1 on minors, gold and major indices, 10:1 on other commodities, 5:1 on shares, 2:1 on cryptocurrencies — with negative balance protection, margin close-out at 50%, no bonuses and mandatory disclosure of retail loss rates. Binary options are banned for retail clients.

Compensation

Clients of Danish-authorised firms fall under the national guarantee scheme, which covers cash and securities within statutory limits. A broker passporting in from another EEA state brings its home scheme instead — a Cyprus licence means the €20,000 ICF. The client agreement names the entity, and the entity decides the scheme.

Checks

Finanstilsynet publishes a register of authorised firms and of those operating cross-border, plus warnings about unauthorised providers. Confirm the entity before funding, and get the tax position clear before trading size.