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As has been stated before – online Forex trading isn’t very popular in Nordic countries and Iceland perhaps speaks most about the truth of this statement. Nonetheless, it does take place in the country which is the least populated in the whole of Europe with the majority of Icelanders living in the capital city of Reykjavik.
The responsibility of overseeing and regulating the whole financial sector of the country falls on the shoulders of the local Financial Supervisory Authority (Fjármálaeftirlitið or FME). Forex brokers operating on the territory of Iceland have to be licensed by the FME in order to provide financial services legally. The website of the FME is available in English and is easy to navigate and understand. Traders in Iceland may also turn to the Financial Ombudsman Service and more specifically – the Complaints Committee on Transactions with Financial firms in case there arises a dispute between the trader and the financial service provider.
Iceland is not as of yet a member-state of the European Union, however, regardless of this – the country is very integrated within the European legal framework through the European Economic Area and the Schengen Agreement. This means that the guidelines laid out by the European Securities and Markets Authority are relevant in Iceland as well. They include a leverage cap of 1:30 for Forex brokers, obligatory segregation of accounts, a guarantee of negative balance protection, a ban on binary options trading and many more.
The most popular payment methods in Iceland are the standard Visa and MasterCard, as well as Mint which is a prepaid cash card.
It goes without saying that the EEA membership of Iceland entails that EU-regulated brokers may provide services in Iceland freely, as long as they are licensed by the relevant European regulatory agencies.