How to Start Forex Trading in Finland • Forex Strategies • Benzinga

Finland boasts 1 of the richest economies in Europe, but the Finnish economy has been contracting. The economic contraction doesn’t bode well for the Finnish forex market. Finland currently has no in-country forex brokers. However, Finnish forex investors enjoy the regulation of the Finnish Financial Supervisory Authority (FIN-FSA), which collaborates with the European Central Bank and the Bank of Finland to ensure an equitable trading environment.

Still interested in trading forex in Finland? Take a look at our guide to get started.

The fact that Finland has no forex brokers within its borders does not stop you from trading. You can access the market through an offshore broker. Consider the following tips to ensure your financial safety:

Finland’s infrastructure is 1 of the best in the world, so you should have no trouble finding and maintaining a good web connection.

Choose a broker regulated through 1 of Europe’s many financial authorities. All national regulators are licensed through the Markets in Financial Instruments Directive (MiFID) and maintain compliance to MiFID rules.

Connecting with an MiFID accredited broker ensures your money is protected from broker bankruptcy. You still need to check the individual broker for deposit and withdrawal reliability. Brokers must also keep your money separate from theirs. Check the terms of service to make sure.

With a reputable forex broker, you can feel confident putting money into your brokerage account through your bank, debit card or fintech app.

Choose a trading interface that works with your preferred devices. If you have a home setup with 4 screens, you may be able to work with a more sophisticated setup. If you like to trade from your phone, you need simplicity.

With your setup personalized to you and properly regulated, you can begin to invest properly in the foreign exchange market.

Learn your personal trading style if you want to trade forex successfully. Your personality plays into your success just as much as your research and investment strategies.

Day trading is for people who don’t mind high-frequency, lightning-fast trading that occurs in a matter of minutes or even seconds. You’ll need to learn how to read charts in real-time, which will require an excellent internet connection. 

Day traders are usually looking for the 1st opportunity to profit from a trade, and this window of opportunity may only last a few seconds. Day traders also consume information in real-time. Make sure your broker has access to the appropriate news feeds.

Swing traders use the price charts like day traders, but swing traders usually let a position develop over a longer period. In many cases, the shape of the chart will resemble a swing because of a price reversal. Swing trades last from hours to weeks. The frequency of these traders is lower, but investors may open multiple foreign exchange trades at once.

Positional investing uses short-term charts much less than day trading and swing trading. Positional investing is about the actual position of the currency as opposed to its value. When these 2 things are misaligned, long-term investors can profit as the currency corrects itself. Corrections take time, so positional investors may hold a position for months or years.

Imagine that 1.1210/1.1250 is the EUR/USD bid/ask price. You want to order €30,000. The margin rate is 4.07%, so your broker will let you buy a full €30,000 investment with $1371.18 cash in your account. 

After 5 hours, the EUR/USD bid/ask price has risen to 1.1270/1.1310. This 20-point move gives you a total profit of (€30,000 x 1.1270) – (€30,000 x 1.1250) or $60.

Now that you have matched your personality to your trading style, you can think about the actual strategies you will use to profit in the forex market. Here are a few of the best:

• Short selling: Because the euro is a strong currency, Finnish investors can make money selling currencies against it. When the other currency falls, the short seller profits.
• CFDs: Contracts for differences let an investor trade currency without owning it.
• Binary options: A yes or no investment option that ideally simplifies the process of investing.

Even if you can’t find forex brokers regulated through the Financial Supervisory Authority of Finland, you should be able to find one with an offshore regulator accredited through MiFID. Start FX trading with Benzinga’s trusted brokers below.

Forex traders around the world use similar terminology for certain ideas:

• Pip: percentage in point or $0.0001
• Lot size: the order size
• Orders: the buy/sell description
• Calls: a contract for a transaction to take place in the future

No one can guarantee any outcome in forex, but you can actually put the odds in your favor with good research and strategy. Start with a trusted broker and try your hand at forex in Finland.