How to Start Forex Trading in Norway

As one of the most developed and prosperous economies in Europe, Norway's forex investors enjoy a strong currency and well-regulated market. Although the Norwegian krone is not considered a “major” currency, the country’s budget surplus and overall stability cause many to view it as a safe haven. Norway also has the biggest sovereign wealth fund on the planet, valued at $1.09 trillion. That makes forex trading in Norway a good bet.

Even with all of this money and stability, Norway does not promote its forex trading market heavily. This may correspond to many nationalistic economic policies in recent years. However, trading within the country is well-regulated, and there are a plethora of brokers accredited through the European Union (EU) and Norwegian regulators to choose from.

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Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Attribution: Bergen Guide

Get Started with Forex in Norway

Technology has advanced to the point where anyone can get involved with forex, whether or not the government promotes it. Join the global forex market in Norway with the right financial infrastructure: forex broker, trading platform and currency pair.

Follow these six steps to get started with foreign exchange trading:

• Connect to the web: Finding a solid internet connection in Norway shouldn’t be difficult, but connecting to the web is important. If you choose an offshore broker, this becomes absolutely essential.
• Get a fully regulated broker: A forex broker doing business in Norway may be regulated through Norwegian financial authorities or others in the EU. Norway tends to defer to EU law if there is any conflict.
• Connect your bank: Ideally, you have a broker with low transaction fees and fast processing. Make sure that your bank’s digital infrastructure integrates well with your broker and facilitates timely deposits and withdrawals.
• Fund your account: Reputable brokers will accept funding from your bank account, fintech apps or a debit card.
• Choose your trading tool: Your trading interface should give you access to the forex market even on your phone.
• Invest in the market: Now that you have safe access to the forex market, you can trade confidently.

Norwegian Forex Trading Strategies

If you want to trade forex successfully, you should learn the type of investor you are. Your trading blueprint should match your personality for the best results.

Day Trading

Day trading is fast money trading. You are not giving the market any time to move against you, and you usually take the very first opportunity to get out of a trade profitably. Traders in this space may hold trades for a few minutes, but some may only be held for a few seconds. Extremely sophisticated investors may trade many times per second with the use of automated tools. The profit on each trade is small compared to swing trading or positional investing, but the frequency of trading is much higher. 

Swing Trading

Swing traders wait for trends to develop on the currency price charts. As a result, swing trades may take as little as a few hours or as much as a few weeks. Traders should understand the difference between range and a directional move. Swing trading does not happen as frequently as day trading, but traders may take on many trades at once. A swing trader is also very good at identifying resistance points that usually signal a change in the chart pattern.

Positional Investing

Positional investing pays less attention to chart patterns and price action in favor of political and economic trends. If your country plans to export 25% less of your number 1 product than it did last year, this will likely have a lasting effect on your currency. The positional investor looks to profit from the entire move in the position of that currency, not just a quick profit from a day trade. As a result, positional investors may hold a trade for months or even years.

Forex Trading Example in Norway

Imagaine that 0.1100/0.1120 is the bid/ask price for NOK/USD. You are ready to enter an order for Kr.60,000. Since you have a margin account with your broker and the margin rate is 3.33%, you can buy a full Kr.60,000 investment with only $221.78 cash. 

After 2 hours, the NOK/USD bid/ask is 0.1150/0.1170. This 30-point move grosses you a total profit on the investment is (Kr.60,000 x 0.1150) – (Kr.60,000 x 0.1120), or $180.

Making Money with Forex in Norway

Now that you have your core strategy in place, you can look at some of the more complex techniques that forex investors use:

• Short selling: The krone is quite strong, and many Norwegian traders find it easier to sell weaker currencies against it. You profit when you buy back the currency at a lower price.
• CFDs: Shorthand for contracts for differences, this allows a forex trader the ability to trade currency without owning it.
• Binary options: This is a simpler form of investing with a yes or no option.

Best Online Forex Brokers in Norway

Choose between a number of forex brokers regulated through the EU or through the Financial Supervisory Authority of Norway. Below you'll find Benzinga's top picks for highly-rated trading platforms.

Forex Terminology

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

• Pip: Shorthand for “percentage in point,” also known as a “basis point,” equal to $0.0001
• Lot size: Your order size, defaulted to 100,000 units of currency
• Orders: The way that you describe your buy or sell of currency to your trading interface
• Calls: A contract for a currency pair transaction that will take place at a predetermined time in the future

Maximizing Profit with Forex Strategies in Norway

The Land of the Midnight Sun keeps to itself, financially speaking. There is no shortage of opportunity, however. If you want to trade in the forex market, Norway is one of the most secure places to do it from. Conduct your due diligence, but go into the market with the confidence of a strong economy, currency and regulatory structure.

Bookmark this page and this website as your No. 1 source for forex trading in Norway. We are on the cutting edge of information about the market, bringing it to you in an easily accessible format.

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