Introduction to Scandinavian Capital Markets
Scandinavian Capital Markets is a Swedish forex broker, based in Stockholm. The company doesn’t just offer forex trading in Sweden but across many jurisdictions. Hearing about a forex broker from Sweden may raise an eyebrow. It is certainly rare. At a time when most forex brokers seek alternative jurisdictions as regulations change throughout Europe, Scandinavian Capital Markets are standing their ground. The company emphasizes its Scandinavian heritage in many ways. This is a great way to set themselves apart from the number of copy and paste forex brokers in Cyprus, Australia and a number of offshore jurisdictions.
Scandinavian Capital Markets has just taken probably the most important step of all towards product differentiation. The company recently added the cTrader platform alongside its existing offering of MetaTrader 4 and Currenex.
The company we know today as Scandinavian Capital Markets first came to life in 2011, when Co-Founder Arif Alexander Ahmad who managed a successful Asset Management Firm, and Business Partner Michael Buchbinder who has over a decade of experience from the FX trading sector from other roles joined forces. The company remained on the path of wealth management until 2017 when the team saw an opportunity to launch Sweden’s first STP-ECN forex broker to provide services to mature traders.
The services and conditions offered by Scandinavian Capital Markets differ greatly from most other FX brokers which focus on clients with smaller deposits. The problem with the model of targeting small deposit accounts is a broker needs a lot of clients to be profitable. The more clients a broker has to support the higher their operating costs. This ultimately degrades the quality of service. As such, Scandinavian Capital Markets tailor their offering to money managers and high-value deposit clients. While this may be seen as a barrier to many traders, the quality of services that can be offered is much higher.
The Advantages of Scandinavian Capital Markets
Because of the way Scandinavian Capital Markets operates, they pass on a number of benefits to their clients.
- Transparent trading conditions. The company operates an agency model where all orders are routed to external liquidity providers.
- Solid banking partners. The company cooperates with leading Scandinavian banks for receiving and holding client money. These are Swedbank, Nordea and SEB.
- Multiple trading platforms. cTrader, MetaTrader 4 and Currenex.
- Thought leadership, seminars and conferences. Scandinavian regularly host events that help develop relationships with clients and partners.
- Premium account management services. You get a relationship manager, not a retention manager.
About Scandinavian Capital Markets
Despite Sweden being a somewhat unfamiliar territory in the capital markets space, the team behind Scandinavian Capital Markets comes with an arsenal of industry experience. First of all, the company is an authorized broker, registered with the Swedish Financial Supervisory Authority (FSA) (Finansinspektionen Reg. No. 556863-5972). Considering all of the regulatory chaos clouding the traditional online trading hotspots, Sweden looks like a healthy choice for running an FX broker.
|Number of Employees||20+|
|Banking Partners||Swedbank, Nordea, SEB and Barclays|
Scandinavian Capital Markets Trading Conditions
Scandinavian Capital Markets focus on offering a premium trading environment for premium forex traders. The entire business is client-centric and designed to accommodate money managers and high turnover traders, whether it be large-ticket or high-frequency trading. The minimum deposit to get started is $10,000. By only serving clients above this threshold, the company can focus on offering the highest quality service possible.
|Platforms||cTrader, MetaTrader 4, Currenex|
|Asset Classes||Forex, Metals|
|Total Number of Trading Pairs||45|
|Trading Commissions||$50 per $1 million (Premium)|
|Spreads||From 0.0 (Premium)|
|Stop Out Level||80%|
Scandinavian Capital Markets Account Types
The company offers three account types. One of them is a custom account for clients who deposit over $250,000 where most aspects can be negotiated, so we’ll focus on the other two account types, Standard and Premium. The Standard Account which requires a minimum deposit of $10,000 offers spreads from 1.7 Pips but doesn’t charge a trading commission. The Premium Account, on the other hand, charges a commission of either $10 per lot r/t on MT4 or
$50 per million on cTrader. Spreads on this account type start from 0.0 Pips. The minimum deposit required for a Premium Account is $25,000. Learn more about available account types here.
Accessibility to Scandinavian Capital Markets Services
Scandinavian Capital Markets is uniquely positioned to provide services worldwide. Besides the obvious exclusions, the company cooperates with clients worldwide.
|Countries Excluded||U.S, Iran, Syria, North Korea, Yemen and Cuba|
|Deposit Options||Wire Transfer|
|Deposit Currencies||EUR, USD, GBP, SEK|
Because of the very specific customer profile that Scandinavian Capital Markets cooperates with, it would not be fair to compare them directly to another broker. Especially a retail-focused broker which is focused on keeping barriers as low as possible and acquiring as many clients as possible. When you consider all things together, what would be a disadvantage of another broker, is actually just a tradeoff for something better from Scandinavian.
- Minimum Deposit of 10,000 USD. Considering the relationship-focused approach adopted by Scandinavian Capital Markets this is a must. Paying such close attention to clients would be unsustainable.
- Max leverage at 1:100. Traders who deposit amounts like $10,000, $25,000 or more do not need leverage much more than 1:100 and usually do not want it. Moreover, since Scandinavian Capital Markets is an STP-ECN broker, their conditions are more aligned with institutional brokers and liquidity providers.
- Only 45 trading pairs on most account types. While this may look limited, frankly a lot of symbols offered by many brokers are untraded and overpriced. Since Scandinavian focus on offering the best conditions possible, it may even be better to disregard those pairs altogether.
- Limited deposit methods. They only accept bank wire transfers. Once again, considering the minimum deposit to open a trading account is 10,000 USD, there isn’t really any other appropriate payment method, so it doesn’t make sense to offer any alternatives.
Scandinavian Capital Markets offers a forex trading service for experienced investors. The company is positioned towards mature clients who understand that trading has costs, risks and requires an appropriate amount of capital. This doesn’t necessarily mean the experience is required as a forex trader per se. The company has an experienced client services team who can help investors who are crossing over from trading other asset classes and are new to forex trading. You can book a meeting with the companies clients services team by following this link.