Trading GBP/DKK

The exotic GBP/DKK pair can offer profitable opportunities for UK traders, though it can also present some challenges. Before you begin your GBP vs DKK price forecast on a live chart, it’s worth considering the pros and cons below. We’ve also covered the history of the two currencies, plus some of the best exchange rate analysis techniques and trading tips.

GBP/DKK Trading Brokers

  1. XTB

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    XTB provides access to 70+ currency pairs with low spreads averaging around 1 pip on majors. The xStation platform offers an intuitive environment for forex traders with an excellent charting package encompassing 30+ indicators, plus a range of order types, catering to various strategies and risk management techniques.

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    Eightcap offers 50+ currency pairs in line with the industry average but trailing category leaders like CMC Markets with its 300+ currency pairs. However, Eightcap stands out with institutional-level spreads from 0.0 pips on major pairs like the EUR/USD, alongside low $3.50/side commissions. The broker also offers rich forex data to inform trading decisions, including key fundamentals, bullish/bearish indicators and a calendar that tracks key events in the foreign exchange market.

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    FXCC's key selling point is its forex trading conditions. ECN spreads come in as low as 0.0 pips during peak trading hours, while it supports a wider range of currency pairs than the majority of rivals with over 70 forex assets. Additionally, you have access to MT4, which was built specifically for forex trading and excels for its charting tools.

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    Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.

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    IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.

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    AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.

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    FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.

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    Pepperstone offers ultra-competitive forex spreads averaging 0.12 pips on EUR/USD in the Razor account, accompanied by a diverse portfolio comprising 100+ currency pairs - an extensive selection surpassing most competitors. Additionally, Pepperstone distinguishes itself by offering three currency indices (USDX, EURX, JPYX), not commonly found among alternative platforms. Pepperstone has now won our annual 'Best Forex Broker' award twice.

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    IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.

  10. XM

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    XM offers ultra low spreads across a wide range of forex assets with no re-quotes or hidden charges. Over 50 currency pairs are available, which is above the market average and is in line with one of our top award-winners, AvaTrade.

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    PrimeXBT offers 50 forex pairs, which is above the industry average and covers a good range of majors, minors and exotics. Traders can enjoy trading via margin with zero commissions. Additionally, the broker’s copy trading service allows you to explore various currency trading strategies.

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    OANDA offers 68 currency pairs, which is above the industry average. You can speculate on majors, minors and exotics, with spreads from 0.8 pips on popular pairs. There are no commissions and leverage is available up to 1:200. Average execution speeds are fast based on tests, at 12 milliseconds.

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    IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.

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    FxPro offers 70+ currency pairs with ultra-fast execution speeds and tight spreads from 0.46 pips on EUR/USD. The range of forex assets outranks many rivals, including our award winner, AvaTrade. Various short-term forex strategies are permitted, including EA trading and hedging.

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    Plus500 provides forex trading through CFDs, featuring narrow spreads across an impressive selection of over 60 currency pairs. During testing, spreads came in as tight as 0.6 pips on the EUR/USD, which is notably lower than many alternatives.

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    Markets.com offers 43 major, minor and exotic currency pairs. The range is around the industry average, though spreads are fairly competitive, starting from 0.6 pips for EUR/USD. There’s also an excellent range of tools and education, including forex calculators and trading videos.

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    NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).

  18. Axi

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    Axi continues to offer a strong selection of 70+ currency pairs - more than many top brokers including award-winner AvaTrade, with only 50+. There are no restrictions on trading strategies including algo trading and scalping, which will serve both short-term and long-term traders.

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    Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.

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    An above-average selection of 55 currencies are available with reasonable spreads averaging 0.9 pips on EUR/USD during peak hours. Aspiring traders can continuously hone their forex strategies by switching between demo mode and their live account any time, with full access to the broker's 100+ technical indicators.

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    Focus Option offers 22 forex pairs tradeable via binary options, including a selection of majors and minors. FX pairs are also available to trade with margin on Focus Option's mobile app, which offers high leverage up to 1:50 and spreads from 1 pip.

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    DNA Markets continues to deliver an excellent environment for forex traders with 50+ currency pairs and low spreads from 0.0 pips on the EUR/USD during tests. The MetaTrader 4 platform, available on desktop, web and mobile, was also designed specifically for forex trading.

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    OspreyFX offers more than 50 major, minor and exotic currency pairs. Spreads start from just 0.1 pips on the EUR/USD and the broker provides a suite of forex trading education for beginners, including partnering with Forex Squad.

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    CloseOption offers binaries on 25+ forex pairs, including majors like EUR/USD and a few minors like AUD/JPY. Payouts vary by currency, with decent typical payouts of 75% for GBP/USD.

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    Trade 70+ major, minor and exotic forex pair CFDs with up to 1:1000 leverage, no commission fees and competitive spreads from 0.8 pips. FX trades can also be executed via the reliable and fast MetaTrader 5 software.

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    Errante traders can access 50+ forex pairs with leverage up to 1:500 (location dependant). The broker offers fast execution and tight spreads, especially to clients with VIP and Tailor-Made accounts.

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    Kwakol Markets offers a wider range of forex pairs than most competitors, with 90+ assets available. Users get fast execution speeds and competitive spreads through the ECN model. On the negative side, not all currency pairs are available on MT4.

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    Trade 70 major, minor and exotic forex pairs with ultra-low ECN spreads and fast execution via the MT4 or MT5 platforms. There are also zero SL/TP limits and automated forex trading is well catered for.

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    Ingot Brokers offers forex trading on a modest suite of 30+ currency pairs with raw spreads on the MT5 platform. There are also no restrictions on short-term trading strategies, including hedging, scalping and the use of Expert Advisors (EAs).

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    Trade a small selection of 25 major and minor pairs. Spreads from zero on the pro account, micro-lot trading, and very high leverage make up for the limited range of currencies. The MetaTrader software is also a well-regarded platform for forex trading.

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    Axofa offers a decent range of 50+ forex pairs with raw spreads from 0.0 pips. Very high leverage up to 1:1000 and commission-free forex trading is available. With that said, the broker is not particularly transparent when it comes to account conditions and fees.

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    Go long or short on over 50 currency pairs with spreads from 0.6 pips on EUR/USD. Traders can access market-leading forex tools in the MT4 platform, including customisable forex charts and algorithmic trading.

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    World Forex offers CFD and digital contract trading on 53 forex pairs, including EUR/USD and GBP/EUR. High leverage is available for CFDs, which can be accessed with competitive spreads on certain account types.

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    FinPros offers 80+ forex pairs, which is one of the more diverse offerings available. Traders benefit from ultra-low latency, MT5 support and very tight spreads and low commissions on the RAW+ account.

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    Trade 45+ major, minor and exotic pairs with deep liquidity and low latency. The ultra-tight spreads from 0.01 pips on raw accounts, competitive $7 or lower round-turn commissions and high leverage up to 1:500 will suit scalpers, who can trade without limits.

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    IQCent traders can access CFDs or binary options on 45+ forex pairs. CFD spreads start from 0.3 pips and binary options payouts are decent up to 95%. This is competitive compared to Pocket Option, for example, offering forex payouts up to only 81%.

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    Trade 50+ forex pairs including popular majors and minors with very high leverage available up to 1:1000. Gold, silver, palladium and platinum pairs with USD are also available.

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    Trade 25+ major and minor currency pairs with access to over 30 technical indicators in the broker's proprietary terminal. You can also follow and replicate other forex trades using the integrated copy trader.

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    Scope Markets offers 40+ major, minor and exotic currency pairs. Although the range is average, experienced traders can access very high leverage up to 1:2000. Additionally, the broker’s proprietary terminal delivers advanced analysis tools, including a live forex heatmap.

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    Trade 50+ forex pairs, including popular major, minor and exotic pairs. This is a decent selection, but traders will have a choice between the attractive MT4, MT5 or IRESS platforms and regulatory cover from ASIC. The VPS will also suit automated forex trading strategis.

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    Anzo Capital offers 45+ forex pairs including majors, minors and exotics with fast execution and spreads starting from zero. High leverage up to 1:1000 is available with a margin call at 80% and a stop out level at 50%.

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    I think the range of 60+ major, minor and exotic currency pairs is fairly competitive, especially with spreads from 0 pips in the Pro account. Experienced traders can also access high leverage up to 1:500 in the popular MT4 platform.

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    Rock Global clients can access 50+ currency pairs via CFDs with leverage up to 1:500, world class liquidity and fast execution on the MT4 or TWS platforms. The tight spreads from 0.9 with no commission are a particularly attractive feature.

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    VT Markets offers an average selection of 40+ forex pairs with up to 1:500 leverage. Forex spreads in the ECN account are highly competitive, starting from 0.0 pips, although the 1.2-pip minimum quotes in the Standard account are a little higher than the likes of Pepperstone or IC Markets.

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    Binary and OTC options can be purchased on 40+ currency pairs, with 55+ currency pairs available if you deposit $1000. Typical payouts are reasonable at 81% and the $1 minimum trade makes the broker accessible to new forex traders. There is also access to the MT4 and MT5 platforms for experienced forex traders.

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    Exinity offers 150+ forex pairs to trade on a very competitive ECN pricing model, with spreads from zero and low commissions of $4 per round turn. Traders can access the powerful MT4 and MT5 platforms and trade with no restrictions on popular trading strategies.

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    ForexChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs. Trading takes place on the leading MT4 and MT5 platforms, which offer dozens of in-built technical tools for short-term forex strategies.

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    PU Prime clients can trade 40+ forex pairs via the MT4 and MT5 platforms with dynamic leverage up to 1:500. Spreads start from near zero on Prime accounts, which also charge a $7 commission per lot, and a zero-commission Standard account with wider spreads is also available.

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    With 100+ currency pairs including all majors plus many minors and exotics tradeable on the MT4 platform with 1:2000 leverage, SuperForex lives up to its name as a great choice for forex traders. The ForexCopy system is also useful for newer traders.

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    AdroFx's strongest offering is its 60+ currency pairs, which can be traded with very high leverage up to 1:500. The broker also offers competitive forex spreads starting from 0.4 pips and charges no commission. Additionally, traders have access to MetaTrader 4, which was built for forex trading and offers excellent support for technical analysis and algo trading.

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    Start trading on dozens of currencies at RoboMarkets with powerful analysis tools and pattern recognition technology. 35+ currency pairs are available with tight spreads from 0 pips and rapid market execution. You can also utilise the broker's forex news alerts and economic calendar.

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    Trade 7 major, 21 minor and 29 exotic forex pairs with high leverage and a choice between STP or ECN accounts. Support is available around the clock and the TradeLocker forex software is provided.

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    M4Markets offers 45+ currencies with zero pip spreads. The low latency and 30-millisecond execution speeds makes the broker a decent choice for forex traders. Additionally, there are no restrictions on trading strategies, including scalping.

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    MultiBank FX offers trading on 50+ major, minor and exotic currency pairs. Spreads are tighter than many competitors and the broker offers higher leverage than most alternatives. Automated trading strategies are also permitted.

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    I’m happy with Tradeview’s strong range of 60+ currency pairs spanning majors, minors and exotics with competitive spreads from 0 pips in the $1000 ILC account. Traders can choose from several platforms, but I was particularly impressed with the feature-rich Currenex platform which is designed specifically for currency trading.

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    Global Prime traders can access 48 forex pairs including majors, minors and exotics with tight spreads from 0.9 with no commission or from 0 with a $7 round turn. Forex is traded via the leading MT4 platform, micro lots are available and latency is low via a New York-based server.

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    Trade Nation offers over 30 of the most popular forex pairs with variable spreads. Traders can access a slick proprietary platform or MetaTrader 4, with real-time forex market updates and insights via 'Smart News'.

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    As well as a competitive selection of 55+ forex pairs, traders can access high leverage up to 1:300. You can also enjoy advanced analysis from Trading Central with easy integration into MetaTrader 4.

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    Traders can access a decent range of 60+ major, minor and exotic forex pairs through standard and ECN accounts with tight spreads from 0.5 and 0.0, respectively. Execution speeds are also faster than most competitors at 50ms, which will appeal to active forex traders.

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    4xCube offers 60+ currency pairs with competitive trading conditions. We like that all trading strategies are permitted including scalping and hedging.

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    ActivTrades is a great broker for active forex traders with industry-low spreads from 0.5 pips and zero commissions. The forex broker also offers impressive execution quality and speeds, alongside award-winning customer service.

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    BlackBull offers 64 forex pairs with very competitive pricing through its ECN accounts, with the standard commission-free spread starting from 0.8 and spreads with commission starting from zero. The broker supports diverse trading platforms including MT4 and MT5, and provides leverage up to 1:500.

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    RoboForex offers trading on 30+ currency pairs, trailing category leaders like Pepperstone with its 90+ forex assets. That said, the Prime and ECN accounts feature competitive average spreads of 0.1 pips on the EUR/USD. Additionally, with a minimum investment of $100, traders can utilize the CopyFX system to replicate the strategies of seasoned currency traders.

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    Swissquote offers trading on a huge range of forex assets, covering 80+ currency pairs. Spreads start from 1.3 pips with the Premium account and there are zero commissions. Micro, mini and standard lot sizes are available plus options contracts on major currencies.

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    SimpleFX provides a comprehensive selection of around 60 currency pairs, from majors like GBP/USD to exotics like CHF/PLN. Forex trading fees are competitive, averaging 0.9 pips on EUR/USD during testing, while MetaTrader 4, available on desktop, web and mobile, was built specifically for trading currencies online.

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    You can go long or short on over 50 forex pairs from majors to exotics, with competitive spreads as low as 0.1 pips. The broker offers the leading charting software, MetaTrader 4, which delivers a host of advanced features, including 9 timeframes and over 30 indicators.

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    FXDD continues to offer a leading selection of 90+ currency pairs with ECN pricing. Spreads are decent, coming in at 0.4 pips for EUR/USD during testing. That said, these quotes aren’t as narrow as top competitors like Pepperstone.

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    Trade on 45+ majors, minors, crosses and exotics, with competitive pricing, ultra-fast execution and no requotes. Newer traders can access zero-commission trading. Experienced forex traders can operate with no trading restrictions and benefit from an ECN account and a VPS service.

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    FXTrading clients can access 70+ forex pairs with high leverage up to 1:500, fast execution averaging 80ms, excellent liquidity and spreads from zero. A good selection of minors and exotics are available as well as all the majors. New users can start trading forex in 4 easy steps.

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    With over 190 forex spot pairs, EZ Invest outperforms many rivals in terms of access to the currency markets. Users can also choose between desktop software, a webtrader plus a solid mobile app. On the negative side, spreads aren't the tightest on entry accounts.

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    Trade 50+ forex pairs via the MetaTrader 4 and MetaTrader 5 platforms with leverage up to 1:500, immediate execution, deep liquidity and tight spreads.

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    Fortrade offers 60+ currency pairs including a good selection of majors, minors and exotics. Trading takes place via MT4 or Fortrade's proprietary, low-latency terminal, and spreads on the USD/GBP pair average a reasonable 2 pips.

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    FP Markets stands out as an excellent option for forex traders, boasting a selection of over 70 currency pairs covering a wide range of currencies, especially since expanding its choice of exotics. With average spreads of just 0.1 on the EUR/USD in its Raw account, the broker provides competitive pricing for traders.

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    IronFX continues to offer a strong selection of 80 currency pairs. You can trade through the market-leading MT4 platform with a range of forex market research tools. That said, commission charges in the zero-spread accounts are high, starting from $13.50 per lot.

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    Trade 80+ major, minor and exotic forex pairs. This is a very competitive range of currency pairs with 50+ exotics to choose from, and traders will benefit from fast execution and support from extra features including a pip calculator. The MetaTrader 4 software was also designed for online forex trading.

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    Libertex offers CFD trading on 50+ forex pairs, offering long and short opportunities. Its strength comes in its tight spreads – we were offered 0.2 pips for EUR/USD.

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    NordFX offers a modest range of 33 major and minor forex pairs. Disappointingly, there are no exotic pairs, though traders do benefit from tight spreads from 0.0 pips and low commissions from 0.0035% per side.

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    HYCM offers 40+ forex pairs, with most available to trade on either the MT4 or MT5 platform. The maximum leverage on offer is 1:30 in accordance with regulations, and tight spreads start from 0.2 on the Raw account and from 1.2 on the commission-free Classic account.

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    FXOpen clients can trade 50+ forex pairs (28 on micro accounts) with leverage up to 1:30. Fees are competitive with spreads starting from zero with a small commission on ECN accounts, and slightly wider spreads and no commission on STP accounts.

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    Trade 45 major, minor and exotic forex pairs. This is an average range, but the broker offers attractive and very competitive tight floating spreads from 0.3. Useful features including a news feed set the broker apart from many rivals and can help plan forex strategies.

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    Hantec Markets offers a limited range of 30+ forex pairs – less than most top brands, including Pepperstone with 100+. That said, market execution is rapid based on tests, and spreads are competitive starting at just 0.2 pips. This, combined with access to the popular MT4 platform with 30+ technical indicators, ensures a relatively complete trading experience for short-term currency traders.

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    With 60+ currency pairs available, Dukascopy offers enough majors, minors and exotics to keep most forex traders happy. The broker also offers high leverage up to 1:100 – a good amount to see from a reputable and regulated broker. Currency traders have access to excellent software, including MT4 and JForex.

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    Speculate on popular currency pairs with flexible leverage up to 1:500 and zero-pip spreads in the GO Plus account. Commission-free trading is available with micro, mini and standard forex contract sizes.

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    Tier 1 liquidity on an impressive range of 189 currency pairs and spot metals, plus 130 forwards, from 0.4 pips.

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    Trade on 60+ forex pairs with no commission and competitively tight spreads from 0.6 on major pairs such as EUR/USD. This is a good selection of forex pairs and excellent pricing for commission-free trading, well below the industry average.

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    Trade a wide selection of 80+ currency pairs with spreads from 0.5 pips and industry-favorite platforms. City Index has 40+ years experience in forex trading with liquidity from tier-one banks.

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    ThinkMarkets offers 46 currency pairs, which is around the industry average. Forex traders can benefit from tight 0.0-pip spreads for EUR/USD during peak market hours. Additionally, the ThinkTrader proprietary platform offers an impressive 125+ technical indicators - ideal for complex forex strategies.

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    CMC presents an extensive array of 300+ forex pairs characterized by tight spreads and rapid executions, surpassing the offerings of many competitors in terms of currency diversity. Forex indices also present a fairly unique and holistic way to speculate on the value of key currencies like the USD, EUR and GBP.

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    FXTM offers a strong range of 60+ currency pairs - more than many competitors including AvaTrade. There’s also 6 currency indices for traders looking to diversify their forex portfolios. The brand’s ECN account offers competitively low spreads from 0 pips, with equally low commissions up to $2 per lot.

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    Trade FX pairs with tight spreads & leverage.

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    easyMarkets continues to offer 60+ forex pairs including majors, minors and a selection of exotics, with fixed spreads from 1.8 pips or variable spreads from 0.8 pips. FX traders can access advanced trading software in MetaTrader, as well as very high leverage up to 1:2000.

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    Fusion Markets offers an excellent selection of 90+ currency pairs, providing a range of short-term trading opportunities. It continues to excel for its ultra-tight spreads from 0.0 pips and exceptionally low commissions of $2.25 per side. You also get access to leading forex software in MetaTrader 4.

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    Trade 24 forex pairs via binary options. Such a small range of currency pairs is not that unusual among binary options brokers, and BinaryCent's high payouts up to 95% compensate for the lack of range.

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    Trade 49 major, minor and exotic currency pairs with fixed spreads or ECN pricing with no dealing desk intervention and a low starting deposit. You can analyze the currency markets using the broker's in-house trading platform.

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    FXCM offers an average range of 40+ currency pairs, although there are no commissions and spreads are competitive from 0.78 pips for EUR/USD. The broker also offers 3 forex baskets covering USD, Yen and emerging markets benchmarks.

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    InstaForex's range of 100+ currency pairs is among the largest we have seen. ECN spreads are also available from 0.0 pips with zero commissions. Minimum deposits start from $1 making the broker accessible for beginners. You can also access market-leading forex analysis and insights.

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    Trade 200 CFD forex pairs with DMA pricing and tight spreads, ultra low latency and high leverage up to 1:1000. The range of forex pairs available and pricing model are among the most attractive in the African market.

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    Capital.com offer a long list of forex CFD pairs for trading. All have competitive spreads. The firm also ensures negative balance protection

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    Trade over 180 major, minor, and exotic forex pairs on the Trading 212 platform, featuring floating spreads and leverage up to 1:30. It’s important to note, though, that the forex broker has a history of adjusting margin requirements without providing adequate notice. As a result, CMC Markets is a better pick for forex traders with more currency pairs and a cleaner record.

The GBP/DKK Explained

GBP/DKK is a currency cross pair representing the exchange rate conversion between the British pound sterling and the Danish krone. The price dynamics of this quote are mainly attributed to the state of the economies of the UK and Denmark. GBP/DKK is also affected by correlated currencies, namely the euro.

Before we dive into trading the GBP/DKK pair, we take a look below at the rich economic histories that have defined both the British pound sterling and the Danish krone.

The British Pound

The pound sterling is the oldest currency in continuous use and is the fourth most traded currency in the FX market, after the US dollar, the euro and the Japanese yen. The sterling is also the fourth most popular reserve currency.

The currency has a long history of coinage and was adopted into the gold standard in the 17th century. The Bank of England was then founded in 1694, where paper money was introduced and the modern currency established.

Sterling was also circulated in much of the British Empire, including Australia, Barbados, British West Africa, Cyprus and Jamaica. During the late 19th and early 20th centuries, many countries adopted the gold standard. At this time, the pound sterling was equal to 4.87 US dollars.

Before World War I when the gold standard was suspended, the United Kingdom had one of the strongest economies in the world, holding 40% of the world’s overseas investments. This changed dramatically after the war, with the country being heavily indebted and owing £850 million with interest. During the Great Depression, the sterling suffered an initial devaluation of around 25%.

In 1940, the sterling was pegged to the US dollar at a rate of £1 = $4.03, as per the Bretton Woods system, which was maintained through World War II. After years of economic pressure, the pound was devalued by 14.3% to $2.40 by 1967.

Throughout the next few decades, the pound fluctuated due to the breakdown of the Bretton Woods system, the 1973 oil crisis, budget deficits, austerity measures and political controversy around the euro replacing the pound.

In 2007, the pound hit a 26-year high of $2.1161. After the global financial crisis in 2008, this depreciated sharply to $1.38 and an all-time low euro rate of 1.0219. The 2016 UK referendum of EU membership also caused a major decline in the pound against other world currencies, causing it to weaken against the euro by 5% overnight.

The Danish Krone

Understanding the history of the krone can aid investment decisions in the GBP/DKK. The krone is the official currency of Denmark, Greenland and the Faroe Islands and was introduced on 1st January 1875. The krone is pegged to the euro via the European Exchange Rate Mechanism (ERM II), at a rate of 7.46 and is required to stay within a 2.25% band. In 2000, a referendum was held on joining the Eurozone, however, 53.2% voted to maintain the krone.

Historically, krone coins have been minted and circulated in Denmark since the 17th century. It was later adopted by the gold standard and the Scandinavian Monetary Union from the 1870s, along with Sweden and Norway.

Between 1940 and 1945, the krone was tied to the German Reichsmark and after the end of the German occupation, a rate of 24 kroner to the British pound was introduced. Within the Bretton Woods system, Denmark devalued the krone in 1949 to a rate of 6.91 to one dollar.

Since the turn of the century, the krone against the euro reached a low of 7.4234 in April 2003 and a high of 7.4732 in March 2020.

Trading GBP/DKK: Pros & Cons

Pros

Though not the most popular pair on the market, trading GBP/DKK can come with some good benefits:

  • Stability – Denmark is highly ranked in terms of ‘quality assessments’ and therefore has low levels of economic, political, financial and social risks. In fact, Denmark has been ranked in the top three countries for ‘ease of doing business’ and for ‘ease of trading across borders’. It is also #1 for the ‘least corrupt country’, #10 for the ‘most competitive country’ and #2 for the ‘happiest country in the world’.
  • Volatility – The price chart of GBP/DKK moves sharply on a daily basis due to its exotic status. Traders can profit from such periods of high volatility.
  • Industry – Denmark has a developing technology industry and its capital city, Copenhagen, is considered to be the thriving tech-hub of the Nordic region. With innovative businesses emerging all the time, the DKK is likely to strengthen.

Cons

As with all tradable instruments, there are certain risks to consider:

  • Trade pressures – As a small export-focused country, Denmark is highly susceptible to trade pressures from other EU member states. Whilst this can make the economy more competitive, it can also make it vulnerable.
  • Interest rates – Along with Switzerland, Denmark has the greatest negative interest rates in the world due to regular interventions by the European Central Bank. Lower interest rates are not attractive to traders and can indicate a weakening over time.
  • Risk – Trading can be risky both in terms of the volatility of the pair as well as the risks of trading with leverage.

What Factors Affect GBP/DKK?

UK Factors

The UK economy largely consists of the services sector, plus trade and industry. Whilst agriculture is not prominent, the tourist sector is also developed.

Specifically, traders should look out for prices and inflation, as well as interest rates set by the Bank of England. The Consumer Price Index (CPI) is the best measure of inflation. Decisions made by the Monetary Policy Committee (MPC) can also be found on the BoE website.

Confidence and sentiment are also key factors affecting GBP. These are derived from national reports and surveys, including the Gfk Consumer Confidence and the nationwide Consumer Confidence Index (NCCI).

Traders should also keep an eye on GDP and general economic growth, which are key indicators of the health of an economy. As the GDP is a quarterly report, it also helps to supplement your research with more frequent indicators, such as retail sales.

Political events can also impact a currency significantly. The most notable example in the UK was the Brexit referendum in 2016, which has continued to affect the movement of GBP/DKK and other currency pairs.

Danish Factors

Denmark’s priority sectors are services and trade, technology, industry (namely pharmaceutical, chemical and food) plus agriculture.

Traders should look out for general macroeconomic data such as GDP and inflation, plus labour market indicators and the trade balance between Denmark and other EU countries. Trade pressures can be quite significant due to the country’s focus on exportation.

As the krone is pegged to the euro, it is directly impacted by euro market movements. Therefore, it is worth keeping an eye on the movements of the currency’s rivals, for example when the US dollar or the pound sterling weakens.

How To Day Trade GBP/DKK

To start day trading GBP/DKK, you will need to find a reliable and reputable forex broker that offers the pair through a trading platform, such as MetaTrader 4. You can then start building your trading strategy using the various tools available to you. There are a few key points below to consider as a starting point.

Technical Analysis

Technical analysis is one of the key pillars of day trading and is the study of prices over time on a live chart. You can find a GBP to DKK exchange rate history chart at numerous sources, including TradingView, XE and your broker’s trading platform.

Analysing prices and spot rates on a GBP to DKK graph allows traders to forecast any future trends or patterns. You can use a variety of timeframes, from 1 minute up to 5 years or even 10 years, plus a range of technical indicators and graphical objects.

A standard candlestick chart is commonly offered by most platforms and is the most popular chart type for viewing opening and closing prices in real-time. They also indicate bullish and bearish trends with green and red candles. From here, you can add a range of tools such as support and resistance, moving averages or Bollinger bands.

Fundamental Analysis

Alongside your historical exchange rate analysis, you should also implement fundamental analysis tools to broaden your research. Fundamental analysis looks at economic, financial and political reports of the regions related to the market you are trading.

For GBP/DKK, traders should follow data relating to the UK and Denmark, plus any other correlated regions such as the EU. You can find information on many reputable sources, including Yahoo Finance and Bloomberg, but don’t forget to check governmental updates or central bank news releases.

Automated Trading

Some platforms offer automated trading tools such as algorithmic investing robots or signals. Trading bots will automatically scan the markets and enter trades for you when the conditions are right. Signals can also be procured from other traders which allow you to automatically copy their positions into your account.

Both options mean you don’t have to monitor anything yourself, however, these strategies do not guarantee continued success. The popular MetaTrader platforms offer a vast library of Expert Advisors (EAs) and signals which cater to various strategies, though you could also opt for cTrader’s cBots or Copytrader.

Correlation

A correlation indicates a relationship between two or more assets due to their respective currencies or related nations. Recognising such correlations can help you to analyse certain patterns that might otherwise be overlooked.

For example, GBP/DKK has a strong correlation with the euro, not only because it is pegged to it, but also because Denmark relies heavily on exports to other European countries. This also means that the pair is correlated with EUR/USD.

Risk Management

Whatever strategy you use, it is important to manage your risk and expectations. Even the most experienced traders can be met with unexpected turns in the market. These sudden swings can be extremely damaging if trades are not properly protected.

The first rule is to not risk more than you can afford to lose. Some experts suggest that you should not risk more than 2% of your account balance per trade and always calculate your risk-reward ratio prior to entering the market.

Some of the best tools you can use are stop losses and take profits. A stop-loss allows you to set a predetermined price at which your trade will automatically close to prevent further losses. Note that this is not always guaranteed due to slippage. Take-profit serves the opposite purpose, whereby your trade will close when it reaches a certain profit level.

GBP/DKK Session Times

Forex is a 24-hour market, though there are ideal times of the day when the GBP/DKK is most volatile. In general, the best time to trade the pair is between 10:00 and 18:00 GMT, when the London and New York trading sessions overlap. It’s also worth noting that the most volatile day to trade GBP/DKK is Wednesday.

Final Word On Trading GBP/DKK

To start investing the exotic GBP to DKK currency pair, make sure to follow developments in the UK and European regions, as well as the movements of other correlated pairs. There are plenty of tools available to help you forecast price trends on a GBP/DKK live exchange rate graph, including TradingView or MetaTrader. In any case, you should always consider a good risk management strategy to help protect your investment.

Find out more about forex trading.

FAQ

What Is GBP/DKK?

GBP/DKK represents the exchange rate of the British pound sterling (GBP) against the Danish krone (DKK) and therefore how many DKK can be purchased with 1 GBP. DKK is the quote currency, whilst GBP is the base currency.

How Can I Start Trading GBP vs DKK?

You will need to register with a forex broker and sign in to your trading platform, where you can apply technical analysis strategies to identify price trends. You should also use any available resources and news outlets to keep abreast of economic developments that might affect the price of GBP/DKK.

Is Trading GBP To DKK Easy?

In comparison to other major pairs such as EUR/USD, GBP/DKK and other exotics are not as liquid and make up a smaller share of the forex market. Beginners should therefore consider gaining experience with one of the major forex pairs, before moving on to GBP/DKK.

When Can I Trade GBP/DKK?

The best time to trade GBP/DKK is when the London and New York trading sessions overlap and when the pair is most volatile, between 10:00 and 18:00 GMT. Of the 5-day trading week, the most volatile day overall for the pair is Wednesday.

Why Should I Trade GBP/DKK?

There are some good reasons to trade GBP/DKK, including its high volatility which can present good opportunities to create profits. DKK is also relatively stable due to the strong Denmark economy and its promising industrial future.