An iterative receiver of SEFDM signal for the case of fading channel is proposed. The algorithm is based on the BCJR algorithm demodulator and soft decision decoder of convolutional code. Also the equivalent representation of SEFDM as OFDM with reduced number of subcarriers is used for equalization. The proposed algorithm provides small BER with relatively small energy loss compared to equivalent OFDM system. A study of SEFDM signals behavior in frequency selective fading channel is done. The proposed algorithm have computational complexity linearly increasing with the number of subcarriers and are applicable for any number of subcarriers in the multicarrier signal.