May 17, 2021

Switzerland based Forex brokers

Swiss Forex brokers:

One of the world's leading reliable and trusted banking system has always been considered to be Swiss banking system.  With that perception traders consider Swill Forex brokers to be the most reputable and most wanted of them all. In action, however, the truth is not as pink as it seemed. Swiss brokers are not any more advanced or in particular linked to Swiss banking system. In reality, some brokerages just called themselves "Swiss-based" to gain more reliability, without lifting a finger.

Before any fx brokers can operate in Switzerland, they must become authorised by the Swiss Financial Market Supervisory Authority (FINMA), which is the national regulatory authority.

Then came 2010 with changes in Swiss authorities and undoubtedly weak forex control. New rules were imposed on Forex trading and only licensed Bank has the right to provide currency exchange services. This is now Swiss financial stability and trust was restored in the eyes of traders worldwide.

Swiss Forex brokers list:

    

Broker ReviewsRatingDemoLeverageSwiss basedPlatformsMin DepositPayments
Dukascopy4yes1:500swissDukascopy250Wire, Bank Guarantee, Standby letter of Credit Segregated Accounts
Swissmarkets0yes1:500swissMetatrader 4, Webtrader200credit cards, wire transfer, neteller, skrill, iDEAL, giropay

Switzerland is a world known country for its excellent Bank system that became a symbol of financial stability and wealth. Owing to its highly reliable and trusted reputation in finance, global traders are often influenced to invest with Forex Brokers in Switzerland. Indeed, Switzerland Brokers providing fair and transparent trading conditions with unparalleled quality of service, however, the offerings are not so many or widely presented. That happened due to the local regulatory requirement that requires a significant base capital to start, as well as a very sharp set of procedures that are truly hard to obtain.

What to look for when choosing Swiss forex broker?

  • A good reputation
  • Will accept you as a client
  • Well regulated
  • Requires a minimum deposit you can afford
  • Offers all currency pairs and assets you wish to trade in
  • Allows a sufficient leverage ratio for your preferred trading strategy
  • Makes prices with competitive dealing spreads
  • Provides negative balance protection
  • Has minimal order slippage
  • Segregates client accounts from its own
  • Has intuitive deposit and withdrawal procedures

Is forex trading legal in Switzerland?

Trading forex (currencies) in Switzerland is popular among residents. Before any fx brokers can operate in Switzerland, they must become authorised by the Swiss Financial Market Supervisory Authority (FINMA), which is the national regulatory authority.

The Swiss national currency is the Swiss franc (CHF), which is divided into 100 smaller denominations. Since Switzerland is a multilingual country, this 1/100 of a franc denomination is known as a rappen in German, a centime in French, a centesimo in Italian and a rap in Romansh.

According to the Bank for International Settlements (BIS), the Swiss franc was the seventh most-traded currency in 2016, making up around 4.8 percent of overall forex market turnover that year. The CHF also ranked eighth among the world’s most popular reserve currencies, amounting to roughly 0.15% of total central bank reserves in the third quarter of 2018, according to the International Monetary Fund (IMF).

With respect to Swiss financial sector regulation, the Swiss Financial Market Supervisory Authority (FINMA) supervises the financial system in Switzerland that includes online forex brokers. The regulator oversees financial institutions and aims to protect investors by making sure that Switzerland’s financial markets function well. Financial institutions need to be authorized by FINMA before commencing operation.

What's so special about Swiss bank accounts?

The main benefits of Swiss bank accounts include the low levels of financial risk and high levels of privacy they offer. Furthermore, Swiss law requires that banks have high capital requirements and strong depositor protection, which practically ensures that any deposits will be safe from financial crisis and conflict. 

Swiss FX companies attract both professional and part-time traders from all over the world. And here are the reasons why you should consider a company based in Swiss Confederation:

  • You are from Switzerland yourself.
  • You are based in the USA, but would like to trade with a non-US broker legally. Registered Swiss banks can offer that.
  • You seek a better protection of your private banking information.
  • You believe that Swiss regulation is superior to other jurisdictions.