Switzerland is and has always been a synonym for discipline, stability, accuracy, and welfare. From the mountain tops of the Alps to the world-famous watches, banks, and chocolate, this country does not cease to give the vibe out of what every other government in the world aspires to achieve – a strong economy, high standards of living, and sustainable growth. Swiss economy, is, indeed, admirable, and the opportunities that each individual sector of it offers are plentiful. This is also the case with the local Forex trading market – not only is it one of the most secure markets in the world, but the potential profits that its traders can utilize are plentiful.
In our guide that you are about to read we will dive deeper into what makes the Swiss FX market so attractive. We will assess the regulatory measures that ensure its smooth functioning, list down the best Swiss Forex brokers, and decide whether Switzerland is, indeed, a good place for the traders looking for security and high profits from their trading sessions. Our guide is not aimed exclusively at those with an extensive background in trading, and, thus, both the beginners and the experienced traders will find it useful. We suggest that you read it until the end to create a full understanding of the FX trading environment in Switzerland.
Choosing the broker that is right for you is never an easy task – and it is bound to be a source of a lot of stress and anxiety. It is very important that the brokerage that you end up joining operates with your best interests in mind, and abides by all the relevant security regulations issued by the local government or other regulatory legal entity. The failure to do so might leave you with significant losses or even a lifetime of debt. For the purpose of making the task of finding the right broker a little bit easier for you, we have compounded a comprehensive list of best Forex brokers in Switzerland, which contains all the information about the advantages of joining each individual broker and the opportunities for profit that they have to offer to their clients. Although the list is not exhaustive, we have tried to include only the ones that we consider most reliable, efficient, and transparent. We hope that you will find the information that we provide useful and complementary to the one that you will find while doing your own research.
CySEC, IFSC, ASIC
100 currency units
CIMA, FCA, NFA
The Swiss FX market regulatory environment is a paradox of its own. Trading Forex in Switzerland is probably some of the safest experiences that one might have, however, to one’s surprise, the regulatory measures there are quite relaxed. It seems that Switzerland has managed to what many international Forex market regulators are only striving to achieve – ensure maximum security and growth with minimum regulations and limitations in place. But how is that possible – you might be asking? We know that it does sounds too good to be true, however, let us explain to you exactly how.
The Swiss Financial Market Supervisory Authority ( FINMA) is an independent legal entity, that is responsible for regulating and overseeing the smooth functioning and development of the main market players and operations. First established in 2007, this regulatory was a result of the merging of the Federal Office of Private Insurance ( FOPI), the Anti-Money Laundering Control Authority, and the Swiss Federal Banking Commission ( EBK). The FINMA enjoys a high degree of autonomy from the Federal Department of Finance and federal administration and only reports directly to the Swiss Parliament. The main responsibilities of the regulatory body include overseeing, regulating, and assessing the work of banks, insurance companies, stock exchange markets, banks, collectible investment, securities market, and, of course, the Forex trading brokers in Switzerland.
As previously mentioned, this body is fully committed to both customer protection and the further development of the FX market. What is especially impressive is that it manages to achieve both with relatively relaxed regulatory measures that, in no way compromise the security of the traders. Below, we will provide a more detailed assessment of the FINMA’s main regulatory measures and what they are aimed at.
The licensing of Forex trading brokers in Switzerland, similarly to the other European countries, is quite a complicated process. The requirements are pretty strict, and the broker will have to go the extra mile to meet them. Now, one might be wondering why should anyone even bother with obtaining this license at the price of a lot of time and effort. Truth is, the official FINMA license automatically makes the respective broker much more prestigious and reputable in the eyes of an average trader. This license is an additional layer of security and a further persuasion that in case something goes wrong with this particular broker, the regulatory body will step in on the traders’ behalf. We can, therefore, say that by making the process of obtaining a license so complicated and demanding, the FINMA contributes to both the overall sustainable development of the Swiss FX market and the security of the traders operating in it. We will now have a closer look at the particular conditions that the Forex trading brokers in Switzerland have to meet in order to become the official FINMA licensee.
Leverages in Forex trading do not cease to be the center of heated discussions among the field experts, policymakers, and regulatory bodies across the world. In the hands of the experienced traders, those tools can become the sources of huge profits with little to none investment of the actual funds. Nevertheless, when used by someone with little background in trading Forex, what they can end up causing devastating losses and additional money that need to be repaid to the brokers. When it comes to putting caps on leverages, many agree that the regulatory bodies and policymakers should not act as a moral compass and that each individual trader should make a decision to trade with leverage at their own risk, while others claim that caps are necessary to protect amateur traders from big losses.
In Switzerland, the treatment of leverages is very relaxed compared to that of the other countries in Europe, that follow the guidelines issued by the European Securities And Market Authorities (ESMA). What this means is that there are no limits on the leverages that the Forex trading brokers in Switzerland can provide, and traders can take full advantage of utilizing them. We do, however, suggest that before going straight into this risky enterprise you dedicate some time and effort into conducting proper research of how trading with leverages operates, what are the advantages and disadvantages of using this tool, and what are the potential risks involved.
Demanding brokers to have a certain minimum amount available at all times is a great – and a common way of ensuring the safety of the traders. The reason behind it is the prevention of brokers from operating on the verge of bankruptcy, and, by doing, putting their respective traders and their funds at risk. There is already a large number of countries that adopt such a measure for the purpose of reinforcing the security of the FX markets, and Switzerland is no exception.
There is, however, one significant factor that differentiates Switzerland from the other regulatory bodies that impose similar measures. The minimum required capital that Forex trading brokers have to possess at all times is way higher than anywhere else. It amounts to a total of 20 million CHF or an equivalent of 20 million USD. It is only in the United States, where the brokers have to possess a similar amount, and elsewhere it ranges between something as little as 100 000 EUR or up to a few million dollars. This measure is just another demonstration of the fact that the Swiss FINMA is prepared to go the extra mile to protect the traders.
Bonuses and promotions are a great way for brokers to expand their client base and attract new traders. In turn, traders can enjoy the benefits of kickstarting their trading sessions with a pleasant addition to their operational funds. There are two main types of bonuses that the brokers can provide – welcome and refill bonuses. Welcome bonuses are gifted to the trader either upon joining the broker or upon making the first deposit. In turn, the refill bonuses are the tokens of appreciation that the broker issues periodically to the returning clients. When it comes to Switzerland, we regret to inform you that, just like in many other countries, the provision of bonuses and promotions there is prohibited. Nevertheless, you can still benefit from the various trading tools that the Forex trading brokers in Switzerland provide.
Another common regulatory measure that we are about to discuss is the requirement for brokers to submit regular periodic reports and audits of their operations. Those reports have to contain very detailed information on every segment of the broker’s activity, that the regulatory body then assesses the ability of the local brokers to meet the standards issued in their respective countries.
When it comes to the Swiss FINMA, it once again demonstrates an extreme dedication to customer protection. Unlike other regulatory bodies in Europe and across the world, the FINMA requires its licensees to submit both the internal and external audits of their activities. This particular measure exists for two main reasons. First of all, by carrying out periodic reviews of the activities of the Forex trading brokers in Switzerland, the FINMA ensures that no malicious activities take place, and traders are not subjected to any unnecessary risks. Secondly, by having to examine the operations of the local brokers, FINMA is always able to identify the pitfalls within the Swiss FX market and take timely measures to address them accordingly.
One more measure that the FINMA requires the Swiss traders to follow in order to qualify for the regulatory body’s license is the necessity to change the management upon the organization’s request. As we have just mentioned, Forex trading brokers in Switzerland are required to submit regular reports of their performance. If by assessing this report, the FINMA determines that the current management of the brokerage fails to carry out its functions properly, the body will issue a warrant for the management to be replaced with another, more qualified one. This notion goes to show, once again, just how committed Switzerland is to the customer protection and development of the country’s FX trading market.
There is no doubt that trading Forex is a risky enterprise, and every individual should process large volumes of information to make their own decision on whether or not they want to get involved in this particular kind of financial investment. Nevertheless, many regulatory bodies make it their goal to ensure that the potential traders and those with some knowledge of the FX market have access to comprehensive information about various trading-related processes. On top of the provision of such information, the FINMA requires Forex trading brokers in Switzerland to provide full disclaimers that derive from using various kinds of trading and trading tools.
Anyone who has reached the legal age of 18 years old in Switzerland can get started with Forex trading. The procedure is fairly straightforward for the traders, and if they meet the requirements issued by the broker of their choice, they will be able to start trading in no time. When it comes to the costs of getting started with the Swiss FX, we are happy to say that it will be completely free. What we mean by that is that you will not be required to pay any additional money or fees to join a certain broker. The only financial input that you will have to make is the deposit that will be used for your consequent trading sessions. The minimum required deposit varies, as some of the best Forex brokers in Switzerland will be asking is something as little as 5 USD, while others, not any less reputable, will be asking for something around 500 USD. We suggest that you take your time to find the broker that suits you best.
Having assessed the Swiss FX market, we are happy to report that it is definitely worth giving it a try. The Swiss national economy develops rapidly, and the overall state of it is the very definition of the country’s world-famous stability and discipline. Similarly, the FINMA – Swiss regulatory body does an excellent job of both maintaining the unwavering dedication to customer protection and constantly undertaking measures to contribute to the market’s development. If you are a Swiss citizen who is thinking about getting into Forex trading, we definitely recommend that you get yourself acquainted with the benefits that the best Swiss brokers have to offer.