Best Swiss Forex Brokers for 2020 • Benzinga

Switzerland has a relatively strict regulatory environment, so if you choose a foreign broker, make sure it is also well-regulated within its local jurisdiction. Several online brokers have offices in Switzerland, and many foreign brokers also open accounts for traders who reside in the country.

Swiss Forex Brokers:

Remember that not all forex brokerages are created equal, so make sure to carefully determine your specific needs as a trader. Once you know what you need, you can assure your needs will be met by a broker before opening a forex trading account.

Trading Forex in Switzerland

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.

When it comes to trading currencies, Switzerland has several reputable forex brokers based in the country itself, although Swiss residents can easily deposit money and trade forex via accounts held with foreign brokers.

Keep in mind that if you do choose a foreign forex broker, it will generally be overseen by one or more regulators in the country, so make sure to select a foreign broker with a reputable and reasonably strict regulatory organization.

What to Look for in a Swiss Forex Broker

Whether a broker is based in Switzerland or elsewhere, the best online brokerage will generally have the following 11 characteristics:

• 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

Another key factor to take into account when looking for a suitable online forex broker is what type of trading software the broker supports. Many brokers offer proprietary trading platforms to clients, while some rely on third-party platforms like MetaTrader 4 and 5 from MetaQuotes.

The Best Swiss Forex Brokers

If you’re from Switzerland and looking for a reliable online forex broker, choose from among the well-regulated brokers shown below. These include Swiss-based online brokers like Dukascopy and Swissquote, as well as foreign brokers authorized and regulated by FINMA like Saxo Bank and IG Group.

You can also choose among foreign brokers that are regulated abroad but still accept Swiss clients, such as FOREX.com, for example. If English is not your first language, then you will probably want to select a broker that has its website translated into your preferred language, as well as a customer service desk staffed with people who speak it.

All of the Swiss brokers and most of the top foreign forex brokers already have their English websites translated into German, French or Italian. Remember that if a broker has established an office in Switzerland and is regulated by FINMA, then that would be ideal since that tends to make a broker act more responsibly because legal action can be taken against them in Switzerland. Litigating abroad can be challenging and cost you extra time and money to seek justice if problems arise.

Choose the best forex broker by combing through all of your options. Here’s a short list of some top online forex brokers to consider:

Account Minimum

100 of your selected base currency

Pairs Offered

80+

Minimum Trade Size

$1,000

Spread

0.2 pips – 1.0 pips

Commisions

$0 – Variable starting at $60 per million traded depending on account

Best For

• MetaTrader 4 users
• Beginner forex traders
• Active forex traders

FOREX.com

FOREX.com is a top broker with respect to client assets. While it may not be regulated by FINMA, it is regulated by the NFA and CFTC in the United States, in addition to the U.K., Australia, Canada, Japan, Singapore, Hong Kong, and the Cayman Islands.

You can open a trading account at FOREX.com with just $250, and the broker allows micro lot trading for those wanting smaller trading amounts.

The broker segregates client accounts from its own and offers an Islamic account option. The company has several desktop, mobile, and web-based platforms, including the popular MetaTrader 4 and 5 platforms from MetaQuotes.

Clients also have access to its proprietary Advanced Trading Platform for desktops and its Web Trading platform for online trade execution.

With respect to leverage, FOREX.com has a rather low (but safe) maximum leverage ratio of 50:1 available to clients trading currency pairs. You can visit the broker’s official website for more information at FOREX.com.

Read Benzinga’s full FOREX.com Review

Commissions

Depends on security and leverage

Account Minimum

$50 for US and Australia; $200 everywhere else

Best For

• U.S.-based cryptocurrency traders
• Social and copy traders
• Simple user interface
• Community engagement and following other traders

eToro

eToro has provided forex products and more to retail clients for over 10 years. It is a social trading platform that has over 10 million account holders worldwide; eToro allows users to be a part of the trading community.

eToro’s most popular trading features for forex trading are their Social News Feed, CopyTrader, and CopyPortfolios.

With the Social News Feed, traders get access to a Twitter-esque feed to trader updates. They can discuss the markets, their strategies, and are able to get alerts based on certain market factors.

With CopyTrader and CopyPortfolio, you can find a successful trader and copy their strategy. With the ability to copy up to 100 traders, this feature is easy to set up and access.

Read Benzinga’s full eToro Review

Final Thoughts

If you live in Switzerland, choose a well-regulated broker that segregates clients’ accounts from its own accounts and deposits with a top-tier bank. Regulation by FINMA is strong and highly recommended, while the NFA and CFTC also provide strict oversight. Select a forex broker if your margin deposit will be kept safe. Any trading gains will be promptly sent to you when asked. Research the client reputation ratings of each broker and check to see if account holders have any unresolved issues with the broker.