| Updated: November 27, 2024Switzerland has established itself as the epitome of reliable banking, with a long history of bank confidentiality that dates all the way back to the early 18th century. The country’s buoyant economy and robust financial system render it a highly attractive destination for investors, companies, and forex brokers alike. Swiss forex traders benefit from a well-regulated environment but finding a trusted Swiss-friendly broker is not as simple as it originally seems.
To make this process a tad easier, Best Brokers drew up a list of the most reliable forex brokers catering to clients from Switzerland. We selected our top picks based on multiple data-driven variables like spreads, financing costs, execution speed, currency pair versatility, and range of educational resources. The members of our research team have also tested each shortlisted forex broker with a live account as first-hand experience is beyond important to us. Only regulated, fair, and transparent brokers made the final cut.
Fusion Markets74-89% of retail CFD accounts lose money
AxiThe vast majority of retail client accounts lose money
Global Prime74-89% of retail CFD accounts lose money
AvaTrade76% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
CMC Markets71% of retail investor accounts lose money
Plus50082% of retail investor accounts lose money
FxPro74% of retail investor accounts lose money
FXCM70% of retail investor accounts lose money
IG70% of retail client accounts lose moneySwiss Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1,862 | 4.9 ⭐ |
| 2. Axi | 2,371 | 4.8 ⭐ |
| 3. Global Prime | 161 | 4.5 ⭐ |
| 4. AvaTrade | 8,855 | 4.4 ⭐ |
| 5. Eightcap | 2,668 | 4.2 ⭐ |
| 6. CMC Markets | 2,090 | 4.2 ⭐ |
| 7. Plus500 | 14,038 | 4.1 ⭐ |
| 8. FxPro | 434 | 4.0 ⭐ |
| 9. FXCM | 548 | 3.9 ⭐ |
| 10. IG | 7,200 | 3.7 ⭐ |
Swiss Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Fusion Markets | 0.07 | 0.13 | 0.23 | 1.01 |
| 2. Global Prime | 0.13 | 0.28 | 0.28 | 1.11 |
| 3. FxPro | 0.25 | 0.38 |
| 0.37 |
| 4. CMC Markets | 0.5 | 0.7 | 1.1 | 0.9 |
| 5. IG | 0.85 | 0.9 | 0.9 | 1.40 |
| 6. FXCM | 0.6 | 1.1 | 1 | 0.8 |
| 7. AvaTrade | 0.9 | 1.3 | 1.2 | 1.3 |
| 8. Eightcap | 1.00 (min) | 1.1 | 1 | 1 |
| 9. Axi | 1.2 | 1.4 | 1.1 | 1.2 |
| 10. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
Swiss Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. AvaTrade | $0 |
| 2. Plus500 | $0 |
| 3. IG | $0 |
| 4. Eightcap | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| 5. FXCM | $0 |
| 6. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 7. CMC Markets | $2.50 per lot (per side) |
| 8. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 9. Axi | $0 on Standard Account; $7 round trip on Pro Account |
| 10. FxPro | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
Important Note: Forex trading is a strictly regulated activity in Switzerland and falls under the remit of the Swiss Financial Market Supervisory Authority (FINMA). We recommend Swiss traders always register live accounts at FINMA-authorized forex brokerages as they maintain some of the world’s highest standards of security and investor protection.
Top 10 FX Brokers in Switzerland
Fusion Markets Broker Details Supports German, French, and Italian No Switzerland Currency (CHF) No Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView Trustpilot Rating 4.9 out of 1,862 reviews Number of CFD Forex Pairs to Trade 90+ Leverage Forex & Metals CFDs: 1:30 (1:500 for forex and metals via VFSC)
Index CFDs: 1:5
Cryptocurrencie CFDs: 1:2 (ASIC), 1:10 (FSA, VFSC)Spread EURUSD: 0.07
USDJPY: 0.13
EURGBP: 0.23
GBPUSD: 1.01Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire, ZotaPay, VNPay, DuitNow, XPay, DragonPay, VAPay, FasaPay, AstroPay, PayID, Jetonbank, Sticpay, Interac, LuqaPay, Zotapay, MiFinity Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple, MiFinity, Interac, PayPal, AstroPay, Jetonbank, DragonPay Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
- Has no FCA license
Global Prime Broker Details Supports German, French, and Italian No Switzerland Currency (CHF) No Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.5 out of 161 reviews Number of CFD Forex Pairs to Trade 56 Leverage Forex & Metals CFDs: 1:500 (1:30 for ASIC entity)
Index CFDs: 1:100 (1:20 for ASIC entity)
Cryptocurrencie CFDs: Up to 1:2 (ASIC); Up to 1:5 (Pro and VFSC)Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 1.11Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
AvaTrade Broker Details Supports German, French, and Italian Yes Switzerland Currency (CHF) Yes Regulators FFAJ (License No.1574),CySEC (No. 347/17) ISA (No. 514666577), IIROC, ADGM / FSRA (No.190018), CBI (No.C53877), BVIFSC (No. SIBA/L/13/1049), FSCA(No.45984), ASIC (No.406684), JFSA (No. 1662) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial, AvaOptions, DupliTrade Trustpilot Rating 4.4 out of 8,855 reviews Number of CFD Forex Pairs to Trade 53 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 for EU residents 1:25 for non-EU residentsSpread EURUSD: 0.9
USDJPY: 1.3
EURGBP: 1.2
GBPUSD: 1.3Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Withdrawal Methods Visa, Mastercard, Skrill, WebMoney, Neteller, bank wire Key Pros
- Regulated by 9 jurisdictions in 6 continents
- Offers various trading platforms suitable for beginners and expert traders
- Enables smooth mobile forex trading via dedicated app
- Offers 55 forex options and numerous CFDs
- Easy copy trading via the AvaSocial platform
Key Cons
- Retail account pricing trails behind top brokers’ offerings
- Desktop platform may seem a tad outdated
- Many payment solutions are country-specific
Plus500 Broker Details Supports German, French, and Italian Yes Switzerland Currency (CHF) Yes Regulators FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727), BaFin registration, SCB (SIA-F250) Min Deposit $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 14,038 reviews Number of CFD Forex Pairs to Trade 60+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2 (1:5 via FSA)Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Withdrawal Methods Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free CFD trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
IG Broker Details Supports German, French, and Italian Yes Switzerland Currency (CHF) No Regulators ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda) Min Deposit $50 Trading Platforms MT4, L2 Dealer, ProRealTime, IG proprietary software, TradingView Trustpilot Rating 3.7 out of 7,200 reviews Number of CFD Forex Pairs to Trade 80+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.85
USDJPY: 0.9
EURGBP: 0.9
GBPUSD: 1.40Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal, Apple Pay, BPAY Withdrawal Methods Visa, Visa Electron, Mastercard, Discover, Bank Transfer Key Pros
- Towering selection of over 17,000 tradable markets
- Listed on the FTSE 250 index
- Competitive pricing and low forex spreads
- No fees on deposits or withdrawals
- Demo accounts for risk-free forex trading practice
Key Cons
- Payment options are a bit limited
- Customer support is slow to respond during busy hours
Eightcap Broker Details Supports German, French, and Italian Yes Switzerland Currency (CHF) No Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, TradingView, Capitalise.ai, FlashTrader Trustpilot Rating 4.2 out of 2,668 reviews Number of CFD Forex Pairs to Trade 50+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.00 (min)
USDJPY: 1.1
EURGBP: 1
GBPUSD: 1Forex Commission per Lot per Trade $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay Key Pros
- Commission-free FX trading via standard accounts
- Spreads from 0 pips on major currency pairs
- Accepts cryptocurrency deposits
- Fantastic variety of deposit and withdrawal methods
- Insights section with webinars, trade ideas, and weekly forecasts
Key Cons
- Below-average range of tradable instruments
- Crypto withdrawals incur transaction fees
FxPro Broker Details Supports German, French, and Italian Yes Switzerland Currency (CHF) Yes Regulators FCA (No. 45052), CySEC (No. 078/07), SCB (No. SIA-F184), FSCA (No.45052) Min Deposit $100 Trading Platforms MT4, MT5, cTrader, FxPro Edge (proprietary) Trustpilot Rating 4.0 out of 434 reviews Number of CFD Forex Pairs to Trade 70+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.25
USDJPY: 0.38
EURGBP:- 0.1 (MT4)
- 1.3 (MT5)
GBPUSD: 0.37Forex Commission per Lot per Trade $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts Deposit Methods Visa, Mastercard, Maestro, Bank Transfer, Neteller, PayPal, Skrill, Union Pay Withdrawal Methods Bank Transfer, Mastercard, Visa, Union Pay, Maestro, PayPal, Skrill, Neteller Key Pros
- Over 2,100 CFDs across six asset classes
- Zero fees on deposits and withdrawals
- Floating spreads with no commissions on MT4 FX trades
- Winner of over 100 industry awards
- Fills orders within less than 13 milliseconds
Key Cons
- FX spreads are slightly higher than industry averages
- Charges maintenance fees after six months of inactivity
Axi Broker Details Supports German, French, and Italian No Switzerland Currency (CHF) Yes Regulators ASIC, FCA, CySEC, DFSA, FSA (Saint Vincent and the Grenadines) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 WebTrader, Axi Mobile Trustpilot Rating 4.8 out of 2,371 reviews Number of CFD Forex Pairs to Trade 80 Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 1.2
USDJPY: 1.4
EURGBP: 1.1
GBPUSD: 1.2Forex Commission per Lot per Trade $0 on Standard Account; $7 round trip on Pro Account Deposit Methods Visa, Mastercard, Bank Transfer, Neteller, Skrill, AstroPay, Fasapay, Przelewy24, Boleto, Pix, Bitcoin, Ethereum, Ripple, Litecoin, Tether, Stellar, POLi, iDEAL, Sofort, Giropay Withdrawal Methods Mastercard, Visa, Bank Transfer, Przelewy24, Fasapay, Skrill, AstroPay, Pix, Boleto, Neteller, Bitcoin, Ripple, Ethereum, Litecoin, Tether, Stellar Key Pros
- Provides multilingual customer support
- Standard and Pro accounts available in 10 base currencies
- No minimum deposit requirements on Pro and Standard accounts
- Over 70 FX pairs tradable from zero pips
- Swift order execution and tight spreads
Key Cons
- A limited choice of trading platforms
- Below-average number of tradable symbols
CMC Markets Broker Details Supports German, French, and Italian Yes Switzerland Currency (CHF) No Regulators ASIC, MAS, FCA, BaFin, IIROC Min Deposit $0 Trading Platforms CMC Markets’ Next Generation, MetaTrader 4 Trustpilot Rating 4.2 out of 2,090 reviews Number of CFD Forex Pairs to Trade 330+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.5
USDJPY: 0.7
EURGBP: 1.1
GBPUSD: 0.9Forex Commission per Lot per Trade $2.50 per lot (per side) Deposit Methods Visa, Mastercard, Maestro, Online Banking, Bank Transfer Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer Key Pros
- Publicly traded reputable brand
- One of the first online forex brokers
- Covers an extensive selection of currency pairs
- Offers proprietary trading platform
- Enables smooth mobile trading
Key Cons
- Automated trading available only on MetaTrader4
- Fees on stock CFDs can be high
- Supports a limited number of payment methods
FXCM Broker Details Supports German, French, and Italian Yes Switzerland Currency (CHF) Yes Regulators FCA, CySEC, ASIC, FSCA, ISA, IIROC Min Deposit $50 Trading Platforms MetaTrader 4, TradingView Pro, Trading Station, Capitalise.ai Trustpilot Rating 3.9 out of 548 reviews Number of CFD Forex Pairs to Trade 40+ Leverage Forex & Metals CFDs: 1:30
Index CFDs: 1:20
Cryptocurrencie CFDs: 1:2Spread EURUSD: 0.6
USDJPY: 1.1
EURGBP: 1
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer, Neteller, Skrill, Google Pay, Open Banking, Apple Pay, PayPal, Paysafecard Withdrawal Methods Visa, Mastercard, Bank Transfer, PayPal, Neteller, Skrill Key Pros
- Offers up to 1:1,000 leverage on all new accounts
- Supports popular trading platforms
- Does not charge depositing and withdrawal fees
- Regulated by multiple top-tier regulators
- Offers competitive spreads
Key Cons
- Charges a rather high inactivity fee
- Offers limited number of products
- Number of currency pairs is average
Is Forex Trading Legal in Switzerland?
Forex trading is completely legal in Switzerland but requires authorization from the Swiss Financial Market Supervisory Authority (FINMA), the local financial regulator. Both business and private individuals are eligible for license application but must satisfy certain requirements to gain the approval of the Swiss watchdog. Two types of licenses are available, starting with the standard banking licenses granted to entities looking to provide forex broking services in the country. The provision of other securities like forex options, futures, bonds, and contracts for difference (CFDs) requires an additional securities dealer permit.
Brokers interested in acquiring Swiss licenses must meet minimum net capital requirements of CHF 1.5 million and maintain it at all times. Businesses must also establish registered offices in the country to become eligible. Applicants should additionally submit comprehensive business plans confirming they can adequately manage risk and maintain their capital. FINMA usually requires up to six months to assess license applications and bestow its approval on eligible candidates.
Swiss residents can legally engage in spot forex and derivative trading with complex speculative instruments like the CFDs provided they do so with authorized entities. Spread betting on forex pairs is also a regulated activity in the country. Switzerland is among the few European countries where trading with binary options is legal, but their provision also requires a license from the national regulator.
Forex Trading Regulators in Switzerland
The Financial Market Supervisory Authority (FINMA) regulates the operations of all authorized participants in the Swiss financial market, including forex brokers, securities dealers, investment schemes, insurance companies, banks, and stock exchanges. The watchdog assumed its regulatory responsibilities in 2007 as a successor of the Federal Banking Commission. The Bern-based regulator operates independently from the country’s central administration and reports directly to the Federal Assembly of Switzerland.
FINMA’s regulatory powers are far-reaching as it has the remit to set out rules for authorized market participants to follow, monitor for compliance, issue licenses, and revoke them in the event of regulatory transgressions. The watchdog can also impose corrective measures on violators and even liquidate licensees that fail to meet its authorization requirements. Apart from its regulatory responsibilities, FINMA is committed to helping local consumers improve their financial literacy by providing information and sources for further reading.
Switzerland is not a member of the European Union (EU) or the European Economic Area (EEA). Trading in forex and other securities is regulated separately in the country, although some of the requirements overlap with those outlined in the Markets in the Financial Instruments Directive II (MiFID II), applicable throughout the EU.
How to Identify Authorized Forex Brokers in Switzerland
Swiss traders should always verify the regulatory status of their forex brokers of interest before registering live accounts. Swiss-friendly brokers largely uphold high standards of transparency and consumer protection, although there are still a few bad apples in the bunch that serve clients from the country without proper authorization.
The easiest way to confirm a broker is authorized to operate on Swiss soil is to visit the website of the local financial regulator. FINMA maintains a public register of all regulated entities and updates it regularly to ensure residents always have access to accurate information. The regulator also publishes a “warning” list of all brokers providing unauthorized services to clients from the Swiss market.
The regulator has set up a dedicated hotline that consumers can use for general inquiries and information. The hotline number (+41 31 327 9888) operates from 8:00 am to 12:00 pm on weekdays. The alternative is to send an email with your query to questions@finma.ch or info@finma.ch.
Security at Swiss Brokers
Forex brokers with Swiss authorization uphold some of the highest security and integrity standards in the world. They undergo regular financial inspections conducted by accredited audit firms approved by the local regulator FINMA. All locally licensed brokers must disclose relevant information about their current financial position to ensure they consistently maintain the minimum capital requirements set out by the watchdog.
Brokerage firms regulated in the country must keep client funds in segregated accounts at approved banks, separate from their operating capital. The practice eliminates the likelihood of a broker misusing customer assets as FINMA strictly prohibits using client money to cover operating expenses.
FINMA-regulated brokers must act in the best interests of their clients, executing their trades without any delays and at the best possible pricing. Another requirement stipulates brokers must ensure clients are well informed about the high risk of sustaining financial losses when trading with complex speculative instruments like binary options and contracts for difference. Clients trading with authorized entities are entitled to deposit insurance (esisuisse). If locally regulated brokers and securities firms suffer a financial collapse, each client can receive a maximum compensation of CHF 100,000. Swiss traders can find further information about deposit protection at the official website of the self-regulatory organization.
Negative Balance Protection at Swiss Brokers
You may find it surprising but FINMA has adopted a more relaxed stance on retail derivative trading. The local regulatory framework contains no specific provisions requiring Swiss brokers to offer negative balance protection to retail clients. Regardless, all trusted brokerages catering to traders from the Swiss market implement this mechanism to protect clients from losing more than their available account balance.
Negative balance protection is an indispensable tool for retail customers trading high-risk financial instruments with leverage. When in place, it exempts traders from additional financial obligations in the event of a negative balance in their trading accounts. Customers who incur losses exceeding their deposits are not liable to cover their negative balances by making additional deposits. The brokers will reset their balance to zero instead and cover any excess losses themselves.
Taxes on Forex Trading Profits in Switzerland
Profits derived from forex trading are liable for taxation in Switzerland but it all depends on whether traders classify as private or professional investors. Private investors are exempt from paying capital gains taxes on their earnings. Traders must satisfy certain criteria to qualify for a private investor status. They must hold their securities for at least half a year and invest their own capital rather than conducting trades on behalf of others.
One’s trading volume also bears consideration as it must not exceed five times the overall value of a trader’s securities at the beginning of any given tax year. The overall profits of private investors should be less than half of their net income.
Last but not least, private investors can trade with derivative products only for hedging purposes and risk management. Traders who fail to meet these criteria are classified as professional investors and are liable for capital gains taxes. Local tax laws treat the profits of professional traders as self-employment income, with annual tax rates reaching 15%.
Leverage Comparison at Locally Regulated and Offshore Brokers
Swiss forex traders enjoy greater freedom and more flexibility when it comes to increasing their market exposure by using leverage. Switzerland is outside the scope of the Markets in Financial Instruments Directive 2014 (MiFID II), legislation that imposes maximum leverage caps of 1:30 on retail forex accounts. MiFID’s leverage restrictions apply to all countries in the EEA and the EU but Switzerland is not a member of either.
Brokers regulated in the country adhere to the requirements of the Swiss Financial Services Act (FinSA), commonly regarded as the Swiss version of MiFID II. Leverage caps under the local regulatory framework are higher compared to those imposed by Forex brokers authorized in other European countries. Swiss traders initially have access to maximum leverage of 1:100, although increasing this ceiling to 1:200 is possible upon request provided that certain conditions are met.
| Side-by-Side Comparison of Leverage Caps in Switzerland and EU Countries | ||
|---|---|---|
| Financial Instrument | Swiss Leverage Cap | EU Leverage Cap |
| Forex majors | 1:200 | 1:30 |
| Forex crosses, exotic pairs, major equity indices, and gold | 1:200 | 1:20 |
| Other commodities and indices | 1:100 | 1:10 |
| Stocks | 1:10 | 1:5 |
| Cryptocurrencies | 1:3 | 1:2 |
*The example includes max. leverage caps as listed by the FINMA-regulated bank and securities provider Dukascopy. Other brokers like Swissquote restrict the maximum available leverage to 1:100.
In line with these higher leverages, initial margin requirements for forex majors are set at either 0.5% or 1% at most FINMA-compliant brokers. Customers classified as professional traders often have access to higher leverage ratios reaching 1:400 in some cases.
Professional Trader Requirements in Switzerland
The criteria for qualifying as a professional trader in Switzerland are vastly different from those in other European countries. According to the Federal Act on Financial Services (FinSA), the category of professional clients mainly comprises entities that provide financial services themselves. This includes central banks, insurance companies, pension funds, financial intermediaries, and large companies.
Such entities are commonly treated as institutional clients in other European jurisdictions rather than professional traders. For clarification, “large” companies are those whose equity and turnover amount to at least CHF 2 million and CHF 40 million, respectively. Also, their balance sheets must total CHF 20 million or more. “Large” companies meeting two of these three conditions are eligible for professional client classification.
Trading Platforms at Swiss Brokers
When choosing a forex broker, Swiss traders must consider the trading platforms it supports as software is a crucial factor that can make or break one’s overall trading experience. It is highly recommended to go for a broker that works with trading software you are comfortable using. Many FINMA-regulated providers of forex broking services are run by Swiss banks and rely on proprietary software with unique features and interface.
Others use proprietary trading platforms in conjunction with third-party software designed by well-known developers like MetaQuotes. The company created the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms that are broadly implemented by Swiss-friendly forex brokers. Most retail traders from Switzerland favor MT4 for its user-friendliness, quick order execution, and rich range of analytical tools.
MT4 also supports algorithmic trading to the benefit of users looking to participate in the forex markets without spending most of their day glued to their computers. MT5 is an improved version of MT4 as it facilitates faster order execution and offers additional features that are otherwise unsupported by its predecessor.
Third-party software like cTrader (perfect for copy trading), Sierra Chart, TradingView, and NinjaTrader, are also implemented but their availability is more limited. Most of these platforms have free-trial periods Swiss traders can take advantage of to get a proper feel of their user interface and functionalities. Their choice of Swiss-friendly brokers and platforms should be based on factors like trading frequency, style, and forex trading proficiency.
Swiss forex traders who wish to find more information about the regulatory framework in Switzerland or need help with their trading experience can resort to the links we have provided below:
- The Swiss Financial Market Supervisory Authority (FINMA): The regulation of the Swiss financial market, including forex brokers operating within the country, falls under the remit of FINMA.
- The public register of all regulated entities will allow traders to verify the validity of the licenses they see listed on brokers’ official websites. You can simply type the name of the entity you wish to check and see if it is available on FINMA’s official registry.
- FINMA warning list: This page will provide additional information on any entities that have been practicing illegal trading services or have breached regulations imposed by FINMA and other relevant regulatory organizations.
- While FINMA is not one of the regulators within the EU or EEA, it still imposes regulatory measures that coincide with regulations imposed by the MiFID II directives introduced by ESMA.
- Thanks to the agreement between FINMA and EEA, Swiss forex traders can also join brokers authorized to operate by top-tier regulators like CySEC, BaFin, FI-FSA, AMF, and other regulatory bodies located in EU and EEA countries. All of these regulators have imposed strict rules like leverage limits, negative balance protection, and investor compensation schemes.
- Swiss consumers can report regulatory breaches committed by FINMA-regulated entities and other irregularities by using this form. Make sure you enter all requested information correctly so that the regulator can take timely and adequate measures against the violators.
- Follow FINMA on LinkedIn and X to stay up-to-date with potential regulatory changes, important announcements, and fraud alerts. The regulator is active on both platforms and posts every few days.