| Updated: May 15, 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
AvaTrade76% of retail investor accounts lose money
Eightcap76.09% of retail investor accounts lose money
CMC Markets71% of retail investor accounts lose money
FXCM70% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Plus50080% of retail investor accounts lose money
IG70% of retail client accounts lose money
FxPro74% of retail investor accounts lose money
AxiThe vast majority of retail client accounts lose moneySwitzerlandish Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1409 | 4.8 ⭐ |
| 2. AvaTrade | 8469 | 4.5 ⭐ |
| 3. Eightcap | 2133 | 4.3 ⭐ |
| 4. CMC Markets | 1923 | 4.2 ⭐ |
| 5. FXCM | 494 | 4.2 ⭐ |
| 6. Global Prime | 100 | 4.1 ⭐ |
| 7. Plus500 | 13168 | 4.1 ⭐ |
| 8. IG | 6723 | 4.1 ⭐ |
| 9. FxPro | 209 | 3.9 ⭐ |
| 10. Axi | 1436 | 3.3 ⭐ |
Switzerlandish Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. Fusion Markets | 0.11 | 0.13 | 0.15 | 0.11 |
| 2. Global Prime | 0.13 | 0.28 | 0.28 | 0.22 |
| 3. FxPro | 0.25 | 0.38 | 0.67 | 0.37 |
| 4. CMC Markets | 0.5 | 0.7 | 1.1 | 0.9 |
| 5. IG | 0.6 | 0.9 | 0.9 | 0.9 |
| 6. FXCM | 0.6 | 1.1 | 1 | 0.8 |
| 7. AvaTrade | 0.9 | 1.3 | 1.2 | 1.3 |
| 8. Eightcap | 1 | 1.1 | 1 | 1 |
| 9. Axi | 1.2 | 1.4 | 1.1 | 1.2 |
| 10. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
Switzerlandish 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 |
| 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 Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade Trustpilot Rating 4.8 out of 1409 reviews Number of Forex Pairs to Trade Over 200 Leverage Forex & Metals: 30:1
Index CFDs: 5:1
Cryptocurrencies: 2:1Spread EURUSD: 0.11
USDJPY: 0.13
EURGBP: 0.15
GBPUSD: 0.11Forex 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 Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple Founded by Australian trading experts, Fusion Markets was launched in 2017 and is currently one of the top destinations for traders all over the globe. While it is common for brokers to advertise low spreads, Fusion Markets was actually recognized by Brookerchooser, receiving the award “Lowest Spread Forex Broker” four years in a row.
In addition to offering traders tight spreads, Fusion Markets is committed to offering the best value for your trading, charging a significantly low commission of only $2.25 per lot ($4.50 per side). As you can see, const-effectiveness is one of the main values of this top-shelf broker.
Safety is always a priority for Fusion Markets, with major regulatory bodies like the Australian Financial Services (license No.385620), the Financial Services Authority of Seychelles (license No.SD096), and authorities in Vanuatu regulating the services provided by the broker. Under ASIC’s (Australian Securities & Investments Commission) regulation, the broker also provides a negative balance protection to some of its clients.
With no minimum on deposits and a wide range of popular trading platforms like MetaTrader4, MetaTrader5, cTrader, and more, it is no surprise that Fusion Markets is one of the top choices of traders. With an average score of 4.6 out of 5 on Trustpilot, this broker has received an Excellent rating from more than 1,300 happy customers.
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
Global Prime Broker Details Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.1 out of 100 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 500:1
Index CFDs: 100:1
Cryptocurrencies: 10:1Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 0.22Forex 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
Global Prime is a reliable brokerage that has been providing low-cost trading services since 2010. Regulated by the watchdogs of Vanuatu and Australia, the broker facilitates trading with over 150 financial instruments, including indices, bonds, commodities, cryptocurrencies, and more than 50 currency pairs. Major-pair spreads on raw accounts start at zero pips, with most orders being executed within 10 milliseconds on average. The broker works with MT4 only but plans to soon expand its range of supported platforms with cTrader, MT5, and TradingView.
These excellent trading conditions, coupled with a streamlined registration process, fee-free transactions to and from customer accounts, and round-the-clock support, have earned the broker a solid 4.1 score on Trustpilot. Still, there is scope for improvement as the company offers no cent and swap-free accounts for Islamic customers. The broker has no compensation scheme for client funds, either, which is yet another area Global Prime could improve in.
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 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) Min Deposit $100 Trading Platforms MetaTrader4, MetaTrader5, WebTrader, AvaTadeGO, AvaSocial Trustpilot Rating 4.5 out of 8469 reviews Number of Forex Pairs to Trade 250+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread 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 AvaTrade is one of the most well-experienced brokers offering online trading since 2006. Licensed and regulated to operate across six continents, this brand focuses on offering CFD and Forex trading, with popular platforms like MetaTrader 4 and 5 available to members of the broker. Alongside the MetaTrader platform, AvaTrade also offers its AvaTrade WebTrader and AvaTradeGO platforms, which introduce several innovative features such as AvaProtect.
Those inexperienced in trading can also try copy trading with AvaTrade’s AvaSocial platform. Trading on the go is also a seamless process, with AvaTrade’s mobile platforms, all available on the AvaTrade mobile app, available both to Android and iOS users.
It is no wonder that so many traders have chosen to trust AvaTrade, with the brand offering some of the greatest trading conditions online. Hedging on short selling and scalping is allowed, with traders having no restrictions to worry about. Fast order executions as well as competitively low spreads are also some of the reasons that have earned the broker a score of 4.6 out of 5 on Trustpilot. A total of 9 jurisdictions regulate the services offered by Ava Trade, with the Financial Futures Association of Japan, the Cyprus Securities and Exchange Commission, and the Australian Securities and Investments Commission being some of them.
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 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) Min Deposit $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 13168 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Mastercard, Visa, Skrill, PayPal, Bank Transfer, Apple Pay, BPAY Withdrawal Methods PayPal, Bank Transfer, Visa, Mastercard, Skrill Plus500 is a well-funded trading company with a spotless reputation that services over 25 million customers across 50 countries. This market-leading brokerage is regulated by some of the strictest financial watchdogs in the world, including ASIC, FCA, and CySEC. Its parent company Plus500 Ltd trades publicly on the Main Market of the London Stock Exchange, which only adds to the broker’s good reputation.
The broker specializes in providing CFD trading across multiple asset classes, offering a choice from over 2,800 financial instruments. Forex, indices, stocks, commodities, cryptocurrencies, options, and ETFs are all tradable at Plus500. It ensures a clean trading experience with a robust platform flaunting a modern yet highly intuitive design.
Plus500 caters to traders with tight spreads and charges no additional commissions on forex trades. Customers can fund their live trading accounts via cards, bank transfers, and several popular e-wallets, with minimum deposits starting at $100. Deposits and withdrawals are free but administrative fees are levied on dormant accounts after three months of inactivity.
Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free FX trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time FX quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
IG Broker Details Regulators ASIC (No. 515106), FCA (No. 114059), CFTC, DFSA (No. F001780), MAS, BMA Min Deposit $50 Trading Platforms MT4, L2 Dealer, ProRealTime, IG proprietary software Trustpilot Rating 4.1 out of 6723 reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 0.9
EURGBP: 0.9
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal Withdrawal Methods Visa, Visa Electron, Mastercard, Discover, Bank Transfer IG is a trusted online broker regulated in multiple jurisdictions, including Australia, Singapore, Dubai, the UK, and the US. It provides low-cost trading in thousands of financial markets, ranging from forex and commodities to cryptocurrencies, shares, bonds, and indices. Seasoned traders can dabble in options contracts, bonds, and spread betting. Interest rate trading is also available to IG customers.
The brokerage charges no commissions on forex trades, deriving its profits mostly from spreads. IG predominantly caters to customers looking to capitalize on price movements without purchasing underlying assets by offering them a broad range of CFDs. Forex traders have access to complex speculative instruments like turbo warrants, vanilla options, contracts for difference, and barrier options.
IG’s proprietary software does an excellent job at delivering seamless trading sessions, although clients can also connect third-party platforms like MT4 and ProRealTime to their IG accounts. Both platforms are suitable for algorithmic trading. Moving funds to and from your live account is entirely free, although the broker could expand its range of accepted payment methods. Cards, bank transfers, and PayPal are the only banking options IG works with at the moment. Bank transfers have no minimum threshold on deposits.
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 Regulators SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296) Min Deposit $100 Trading Platforms MT4, MT5, WebTrader, TradingView Trustpilot Rating 4.3 out of 2133 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1
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 Withdrawal Methods Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac Eightcap was established back in 2009 in Melbourne. The brokerage has greatly grown over the years, currently reaching traders from more than 100 countries around the globe. The Australian company is licensed to conduct online trading by first-tier financial watchdogs like FCA, ASIC, and CySEC. It provides favorable trading conditions but its product range is a bit slimmer compared to competitors.
There are around 800 financial instruments to choose from, which puts the broker’s selection of tradable products slightly below the industry averages. Various asset classes are covered, including equity indices, shares, cryptocurrencies, forex, and commodities. The broker specializes in providing speculative trading via contracts for difference, with maximum leverage ratios capped at 30:1 or 200:1, depending on the country of access.
Traders at Eightcap can go long or short on approximately 50 forex pairs, with minimum spreads starting from zero pips on Raw accounts where a $7 round-turn commission is in place instead. Standard accounts allow for commission-free forex trading but have slightly higher spreads (from 1 pip) compared to their Raw counterparts. Capitalizing on currency price movements is possible via the TradingView, MT5, and MT4 platforms. Minimum deposit requirements align with the industry average ($100), with plenty of secure payment methods at customers’ disposal.
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 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 3.9 out of 209 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.25
USDJPY: 0.38
EURGBP: 0.67
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 Founded in 2006, FxPro is a multi-award-winning broker that provides online trading services with licenses granted by the financial regulators of the UK, Cyprus, and the Bahamas. Over 2,100 instruments are tradable at FxPro via a variety of platforms, including MT5, MT4, cTrader, and proprietary software. Customers can dip their toes into forex, commodity, index, stock, and cryptocurrency trading at FxPro.
Forex traders, in particular, will benefit from over 70 major, minor, and exotic currency pairs tradable with fixed or marked-up floating spreads, depending on the platform and account type. Orders are filled at ultra-low latency, ensuring lightning-fast execution of under 13 milliseconds. FxPro stores the money of its clients in segregated accounts at major international banks and offers negative balance protection to all retail customers, regardless of their trading volume and country.
Minimum deposits at FxPro align with industry standards at $100, although new customers are generally recommended to start with at least $1,000 in their live accounts. Deposits and withdrawals incur no additional transaction fees at FxPro. Cards, bank transfers, and e-wallets are all viable funding options for clients with live accounts.
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 Regulators FSA, FCA, CySEC, DFSA, ASIC Min Deposit $0 Trading Platforms MT4 Desktop, MT4 WebTrader, Axi Mobile Trustpilot Rating 3.3 out of 1436 reviews Number of Forex Pairs to Trade 80 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread 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 Withdrawal Methods Mastercard, Visa, Bank Transfer, Przelewy24, Fasapay, Skrill, AstroPay, Pix, Boleto, Neteller, Bitcoin, Ripple, Ethereum, Litecoin, Tether, Stellar Since 2007, Axi has served 60,000 traders from more than 100 countries, offering low-cost trading with over 290 financial instruments across five major asset classes. The company carries licenses from Australia’s ASIC, New Zealand’s FMA, and the UK’s FCA. It enjoys a fine reputation among traders worldwide and has not seen any controversies.
The Sydney-based broker caters to customers with over 70 currency pairs and charges no commissions on FX trades conducted via Standard retail accounts. Commissions are in place only on Pro and Elite accounts but fall within the industry averages. Hard and soft commodities, equity indices, cryptocurrencies, and stocks are tradable at favorable conditions and low pricing via the MT4 platform.
Leverage caps are jurisdiction-specific, with customers in some countries benefiting from leverage ratios of up to 500:1. Multiple base currencies are available for retail accounts, allowing traders to save on currency conversion fees. The broker caters to its international client base with over a dozen payment methods. Using payment solutions like Fasapay and Boleto is restricted to specific regions only.
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 Regulators ASIC, MAS, FCA, BaFin, IIROC Min Deposit $0 Trading Platforms CMC Markets’ Next Generation, MetaTrader 4 Trustpilot Rating 4.2 out of 1923 reviews Number of Forex Pairs to Trade 330+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.5
USDJPY: 0.7
EURGBP: 1.1
GBPUSD: 0.9Forex Commission per Lot per Trade $2.50 per lot Deposit Methods Visa, Mastercard, Maestro, Online Banking, Bank Transfer Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer When it comes to online trading, trusting a worldly-wise broker like CMC Markets, which pounced on the scene way back in 1989, is always the best decision. In 1996, the brand launched its operations online, claiming to be the first to complete a forex deal online. While this cannot be confirmed, the company certainly is one of the pioneers of online trading, currently ranking among the most trustworthy brokers online.
Forex traders will be pleased to see that the broker covers a wide range of currency pairs, while other types of traders will also appreciate the numerous CFDs and spread betting available on CMC Markets’ platforms. The broker offers its clients the proprietary platform Next Generation, which is rather intuitive and easy to use. Unfortunately, the Next Generation platform does not support automated trading. However, those who prefer this style of trading may install the MetaTrader 4 platform, also supported by CMC Markets.
One of the best qualities of CMC Markets is the company’s transparency as it is publicly traded and licensed by some of the most reliable authorities in this industry. Regulated by the ASIC, the broker is authorized by the AFS to offer derivative products under license no.238054 and stockbroking services under license no. 246381. The broker has also been licensed by the UK’s FCA, operating under license no. 173730 and license no. 170627 (spread betting). It comes as no surprise that CMC Markets has become a top destination for numerous traders who have given the broker an average score of 4.2 out of 5 on Trustpilot.
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 Regulators FCA, CySEC, ASIC, FSCA, ISA, IIROC, Min Deposit $50 Trading Platforms MetaTrader 4, TradingView Pro, Trading Station Trustpilot Rating 4.2 out of 494 reviews Number of Forex Pairs to Trade 40+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 1.1
EURGBP: 1
GBPUSD: 0.8Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Bank Transfer Withdrawal Methods Visa, Mastercard, Bank Transfer Starting its journey back in 1999, FXCM is the first Forex broker that was listed on the New York Stock Exchange. The company was among the innovators who introduced features like automated trading and flexibility in position sizing. Currently, the broker is one of the most reliable destinations for CFD and Forex trading, offering traders different instruments and platforms for smooth trading.
While the broker lacks offerings like stocks and ETFs, it does offer tight spreads and a rather cost-effective way to handle your trading account. Traders will be charged no fee for depositing and withdrawing funds, and since the commission is built into the spread, there are no additional surcharges for trading. One thing we should note is that the broker does charge a $50 inactivity fee for accounts that have not been active for over a year.
When it comes to trading platforms, FXCM definitely outshines some of its competitors, offering traders seamless action through the Trading Station platform, available both via desktop and web. Meanwhile, traders can also use the MetaTrader4 and TradingView Pro platforms. The minimum deposit at FXCM is $50, with broker’s clients being able to use credit/debit cards and bank transfers for their payments. Security is a top priority for FXCM, with multiple authorities like the FCA, CySEC, ASIC, and more being responsible for the regulation of the broker.
Key Pros
- Offers up to 1,000:1 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.
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.
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.
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 30:1 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 100:1, although increasing this ceiling to 200:1 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 | 200:1 | 30:1 |
| Forex crosses, exotic pairs, major equity indices, and gold | 200:1 | 20:1 |
| Other commodities and indices | 100:1 | 10:1 |
| Stocks | 10:1 | 5:1 |
| Cryptocurrencies | 3:1 | 2:1 |
*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 100:1.
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 400:1 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.
Below you can find some useful references with links to organisations that monitor the forex market in Switzerland.
- The Swiss Financial Market Supervisory Authority (FINMA)
- Public register of all regulated entities
- FINMA warning list