The company background is a valuable consideration for traders. It tells you about the platform’s sustainability, operational capabilities, and financial stability—all critical indicators of a great broker.
But surprisingly, it’s a factor often missed by most traders.
Swissquote is an online broker that would surely pass this qualification. In fact, it’s among the most established and tenured brokers in the financial markets.
In this TRU Insight, we’ll look into the basics of Swissquote, including its features, regulatory compliance, and user reviews. Read on and explore if this tier-1 broker could help you achieve your investment goals.
Swissquote Review at a Glance
Founded in 1996, Swissquote is a Switzerland-based online broker. It’s a multi-regulated platform, primarily bearing a license from the Swiss Financial Market Supervisory Authority (FINMA).
It mainly caters to Swiss traders; however, international traders can also create an account and access its competitive platform.
- For Swiss citizens, the platform is accessible on its Swiss website: www.swissquote.com/en-ch/
- On the other hand, its www.swissquote.com/en-row/ website is accessible to international users.
This effort reflects the broker’s commitment to providing an accessible platform for investment and capital growth.
The broker also ensures that the customer’s money remains safe, irrespective of potential company challenges that could lead to bankruptcy. This is made possible through the Swissquote segregated bank accounts.
However, several online Swissquote reviews revealed that the brokerage trading fees are relatively high compared to those of its competitors. Its customer service support also raised concerns among its clients.
What Makes a Tier-1 Online Broker?
Any trader would want to trade with a Tier-1 online broker. Not only does it ensure their account safety, but it ultimately ensures that your trades stand a great chance of taking advantage of the market.
However, a lot of traders are still unaware of the major factors that make a broker a tier-1 broker.
Here are the five things you should look for to ensure you’re trading with a supreme broker.
- Regulated. Regulatory compliance ensures that all broker operations and decisions are in compliance with financial laws. This requirement reduces the likelihood of money laundering and financing of terrorists.
- Multi-Asset Offering. Comprehensive selection of trading instruments provides traders with bigger opportunities to profit from the market.
- Advanced Trading Platform. Access to advanced and sophisticated platforms provides fast live market execution and advanced charting tools.
- Security Features. Features like two-factor authentication, biometrics login, and one-time password (OTP) avoid the likelihood of unauthorized access and transactions.
- Competitive Fee. Fees are a dealbreaker for traders. By making fee structure competitive, traders will enjoy means to increase their exposure and chance to profit from the market.
Now, let’s look at the actual Swissquote review.
Overview of Swissquote
Swissquote has been providing financial services to Swiss and international traders. It’s a multi-awarded broker, hailed as the 2001 Best Swiss Online Broker and the 2016 Thomson Reuter Lipper Fund Award for its Robo-Advisory solution.
Let’s explore what makes Swissquote the esteemed broker that it is today.
Regulation
Swissquote is a multi-regulated online broker, ensuring strict regulatory compliance to combat money laundering and financing of terrorists.
This Swiss broker bears a regulatory license from the Swiss FINRA to render financial and investment services within the Swiss border. This regulatory compliance also serves as a legal basis for conducting service in 120+ countries.
Aside from the Swiss FINRA, Swissquote is also regulated by various reputable regulatory bodies. This includes the following juristic regulators:
- Europe: Commission de Surveillance du Secteur Financier (CSSF)
- United Kingdom: Financial Conduct Authority (FCA)
- Middle East: Dubai Financial Services Authority (DFSA)
- China: Hong Kong Securities and Futures Commission (SFC)
- South Africa: Financial Sector Conduct Authority (FSCA)
- Singapore: Monetary Authority of Singapore (MAS)
Offered Instruments
Swissquote makes sure that all its traders can make the most out of the financial markets. And this effort is evident through its comprehensive trading instrument offering.
Here’s the breakdown of Swissquote offered trading instruments:
| Forex | 80+ |
| Commodities | 20+ |
| Indices | 10+ |
| Stocks | 10,000+ |
| Bonds | 3 |
| Cryptocurrencies | 30+ |
| Mutual Funds | 2,000+ |
This broker provides its professional and corporate clients with up to 400:1 leverage.
However, due to regulatory restrictions, Swiss traders can only access 100:1 leverage. Meanwhile, European and UK traders are only entitled to 30:1 leverage.
Trading Platforms and Trading Applications
With more than two decades in the financial markets, Swissquote innovated various technologies to empower traders with advanced tools and resources.
Its CFXD trading platform was developed to provide Swissqoute traders with powerful tools in a customizable and intuitive platform. A user can also access the platform even if they’re on the go.
The CFXD mobile application can be downloaded to an Android phone, iPhone, or tablet. With more than 50+ sophisticated charting tools, 80+ technical indicators, Autochartist integration, and adaptive chart layout, the CFXD mobile app is as powerful as its web-based and desktop app.
However, for traders who prefer familiarity over everything, Swissquote also provides access to MetaTrader 4 (MT4).
MT4 is undeniably the most popular trading platform due to its integration into almost every online broker’s ecosystem.
Trading Fee
Scrolling through various online reviews, it’s noticeable that Swissquote’s trading fees are relatively higher than the industry standard.
Its spreads for major forex pairs range from 1.6 to 2.2. To paint a better perspective, Interactive Broker’s spreads for major pairs only range from 0.1 to 0.3.
Swissqoute’s basic withdrawal fee costs USD 10.
Fund Segregation
One notable security feature of Swissquote is its account segregation feature.
This feature ensures that, in any case of corporate turmoil, the clients’ funds remain safe. This is because their money is stored separately from the company’s cash.
Swissquote Trading Accounts
Swissquote’s commitment to providing tailored trading experiences to all its traders is evident through its multiple account types offering.
Opening an account with Swissquote is entirely online and free, ensuring a convenient and accessible onboarding experience for all users. Account opening and verification typically lasts a day (24 hours).
Swissquote’s Forex & CFDs trading account is developed to cater to retail traders. Through this account, you can access over 400 contract-for-differences (CFDs) across all asset classes.
Corporate and institutional clients also benefit from the trading solutions provided by Swissquote. Here are the two trading accounts tailored to provide value to these professionals:
| For whom? | |
| Asset Managers | Direct access to global markets, extended range of analysis services, level 3 system connection |
| Companies | PAMM, LAMM, and MAM system, Swissquote professional, level 3 system connection |
