CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.
Besides world-class banking services, Swissquote also offers online trading services in a wide range of financial assets. The margin-based broker is known for its competitive spreads, low commissions, high liquidity levels, and lightning-fast trade execution. Due to its user-friendly trading platforms and advanced trading tools, Swissquote remains amongst the top few brokers in the list of best retail forex brokers.
In this piece, I review the Switzerland based forex broker in detail.
Incorporated in 1996, Swissquote Ltd. is a part of Swissquote Group Holdings – a public limited company. In 2002, After four years of its inception, the company floated its shares on the Swiss Stock Exchange. Having its headquarters located in Switzerland, the company operates through its regional offices in Zurich, London, Dubai, Malta, Bern, and Hong Kong. Other subsidiaries, associates, and significant concerns owned by the broker includes;
- Swissquote Financial Services (Malta) Limited
- Swissquote Bank SA
- Swissquote Bank MEA Limited
- Swissquote Asia Limited
With a team of 722 employees worldwide, the company seeks success under the command of Marc Bürki (CEO). As of december, 2019, the company managed to raise an equity of 374.7 million CHF with a reported revenue of 230.6 Million CHF.
FSCS – Investors funds protection
Multiple trading platforms
Listed company (SIX: SQN)
|High CFDs fee|
Fewer research and educational resources
Average customer support
Charges inactivity fee
Who Swissquote Is for?
With a diverse portfolio of tradable assets and flexible account types, Swissquote can be the best fit for traders looking for low-cost forex trading experience. The broker’s volume-based decremental pricing plans offer lucrative earning potential to high volume traders. Newbies can open a virtually funded demo account with the broker to practice different trading strategies under live market conditions. Advanced risk management tools can be equally beneficial for both retail and institutional investors to diversify their risk exposure.
Sign up bonus: The broker offers a signup bonus of up to 100CHF to qualifying traders on a conditional basis.
Is Swissquote Safe?
Trust Score: 100 (read more)
Swissquote is a publicly-traded business concern. The broker holds regulations from the Financial Commission Authority (FCA) in the United Kingdom. The company is also licensed to operate in various jurisdictions around the world. Other regulators of the firm include the Swiss Financial Market Supervisory Authority (FINMA), Monetary Authority of Singapore (MAS), and Securities Futures Commission (SFC). In strict compliance with FCA regulations, the broker holds clients’ money in segregation from its capital funding.
Swissquote is also a registered member of the Financial Services Compensation Scheme (FSCS). Therefore, clients can seek compensation of up to 50,000 GBP in case the company becomes insolvent. To protect clients’ confidential data, the company enforces advanced web security protocols with SSL encryption and 2F authentications. Keeping in view all the safety measures the company employs to protect clients’ financial and confidential data, I can say Swissquote is a trustworthy broker.
|Publicly traded:||Yes (SIX: SQN)|
|Licenses:||Financial Commission Authority (FCA)|
Offering of Investments
Swissquote has relatively more products to offer than many of its competitors in the industry. Clients can trade around 78 Forex pairs, 22 stocks, 20 commodities, 03 bonds, and 12 cryptocurrencies. Investors who prefer trading forex currency pairs or CFD products need to open a forex trading account with the company. Along with other tradable products, traders have the choice to trade exotic forex pairs that are also known as emergency forex pairs. It is worth mentioning here that the Swissquote range of offerings may vary depending upon your chosen international entity. For example, Swissquote’s subsidiary based in the UK does not offer crypto trading, while clients in other parts of the world can trade crypto assets with the company.
|Forex: Spot Trading||Yes|
|Currency Pairs (Total Forex pairs)||75+|
|Social Trading / Copy-Trading||Yes|
|CFDs instruments||Forex, Metals, Stocks, Energies, Indices, Commodities (45+)|
Commissions & Fees
Despite offering a competitive pricing structure, Swissquote employs varying pricing models between its Swiss and UK based entities. Clients trading with Swissquote UK Limited may need to bear fewer charges and commission as compared to the traders having accounts with Swissquote Bank Limited, Switzerland.
At present, Swissquote UK Limited offers four types of accounts including, Premium, Prime, Elite, and Professional. Spreads in Premium and Prime accounts start from 1.3 pips and 0.6 pips, respectively. The company charges no commission on both account types. Traders can sign up for the premium account with a $1000 initial deposit. However, traders opening the prime account need to deposit $5000 at least.
On the other hand, Elite and Professional accounts are almost identical in terms of offered spreads, minimum deposits, and commissions. The company asks for $10,000 as a minimum amount to sign up for the elite and professional accounts. Both the account types have a commission cost of €2 a lot.
Despite having a high minimum deposit requirement and added commission cost of $4 per round trip, Elite Account appears to be the best option for day traders since it has the lowest spreads starting from 0.0 pips. All accounts have margin calls and stop-outs of 100% and 50% respectively, except for the professional account that comes with 30% stop-outs. The broker also applies inactivity fees for traders holding a professional account.
|Minimum Initial Deposit||$1000|
|Average Spread EUR/USD – Standard||N/A|
|All-in Cost EUR/USD – Active||N/A|
|Minimum withdrawal||Not Specified|
Platforms & Tools
Although Swissquote offers custom-built trading platforms including web traders and a desktop platform, they still lag behind the industry standards when it comes to the availability of advanced features. Alternatively, clients can access the full suite of MetaTrader platforms. Let’s have a quick look at each of the platform options available.
MetaTrader: The broker offers the updated versions of MetaTrader platforms known as the Master Edition. The MetaTrader (MT4/MT5) platforms come with extensive market analysis and charting tools along with the capability of automation of trading strategies. The company also offers complimentary plugins to registered users. With 30 built-in technical indicators and 24 analytical objects, the platform helps clients to predict price trends of underlying assets. Traders can also view charts in 9-time frames using the MT4 platform. The platform supports nearly all types of orders, including market and pending orders.
cTrader: Swissquote’s in-house multi-asset trading platform enables clients to achieve their financial objectives seamlessly. The platform comes with customizable widgets that help clients in creating a personal workspace. Integrated watchlists enable traders to keep an eye on their favorite securities, while trend radar provides clients to conduct in-depth securities analysis. However, the company’s online trading platform is based upon flash player (obsolete technology), making it unsupported across multiple modern age browsers.
Advanced Trader: Swissquote offers Advanced Trader for clients who prefer trading through the ease of desktop. The advanced trader comes with a fully customizable trading interface and supports multiple order types. With the feature of automatic pattern detection, it has 27 built-in technical indicators and 17 overlays. The platform also features integrated real-time news from Swissquotes & Dow Jones.
|Virtual Trading (Demo)||Yes|
|Desktop Platform (Windows)||Yes|
|MetaTrader 4 (MT4)||Yes|
|MetaTrader 5 (MT5)||Yes|
|Charting – Indicators / Studies (Total)||50+|
|Charting – Drawing Tools (Total)||30+|
|Charting – Trade From Chart||Yes|
|Order Type – Trailing Stop||Yes|
Swissquotes offers an extensive research facility that is better than many of its competitors. The research section has 02 subheads, including live analysis and daily reports. Under live analysis head, traders can find articles containing weekly analysis on major fx pairs and other tradable assets. On the other hand, traders can download daily analysis reports in the 09 languages of the world. The broker also offers a magazine that is released after every two months, six times a year. The magazine features market insights and discussions from forex experts and trading professionals on the industry’s hot topics.
Swissquotes does not offer a wide selection of educational content on its website. Traders can find only a few video tutorials covering beginner-level topics on forex trading. However, the company hosts webinar sessions to help clients build their knowledge on forex trading online. Clients can fill-up the webinar registration form available on the company’s website to subscribe to the service. The broker also conducts occasional seminars to meet and greet with the industry’s top professionals live.
To facilitate on-the-go customers, the broker offers a proprietary mobile trading app along with MT4/M5 mobile-based trading platforms. After downloading it from the respective mobile app store, clients can customize the app as per their trading preferences. However, the absence of advanced charting features might lead clients to switch to MT4/MT5 mobile-based version, instead of using the company’s custom-built mobile app.
Clients have the option to access integrated video tutorials through both mobile-based trading platforms. Using the company’s mobile trading app, clients can view charts in 11 – timeframes whereas MT4 comes with the viewability of charts across 9-time frames. However, the custom app does not have as many technical indicators as traders can access with MT4/MT5 mobile trading app.
|Mobile devices||Android & Apple|
|Features||Watchlist, charting tools, negative balance protection, price alerts|
After a detailed review of Swissquotes, I can say without any hesitation that the broker is a legitimate business concern for retail forex trading. The company offers a reasonable range of tradable instruments with competitive spreads. With multiple account types, excellent trading conditions, and user-friendly trading platforms, the broker offers so many reasons to at least give it a try.