Swissquote Review 2024

Trust

Swissquote Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker. This allows us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the several entities operating under the Swissquote trade name:

• Sissquote Bank Ltd holds a banking license issued by the Swiss Federal Financial Market Authority (FINMA), and it is also a member of the Swiss Bankers Association. We rank FINMA as a Tier-1 regulator.
• Swissquite Ltd is licensed and regulated by the Financial Conduct Authority (FCA) in the UK under licensing number 562170. The FCA ranks as a Tier-1 regulator on our system.
• Swissquote MEA Ltd is licensed and regulated by the Dubai Financial Services Authority (DFSA) under licensing number FD001438. We rank DFSA as a Tier-2 regulator.
• Swissquite Asia Ltd is licensed and regulated by the Securities and Futures Commission (SFC) of Hong Kong under reference number AZV127. We rank SFC as a Tier-1 regulator.
• Swissquote Financial Services (Malta) Ltd is licensed and regulated by the Malta Financial Services Authority (MFSA) to provide custodian services and institutional trading. The MFSA is ranked as a Tier-1 regulator on our system.
• Swissquote Pte. Ltd is licensed and authorized by the Monetary Authority of Singapore (MAS). We rank MAS as a Tier-1 regulator.
• Swissquote Bank Europe Ltd holds a banking license and is regulated by the Commission de Surveillance du Secteur Financier (CSSF) under the supervision of the ECB. We rank the CSSF as a Tier-1 regulator.
• Swissquote Capital Markets Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 422/22. We rank CySEC as a Tier-1 regulator.

Why is it Important to Know Where Your Broker’s Subsidiaries are Regulated?

Brokers operate multiple entities to serve clients globally, yet regulatory protections vary by jurisdiction. Some regulators enforce strict financial standards, while others are more lenient. Traders should understand the protection offered by the entity where they intend to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. All Swissquote entities ensure segregated client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. Six out of eight Swissquote entities ensure negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities in the unlikely event that the company becomes insolvent. All Swissquote entities offer compensation schemes, except for Swissquote MEA Ltd and Swissquote Pte Ltd.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum leverage with Swissquote is capped at 1:100.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and the transparency of information provided.

Swissquote has been a Swiss SIX Stock Exchange member since 2000, evocating the company’s stability. Financial publicly traded institutions usually have huge market capitalizations, meaning they are less likely to go bankrupt. Presently, Swissquote’s market capitalization is close to 3.65 billion Swiss francs.

I reviewed Swissquote’s legal documents and assessed that everything was in order. All legal information is extensive and readily available. Texts are written in an easy-to-assimilate manner, and I found no major discrepancies.

Is Swissquote Safe to Trade With?

Swissquote’s entities are tightly regulated and adhere to all essential safety requirements, such as ensuring negative balance protection and participating in compensation schemes. The bank is publicly traded on the SIX stock exchange and has a huge market capitalization.

In conclusion, I assessed that Swissquote demonstrates a high level of trustworthiness and stability because of the following factors:

• It is authorized by eight Tier-1 regulators
• Is a member of a major stock exchange
• It complies with all essential safety requirements

Fees

Swissquote Trading Fees

Swissquote Spreads

I tested Swissquote’s spreads on 7 March 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, Swissquote charges low spreads on commodities and share CFDs and average-to-high spreads on forex pairs and indices. My tests indicate that Swissquote offers especially competitive prices for trading precious metals and energies.

As a side note, there is almost no difference between Swissquote’s AM and PM spreads across all markets. This demonstrates the broker’s access to deep liquidity and superior execution standards.

Swissquote Commissions

With respect to forex and CFD instruments, most assets can be traded commission-free. The only exception is share CFDs. The table below outlines the shares CFD commission rate on a Standard account:

For commissions applied to securities and cryptocurrency trading, please refer to the table below:

Swissquote Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full contract (100,000 units) of the base currency.

My tests indicate that Swissquote charges average-to-high swaps compared to the industry average. This should not impede the performance of day traders. However, it is not in line with the needs of longer-term traders.

Swissquote Non-Trading Fees

Swissquote does not charge deposits, but withdrawal requests are liable to a handling fee. Its size depends on the account’s base currency.

After six months of dormancy, Swissquote charges an inactivity fee of 10 units of the base currency. The fee is charged monthly until activity resumes or the account balance drops to zero.

Are Swissquote’s Fees Competitive?

Given the elevated spreads and swaps, this price configuration does not seem particularly competitive. However, the higher trading fees charged by Swissquote are balanced out by its superior execution standards and services. Overall, the high trading fees at Swissquote are justifiable, considering the value they provide.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees of Swissquote’s three account types and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) on the EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

According to my findings, Swissquote’s Premium and Prime accounts offer trading fees that largely correlate with the industry average. However, they have rather high minimum deposit requirements (at $10,000 and $50,000, respectively).

In contrast, the Standard account features above-average costs but with a much lower barrier to entry. The minimum deposit requirement for it is $1000.

Platforms and Tools

I tested the many features of CFXD and found it a very well-balanced and versatile platform. It has a web trader version and is the only platform from the available ones that offers synthetic CFDs. And while CFXD does not support copy and automated trading, it provides a superior user experience.

The CFXD platform features a customizable trading interface, enabling users to tailor it to their specific preferences and trading styles. It also supports complex order types, including OCO orders, for more advanced entry and exit strategies. Additionally, CFXD’s capabilities can be enhanced with Swissquote’s FIX API for low-latency trading.

The standout feature of CFXD is its integration with Autochartist, one of the premier signal-providing services, directly into the platform’s interface. This integration gives traders access to a broad spectrum of actionable trading ideas, as mentioned above. Such flexibility is particularly beneficial for high-frequency day traders.

CFXD also has a practical mobile app version, which is an excellent account management tool. It also offers many educational content to help beginners learn even on the go.

The CFXD Web Trader Platform

General Ease of Use

The platform’s design is fairly straightforward and easy to navigate. The charts screen is positioned on the right-hand side of the main panel, with the Autochartist screener right on top of it. Account info is displayed at the bottom, while the watch list panel can be found on the left-hand side.

Charts

I consider the chart screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

The first thing that struck me about CFXD’s charts was their fluidity. As you can see above, price action is represented clearly and elegantly. Unlike other, more cumbersome platforms, applying two or more indicators and drawing tools to the chart does not obscure the price action.

Instead, it enhances and contextualizes it, a hallmark of robust charting software. This fluidity is unsurprising, given that CFXD’s charts are powered by the seamless TradingView.

I have broken down the available analytical tools and chart configurations below:

• 86 technical indicators. The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 64 drawing tools. Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels.
• 15 timeframes. CFXD allows multi-timeframe analysis of price action behavior. The greater the number of timeframes, the more intricate examinations that can be carried out across the short-term and long-term.
• 16 chart types. The large amount of possible chart configurations makes it possible to examine potential trading opportunities from different angles. Price action can be represented as a line, as different types of candlesticks, or as several types of bars.

Orders

I have broken down the main order types available on the CFXD platform below:

• Market orders. Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price where the order gets filled.
• Limit orders. Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders. They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

The platform also accommodates complex order types, such as OCO (One Cancels the Other) orders. These are used to gain more sophisticated entries into the market based on the changing market environment.

My Key Takeaways After Testing the CFXD Platform

CFXD is an excellent platform that can be used for advanced price action examination and order placing. It is feature-rich and caters to the needs of day traders and scalpers. The inclusion of synthetic CFDs also makes it possible to implement complex hedging strategies.

What stood out the most to me, in addition to CFXD’s fluid charts, is the inclusion of Autochartist. It provides access to actionable trading ideas on a number of instruments at all times.

The CFXD Mobile App

Swissquote’s proprietary CFXD mobile app provides traders with quick and easy access to the market on the go. It’s very useful for making snap adjustments to any open trades. The app also allows for placing market, limit, and stop orders, as well as adjusting the exposure of your open trades.

Moreover, the CFXD app integrates content from Autochartist, significantly facilitating traders in search of viable trading opportunities. It enables easy management of open positions and helps traders stay informed about current trading setups.

Another significant advantage of the app is its inclusion of over 20 educational videos, making it a valuable resource for newbie traders to learn about trading nuances whenever they have the opportunity.

The app lacks drawing tools or technical indicators, which I don’t see as a major issue since technical analysis is generally not recommended to be performed on devices with low resolution.

My Key Takeaways After Testing Swissquote’s Mobile App

I appreciated the CFXD mobile app for its convenience, offering quick market access and easy trade adjustments on the go. They value the app’s ability to place various orders and adjust trade exposures, as well as its integration of Autochartist content, which simplifies finding trading opportunities.

The inclusion of educational videos is beneficial for new traders. Although the app lacks technical analysis tools, I don’t view this as a significant drawback, considering the unsuitability of conducting in-depth technical analysis on low-resolution devices.

Tradable Instruments

Forex and CFDs

Swissquote offers an average amount of share CFDs and a high amount of FX pairs, commodities, indices, and cryptocurrencies compared to the industry average.

Securities

The combined offering of Forex, CFDs, and securities accommodates the execution of all kinds of trading and investing strategies. Clients of Swissquote can use it to practice speculative trading – scalping, day trading, position trading – or to practice growth and value investing.

What Are CFDs?

Contracts for difference (CFDs) are derivatives used to speculate on the underlying asset’s price without physical delivery.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With Swissquote?

My Key Takeaways After Exploring Swissquote’s Instruments Offering

Swissquote provides an impressive range of tradable and investment instruments. Its clients can get creative with the type of trading and investing strategies they wish to implement. For instance, they can speculate with changes in price action in the short term or invest in value assets with the potential for future growth.

Most importantly, I assessed that Swissquote offers a sufficient range of lower-risk securities and higher-yield/risk assets so that traders can regulate their market exposure and take advantage of various trading opportunities.

Customer Support

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test using the chat option. Even though I could not contact an agent, I found Swissquote’s chatbot sufficiently intuitive. It responds well to straightforward questions related to the general trading experience.

Deposit and Withdrawal

Swissquote Deposit Methods

Swissquote Withdrawal Methods

Account Types and Terms

Swissquote Account Opening Process

• Step 1. Click ‘Open Your Account’ at the top-right corner of the main page.
• Step 2. Choose your account type.
• Step 3. Fill in your personal information and contact details.
• Step 4. Build your client profile by elaborating on your trading experience.
• Step 5. Provide your financial information.
• Step 6. Upload proof of address and ID to verify your account.

Swissquote’s Account Types

I concluded that Swissquote’s Standard account has the lowest barrier to entry at $1000 but offers above-average trading costs. It also supports maximum retail leverage at 1:100, which is suitable for risk-takers.

The stop-out levels for all private accounts are fixed at 30%, which is somewhat low. Inexperienced traders should exercise particular caution.

Demo Account

Swissquote offers demo accounts that introduce traders to the broker’s services, allowing them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account alongside your live CFD account.

Islamic Account

The broker also offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders who want to open an Islamic account must contact Swissquote’s customer support and request the service.

Professional Accounts

Swissquote also offers professional accounts for experienced forex traders. To be eligible, you must provide a proven track record of trading leveraged derivatives in significant sizes. Additionally, you must have a portfolio of cash and investments of EUR 500,000 or more.

What is CFD Leverage?

The leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of the leverage. Essentially, the broker lends the trader money so that the latter can open bigger positions. The leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage by Asset Class

In the table below, I have listed the maximum retail leverage available with Swissquote for instruments from different asset classes:

Swissquote Restricted Countries

Swiisquote doesn’t accept clients from the following countries: Morocco, Hong Kong, Japan, Singapore, Belgium, Russia, Ukraine, Malta, Turkey, Canada, the USA, and Uruguay.

Research

Autochartist

In my opinion, Autochartist’s trading ideas are the most practical type of research content available. What’s great is that they are directly integrated into the CFXD platform, alerting traders to currently unfolding trading opportunities, including the emergence of patterns such as falling and rising wedges, flags, pennants, and more.

Traders are informed about the underlying market sentiment (what is actually causing the setup), the likely day highs and lows, associated risk, potential profit, and more. This type of content is extremely practical, especially for day traders.

Morning News

Available from the website, each news article is extremely detailed and informative, affording the reader a balanced and insightful outlook on recent market developments. However, I found a supporting chart for technical analysis to be lacking.

Magazine

Swissquite publishes its own magazine, which is rather rare in the trading industry and evocative of the bank’s commitment to detail and perfection. The magazine represents an abstract take on current trading, investing, and financial developments from global markets. It offers broker clients an innovative way to stay on top of the latest developments.

Blog

Here, traders can access all the latest articles and opinions published by Swissquote. The benefit of the blog is that it presents readers with a broad perspective on current market trends and economic developments. They can use this information to learn about trading and investing opportunities that are currently unfolding.

Podcast

Swissquote’s podcast is published daily and available on all major podcast platforms, such as Spotify, Apple Podcasts, Amazon Music, and more. Podcast episodes usually feature interviews with prominent market experts, offering a unique and personal perspective into the peculiarities of trading and investing. I found listening to the podcast a great and easy way of gaining expert insights.

YouTube Videos

Traders can access a wide range of videos from Swissquote’s YouTube channel. These are published regularly and cover a wide range of trading topics related to economic trends, technical analysis, fundamental analysis, and more.

Education

The bulk of Swissquote’s educational content is available from the European version of the website. Around 120 educational videos are also available from the broker’s YouTube channel.

I appreciated the ‘Master Forex’ course, which lasted 1.5 hours and comprised 23 separate videos. The course is nuanced and well-organized, serving as an excellent foundation for beginners to delve into complex theory.

There are also six ebooks available from the EU version of the website. They mostly cover topics pertaining to technical analysis, such as how to interpret price action behavior, chart patterns, candlesticks, and more. There is also one ebook dedicated to risk management.

Swissquote can improve its educational section by adding some more content related to fundamental analysis and trading psychology.

The Bottom Line

Swissquote, an industry veteran founded in 1996, is a Geneva-based bank that has established itself as a trusted partner for novice and experienced traders alike, as well as those interested in value investing.

The broker stands out with its lightning-fast execution speeds, averaging around 9 milliseconds, and an extensive and diverse set of tradable and investment instruments.

Furthermore, the proprietary CFXD platform is versatile and feature-rich. Its charts, powered by Trading View, are fluid and highly informative. The platform supports complex order types and facilitates comprehensive technical analysis.

On the other hand, Swissquote’s trading fees are elevated and exceed the industry average, coupled with a relatively high minimum deposit requirement.

Overall, I found Swissquote to be an ideal choice for high-frequency traders interested in low-latency trading.

FAQ