The recent CFTC ruling limiting US Forex brokers to a maximum 50:1 leverage on major currency pairs, has meant there’s been a sudden rise of traders looking to move their accounts abroad.
But with the rather lax regulations of some foreign countries regarding financial services, traders are well advised to take care who they trust with their money. You don’t want to be depositing several thousand dollars only for it to disappear into cyberspace.
Switzerland Has a Lot to Offer
It’s little wonder then Switzerland has jumped right to the top of the list for people looking to open an offshore Forex account. With a long history of providing financial services and strict regulations, Switzerland is a sound place to invest your money.
But are all Swiss online Forex brokers the same? Like in any other country Forex brokers in Switzerland vary considerably. In general they will appeal to more advanced Forex traders, minimum deposit levels are set quite high, so beginners will need to be sure they have a profitable system before they sign up.
Opening an account with a Swiss broker is not as easy as in the US, you have to print the forms off, sign them and post them off to Switzerland, opening an account will take around five to seven days from start to finish. There is no way around this, all Swiss brokers use the same method; it’s not difficult to do just time consuming. At least you’ll have the comfort of knowing your money is safe.
Switzerland is a serious country, especially where finance is concerned so you won’t find any clever marketing or funky training facilities of the kind you’ll find at eToro. But for anyone who wants a serious broker with narrow spreads and a professional style platform, Switzerland has plenty to offer.
Trading in Switzerland is very transparent so you can request the rates each broker is using to set the price. Not only is the bid, ask, spread available but also the wholesale price the broker is paying. No other country in the world is as transparent as this and it totally eliminates fraudsters from entering the system by manipulating prices.
We’ve listed the four biggest Forex brokers in Switzerland in the table below. All four are professional style brokers with very comprehensive trading platforms and offer tight spreads.
You can see that only two of the brokers offer a virtual trading platform, but MIG do offer a 30 day demo account so you can use it to try their platform out. This is no good for developing a strategy going forward though.
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