With more than 25 billion Swiss Franks under management, Swissquote Group Holding is one of the largest brokerages in the world. Based in London, this is a subsidiary of Swissquote Bank and is regulated by the United Kingdom’s FCA (Financial Conduct Authority). Since Swissquote is based in the UK, it can offer European-based traders higher quality execution and liquidity on indices, bonds, commodities, and Forex.
- $1000 account minimum
- 1.7 pip minimum fee for EUR/USD
- Best in customer support and competitive fees
Swissquote Platform – Pros and Cons
- Easy set up on the desktop and mobile apps
- Daily multilingual reports
- Competitive fee structure
- Limited customization with desktop watchlists
- Only three products can be researched at a time
- No technical indicators on mobile charts
The trading platform can be accessed using three different desktop apps. For novice traders, the desktop app called Advanced Trader will be the easiest to use. The other two desktop apps are MetaTrader 4 and MetaTrader 5. The MetaTrader software series is intended for advanced traders and provides expert features such as backtesting, trading strategies, and technical indicators.
The majority of traders will probably use Advanced Trader because of its simple design. Though lacking in customizability, the standard view in Advanced Trader provides the ability to distinguish between prices easily, watchlists, cross-currency pairs, running orders, and profit/loss data. A slightly more advanced feature offered by Advanced Trader is the ability to set conditional orders. Such orders, such as limit orders, allow clients to manage the risks of trading. One last beneficial feature inside Advanced Trader is the ability to open a demo account with a starting balance of $100,000. While this demo account only lasts for 30 days, it allows novice and experienced traders an opportunity to familiarize themselves with the platform in a risk-free environment.
The mobile trading apps, available both on Android and iOS, are easy to download but provide only basic security settings. The iOS app allows for an extra layer of security through its TouchID or FaceID features. Both mobile apps connect to the Dow Jones newswire to provide up-to-date information for clients. Each news topic is clearly labeled in the main screen where traders are provided other real-time data for their trading.
The apps are also easy to use. To add or remove a pair in a mobile watchlist, tap on the upper left of the screen. Conditional orders are also quickly started within the app and include order types such as stop, trailing stop, limit, and OCO.
One surprising omission within the trading app is that it does not provide mobile price alerts. The charts available on the mobile device are also simple and provide no indicators or studies. Most other brokerages offer such features in their mobile apps.
Is Swissquote Trustworthy?
Regulated by the UK’s Financial Conduct Authority (FCA), Swissquote Ltd appears to have zero outstanding complaints. Beyond that, since Swissquote is a part of the FSCS (Financial Services Compensation Scheme), most clients will receive a payout of up to £50,000 if they were to declare bankruptcy. Moreover, while Swissquote does not currently offer two-factor authentication, it does strive to protect client data through its industry standard encryption on its site.
The pricing structure used by the platformis easily found on each product. Whether discussing products for trade or the spreads charged for options, the brokerage demonstrates how trading costs work through examples and an explanation of expenses if keeping a trade open after hours. However, despite all of these explanations and demonstrations, most investors would require significant practice to completely understand how the operational and trading costs affect total profit or loss when taking a position.
This platform provides online chat during business hours to both prospective and existing clients. Live phone support and a trading desk are open 24 hours a day, 6 days a week with contact information provided on the Swissquote website. They also offer client communication through official Facebook and Twitter accounts.
Swissquote has surprisingly few special features provided, especially considering that many of those features, such as social trading or automated trading, are offered by other brokers. They do offer a tool for algorithmically identifying chart patterns which can help many traders to calculate risk on the fly. Their algorithms also suggest appropriate position sizes according to current client capital exposure as well as providing limited backtesting using past market data.
Different from other brokers, the stop-loss orders do not seem to be guaranteed. Usually, stop-loss orders require a small fee in exchange for the guarantee of an exact price. With Swissquote’s non-guaranteed stop-loss order, the stop-loss order is free, but the trader bears the cost if there is any slippage or gap.
Swissquote offers 19 commodity CFD pairs, 3 CFD bonds, 22 CFD stock indices, and 78 Forex currency pairs. Popular items like silver and oil are included in the commodity CFD pairs. Spreads for Forex with Major Currency Pairs ranges between 5 and 15 pips. One unique investment product offered by Swissquote is the ability to trade using Emerging Currency Pairs, which includes currencies from emerging markets. However, even though these are offered by Swissquote and can generate significant profit, they also tend to have a higher spread than Major Currency Pairs.
Cryptocurrency and single-share CFD trading are still not offered by Swissquote in London. However, clients based in Switzerland and who have a Swissquote Bank account can trade these items if they follow particular requirements when opening their accounts.
The platform provides videos and e-books that explain a variety of facets of the investment world and how to get started in trading. They also offer specialized webinars about each trading product that is provided by Swissquote. However, Swissquote does not offer a centralized library or glossary that explains the meaning of financial terms.
Research tools and insights
Swissquote provides both technical and fundamental analysis in its analyst reports sent out through its free email subscription. They also provide webinars and a series of videos explaining the basics of trading and more advanced risk management techniques. Both the desktop and mobile software provide real-time news and macroeconomic data through its basic calendar.
Commissions and fees
Swissquote’s fee structure is relatively competitive. There are three levels of minimum spreads that are dependent on the size of your account. Anything up to $25,000 is considered a Standard Account and requires a $1000 initial deposit. Accounts ranging from $25,000 to $100,000 are considered Premium Accounts and accounts over $100,000 are called Prime Accounts. While the minimum and maximum transaction sizes and margin requirements are largely the same across all account types, the spread difference between Standard and Prime accounts can reach as much as 0.6.
Three other essential features offered by Swissquote are:
- No charge for inactive accounts
- No withdrawal fees, and
- No termination fees.
What you need to know?
Aimed at more experienced Forex and CFD traders, Swissquote provides competitive pricing for traders looking to trade commodities and currencies actively. Value-based or other long-term trading strategies may not fit well within the Swissquote services. For an easier comparison you can check out our other reviews here:
- Review of IQ Option
- Review of Plus500
- Review of eToro
- Review of Avatrade
- Review of Olymptrade
- Review of CFD Global
- Review of Interactive Brokers UAE
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The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online brokers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a broker’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.
Brokerages were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online brokers we reviewed.
Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.