Pros & cons of Swissquote

Swissquote Fact sheet

The safety and security of a broker are the most important things that are looked for when selecting a trading firm. Traders need to fully trust their broker. The best indicator of trustworthiness is the number of licenses that the broker holds from reputed regulatory authorities. 

Based on the large variety of regulators that have authorized and regulated Swissquote, it is clear that Swissquote is one of the safest brokers out there. 

The list of regulators include: 

• the Swiss Financial Market Supervisory Authority (FINMA), 
• the Malta Financial Services Authority (MFSA),
• the CSSF or Commission de Surveillance du Secteur Financier in Luxemburg, 
• Cyprus Securities Exchange Commission (CySEC), 
• the Financial Conduct Authority (FCA) in the UK,
• the Dubai Financial Services Authority (DFSA), 
• in Hong Kong, by the Securities and Futures Commission (SFC), 
• the official Financial Services Authority in Singapore (Monetary Authority of Singapore, MAS)

Policies of Swissquote

Swissquote keeps investors’ funds in segregated accounts and provides negative balance protection. Negative balance protection is very important in leveraged trading. What negative balance protection does is keeps traders from losing more money than what’s on their trading balance. The broker implements a 30% Stop Out Level to prevent accounts from going negative, and even if the balance goes negative, which is highly unlikely, traders can contact customer support, and they’ll return the balance to zero. 

Deposits at Swissquote are covered by the deposit insurance scheme. The deposit insurance scheme protects the credit balances of private and corporate clients in the event of Swissquote’s bankruptcy. This guarantee is regulated by law, with the protection limited to a maximum of CHF 100'000 per client and institution.

The trading instruments offered by Swissquote are vast. Starting with Forex pairs, Swissquote offers more than 130 currency pairs for trading. Spreads are tight, starting from 1.1 for Prime accounts, and even lower for Professional accounts.

Forex trading with Swissquote

With Swissquote, you can trade more than 130 currency pairs. The trading fees differ from account to account. The Prime account has the lowest spreads (starting from 1.1 pips), while Standard has the highest, starting from 1.7 pips on EUR/USD. Standard leverage on all trading account types goes up to 100:1. For professional account holders, leverage can be customized. The use of Expert Advisors and high-frequency trading are both allowed by the broker.

Stocks trading on Swissquote

Traders can trade stocks as CFDs with this broker. CFDs or Contracts for Difference are well-known instruments in trading and offer the possibility to profit from both upwards and downward movements of various underlying assets without having to actually own them. Traders have access to US, German, French, Swiss, and UK stocks. Trading fees differ based on the account type. 

• Standard account – 0.15% commission per side
• Premium account – 0.12% commission per side
• Prime account – 0.09% commission per side

Metals trading on Swissquote

As most other brokers, the Swiss giant also offers its clients an opportunity to trade metals. Metals are great during economic crises like the ongoing economic crisis in the world. When inflation is high, metals become a safe haven for traders to save capital without losing value, because the valuation of precious metals has historically been immune to inflation. However, it’s worth mentioning that you can only trade metals as CFDs and not as physical assets with Swissquote. The main downside is that CFDs are not great for long-term investments, but they are the best choice for price speculations. 

FX options on Swissquote

In their basic form, options are financial derivative instruments that give the buyer the option, but not the obligation, to buy or sell underlying assets at an agreed-upon price and date. There are call options and put options. Options could be used for hedging, speculation, and income. They offer flexibility in trading. A call option gives the holder the right to buy a stock, and a put option gives the holder the right to sell an underlying asset. Call options are profitable when the underlying asset increases in value, and put options are great when the underlying asset loses value. Swissquote offers more than 50 Forex options for trading on various markets.

Futures trading on Swissquote

Futures contracts are derivative securities and have the potential to increase volatility in financial markets. This may sound bad, but in fact, traders need volatility to profit from bullish and bearish movements. Futures contracts allow hedgers and speculators to trade the price of an asset that will settle for delivery at a future date. Futures contracts are derivatives contracts because their value is derived from underlying assets that will be delivered. 

Swissquote has over 30 futures available on its platform. This adds to their list of trading instruments and enables traders to trade almost anything on a Swissquote account. 

There are 4 main types of accounts available on Swissquote and each of them has its advantages and disadvantages. Accounts also differ by the minimum deposit required. The higher the initial deposit required, the better the trading fees. This sets the bar high for beginner traders and creates a barrier for getting more preferable spreads in Forex trading. The Standard account has the highest spreads, starting from 1.7 pips. The Prime account has the lowest spreads, from 1.1 pips. But there is another account type called the Professional account which could be opened with an initial deposit of more than $50 000. 

Pros and cons of Swissquote account types and platforms

Swissquote Demo Account

The Demo account is essential when starting trading and for testing a trading strategy. Even pros use a Demo account for developing new trading strategies. For beginners, it is a must to open and trade on a demo before going live. Swissquote offers Demo accounts which are flexible and almost the same as real accounts. The only difference is the funds on a demo account are virtual. It is much easier to open a demo trading account than it is for a real account. So, if a trader is a beginner or wants to test Swissquote trading instruments and spreads, a demo is a great start. After registration, the link for activation will be sent to your email, beware this email link will be available for only 48 hours before expiring, so be quick to activate your account before time runs out.

Swissquote Standard Account

The minimum deposit required to open a standard account is $1000 on Swissquote. This account is the first live account type after demo trading and offers the ability to open an account in a Swiss bank and trade simultaneously. Spreads on a standard account start from 1.7 pips. For stocks, the commissions are USD 0.03/share – US 0.15% – CH+EU+UK min. 20 USD. 

Swissquote Premium Account

Premium account on Swissquote starts at a $10 000 initial deposit and offers lower spreads starting at 1.4 pips. Commissions are even lower with $0.02/share 0.12% with a minimum of $15. This account offers great value with a 1.4 pip spread and lower commissions. For medium-level traders who are more experienced than beginners and have some capital, this account seems a more attractive option to consider.

Swissquote Prime Account

If you’re looking for spreads of 1.1 pips and stock trading commissions of $0.01/share and 0.09% min $10 this is the option to go with. Swissquote’s Prime account requires a minimum deposit of $50 000 though, so it's not for everyone, but offers great value for stock trading and portfolio building.

Swissquote Professional Account

Initial deposit requirement is above $50 000 for the Professional account. In addition, pro account holders can customize their leverage, while all other account holders have standard leverage of 100:1. Leverage is a double-edged sword and novice traders tend to abuse it. They open oversized orders, which results in blown-up trading accounts. Professional traders know how to use leverage with more caution, which is why it’s customizable in this account type. 

Getting started on Swissquote - Main steps

There are a couple of steps to take in order to open a live trading account with Swissquote. The broker’s webpage is user-friendly and very easy to navigate. We’ll guide you through the entire process of registration and account opening. 

Step one – opening an account

After clicking on the ”Start trading” button on the broker’s web page, traders must fill in all fields in the registration form.

After these fields are filled out, traders will be prompted to provide information about their financial and employment details. When all the fields are filled, the bank will review the registration request and approve the account within 24 hours. The desired account currency can be any of the 14 available currencies: EUR, CHF, USD, GBP, JPY, CAD, AUD, PLN, SGD, TRY, NOK, CZK, XGD, or HUF. It’s recommended to choose the one that you use daily to save on currency conversion. 

Step two: account verification and waiting times

After the registration, online authentication is required before finalizing the registration process. Video identification is required before opening an account with Swissquote. As we can see, the process of registering a trading account on Swissquote is somewhat complicated but definitely worth the effort.

Step three: choose an account type and trading platform

During registration, traders can choose a trading platform and starting balance, which will ascribe them to a specified account type. Depending on traders’ preferences, they can decide between various trading platforms. Desktop users can pick between MT4, MT5, and Advanced Trader platforms. 

Step four: make your first deposit

After the verification process, traders will be able to deposit their money and start real trading. Depending on their capital and account type preference, they can receive as low as 1.1 spreads, and lower stock trading commissions. Deposits and withdrawals can be done with credit cards or wire transfers. The methods are limited when it comes to Swissquote, which feels inconvenient and can take some time. Credit cards will be faster than wire transfers though.

Step five: start trading

The final step is to start trading. Make sure that you use a working trading strategy and manage your emotions and risks well. It’s also recommended to use a trading journal to learn from your mistakes and successes. 

Fees and commissions are key in trading, as they can greatly change and influence the results of your trading activities. Let’s first check Swissquote fees and commissions and then compare them with other popular brokers.

Comparing Swissquote fees with other popular brokers

Swissquote fees compared to Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m

Swissquote fees compared to eToro fees

Swissquote fees compared to IG fees

Swissquote fees compared to XM fees

Swissquote fees compared to AvaTrade fees

Swissquote fees compared to Capital.com fees

All essential platforms are available for both smartphone and desktop users with Swissquote. For trading Forex pairs, traders can choose from:

• MetaTrader 4
• MetaTrader 5
• Advanced Trader

In addition, traders can use the web trading terminal. The web platform has all the essential functionality traders are going to need. Swissquote also offers mobile trading apps, with MetaTrader platforms being the most popular and highly reliable on mobile devices. On the other hand, Advanced Trader offers a modern design and great functionality. It’s recommended that you try them all to find out which fits you best. Keep in mind that MT4 is mainly for Forex, while MT5 is a multi-asset platform.

Mobile trading is very convenient and comfortable for traders. Swissquote offers a dedicated mobile trading app which is different from MT4 and MT5 mobile platforms. This provides a unique possibility to choose from 3 different applications when it comes to mobile trading. Traders should be able to find preferable mobile trading applications for Swissquote. 

There is a dedicated Education button on the Swissquote website. It contains beginners’ courses about Forex and crypto trading. They don’t just have courses but also PDF e-books for download. This is on another level when compared to many other brokers. Swissquote offers books for beginners to master trading in Forex, crypto, and stock markets. An economic calendar and other important fundamental news tools are also offered to Swissquote clients. Traders can learn and get all the necessary information without going to another website.

This is the part where Swissquote really shines with its vast experience in trading and banking markets. Not only do they have 24/5 live chat, but they also have support teams for different asset class traders like Forex, general trading, and Robo Advisory. Yes, Swissquote offers advisory services with robots and all necessary support with it. Overall, the broker provides a high level of customer support.

Swissquote is a highly regulated broker and offers access to various asset classes via 4 account types: Standard, Premium, Prime, and Professional. They have amazing support available via live chat, email, and over the phone. Swissquote also has very fast order execution because it is connected to global banks and also provides liquidity. The spreads are a bit high and not recommended for scalpers but with low commissions, it is very attractive for medium-term traders and investors alike. Account registration is not as easy as with other brokers because you are also opening an account with a Swiss bank, which is under heavy regulatory scrutiny. This gives traders at Swissquote a unique opportunity to not only trade with a well-regulated and experienced broker but to open an account in a Swiss bank.