Swiss Forex Broker

What's the Big Deal?

Putting money into a Swiss Forex broker is all the rage with certain traders. Many traders associate Switzerland with a magical land in which you could never lose money no matter what happens. Is it really that big of a deal?

Forex Broker Regulation

In the past, Forex brokers in Switzerland did not have any extra regulation compared to any other part of the world. In fact, it was fairly loosely regulated and some brokers, like Crown Forex, actually ended up going out of business and taking their client's money with them.

In 2009, this situation changed. At this point, the Swiss Financial Market Supervisory Authority or FINMA started to crack down on Forex brokers in the country.

swiss forex broker

Before you could open a brokerage in this area, you had to get a Swiss banking license.

The Swiss banking industry is legit and they have a lot of regulations that must be adhered to. For example, you have to have a large amount of capital before you can even open a bank in Switzerland. This regulation alone got rid of most of the shady brokers that were in Switzerland.

What it Means

While these extra regulations that were put into effect in 2009 are definitely a good start, they are not foolproof. You could still be taken advantage of by Forex brokers in some way. You are less likely to be taken advantage of by brokers manipulating Forex market prices and more transparency in the industry is evident. However, you still have to do your homework before choosing a broker. Make sure that you are dealing with a legitimate broker that has been in the industry for many years before simply giving them your money.

You are really not any less likely to be taken advantage of in Switzerland as you are in any other country with regulatory agencies.

Return From Swiss Forex Broker to Forex Brokers

Return From Swiss Forex Broker to Forex Trading

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