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Swissquote regulation

Your expert
Adam N.
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6d ago
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Is Swissquote regulated?

Trying to find out whether Swissquote is regulated? Not sure which authorities are overseeing Swissquote and why this matters?

Rest assured, the lack of regulation at Swissquote is not a reason for worry. Our brokerage experts have determined that Swissquote is a fully regulated broker, overseen in Switzerland, Luxembourg UK, UAE, Hong Kong, Singapore, Malta, Cyprus. We gathered all the information on the regulatory profile of Swissquote and will explain why this matters.

Why Swissquote is trustworthy
Adam
Adam Nasli
Forex • Algo Trading • Market Analysis

I have personally tested several brokers globally and I am familiar with the regulatory and licensing procedures of at least a dozen financial authorities globally. Here are my key insights into the regulatory status of Swissquote as of June 2024:

  • Swissquote is regulated by several authorities of which at least one is top-tier, which is vital for safeguarding your money.
  • Swissquote must separate client funds/assets from its own operations; this makes all the difference for the safety of your investments.
  • As Swissquote is regulated by several authorities, it is super important that you open an account with an entity that has top-tier regulation.
  • Explore the services of Swissquote in our comprehensive Swissquote review for 2024 and browse other top-tier regulated brokers with our unique Find My Broker tool.
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Swissquote has top-tier regulation

Think of a broker with strict regulatory oversight like a lifeguard at the beach. Just as the lifeguard keeps you safe in the water, offering immediate help when you need it, brokers operating with top-tier regulation protect your investments. They make sure your investments are secure and handled with integrity and transparency.

Swissquote operates in several countries and is supervised by the following financial authorities:

  • Switzerland - Swiss Financial Market Supervisory Authority (FINMA)
  • UK - Financial Conduct Authority (FCA)
  • UAE - Dubai Financial Services Authority (DFSA)
  • Hong Kong, China - Hong Kong Securities and Futures Commission (SFC)
  • Singapore - Monetary Authority of Singapore (MAS)
  • Custody services for fund managers - Malta Financial Services Authority (MFSA)
  • European countries (use this for Europe) - Commission de Surveillance du Secteur Financier
  • Eastern and Western Europe - Cyprus Securities and Exchange Commission (CySEC)

Why does all this matter? We are contacted by an alarming number of people who ended up working with unregulated brokers and they share with us some sad and frightening stories. Here’s an example.

Your can protect your money by choosing a well-regulated broker.

Marco invested a substantial amount using what appeared to be a credible online trading platform. Initially, his investments showed gains, and he was able to make several withdrawals without issues. Encouraged, he increased his investments, but when he tried to withdraw some profits after a successful trade, his requests went unanswered, and customer service became unreachable. Further investigation revealed the broker was not regulated by any financial authority. Eventually, the platform vanished overnight, taking John's investments with it, leaving him with no recourse to recover his funds.

Choosing a broker with top-tier regulation means you're in safe hands. This level of strict oversight ensures that your investments are protected, you're getting fair pricing, and trading conditions are transparent and favorable.

Client fund segregation: your ultimate safeguard

As a broker with top-tier regulation, Swissquote is legally required to keep the funds and assets of its clients separate from its own money. This is a game changer in terms of the safety of your investments.

Client fund segregation is like having your money in a separate safe from Swissquote’s own cash. Thus, if your broker ever runs into financial trouble, your funds won't be touched to settle their debts - they're entirely off-limits. It’s a crucial setup because it protects your money, ensuring that what you’ve invested stays secure and accessible only to you. This segregation is a requirement imposed by top-tier regulators and not something you can request your broker to do. You will only have access to this safety net if your broker has the appropriate regulation.

In the highly unlikely event that Swissquote commits fraud and uses client assets for its own purposes, you can still recover your money if you have access to investor protection.

Since Swissquote operates multiple legal entities, investor protection depends on which one you are a client of.

Swissquote investor protection
Country of clients Protection amount Regulator Legal entity
120 countries CHF 100,000 Swiss Financial Market Supervisory Authority (FINMA) Swissquote Bank Ltd
EU €100,000 for cash, €20,000 for securities Commission de Surveillance du Secteur Financier (CSSF) Swissquote Bank Europe SA
UK £85,000 Financial Conduct Authority Swissquote Ltd
Residents in the Middle East CHF 100,000 for cash* Dubai Financial Services Authority (DFSA) Swissquote MEA Ltd
China and the region No protection Hong Kong Securities and Futures Commission (SFC) Swissquote Asia Ltd
Singapore No protection Monetary Authority of Singapore (MAS) Swissquote Pte Ltd

*Middle Eastern residents' assets are held in Switzerland. This means that clients at Swissquote MEA Ltd are under FINMA's protection as well.
The Malta-regulated entity provides custody services for fund managers.
Swissquote review - Safety - Group structure
Swissquote provides negative balance protection for forex spot and CFD trading, but only for retail clients from the European Union. Professional and non-EU clients are not covered by any negative balance protection.

Choose your brokerage entity smartly

Since Swissquote is regulated by multiple authorities, it's crucial to open an account with an entity that has top-tier regulation. This ensures your investments are always protected under the highest standards.

Whenever possible, avoid signing up with entities that are regulated in off-shore countries such as the Seychelles, the Bahamas, St. Vincent and Grenadine, etc. While you may have access to a much higher level of leverage for your trades, this is extremely risky and you run a much higher risk of losing all your invested money.

In addition, rules and regulations imposed by regulators in these countries are typically less severe, potentially damaging the safety of your investments. If you are offered the option to choose which entity you open an account with, go with the one that operates under a stricter regulator.

Get to know Swissquote better and browse other top-tier regulated brokers

For detailed insights into trading conditions, costs, and service quality at Swissquote, check out BrokerChooser's Swissquote review for 2024. All our broker reviews are based on the analysis of nearly 600 data points and direct experience. When we review a broker, we go hands-on by opening a real-money account and trading on its platforms, giving us a complete view of what it offers and how it performs.

The BrokerChooser team has personally tested and reviewed more than 100 brokers globally, all of which have top-tier regulation. All our experience and expertise is included in the Find My Broker tool. Simply answer a few questions and get a personalized broker list.

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Further reading

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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Adam Nasli
Author of this article
I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.
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