Connect with us

news

Forex Trading in Switzerland • Forex Strategies • Benzinga

Famous for its private banking system, Switzerland has been a world center of finance for centuries. With respect to forex trading, Switzerland has a relatively strict local regulatory environment, although many reputable and well-regulated forex brokers based outside of Switzerland accept Swiss clients.

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Famous for its private banking system, Switzerland has been a world center of finance for centuries. With respect to forex trading, Switzerland has a relatively strict local regulatory environment, although many reputable and well-regulated forex brokers based outside of Switzerland accept Swiss clients. 

Think you’re ready to begin trading forex? You’ll need to find a good broker and should develop a profitable trading plan to get started trading forex in Switzerland. 

Get Started with Forex in Switzerland

To get started as a forex trader in Switzerland is relatively easy. Just follow the steps listed below to open a trading account so that you can begin to trade forex online:

  1. Get a dependable device to access the internet such as a smartphone, computer or tablet.
  2. Research which online forex brokers accept clients from Switzerland.
  3. Apply and open a margin trading account with the broker of your choice. 
  4. Make an initial deposit in the account via a payment method acceptable to the broker.
  5. Download and gain access to the broker’s proprietary trading platform or a platform supported by the broker.   
  6. Make your first trade.

After completing these steps, you will have a live, funded account with an online forex broker. That’s all you’ll need to begin trading currencies from Switzerland. 

Switzerland Forex Trading Strategies

If you haven’t already, the next step is to work out a profitable trading strategy to improve your chances of being successful when you trade forex. The strategy you decide to use will largely depend on your previous trading experience, your personality type and the spare time you’ll have to develop and use your trading skills. 

Many successful forex traders use one or more of these popular strategies:  

Trend trading: This strategy involves identifying a major market trend and positioning along with it based on your long-term market view. The trend trader generally establishes positions that follow the major trend and liquidates the position once the trader determines the trend has concluded. 

Day trading: This encompasses a wide variety of strategies, although the common point is that the day trader closes out all positions at the end of the trading session or “day.” This allows day traders to avoid the added risk of holding positions overnight when they may not be focused on the market. Since the forex market stays open from Sunday to Friday afternoon EST, forex day traders generally need to select a specific trading session to operate in. 

Scalping: A short-term trading strategy that involves taking advantage of very small market moves. The scalper swiftly enters and exits the market aiming to capture a small profit each time. 

Swing or momentum trading: This trading strategy involves the interpretation of technical momentum indicators to signal market reversals. Swing traders often take positions overnight since this strategy has no time constraints. 

News trading: Keeping a keen eye on geopolitical news and economic releases is often the basis for this trading strategy. News traders typically wait for an important release and set up their positions and orders to profit from resulting market volatility.

Average Directional Index (ADX) in the USD/CHF currency pair

This daily chart displays the 10-day moving average and the Average Directional Index (ADX) in the USD/CHF currency pair that a trend trader could have used to profit from given the significant market decline seen in the pair from April to July 2020. Source: MetaTrader.

Forex Trading Example in Switzerland

Switzerland’s national currency is the Swiss franc (CHF) that is further divided into 100 smaller units known as centimes in French that also have other names depending on the language spoken. The Swissmint issues coins, while the Swiss National Bank (SNB) issues banknotes and manages the Swiss franc’s value. 

The Bank for International Settlements (BIS) reported that the Swiss franc ranked 7th in forex market turnover in April 2019 among other national currencies. The CHF is also a popular reserve currency held by central banks, ranking 8th worldwide in June 2020 according to the International Monetary Fund (IMF). 

A recent quote for the USD/CHF exchange rate was 0.9300 Swiss francs to 1 U.S. dollar. If you have the view that the USD/CHF exchange rate will rise, then you can buy 100,000 U.S. dollars versus the Swiss franc today at that 0.9300 exchange rate. 

If the USD/CHF exchange rate subsequently rose to 0.9500, then you would calculate your trading gains using the formula below:

100,000 USD x (0.95-0.93 CHF/USD) = 2,000 CHF

To convert that profit in Swiss francs profit into U.S. dollars, you would do the following calculation:

2,000 CHF ÷ 0.95 CHF/USD = 2,105.26 USD

On the other hand, if the USD/CHF exchange rate were to fall to 0.91, then your trading loss would be calculated as follows:

100,000 USD x (0.91-0.93 CHF/USD) = -2,000 CHF

That loss would be converted into U.S. dollars at the 0.91 USD/CHF exchange rate using this equation:

-2,000 CHF ÷ 0.91 CHF/USD = -2,197.80 USD

Making Money with Forex in Switzerland

Making money in the forex market trading from Switzerland depends largely on the development of a successful trading plan. The trading plan should include a profitable trading strategy, a guide to position sizing and a component for sound money management.

The success you’ll achieve trading forex depends in large part on how well your trading strategy works and if you have sufficient patience and discipline to stick to your plan. Any strategy that has had any level of success can be part of a trading plan, whether you trade for long term moves or day trade the market for short term profits.  

You may think that developing a trading plan and strategy might be a lot of work, however, the potential rewards can make your effort worth the time. Nevertheless, remember that due to constantly changing market conditions, any strategy that works initially might yield diminishing results over time. 

Best Online Forex Brokers in Switzerland

If you would like to start trading forex from Switzerland, a good first step would be to find a dependable online forex broker that meets your needs. You’ll also want to have developed a plan of action or trading plan that incorporates a profitable strategy if you don’t plan on copying the trades of another trader using a social trading network. 

Forex transactions in Switzerland are regulated by the Swiss Financial Market Supervisory Authority (FINMA), which also oversees online forex brokers operating in the country. The maximum leverage ratios available to you in Switzerland and the minimum required deposit to start trading will depend on the broker you decide to use. Since many international brokers accept clients from Switzerland, you have a wide selection to choose from as the table below shows.  

Account Minimum

100 EURO

Pairs Offered

50+

Account Minimum

100 EURO

Pairs Offered

50+

1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
Account Minimum

100 of your selected base currency

Pairs Offered

80+

Account Minimum

100 of your selected base currency

Pairs Offered

80+

1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account
Account Minimum

$50 USD

Pairs Offered

47

Account Minimum

$50 USD

Pairs Offered

47

1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade

Forex Terminology

Most professions have a set of specialized terms known as a jargon that novices need to learn as part of their training. Forex traders use several unique terms among themselves to refer to aspects of their market that you should become familiar with before starting to trade. 

  • Lot size: A standardized trading unit. Among online forex brokers, a standard forex lot consists of 100,000 base currency units. Smaller sizes include mini-lots (10,000 units) and micro-lots (1,000 units).  
  • Pip: An acronym for “point in percentage,” the term refers to the tiniest movement a currency pair’s exchange rate can make. 
  • Margin call: A form of notice a broker gives to a client to add additional margin funds to their trading account to cover open positions. These days, many online forex brokers just automatically liquidate positions when the margin required to hold them exceeds your account balance. 
  • Orders: Commands given to your broker to make transactions for you. Common forex orders include market, limit, stop-loss and take profit orders.  

Is Trading Forex from Switzerland for You?

Trading forex successfully from Switzerland requires market knowledge and a viable trading strategy. With a good plan, traders who meet those requirements generally have a much better chance of becoming profitable. 

Any broker you choose should have strict oversight by a respectable financial regulator. You can start your search for a broker by checking out the ones we recommend and opening a demo account to test their services and your trading plan.

Continue Reading
Advertisement

news

Statements about Cryptocurrency

Statements about Cryptocurrency

Cryptocurrencies are in a bubble and regulators could burst this at a whim.

  • Eight years after the introduction of Bitcoin, there are now over 900 cryptocurrencies and their prices are at all-time highs.
  • Richard Schiller categorizes bubbles as an underlying story driving the market forward, as opposed to the fundamentals of the assets. Cryptocurrencies are riding on a narrative of economic empowerment and freedom.
  • Despite the widespread attention that cryptocurrency receive, many of the actors involved in the market are not fully informed. Debate tends to turn to hype and naive investors are buying crypto-assets without fully understanding what they are.
  • Banks spend 73% of the market capitalization of Bitcoin each year on regulatory compliance. Crypto-assets are currently unregulated and free of these restrictions. As such, the market has thrived but also developed some bad habits.
  • Regulators cannot necessarily shut down cryptocurrencies, but they can restrict liquidity into them from fiat currencies and hamper their growth. The global derivatives market, for example, is worth $1.2 quadrillion, dwarfing Bitcoin’s $100 billion market cap.

Statements about Cryptocurrency

Market manipulations in crypto markets are undermining their credibility.

  • Due to low liquidity, no regulation, and a lack of clear understanding of the markets, pump and dumps are widespread in crypto markets. This is where a speculator can artificially sell while concurrently buying their own currency, wait for the market to rise, and then dump their holdings.
  • Frontrunning is also a common occurrence in ICOs, where early investors—who are used to show initial faith in the enterprise—buy discounted tokens before immediately selling them on.

As with historic bubbles, scams are exploiting naive investors.

ICOs can have the characteristics of vaporware. Entrepreneurs are raising hundred of millions of dollars purely on concepts. Money is being raised from investors who do not truly understand the technical concepts being proposed to them, let alone whether they are feasible.

  • The actual asset structures of ICOs are not only complex but also new forms of assets in their own right. This further confuses investors, which is compounded by the “FOMO” mentality of rushing into investments and following the crowd.
  • The use of celebrities to promote ICOs further demonstrates the use of manipulative marketing techniques used to cajole immature investors into participating in ICOs.
  • The current ICO craze is reminiscent of the South Sea Bubble of the 18th century, a speculatory period that involved crazed investment into enterprises in the New World. Once one of the highest valued companies of all time, the South Sea Company’s bubble burst and the company disappeared almost as quickly as it appeared.

Blockchains are still not proven technology, and more work is required.

  • Blockchains are still new concepts and their technology has not yet been proven on a consumer-wide scale. Attention should be focused on developing this, not speculating on short-termist projects.
  • The security of blockchains is a concept that most investors in crypto-assets do not understand. The onus is on them to protect their assets, which, on the basis of the amount of thefts and frauds in the space, is not being done properly.

There are some solutions to these issues.

  • A less polarized mentality of “us against the world” is needed; this could be enforced by the promotion of self-regulatory standards. These could also help to highlight the bad actors in the ecosystem.
  • More development is required into the underlying technology of blockchains. In the long run, this would be far more valuable than ICO moon-shot projects.
  • Awareness and discussion needs to be promoted. Conferences should present balanced debates from both sides of the crypto-view and more emphasis should be placed on educating investors instead of soliciting their investments.

Originally Published here at https://www.toptal.com

Statements about Cryptocurrency

Continue Reading

news

CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

Continue Reading

Daily Financial News

Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

Continue Reading

Trending