AES independent review - Swissquote Investment Platform

Swissquote Group Holding Ltd (SQN) is a provider of online financial and trading services. They have been listed on the SIX Swiss Exchange since May 2000.

With 390,000 clients worldwide, CHF 33.5 billion of client assets and a core capital ratio of 20.8%, their financial stability can be reflected in their results every year.

Their headquarters are in Gland, and they also have offices in Zurich, Bern, Dubai, Malta, Singapore, Luxembourg, Hong Kong and London.

Swissquote Bank Europe (formerly known as Internaxx) is a subsidiary of Swissquote Group, Switzerland’s leading provider of online financial and trading services.

Swissquote Ltd is the London-based subsidiary of Swissquote Bank and provides forex, index, commodities, and bond CFDs to traders in the European Union.

The company is regulated in the UK by the Financial Conduct Authority (FCA).

In addition:

Swissquote Financial Services based in Malta, is an investment services company regulated by the Malta Financial Services Authority.

Swissquote Bank MEA Ltd, is regulated by the Dubai Financial Services Authority (DFSA).

Swissquote Asia Ltd based in Hong Kong, is regulated by the Securities and Futures Commission (SFC) and holds a type 3 license (Leverage Foreign Exchange Trading).

The platforms, fees and product range vary considerably, depending on which of the above you choose.

They allow you to invest in three ways:

Trading Account (trade stocks, ETFs and funds from one multi-currency hub)
Smart Portfolios (grows wealth with automated low-cost portfolio management)
Forex & CFDs (contract for differences)

They are one of the few brokers offering both the MetaTrader electronic trading platforms; MT4 and MT5.

The MetaTrader client software provides users with live streaming prices and charts - enabling them to place orders and manage their accounts.

Their trading platform allows you to access 23 exchanges worldwide and hold your cash and settle trades in 22 currencies.

You can trade in:

Stocks:
- Intuitive web and mobile platforms.
- Trade stocks and ETFs from EUR 14.95 per trade.
- Free premium tools and research.
ETFs:
- Investment ideas and insights from Morningstar's analyst team.
- Settle in local currency and save on forex fees.
- Advanced tools.
Mutual Funds:
- 10,000+ offshore funds from over 200 renowned investment firms.
- Up to 50% less management fees with clean funds. No custody fees.
- Intuitive screener, fund compare. Morningstar reports and ratings.
Credit Solutions:
- Flexible financing secured against your portfolio.
- Base Rate +1.99 to 4.99%.
- Extra buying power without selling existing investments.

The trading platforms provided and markets covered by Swissquote are not unique in the investment platform market.

However, because Swissquote also provides access to the *Autochartist technical screener on live accounts, and a professionally prepared daily technical report, this gives them a positive edge.

*Autochartist is a multi-purpose market scanner enabling traders to scan the entire market across multiple timeframes for technical events through a single MetaTrader chart.

NOTES:

The broker charges above average fees for transfers and withdrawals.
An account kept dormant for a year will be charged a fee.
For traders meeting a minimum volume requirement, trading costs may be lowered. This suggests the platform is geared towards higher speculative trading.
In the UK, there’s a lack of account protection above what's required by regulators. In addition, there’s no guaranteed stop loss or negative balance protection.
You can pay a fee to use a custodial bank account. Giving investors a little more control over deposit security.
We would highly recommend reading the 'expert verdict' section of this review to make an informed decision.

Additionally, here's a free guide that can help you achieve better results. In this guide, you'll learn:

Academic evidence only shared with a select few firms across the world
A real-life example of why you should never try to outguess the market
Why a fund's past performance is not enough to predict future returns
Why you need to focus on what you can control and why this leads to a better investment experience
Why you should accept the markets for what they are
What can impact behaviour and make people seek instant gratification

The Pros

> More than 130 forex pairs, bonds, index, and commodity CFDs (contract for differences)

> Live streaming prices and charts (MetaTrader 4 and 5)

> Below average spread costs

> Access to many markets

> Very strong background

> Regulated by Financial Conduct Authority

> Minimum deposit from $1,000

The Cons

> Limited research and choice of tools

> Limited range of products which can be traded e.g. no share trading

> High risk investment approach

> Some research tools are not free

> Doesn’t offer VPS (Voluntary Pension Scheme)

> Not ASIC Regulated

What is the minimum investment amount for Swissquote's smart portfolios?

Swissquote's smart portfolio account has a minimum investment amount of 5,000 EUR/USD/GBP.

There is no minimum cash transfer amount and once your cash balance reaches 500 EUR/USD/GBP, it will be invested in your Smart Portfolio

How can I fund my account?

You can fund your account with Swissquote using:

a credit card,
bank transfer or
Payoneer.

Can you give me a summary of Swissquote's smart portfolio pricing?

Swissquote allows you to open a smart portfolio with 5,000 EUR/USD/GBP.

They say that there are no rebalancing fees and additional funds are invested at no charge.

In summary, all-in annual costs are from 0.90% to 1.84%.

Swissquote smart portfolio pricing

NOTE: There is no account opening, or closure fee either.

Does Swissquote provide apps?

Yes, they have mobile apps for Android and iOS.

Can I buy Investment Funds?

Yes, you can.

Swissquote offers mutual funds from well-known asset managers such as Fidelity, Schroders or HSBC - they are from around the world.

New mutual fund providers are added to their website on the Investment Funds page regularly.

What is the pricing breakdown for Swissquote's trading account?

You can find all the pricing information in Swissquote's rate card here.

Does Swissquote offer personal loans?

Yes, they do.

Swissquote's personal loan is a line of credit that can help you borrow at relatively lower rates than with unsecured forms of borrowing, as you secure your loan against your eligible investments.

It also offers flexibility with no monthly payment requirements, arrangement fees or penalties.

Expert assessment of Swissquote

As Swissquote is regulated in major jurisdictions, and publicly traded, it gets a high trust score. As well as forex, you can access CFDs, exchange-traded securities and wealth advisory services.

There are multiple trading platforms available, but it’s worth noting that there are higher spreads in the Swiss entity compared to the UK offering.

Customer service is excellent. However, technical analysis tools and speculative reports based on opinion are designed to increase trading and therefore trading costs.

Overall, they offer a very good investment platform for those investors who are comfortable making their own investment decisions, can resist the common natural biases that lead to investment mistakes, and who do not need sophisticated facilities for wealth structuring and management.

For a Second Opinion on investments of approx. £500,000 or more, contact us today.

Swissquote

An independent review by our team of experts

REVIEW SUMMARY