SwissDirekt is an online forex broker based in Switzerland, as the name suggests, which offers private and institutional investors modern online trading services for Forex, Stocks, Futures, and CFDs.
Finding a reputable SwissDirekt review local or worldwide can be a difficult process, especially finding a complete list from a trustworthy reputable source.
Below is an in-depth review regarding SwissDirekt to help you make an informed decision before opening your account or trading on their platform.
In addition to this, the broker offers individual asset management as well as managed accounts with an active investment style and a focus on risk reduction.
SwissDirekt AG is incorporated as a financial intermediary and is listed in the register of commerce of the canton of Zug. The company is licensed and authorized by SRO PolyReg.
As a partner of LMAX Exchange, SwissDirekt offers clients the opportunity to trade Forex and CFDs on an exchange rather than trading through broker-dealers in the over-the-counter market, with access to live, institutional prices.
As such, SwissDirekt connects traders to an open platform with no dealer intervention, no hedging of client positions and no requotes. This is achieved through the way the platform operates by matching the best bids and offers.
SwissDirekt was first established in 2003 by Thomas Kuhn and Harald Maul and is still operated as an independent financial institution, headquartered in Switzerland.
SwissDirekt is still managed by the people who founded it. They are personally involved in the daily running of the company and have direct contact with their clients.
As such, there are a number of benefits in trading on this broker model, which include no dealer intervention and no requotes, as well as anonymous forex and CFD trading.
The broker is able to provide fast and reliable execution using a Straight Through Processing model, with orders placed inside the spread.
Added to this, private and institutional clients benefit from price transparency, speed, market depth, additional credibility, neutrality, and control.
Awards and Recognition
SwissDirekt has not listed any awards on its website to date, which is surprising considering the broker’s long operational history, though this could be due to the fact that SwissDirekt does not participate in broker awards events.
While awards are not the most important aspect of deciding whether to trade with a broker, they are indicative of the broker’s standing within the industry, and the recognition which its features and offering have received.
It is important for prospective traders to make an effective study of the various account types which a broker may offer, as often these accounts are designed to suit the specific needs of certain trader experience levels and strategies.
The forex industry is populated by a vast array of traders with various trading needs, which most brokers aim to meet through the provision of suitable accounts. These may include commission-free accounts, low spread accounts, and managed accounts.
On the other hand, some brokers will offer one standard account type which aims to target a certain group of clientele.
Traders should also seek out brokers which offer a free demo account, as this will allow them to conduct a test run of the broker’s features before deciding to sign up for a live trading account.
Types of Accounts and their Features
SwissDirekt does not provide any information regarding the exact account types, apart from the fact that the broker specializes in forex and CFD trading, and therefore it can be assumed that two separate accounts for these trading styles will be offered.
The only relevant information pertains to the trading conditions surrounding each of these asset classes.
Forex trading is offered with volume-based discounts on a commission basis, which is charged at $25 per million traded. The broker also provides the ability to place orders within the spread, and the use of a MetaTrader 4 bridge.
Regarding the conditions surrounding CFD trading, the broker charges a commission of 0.4 per standard contract, with the same ability to place orders inside the spread, as well as access to volume-related discounts.
SwissDirekt does offer the ability to use a demo account, which is likely the best means for prospective traders to test the features related to the broker’s accounts before deciding to sign up for a live trading account.
Deposits and Withdrawals
SwissDirekt does not provide any information regarding the available deposit or withdrawal methods, which is important information to have before deciding whether to open a live trading account with a broker.
Many brokers provide a variety of deposit and withdrawal methods, including bank wire transfer, credit or debit card, and a number of popular e-wallets such as Neteller or Skrill.
These payment options are important in determining the potential effects they could have on the profitability of a trade, through additional bank costs, as well as the time it takes to make a withdrawal, as e-wallets are usually faster than bank wire transfers.
It can only be assumed that the broker will accept the most common payment methods, namely bank wire, and credit or debit cards.
The broker also does not indicate whether they charge an additional fee for making deposits or withdrawals, which is another important factor that can impact the profitability of a trade.
Many brokers do not charge additional withdrawal fees, while other brokers do, and the extent of this fee should be factored into the overall trading costs of using each broker’s platform.
As with all brokers, the processing times for deposits and withdrawals will depend on the selected payment method.
Added to this, traders should note that third-party deposits and withdrawals are prohibited and that withdrawals have to be made using the same method that was used to fund the respective trading account.
Lastly, SwissDirekt also does not indicate the accepted deposit currencies for funding trader accounts, although it can be assumed that CHF will be on the list.
A wide selection of deposit currencies is often preferable when trading forex, as having to withdraw from a currency other than your base currency can rack up fees that impact your profitability, typically through the payment of a conversion fee.
These conversion fees can occur both when trading and when withdrawing funds from your trading account.
Cost and Fees, Commissions and Spreads
Some brokers charge commission as a percentage of the trade, while others provide commission-free trading and take a fee from the spread only.
SwissDirekt makes a profit from charging commission as well as taking a fee from the spread, with a commission of $25 per million traded for forex, and $0.4 per standard contract when trading CFDs.
The broker does not provide any information regarding the spreads, which is important information, as the potential profitability of a trade will depend on how tight the spread is, and many brokers charge spreads that start as low as 0.6 pips for major currency pairs.
SwissDirekt does not offer an Islamic, or swap-free account so that traders will have to take into account the roll-over fee incurred on positions held overnight.
SwissDirekt offers maximum leverage of 1:100 on all major currency pairs, which is relatively high for a European broker, and would likely be due to the fact that this broker falls under a separate regulation.
Most brokers, particularly those regulated in the European Economic Area and the United Kingdom, offer a maximum leverage of 1:30, or 1:50 in some cases.
This is due to the fact the European regulators recently made the decision to cap the maximum leverage which brokers operating within their jurisdiction could offer, due to the high risk associated with the mechanism.
While leverage can significantly increase the potential profitability of your initial investment, it can also increase the potential losses which you may incur, particularly when investing large sums of money.
SwissDirekt does not appear to offer any trading bonuses or other promotions and incentive schemes to new traders at this stage.
Trading Platforms, Software, and its Features
SwissDirekt provides its clients with access to a proprietary WebTrader and Mobile Trader platform, as well as the MultiCharts trader.
The SwissDirekt WebTrader is a professional web-based user interface that provides traders with an easy-to-use platform for the exchange.
The technology enables 24-hour online access to all FX and CFD markets. The trading platform allows for anonymous and ultrafast trading with superior execution.
The SwissDirekt mobile trading technology enables clients to access and trade FX and CFD markets anytime from anywhere via iPhone or Blackberry.
Clients can follow recent price moves, manage positions and be sure that all information and transactions are secure, with price information for over 70 FX crosses and CFDs. This mobile trading platform comes with the following features:
- Open, close, or manage positions
- Place market and limit orders
- Place orders inside the spread
- Cancel working orders
- Check the account balance
- Create watch lists
MultiCharts is a professional charting and automated trading software that allows for trading directly from the chat window. It has been developed especially for the professional FX and CFD trader, provided through the broker’s partnership with LMAX.
MultiCharts is compatible with the industry-standard TradeStation, and EasyLanquage, and includes the following features:
- Direct market access for over 70 FX crosses and CFD’s
- High definition charting
- Direct chart trading
- Multiple windows for depth of market, DOM
- EasyLanquage compatible
- True strategy backtesting and optimization
- Automated trading
Markets, Products, and Instruments
As already noted, SwissDirekt provides access to Forex and CFDs only, which may prove too limited for some traders, but will be suitable for pure forex traders.
In terms of its forex offering, clients of SwissDirekt have access to the following:
- $25 commission per million traded
- Volume-based discounts
- 100: 1 leverage on major currency pairs
- Low overnight financing rates
- Ability to place orders in between the spread
- MetaTrader4 (MT4) bridge
In terms of its CFD offering, clients of SwissDirekt will have access to the following:
- Competitive CFD Trading environment
- $0,4 per contract standard commission
- Volume related discounts
- Competitive leverage
- Low overnight financing rates
- Ability to place the order between the spread
Safety and Regulation
SwissDirekt operates as a division of SwissDirekt AG, which is incorporated as a financial intermediary and is listed in the register of commerce of the canton of Zug. The company is licensed and authorized by SRO PolyReg.
SRO PolyReg is a self-regulatory organization, recognized by FINMA, which monitors and enforces the implementation of due diligence of the Swiss Federal Act on the Prevention of Money-Laundering in the Financial Sector (MLA) by its members.
SRO PolyReg does not however aim to achieve the protection of investors, since the MLA itself has not been designed to protect investors. Therefore, SRO PolyReg does not exercise the prudential supervision of its members.
As such, while the broker is technically licensed to operate, this licensing body does not provide any special protections for investors which many other regulatory bodies do, such as the Financial Conduct Authority (FCA) in the UK.
Prospective traders should therefore treat SwissDirekt with all the necessary precautions applied to an unregulated broker, and take note of the fact that their investments are not being traded in a fully secure environment.
SwissDirekt offers fairly limited customer support, as the support team can only be contacted via email or telephone, while no live chat option is available to resolve more pressing issues.
Added to this, the contact hours of the support team are not made available so that it is not clear how long it will take for client issues to be attended to.
This lack of adequate customer support will present serious problems for those who need to resolve pressing issues that affect their trades, particularly when considering the fact that the broker is not regulated.
SwissDirekt does not provide any independent research tools on its website, such as market news, charts, analysis, or even an economic calendar. However, the broker’s trading platforms do provide a comprehensive suite of analytical tools.
Added to this, the broker does provide for asset management for three types of trading strategies, namely dividends, options, and macro strategies.
Education and Training
SwissDirekt offers no educational or training material on its website, apart from the provision of a free demo account.
As such, beginner traders would have to look elsewhere in order to fulfill the vital requirement of becoming acquainted with the complex aspects of forex trading.
For investors who want to be a part of the complex world of foreign exchange, forex education has to be on top of the list before doing some investments.
Forex education enables traders to reason and apply knowledge to important daily trading activities.
For long-term progress, it is a helpful tool that guides traders to optimal systems and the best solutions.
With a solid education, traders are prepared to make informed trading decisions instead of impulsive emotional ones that can often lead to major account disasters.
Trading currencies is not just about blindly exchanging one currency for another and profiting from the difference in prices. Traders need to at least use price charts to know how much each currency is worth.
Additionally, traders may need various indicators, signals, and oscillators to help them identify price trends and future currency price shifts.
Arming oneself with a forex education will enable you to identify what tools are available for monitoring and predicting market movements.
SwissDirekt is a good option for advanced or professional traders with a high-risk appetite, who will enjoy trading on higher leverage than offered by many other European brokers. SwissDirekt is also best suited to pure forex traders, due to the fact that it offers access to forex and CFDs only.
Risk Warning: The Company also offers CFD products which are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with GCI Trading.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Cryptocurrencies are complex, high-risk, and volatile and may result in the loss of all invested capital over a short period of time; they are not appropriate for all investors.
Investors must understand and acknowledge these specific characteristics and risks and be warned that there is no EU regulatory framework governing trading in cryptocurrency products.
CFDs and Forex are not only complex instruments, but they also have a high level of risk which may result in loss of funds that exceed the trader’s initial deposit.
Traders need to evaluate their objective, level of risk exposure and willingness to be exposed to risks.
SwissDirekt at a Glance
|Regulating authorities||SRO PolyReg|
|Countries not accepted for trade||This is not indicated|
|Islamic account (swap-free)||No|
|Minimum deposit||This is not indicated|
|Deposit options||Not specified|
|Withdrawal options||Not specified|
|Platform(s) provided||SwissDirekt WebTrader, Mobile Trader, and MultiCharts|
|OS compatibility||Mac, Microsoft Windows, Mobile, Web, iPhone|
|Tradable assets||Forex, CFDs|
|Languages supported on the website||English and German|
|Customer support languages||English and German|
|Customer service hours||This is not indicated|
How many instruments can I trade with SwissDirekt?
- CFDs on spot indices
- CFDs on commodities, and
- Commodity Future CFDs
Which platforms are supported by SwissDirekt?
SwissDirekt offers the use of its own proprietary web- and mobile-based trading platform, as well as MultiCharts in partnership with LMAX.
Does SwissDirekt offer leverage?
Yes. SwissDirekt offers leverage of 1:100.
What spreads can I expect with SwissDirekt?
Spread information is not indicated by the SwissDirekt website or previous reviews done on this broker
Does SwissDirekt charge commission?
Yes. Commissions of $25 are charged per million traded on Forex and $0.4 per contract standard when trading CFDs.
Is SwissDirekt regulated?
SwissDirekt is licensed and authorized by SRO PolyReg, which however does not provide for any client protection measures.
Is SwissDirekt a recommended forex trading broker for experts and beginners?
No, SwissDirekt is better suited for advanced traders with a high-risk appetite
What is the overall rating out of 10 for SwissDirekt?
What is the difference between a demo and a live trading account?
A Demo Account is a risk-free account that is funded by virtual money and allows traders to either practice trading, explore the broker’s offering, or test trading strategies in a mimicked live trading environment.
Does SwissDirekt offer a demo account?
For how long is the demo account valid?
This information is not available but when generally comparing demo accounts between brokers, the frequent term is 30-days.
Which live trading accounts does SwissDirekt offer?
There is no information pertaining to the live trading accounts that SwissDirekt offers.
What are the available deposit currencies for a live trading account?
The deposit currencies supported are not indicated either, but it is safe to assume that CHF will be supported at the very least, as this is a Swiss broker.
Deposits and Withdrawals
What is the minimum deposit for SwissDirekt?
The minimum deposit is not indicated.
How do I make a deposit and withdrawal with SwissDirekt?
There is no information on the deposit or withdrawal procedures on the SwissDirekt website, but it can be safely assumed that SwissDirekt may support popular payment methods such as:
- Bank Wire Transfer, and
- Debit/Credit Cards
Does SwissDirekt charge withdrawal fees?
This cannot be ascertained as there is no information available pertaining specifically to withdrawal fees.
How long does it take to make a withdrawal?
This will depend on the method through which withdrawals are made along with the process involved and generally it can take between one and several business days.