Binary Options Trading Switzerland
Trading binary options in Switzerland is a popular choice with many looking to make an income. With the Swiss economies reliance on the financial markets, trading is not only approved, but also encouraged. More and more online traders are turning to binary options trading as a way to get involved in the online markets and make extra cash.
There are many reasons to choose online trading as a way to make an additional income. Not only is it extremely accessible thanks to new technologies, like mobile, there are increasingly more and more deals on offer. Choose from welcome bonuses, educational tools to become a better trader, and many other features and benefits.
While there are a whole host of Swiss and international brokers to choose from you need to exercise caution. Most critically you need to make sure that the broker is reliable and trustworthy. That is where we can help. We rate and review binary options brokers to ensure that you make the right decision.
For those looking to start online trading with binary options in Switzerland, we will show you:
- What to look for when selecting the right online broker to start trading with
- The licensing and regulation that applies to trading inside Switzerland
- How we rate and review the various Swiss binary options brokers for your benefit
Our Top Recommended Websites Updated: December 2018
Local Broker Benefits
There are many benefits to using a Swiss binary options broker. A local broker will have Swiss licensing and regulation and offer benefits to encourage new traders to open accounts. These benefits will include:
As new traders, your first foray into binary options trading can be a little strange. Especially if you aren't entirely sure what you are doing. Understanding the difference between a simple Call/Put option and a Ladder Pair can be a little tricky to begin with. Many sites offer videos, explanations and tools that can help the reader understand the terminology and various trading techniques available. If used correctly these tools will help you to develop your trading skills and make your experience a much better one.
With so much competition in the market place, brokers need to find new ways to encourage you to open an account. That's where the welcome bonus comes into play. As the name suggests, it is a bonus paid to those who open up a new account. Sometimes it can be a no deposit bonus to allow you to carry out the first trade or two free. Other times it is a deposit bonus of some form.
The demo account allows you to trade on a virtual platform using virtual funds. It is particularly useful when trading in an unfamiliar environment. It must be understood that the demo platform is only a simulated version of the live trading site. It will give you a good introduction to the platform though and the various functions required to trade.
If you are new to trading you may have more call for customer service than someone who knows their way around a platform. If you have any questions, queries or issues, you will want to be able to get them answered quickly and efficiently. Make sure that there are comprehensive ways in which to get hold of someone when you need to. If you are unsure, send them a test email or pick up the phone and see how long it takes to deal with your enquiry.
Websites You Should Avoid
Legal And Regulation
The Swiss economy relies heavily on the financial sector therefore they work hard to protect these interests. Binary options trading is welcome but it is regulated. Every broker must be licensed by the SFMSA (Swiss Financial Market Supervisory Authority). The SFMSA is a government body although they operate independently of the government. They also work in conjunction with Swiss PolyReg which is a self-regulatory body. Although Switzerland is not an EU country, many of its brokers also seek EU regulation, mainly because it enables them to offer this licensing to reassure European brokers.
If choosing a non-Swiss broker then you need to ensure that they carry the appropriate licensing symbols. Look out for one of these:
Then there are those that are further afield like:
These tend to be the more recognised regulatory bodies. There are many good international brokers that offer their services to Swiss residents however you just need to ensure that they are regulated and offer the relevant assets. International brokers may not offer local Swiss assets such as the Swiss Franc.
Paying Taxes And Fees
Tax in Switzerland is applied both locally and nationally. There are different taxes for the municipality, the canton (region) and federally. The level of income tax that you pay will depend on where you live. If binary options trading is your only income, and you are earning under the threshold for income tax, then you will not need to pay.
If you are earning over the threshold, or if it is a second income, then you will need to declare your earnings and pay tax on them. When keeping a record of your options transactions, you need to ensure that you offset the losses against the profits. Many brokers will be able to offer a detailed account of your transaction history which will help you with your self-assessment.
When it comes to fees, there are a few to consider, some larger than others. Of course, there is the commission fee for a successful trade. This is deducted at source from your winning payout and is a percentage of the cash that you have won. Then there are withdrawal fees, transaction fees and currency conversion fees. All of these will depend on your method of withdrawal and if you are converting currency. In order to keep these fees to a minimum, try to limit the amount of withdrawals that you make. A fixed fee is usually charged so if you are making small withdrawals, often, you will face more charges.
How we Recommend Brokers
If we were to count up all the brokers that exist in the world, then we would be here all day. There are literally hundreds, if not thousands. Some of them are market leading, strong, well established and reliable with years of successful trading experience. Others are less desirable and should be avoided at all costs. How do you tell which is which though and how do you select the best broker among them all? Well that is what we do. Our job is to make your trading experience a happy and successful one.
Our team of experienced experts consists of binary options traders and financial experts. Between them they scour the market looking for the best. To get a balanced picture, and to analyse each broker accordingly, they use their experience to place trades and draw from their own experience. They look at every aspect of trading.
What assets does the broker offer and is their website easy to use and optimised for mobile trading? What sort of welcome bonuses do they offer new traders and how accessible is their customer service department? They seek the answers to all of this and more and then present their findings in accurate and detailed reviews. We rate each broker on the most important criteria then all you need to, is choose the one that best fits your requirements.
Binary Site Reviews
Frequently Asked Questions
Is binary trading in Switzerland legal and safe?
Binary options trading in Switzerland is legal. It is regulated by the SFMSA (Swiss Financial Market Supervisory Authority) to protect you from undesirable brokers. If you choose a Swiss broker that is licensed by the SFMSA, or a broker that is licensed by another reliable regulatory body then your money is safe. Our recommendations and reviews will help you to choose a regulated broker that has a strong reputation.
Do I need to pay taxes on my trading profits?
If your earnings are over the threshold for income tax then you will need to pay tax according to the Swiss tax laws for your municipality, canton and nationally. It is important to keep a record of your transacting history to ensure that you know what profits you have made vs the losses that you have incurred. Remember that any fees need to be considered as well. What you withdraw may not be the figure that you see in your bank account.
Can I test brokers before trading with real money?
If the broker offers a welcome, no deposit bonus then you will be able to test the platform and hopefully make a few trades. The amount you can test it will depend on the size of your welcome bonus. One alternative is to try the demo platform which is a simulated version of the live trading platform. You get allocated virtual funds to spend within a limited timeframe to introduce you to the platform and the various functions.
Is it easy to make deposits and withdrawals?
It is easy to make deposits and withdrawals although deposits, as you would expect, are a bit more straightforward. Simply open an account and enter the amount you wish to deposit using a credit or debit card or other form of payment. When you wish to make a withdrawal, you need to bear in mind that it could take a few business days, and that the money goes back to the deposit source.
Can I trade using my mobile or tablet device?
As long as the broker offers a mobile friendly trading experience, then yes you can. Many brokers either offer an app for iOS or Android, or a mobile responsive website. This means that it recognises the device you are accessing the site from and delivers you the relevant mobile platform. In this modern age of mobile technology, without a mobile friendly website, brokers are going to miss out on hordes of potential customers.
Our Top Recommended Websites Updated: December 2018
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