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Wednesday, March 23, 2016

A few facts about the Swiss forex market

By Sam Payn

The Foreign Exchange Market has consistently drawn individuals from across the globe – thanks to the huge amount of money being traded here every day! It is touted as the largest financial market operating today. Money worth trillions of dollars changes hands every day. Huge money. Huge opportunities. The stakes, as such, are high as well. Those who want to explore the financial market are naturally drawn to forex. Most of the traders find it more comfortable selling and buying commodities here with the help of brokers instead of doing it all by themselves. Since it is an international market, traders generally believe that they will be able to perform better if they are duly guided by brokers instead of doing it themselves.

Swiss forex market

In this regard, it must be mentioned that the swiss forex has a special place in traders’ hearts (and minds) – thanks to the movies and television that have successfully been able to inculcate the idea that the Swiss market has this inexplicable knack of making money faster than that of most the other finance markets in the world- that they perhaps have this “inside track” to make money more easily than even their American counterparts. Is the belief based on substantial proof? We don’t know whether it is true or not. However, the mere belief that Swiss brokers have “special” access to the market, leads several traders to seek services of Swiss brokers.

Exploring the reason behind the popularity of the Swiss Money Market

There is another reason why the Swiss forex market is so popular and that is the currency traded here – franc. Franc is the official currency of Switzerland though it is used in other countries as well. Let us acquaint you with the fact that when it comes to global popularity rating, the Swiss franc is ranked fifth among the Foreign Exchange Currencies. If you are looking for franc then do know for a fact that you will only find it in Europe.

The internet, undoubtedly, is the best place to find a Swiss Forex broker. However, make sure you’re investing proper time in your search for a qualified broker. Make sure their services are duly regulated. You would also want to check out the trading platform offered by the trader. Is it user friendly? Is the trading platform known for offering accurate charts and updates so that you can analyze the market accurately as well? Does the broker allow you to backtest your strategies? Does it offer you the scope to practice on the demo account for a considerable period of time? The demo account allows you to practice trading with fake money but under real market conditions. You will get to practice with all the analytical tools and charts and execute trading moves in accordance. The only difference between trading with a real and a demo account is that you get to trade with real money in the former and with fake money in the latter case. The trading conditions don’t change. The demo account just gives you more time to practice. 

About the author: Sam Payn, a well-known industry blogger, is enthusiastic about sharing valuable tips on Forex. Do check out his blogs on swiss forex market.

Image: National Numismatic Collection, National Museum of American History, US-PD