Guidelines for Trading the Swiss Franc

In our humble opinion, the days of OTC retail forex are possibly counted. IronFX reported strong risk management left the company not affected by announcing the following officially: City Index released an official statement bearing positive news for their parties: Trading in the Swiss franc is certainly influenced by the global demand for Switzerland's services as a confidential offshore holding area for funds. Our risk management policies have helped us resist tough market conditions and solidify our processes over our 26 years of experience in the financial markets. A few days has passed, and the amidst the turmoil retail traders are in panic, questioning whether their broker has been impacted by the Black Swan event or not.

Darwinex announced quite a different statement, mentioning that they are not affected by the Swiss franc’s movement and published the following official announcement: “Looking forward, retail FX will never be the same after this. Hopefully this is a lesson we all, including traders and brokers, but also regulators, learn from.


OctaFX announced to be back in business as usual in their press release: All the trades are performed according to the operational company standards. One Financial Markets published on their website a news article, saying that they remain in full operation: It is very much business as usual at One Financial Markets. Pepperstone briefly reports that their business as usual in an official press release on the website: Plus is one of those commenting no risk for the company with an official statement to its investors: Saxo Bank released an official press release on their website, announcing the following: Sensus Capital Markets faced a minor loss, despite the firm is already fully operating: Swissquote also made an official announcement about the situation: ThinkForex took immediate action by limiting the trading of CHF markets, as explained in their official statement: Clients with existing open positions are free to hold these positions, and can close them at their convenience.

As markets return to normal, we expect trading on CHF markets to resume again. We will keep clients notified in due course. TradeStation Group reported in the same press release that they were unaffected by the market after the SNB announcement: TradeView communicated in a brief manner that their business is running normally: Varengold Bank officially announced that their business was not affected by the SNB announcement: Windsor Brokers explicitly reported that the SNB crisis did not affect their businesses: Our risk management policies have helped us resist tough market conditions and solidify our processes over our 26 years of experience in the financial markets.

XM released a official press announcing that they did not got affected by the recent SNB crisis: XM would like to remind its clients that it has always offered automatic negative balance protection.

XM will continue to offer automatic negative balances this as a commitment to our loyalty to our clients especially in turbulent times like the recent unusual movement of the EURCHF.

XTB reported to remain unaffected after the SNB announcement, in their official statement on their website: We know that after the SNB announcement yesterday, a lot of brokers are under pressure. We put this down to our effective risk management strategies and responsible leverage rules. Amandeep Sonewane 11 September Amandeep Sonewane 12 September Amandeep Sonewane 10 September Amandeep Sonewane 13 September Price is what you pay — value is what you get!

Trading signals Technical analysis Fundamental analysis. Trading tools and indicators Forex webinars. Dollar due in part to a relatively modest currency printing program overseen by the European Central Bank. This contrasts with the more active paper money printing program overseen by the Federal Reserve in the United States. Another interesting link between gold and currencies involves the value of the Australian Dollar.

Since as gold rises in value, so generally does the Australian Dollar. Basically, this link has to do with the fact that Australia has considerable gold reserves. Also, Australia is a net exporter of gold, and the precious metal makes up a significant percentage of its national exports.

These factors make the value of the Australian Dollar especially susceptible to fluctuations in gold prices, although its value is also affected by the price of oil and other key raw materials. As a result, the Aussie is often referred to as a commodity currency by forex traders. In , the Swiss Franc became the last of the national paper currencies to be taken off the time-honored gold standard.

Before that time, the Swiss Franc had the status of being a safe haven currency that maintained intrinsic value when times became difficult since it was freely convertible into gold.

Unique Factors for the Swiss Franc Switzerland's famous neutrality is a significant factor in its economy and currency. Though Switzerland harmonizes many of its policies with the Eurozone countries, it is not a member and it maintains its independence. What's more, as a global destination of choice for expatriated capital, Switzerland is less sensitive to the economic performance of its neighbors.

Switzerland does have some risks with its heavy reliance on its banking sector. Under pressure from countries like the United States and Germany, some of Switzerland's bank secrecy laws have been relaxed.

That is likely a concerning development for dictators, criminals and businessmen who want to keep their wealth both safe and secret. As a result, other countries like Singapore have begun tightening their rules and promoting themselves as emerging alternatives to Switzerland for offshore accounts.

Another odd aspect to the Swiss franc is that, in many ways, it is a currency and not a country. For the Swiss franc, it sometimes seems that only the interest rate decisions of the SNB really matter. Perhaps this is because Swiss governments have maintained largely consistent economic policies no one expects anything wild from the Swiss , or perhaps it is because demand for the Swiss franc is dominated more by its utility as a liquid, stable and reliable alternative currency.

For more on the U. The Bottom Line Currency rates are notoriously difficult to predict, and most models seldom work for more than brief periods of time. While economics-based models are seldom useful to short-term traders , economic conditions do shape long-term trends. As Switzerland is not likely to move away from its conservative low-growth, low-debt philosophy and is likely to remain a key banking center, the fundamental supports for the franc seem to be firmly in place.

What's more, so long as Switzerland's policies continue to result in low rates, it is likely to remain an attractive option in carry trades and a currency with a significance far outstripping the size of its home economy.

Dollar - And Win. Introduction To Currency Trading Despite many attractive characteristics, the foreign exchange market is vast, complicated and ruthlessly competitive.


The Swiss Franc is the currency and legal tender for Switzerland and Liechtenstein. CHF is the shorthand code for the currency; of which the 'CH' stands for 'Confoederatio Helvetica' and the 'F' stands for 'Franc'. All of these factors affect the exchange rate of the Swiss Franc. Swiss banking services – One major factor contributing to the value of the Swiss Franc is the worldwide demand for Switzerland’s banking services as a secure and confidential place to hold offshore funds.5/5(2). Jan 16,  · Currency Brokers Fall Over Like Dominoes After SNB Decison On Swiss Franc to lift the cap in the value of the Swiss Franc is a bad idea. Brokers NZ Ltd. said losses from the franc’s.