Fransesc Riverola is doing a top notch job at FX Street keeping traders up to date about the latest regulatory changes in Switzerland. He has sent out questionnaires to the Swim FX Broker community and several have responded, most recently Crown Forex who has stated they are applying for a banking license.
Forex Street Weblog: Open letter to FXstreet’s Swiss brokers - Crown Forex S.A response
Crown Forex�s CEO was quoted as saying:
investors must be very careful when dealing with Swiss brokers that do not see the high importance of applying for a bank license. It is important to keep in mind that many small brokers will not be able to apply or even comply with the new regulations due to the huge financial requirements this type of license incurs.
BINGO. He is dead on. This is why I started the Swiss Dealer Dead Pool. The gig is up for the schlock shops in Switzerland. Either get a banking license or in the words of Der Terminator �GET OUT!� Firms will need to have a minimum $9 million in firm capital and meet a whole variety of accounting requirements in order to get a banking license.
The CEO of Crown Forex closed his remarks by saying:
As a result in the regulatory ordinances in Switzerland, very few Swiss brokers will remain in the game, if I may say so, by the end of 2009. Probably only 5 or 6 brokers will survive out of all the brokers, whether medium or small.
Here an updated Dead Pool for the trading public.
Firms that claim they are applying for a banking license
- ACM
- Fibo Group
- Crown Forex
- DukasCopy
- MIGfx
- GFX Group (forex.ch)
Firms that are fleeing Swiss Regulation
- Masterforex. Their business office is listed in Switzerland but they are registered in the Seychelles and have stated they do not need to get a banking license.
- forex-swiss. FXCH, despite the fact they are NAMED “Forex Swiss” claim registration in Dominica. This is an odd company that has claimed multiple office addresses over the years including, Switzerland, Austria, South Africa, Iran, and the United States. Today they are claiming they have offices in Dominica and the United Kingdom. Tomorrow who knows, they could claim a mailing address in Tibet. Beware this firm.
- Prime4X. Their head office is in Switzerland but they have stated they are applying for a license in Cyprus.
Firms that are no longer accepting customers or have been shutdown
- WestCapFX
- Tradex Swiss AG
- Finex
- Aleccohfx
Firms that refuse to comment
- Swiss Direkt
- Tadawulfx
- Advised Trading
As always conduct your due diligence and make sure the firm you trade with is regulated and legit.