Is Switch Markets Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with Switch Markets try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether Switch Markets is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker Switch Markets
Switch Markets is a relatively young broker, which entered the OTC market in 2019. In addition to standard trading products, the company is developing unique technical trading solutions. The company already has its proprietary risk management system, author's trading advisors, and auxiliary calculators. All this is available to every client of Switch Markets.
💰 Account currency: | USD EUR AUD GBP CAD |
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🚀 Minimum deposit: | From USD 50 + leverage |
⚖️ Leverage: | Up to 1:1000 |
💱 Spread: | From 0.0 pips |
🔧 Instruments: | Currency pairs (62), stock CFDs (82), indices (21), commodities (8), cryptocurrencies (6) |
💹 Margin Call / Stop Out: | 50% / 20% |
Pros and cons of Switch Markets
👍 Advantages of trading with Switch Markets:
•Deposit from $50.
•With leverage of up to 1:1000, you can open trades on major assets within the framework of the rules of risk management.
•High execution speed averaging 70-80 ms.
•A good range of auxiliary tools such as profit calculators, lot calculations, points, trading advisors, and a training base with practical tools for analyses.
•Free VPS-server with a delay in order execution to a maximum of 3-5 ms.
•Welcome bonus up to 5,000 US dollars.
👎 Disadvantages of Switch Markets:
•Relatively high spread on the standard account.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is Switch Markets Regulated? Broker’s license
Security (Protection for Investors)
Switch Markets is a relatively young broker, so the issues about obtaining licenses from regulators are still being resolved. The company has two divisions. One of the divisions is registered in Australia and has an ASIC (ABN: 30 157 780 259) license. The second division in Singapore is registered in Saint Vincent and the Grenadines through its offices and affiliated company offices.
👍 Advantages
- 24/5 Support
👎 Disadvantages
- No link to a separate physical office or ombudsman
- No information about the principles of data encryption or the protection of the account
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by Switch Markets, which you can see below.
Analysts at the Traders Union have examined the Switch Markets tariff policy and assessed the total potential trader's expenses. The broker's main commissions include spread, swap, fixed commission on the professional account, and withdrawal commissions.
Account type | Spread (minimum value) | Withdrawal commission |
Standard | from $14 | Yes |
Pro | from $1 | Yes |
Brokers that are similar to Switch Markets
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of Switch Markets conditions with its closest competitors.
Comparison of Switch Markets with other Brokers
Switch Markets | RoboForex | Pocket Option | Exness | FreshForex | FxGlory | |
---|---|---|---|---|---|---|
Trading platform |
MT4 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MobileTrading |
MT4, MobileTrading, MT5 |
Min deposit |
$50 |
$10 |
$5 |
$10 |
No |
$1 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
8.00%% |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 2 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Instant Execution, Market Execution |
No deposit bonus |
No |
No |
No |
No |
$30 |
No |
Cent accounts |
No |
Yes |
No |
No |
Yes |
No |
Switch Markets is a broker for traders who are just getting acquainted with Forex and are focused on relatively active trading in the future.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
FreshForex is a reliable Forex broker providing a standard set of trading tools. The company is a good option for traders of all levels, from beginner to professional traders. It is mid-range in terms of size and number of registered traders and they are reliable based on our research and analysis.
FxGlory is a universal broker for active trading that is likely to be interesting for European traders.
Conclusions
Switch Markets is a quite reliable broker for trading. Switch Markets operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.