Last update: 28 August 2020
6 min read

Trading Forex with the Best FINMA Brokers

Are you on the hunt for the best FINMA regulated brokers available today? Good news – you’ve come to just the right place. Below, you’ll see our expert guide to finding the top brokers regulated by FINMA. We’ll walk you through what FINMA is, what they do, and give you hints and tips to trading safely in Switzerland.

The Swiss have a healthy history of ensuring the privacy of their investors by proactively supervising the conduct of financial firms, which is why Switzerland is considered to be the safest country on the planet in terms of safeguarding clients’ funds.

And, when it comes to finding the best brokers in Switzerland, you’ll want a FINMA regulated one. Why? Read our guide below to find out.

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Where are the best FINMA regulated brokers?

The fantastic thing about using a broker regulated by FINMA is that you know they adhere to some of the strictest rules around. In other words, all FINMA regulated brokers can be trusted.

Because FINMA brokers are so well-regulated, all of them make for potential good choices. Therefore, finding the best ones will often come down to your own personal preference. This could mean the look and feel of the website, enjoying the staff communication, or anything else which appeals to you.

Safety aspects of FINMA regulated brokers

FINMA regulated brokers are considered to be the safest brokers in the world. This is due to their adherence to the rigorous guidelines enforced by the Swiss authorities.

The FINMA is committed to mandating its policies to guarantee that all regulatory frameworks are designed in accordance with international guidelines. All regulatory guidelines are put forward by the Swiss Parliament and the Federal Council. It is the job of FINMA to implement the regulations among financial participants using effective implementation methods.

FINMA regularly inducts third party service providers and auditors to ensure that all firms and individuals participating in the financial markets are audited for their performance. This helps FINMA to independently monitor the activities of all individuals – as well as organizations – proactively, thereby helping FINMA to tackle financial fraud.

Has FINMA been successful in ensuring 100% privacy?

Switzerland is considered as the leading advocates of investor privacy and protection of client funds. Swiss laws are very particular about safeguarding the interests of their investors as well as the general Swiss public.

However, the resolution of FINMA and Switzerland was challenged by the US Government when UBS, the main bank of Switzerland, was asked to disclose the details of American customers who had accounts with UBS. FINMA and UBS had to bow down to pressure from the United States by partially revealing the information required. But the Federal Administrative Court of Switzerland was quick to intervene by putting an end to the transfer of information.

What is FINMA?

FINNMA forex brokersThe Swiss Financial Market Supervisory Authority, also known as FINMA, is a regulatory organization in Switzerland. It was formed in 2007 and began activity in 2009.

FINMA’s headquarters are in Bern, Switzerland – a country with a widespread reputation for financial businesses. FINMA is accountable only to the Swiss Parliament, and operates independently of the Central Federal Administration or the Federal Department of Finance. It works under its own regulatory framework that is designed and developed by the Swiss Parliament to ensure that all market participants adhere to a strict code of conduct.

What does FINMA do?

FINMA licenses, regulates, and supervises all types of financial firms including banks, stock markets, insurance companies, brokers, and other financial market participants.

The FINMA is a result of the Swiss Government’s initiative to merge together different regulatory organizations under a single roof to ensure that all regulatory and supervisory operations are performed in a streamlined manner.  These regulatory protocols are essential for the Swiss financial markets to function properly without succumbing to economic turmoil.

How do FINMA regulated brokers operate?

The FINMA is granted absolute powers by the Swiss Government to properly regulate the financial markets. It has full authority over all types of financial firms to enforce rules and assert corrective actions. Forex brokers regulated with the FINMA face severe penalties, including suspension of licenses, if they are found to be in violation of the FINMA guidelines.

FINMA takes consumer complaints very seriously and is known to investigate all tips leading to any malpractice indulged by financial firms. FINMA performs thorough investigations to discover any violation of supervisory laws and, if necessary, will initiate legal proceedings to bring the firm to justice.

The government has given FINMA the right to examine banks as well as financial organizations, which makes them one of the most powerful regulatory organizations in the world.

However, unlike other regulatory agencies such as the NFA or FCA, FINMA does not have the authority to impose heavy fines or initiate criminal proceedings against a company. All actions taken by the FINMA can be challenged through a court of law. On the plus side, this increases the transparency of FINMA operations, and ensures that FINMA acts in the best interests of both the consumer and the companies in question.

How can I complain to FINMA?

FINMA remains at the head of consumer protection by constantly updating its framework for operations. It offers a wide range of resources to help the general public stay safe from financial fraud. As a consumer, you can contact FINMA directly through their hotline number, or register a complaint against a company by using their online complaint form. All essential links and information are provided on FINMA’s official website, which is also a great resource for consumers to learn more about the regulatory protocols and member companies.

FINMA creates press releases and newsletters on a periodic basis to update the general public about new findings, and companies that have been blacklisted by the agency. For consumers who wish to take their legal proceedings further, FINMA offers great assistance to help consumers find the related ombudsman service, or the higher authority, that is responsible for positive problem resolution.

Finding brokers that are regulated by FINMA

Most forex brokers find it difficult to be regulated by the FINMA due to the strict regulatory guidelines and the effect FINMA has on the country’s financial firms. Almost all brokers under FINMA are proven to be among the best in the industry and are market makers in most cases.

It is true that some brokers find the regulations to be a bit on the harsher side, which is why mainstream brokers avoid FINMA at all costs. The advantage of such regulatory procedure is that clients can be assured of the reliability and authenticity of these brokers, which is an essential trait for brokers to induce consumer confidence.

To check for FINMA regulation, look at the footer of the broker’s website for a license number. Or you can see a full list of brokers on FINMA’s site.

Frequently Asked Questions (FAQs)

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