Switch Markets is a leading Forex broker. With many perks it’s easy to see why so many retail traders trade with this broker. Trade Forex, Crypto, Stocks, Indices, Commodities and more with Switch Markets via the MT4 trading platform offered by the broker.
The broker is leading the way with customer service and extra perks but the most exciting part about trading with Switch Markets is the low spreads and zero commission accounts that they offer. Before deciding to trade with them, let’s have a closer look at the main reasons why you should consider trading with them. Go to Switch Markets.
What exactly is a forex broker?
A broker is generally a third party between the seller and buyer. Brokers are an essential element of trading, without a broker you cannot trade. It acts as a trustworthy mediator between seller and buyer. Upon successful completion of the deal, the broker typically gets a share in the form of commission.
Brokers have a vast knowledge of market trends and investment opportunities. There are thousands of brokers available online and it’s crucial you find the right broker, with the right conditions to suit your trading needs. Selecting a reliable and trustworthy broker is the first step towards a secure investment.
Switch Markets is a broker that provides you with demo and live trading accounts. Practising on a demo account is highly recommended before you start trading real money on a live trading account. Switch Markets offer a lot more than just the opportunity to execute Forex trades with them, let’s look at the reasons why customers trade with them.
Trustworthiness is directly related to regulation and should be the first thing you look at when selecting the best forex broker to trade with. Many brokers over the internet are operating without any regulation and should be avoided at all costs and this provides them with the opportunity of being able to conduct fraudulent activities and scams. Therefore, always choose a regulated and highly accredited broker.
Unregulated brokers are often involved in money laundering or illegal trade activities. Hence, it is the sole responsibility of the investor to select a regulated broker.
Switch Markets states that it is a regulated broker, and has 5-star reviews on Trustpilot. However, there are very different levels of regulation of brokers, as we will explain.
Who regulates Switch Markets?
Switch Market describes itself as a regulated broker. The Switch Market states that Switch Market is the trading name of Switch Markets International PTE Ltd, which is an authorised representative of Royal ETP LLC (CR No: 149 LLC 2019), a company incorporated in Saint Vincent and the Grenadines.
It goes on to state that Royal ETP will be the counterparty to all trades and your funds will be held in ROYAL’s segregated client trust account. Therefore, when performing your own research, you should focus on both broker entities.
Saint Vincent and the Grenadines has a loose regulatory environment for financial services businesses and does not actively regulate forex broker businesses. It issued a statement on 23 June 2021 to explain that it may regulate a financial services business, but it does not regulate forex trading activities themselves.
It is worth noting that Royal group has other subsidiaries which are regulated by more thorough regulatory regimes:
Royal Financial Trading (Cy) Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC) with License number 312/16 and authorised to provide certain investment and ancillary services according to the license it holds.
Royal Financial Trading Pty Ltd (ACN: 157 780 259) is regulated by the Australian Securities & Investments Commission (ASIC). ROYAL holds an Australian Financial Services License (AFSL 420268) and is authorised to provide financial services to Wholesale Clients only (within the meaning of the Corporations Act 2001(Cth)).
Royal Financials SAL is authorised and regulated by the Lebanese Capital Markets Authority (CMA) as a Financial Intermediary Institution (license #15).
Royal CM Limited is regulated by Vanuatu Financial Services Commission (VFSC) with License Number 700284.
However, as these subsidiaries are not mentioned on the Switch Markets website, it is difficult to see if there is any connection or whether you as a client would enjoy the higher levels of protection from these regulators.
Support mechanism in Switch Markets
Customer Support is often overlooked by traders when picking the right broker to trade with. It’s essential and apart from looking at the regulation of the broker, should be the next factor you check out. Switch Markets has world-class support and response time (according to reviews from real customers). You can contact the broker via live chat at any time and not only will they help existing customers, but they will also help new potential traders understand how brokers work.
To get world-class support from Switch Markets, open your web browser and go to SwitchMarkets.com. On the bottom right hand, you will see a green-coloured messaging icon. Click on that, and a chat box will open up. You will have to select the following option from the two shown:
1. I’m new here and would like to learn more.
2. I’m an existing customer and need some help.
Choose any of these two options which deem you suitable. After that, they will ask for your email address. Enter your email address; ust as you send your email address, a live agent will come on chat to assist you within a few seconds.
Switch Markets gives access to a live agent in less than 1 minute, which makes it world-class support. You can ask any query, and the high knowledge and expert agent will assist you accordingly.
Spreads in switch markets
Forex trading has a lot to do with the spreads you will get with your chosen broker In the case of Switch Markets, the spreads can often be as low zero. So, what exactly is spread you ask and why is it so important?
Well, the spread is the difference in the selling and buying cost of a particular currency. The selling rate and the buying rate of a currency are generally different; his difference in rates gives rise to a spread. The profit-loss criterion is dependent on spread too.
$0 Commission accounts at Switch Markets
A broker gets a commission upon successful completion of a trade. Almost all the brokers do that. Switch Markets also follow this practice. Apart from this, Switch Markets also provide the option of ‘’$0 Commission Account’’.
A $0 Commission Account is an account where the broker (Switch Markets) does not charge any commission – his type of account has only one drawback – the spread is wider in the $0 commission account. Depending on your trading style, you can pick a low spreads account or a zero commission account.
Free VPS (worth $497) while using Switch Markets
VPS stands for Virtual Private Server. A VPS is typically used by traders looking for near instant execution and the ability to trade from any device without the risk of trades being closed due to internet outages/technical issues. A VPS is essential for algo traders; algo traders (EA or robot traders as they are otherwise known) should categorically be using a VPS when trading.
As a head start, Switch Markets provides a free VPS service (worth $497). That is a huge benefit for those who want to trade with EAs and save the expense of using a VPS.
Free training material from a trusted partner
Forex trading can be very confusing for new traders. Many new aspirants need help with material and training facilities. Usually, trading education can cost thousands of dollars. When you trade with Switch Markets, they will give you free access to the famous Trading Room at ForexSignals.com – in here, you will get daily trading education and market analysis (worth $597).
$5,000 Credit bonus
A credit bonus is a bonus given by a broker once you make a deposit and start trading. Brokers usually give a proportion of the deposited amount as a credit bonus. However, Switch Markets’ credit bonus is up to $5,000 after you start trading with them.
This credit bonus is to maximize customer satisfaction and to gain trust. The bonus will have terms and conditions attached which you should read very carefully.
Free EAs and trading tools
Trading using an EA is becoming more and more popular and shows no signs of slowing down any time soon. An EA (Expert Advisor) is a tool a trader can plug into their trading terminal (usually MT4) to place trades automatically for you, based on set rules & criteria. It allows traders to be able to trade 24 hours a day, without even sitting at their desks.
When you join Switch Markets, you will have access to a lot of free trading tools and a custom build Risk Management EA.
The deposit fee is another type of commission that a broker often charges. When you make a deposit the broker charges a specific proportion of that deposit as a deposit fee. Switch Markets’ practices are customer-centric and therefore, they do not charge any deposit fee no matter how much the amount you are inserting. That is a major point that makes Switch Markets stand out among the other brokers.
Minimum deposit amount
To kick start your trading journey, you first have to deposit a specific amount as an investment. People are generally of the view that trading requires huge investment. Online Forex trading has made trading much easier to do. With Switch Markets, all you need is $50 to start your trading journey. You can deposit as much as you want but the minimum requirement is $50.
Long story short, Switch Markets is a broker that has an offering that appears to be reasonable compared with other brokers.
You get the essential trading tools with very reasonable trading conditions Furthermore, free comprehensive training material is also available with Switch Markets – his training material is from a trusted partner of Switch Markets. The free VPS is also a major chunk of this package.
However, the drawback is that the firm behind Switch Markets is only regulated in Saint Vincent and the Grenadines which does not provide oversight of forex trading activities, nor provide pro-active support to clients if things go wrong. For more information about financial service regulation in general, check out our guide to how UK stockbrokers are regulated.
Do also be aware that forex trading is very high risk. Your capital very much at risk.