How to find out if a stock broker is licensed

How can I determine whether or not a securities broker is licensed?

Do foreign brokers need to be licensed in Switzerland in order to offer services in Switzerland?

Greetings,

Financial services providers operating in Switzerland are generally required to obtain a license from FINMA (find more information on the FINMA website).

Whether or not a broker must be licensed depends on the activities they engage in and how they engage with clients ( Art. 3 Abs. 5 BEHV). All brokers which facilitate trading in securities owned by third-party clients in Switzerland or manage the safekeeping of securities on behalf of clients in Switzerland must hold a FINMA license.

Brokers which do not have a physical presence in Switzerland and which do not employ people in Switzerland are not required to obtain FINMA licensing (Art. 39 BEHV).

That means that not all brokers which offer services to investors residing in Switzerland are licensed with FINMA or regulated in Switzerland. Because of this, it is important to exercise caution when choosing which brokers you work with.

You can find all brokers which hold valid Swiss licenses listed in the unbiased and interactive moneyland.ch broker comparison.

Best regards from Moneyguru

More on this topic:
Bank failures: What happens to your assets?
Swiss Depositor Protection Guarantee explained