IG Vs Swissquote

Category: Broker Guides | Author: Trading Brokers | Date: June 28, 2023

Choosing the right online broker can be a daunting task, especially with the multitude of options available in the market. Two popular choices that traders often consider are IG and Swissquote. These brokers offer a range of trading services and platforms, each with its own strengths and weaknesses. In this article, we will delve into the details of IG and Swissquote, examining their features, pros and cons, and ultimately help you make an informed decision about which one may be the right fit for your trading needs.

What is IG?

IG

IG

IG, also known as IG Group, is a well-established online broker that specializes in forex and CFD (Contract for Difference) trading. With a strong global presence, IG caters to traders from various countries and provides access to a wide range of financial instruments. IG offers an intuitive and user-friendly trading platform, as well as the popular MetaTrader 4 (MT4) platform, which is favored by many experienced traders. IG provides competitive spreads and a variety of order types, allowing traders to implement their strategies effectively.

Pros of IG

  • Wide range of financial instruments for trading.
  • User-friendly trading platforms with advanced charting and analysis tools.
  • Competitive spreads and low fees.
  • Availability of both proprietary and popular third-party trading platforms.
  • Access to educational resources and market insights for traders of all levels.

Cons of IG

  • Inactivity fees after 24 months of account inactivity.
  • Limited investor protection outside certain regions.
  • Relatively high minimum deposit requirement (£250).
  • Limited social trading features.
  • Leverage restrictions in certain jurisdictions.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What is Swissquote?

Swissquote

Swissquote

Swissquote is a reputable online broker based in Switzerland, known for its comprehensive range of financial services and innovative trading solutions. As a fully licensed bank, Swissquote offers a diverse selection of instruments for trading, including forex, CFDs, stocks, and cryptocurrencies. The broker prides itself on its advanced trading platforms and tools, catering to both beginner and experienced traders. Swissquote’s trading platforms, including the user-friendly Advanced Trader and the versatile MetaTrader 4 (MT4) and MetaTrader 5 (MT5), enable traders to execute trades, perform technical analysis, and automate trading strategies.

Pros of Swissquote

  • Diverse range of financial instruments, including stocks, forex, and cryptocurrencies.
  • Advanced trading platforms with customizable features and analytical tools.
  • Competitive spreads and low fees.
  • Availability of popular third-party trading platforms like MT4 and MT5.
  • Integration with social trading platforms for copy trading.

Cons of Swissquote

  • Inactivity fees after 6 months of account inactivity.
  • Limited investor protection outside certain regions.
  • Relatively high minimum deposit requirement ($1,000).
  • Lack of unique social trading features on its own platforms.
  • Leverage restrictions in certain jurisdictions.
Swissquote Logo

Swissquote is a leading online broker with multiple regulations, a large range of trading instruments, competitive spreads and zero commissions. They offer powerful and user-friendly trading platforms, flexible account types, advanced trading tools and educational materials.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Comparison Between IG and Swissquote

To determine which platform is more suitable for you, let’s compare IG and Swissquote across various factors:

Regulation

Both IG and Swissquote are regulated by multiple authorities in different jurisdictions, which enhances their trustworthiness and safety. IG holds 7 global Tier-1 licenses, while Swissquote holds 4. IG is authorized by the U.K. FCA, the Australian ASIC, the Singapore MAS, the U.S. CFTC/NFA, the Japanese FSA, the New Zealand FMA and the Bermuda BMA. Swissquote is authorized by the U.K. FCA, the Swiss FINMA, the Hong Kong SFC and the Singapore MAS. Both brokers also offer investor protection schemes for their clients in certain regions. IG provides up to £85,000 in the U.K., €20,000 in France and Germany and no protection in other countries. Swissquote provides up to CHF 100,000 in Switzerland, £85,000 in the U.K., HKD 500,000 in Hong Kong and no protection in other countries.

Trading Platform

IG offers two main trading platforms: its proprietary web-based platform called IG Trading Platform and the popular MetaTrader 4 (MT4) platform. IG Trading Platform is a user-friendly and customizable platform that supports advanced charting, technical analysis, news feeds, economic calendars and social trading. Swissquote also offers two main trading platforms: its proprietary web-based platform called Advanced Trader and the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. Advanced Trader is a user-friendly and customizable platform that supports advanced charting, technical analysis, news feeds, economic calendars and automated trading. Both brokers also have mobile apps that are compatible with iOS and Android devices. The apps have similar features and functionalities as their web counterparts and allow traders to trade on the go.

Pricing and Fees

Both IG and Swissquote charge low fees for forex and CFD trading. IG does not charge any commissions but only spreads and overnight fees. The spreads vary depending on the instrument and market conditions but are generally competitive. For example, the average spread for EUR/USD is 0.7 pips. Swissquote also does not charge any commissions but only spreads and overnight fees. The spreads vary depending on the instrument and market conditions but are generally competitive. For example, the average spread for EUR/USD is 1.7 pips. Both brokers also charge non-trading fees such as withdrawal fees, inactivity fees and currency conversion fees. IG does not charge any withdrawal fees but charges £12 per month after 24 months of inactivity. Swissquote does not charge any withdrawal fees but charges CHF 10 per month after 6 months of inactivity.

Leverage

Both IG and Swissquote offer leverage for forex and CFD trading, but the maximum leverage depends on the instrument, the account type and the regulatory jurisdiction. IG offers up to 30:1 leverage for forex trading in the U.K., EU, Australia and New Zealand, up to 50:1 leverage for forex trading in Singapore, up to 200:1 leverage for forex trading in Bermuda and up to 20:1 leverage for CFD trading in all regions except Bermuda where it is limited to 10:1. Swissquote offers up to 30:1 leverage for forex trading in the U.K., EU, Australia and New Zealand, up to 100:1 leverage for forex trading in Switzerland, Hong Kong and Singapore and up to 20:1 leverage for CFD trading in all regions. Leverage can amplify both profits and losses, so traders should use it with caution and risk management.

Asset Selection

Both IG and Swissquote offer a wide range of instruments for forex and CFD trading, but IG has a larger and more diverse portfolio. IG offers 99 forex pairs and over 19,000 CFDs on stocks, indices, commodities, metals, ETFs, bonds, options and cryptocurrencies. Swissquote offers 78 forex pairs and over 300 CFDs on stocks, indices, commodities, metals and cryptocurrencies. Both brokers also offer some unique instruments that are not commonly found elsewhere. IG offers CFDs on IPOs, cannabis stocks and thematic portfolios. Swissquote offers CFDs on bonds and real stocks.

Social Trading

Social trading is a feature that allows traders to copy or follow the trades of other traders or experts. IG offers a social trading feature called IG Community on its IG Trading Platform. This feature allows traders to interact with other traders, share ideas, strategies and market insights, follow the most popular trades and access live sentiment data. Swissquote does not offer any social trading features on its platforms, but it does support third-party social trading platforms such as ZuluTrade and MetaTrader Signals. These platforms allow Swissquote clients to connect their accounts and access a variety of social trading services.

Minimum Deposit

The minimum deposit can vary depending on the broker, the account type and the payment method. IG has a minimum deposit requirement of £250 for its accounts, which is relatively high compared to some other brokers. However, the minimum deposit can be lower depending on the payment method. For example, the minimum deposit for cards is £100 and the minimum deposit for PayPal is £50. Swissquote has a minimum deposit requirement of $1,000 for its accounts, which is relatively high compared to some other brokers. However, the minimum deposit can be lower depending on the account type. For example, the minimum deposit for the Standard account is $1,000, the minimum deposit for the Premium account is $10,000 and the minimum deposit for the Prime account is $50,000.

Withdrawal and Deposit Methods

Both IG and Swissquote offer various withdrawal and deposit methods for their clients, but IG has more options and faster processing times. IG supports bank transfers, credit/debit cards, PayPal and Payoneer for withdrawals and deposits. The processing time for withdrawals is up to 24 hours and the processing time for deposits is instant for all methods except bank transfers which can take up to 3 days. Swissquote supports bank transfers, credit/debit cards and e-wallets such as Skrill and Neteller for withdrawals and deposits. The processing time for withdrawals is up to 48 hours and the processing time for deposits is instant for cards and e-wallets and up to 3 days for bank transfers.

Which Should You Choose: IG or Swissquote?

Choosing between IG and Swissquote depends on your specific preferences and trading requirements. If you value a broader range of financial instruments, a user-friendly interface, and access to social trading features, IG may be the better option for you. On the other hand, if you prefer a comprehensive range of services, advanced trading platforms, and integration with popular third-party platforms, Swissquote could be the more suitable choice. It is crucial to consider factors such as regulations, pricing, asset selection, and additional features before making a decision.

Conclusion

In conclusion, both IG and Swissquote are reputable online brokers with their own strengths and weaknesses. IG offers a wider range of financial instruments, a user-friendly trading platform, and social trading features, while Swissquote provides advanced trading platforms, a comprehensive selection of services, and integration with popular third-party platforms. By carefully considering your trading preferences, regulatory requirements, pricing structure, and available features, you can make an informed decision about which broker is best suited for your trading journey. Happy Trading!


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