Best Brokers For Trading GBP/CHF

The Ultimate Guide to

Choosing a Broker
For Trading GBP/CHF

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

• Why scored high for trading gbp/chf (Jump to section)
• Who is (and isn’t) suitable for (Jump to section)
• An in-depth feature comparison of the top #3 brokers (Jump to section)
• An overview on trading gbp/chf (Jump to section)

Ready?

Part 1

Why Choose
For Trading GBP/CHF?

scored best in our review of the top brokers for trading gbp/chf, which takes into account 120+ factors across eight categories. Here are some areas where scored highly in:

offers one way to trade: . If you wanted to trade GBPCHF through copy trading or other means, skip to part two.

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

have a trust score, which is . This is largely down to them being regulated by , segregating client funds, being established for over years, and much more. For comparison:

Trust Score comparsion

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who is (& Isn’t)
Suitable For

As mentioned, allows you to trade in one way: .

To trade with , you'll need a minimum deposit of $. offers a range of different account types for different traders including a , .

Finally, isn't available in the following countries: . They do not offer islamic accounts either.

Part 3

A Comparison of vs. vs.

Want to see how stacks up against and ? We've compared their spreads, features, and key information below.

Spread & fee comparsion

Comparison of account & trading features

Part 4

Forex Trading: The GBP/CHF Currency Pair

The GBP/CHF is a minor currency cross which essentially means that it does not contain the US dollar. Since this is a minor cross, it means that trading and liquidity are likely to be much lower than the major currency pairs.

The over-the-counter (OTC) daily turnovers released by BIS of these two currencies suggest that trading of the pairs is well below the major currency pairs like the Euro Dollar. For 2016, the average daily OTC turnovers of the GBP (British pound) and the CHF (Swiss Franc) was US$649 billion and US$243 billion respectively. These represent volumes of 13% for the GBP and 5% for the CHF.

Nevertheless, because both the GBP and the CHF are both considered major currencies, trading of the GBP/CHF currency pair is attractive to many traders and investors. The British Pound originates from the world’s largest financial centre while the Swiss franc is considered a safe haven currency.

During the course of the last 10 weeks, the GBP/CHF experienced a volatility of 0.99%, moving by approximately 125.02 pips. Over the last 52 weeks, the price has moved between 1.1446 and 1.4613. The GBP/CHF opened trading on Monday, March 6, 2016, at a price of 1.2378, down from the previous close of 1.2391 (Bloomberg).

How To Trade The GBP/CHF

One of the popular methods to trade the GBP/CHF pair is through a Forex broker like AvaTrade. Forex brokers like AvaTrade offer their clients access thousands of different markets including currency pairs, indices, commodities like gold and oil via CFDs.

An advantage of going through a regulated forex broker is the added protection and security offered by a regulator like the Financial Conduct Authority in the UK. You can compare a full list of broker that are regulated by the FCA here: Comparison of FCA regulated Brokers.

Fundamental Factors Affecting the GBP/CHF Currency Pair

Apart from the economies of Great Britain and Switzerland, the GBP/CHF currency pair is also affected by the economies of countries in their geographic proximity. Employment rates, interest rates, trade policies and political factors all play a role in determining the rate of exchange between the Pound and the Franc.

Uncertainty regarding the UK-EU relationship going into 2017, resulted in sharp falls in investment in the UK during the last quarter of 2016. With increased speculation about possible interest rates hikes in the United States during 2017, investors have been resorting to safer haven currencies like the Swiss Franc in order to temper volatility. This increase in demand for the Franc is likely to push up the price of the currency.

On the British side, Brexit has resulted in a weakening pound which means increasing production costs for manufacturers. This means that imports are likely to become more expensive as 2017 progresses. UK exports will consequently become more attractive as the demand for UK goods increases.

As the year 2017 progresses, the US interest rates are expected to have a significant impact on the movement of the GBP/CHF currency pair.

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