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Swissquote

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Swissquote Bank Ltd
Company typePublic limited company
SIX Swiss Exchange SQN
ISINCH0010675863
IndustryBanking
Founded2000[1]
FounderMarc Bürki and Paolo Buzzi
HeadquartersGland, Switzerland
Key people
Marc Bürki (CEO), Alexandru Craciun (CTO), Morgan Lavanchy, (CLO) Gilles Chantrier (CRO), Yvan Cardenas (CFO), Nestor Verrier (COO), Jan De Schepper (CSO).
ProductsOnline trading and investment, trading platforms
530.8 million CHF (2023)[2]
217.6 million CHF (2023)[2]
Total equity898.5 million CHF (2023)[2]
Websitewww.swissquote.com

Swissquote Group Holding SA is a Swiss banking group specialising in providing online financial and trading services. Its headquarters are located in Gland, Switzerland. The Group's shares have been listed on the SIX Swiss Exchange under the ticker symbol "SQN" since 29 May 2000. The company had 1,134 employees in 2023.[2] Swissquote Bank Ltd holds a banking licence issued by its supervisory authority, the Swiss Financial Market Supervisory Authority (FINMA).[3]

History

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1990–2017

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In 1990, Marc Bürki and Paolo Buzzi founded Marvel Communication SA, a company specializing in financial software applications. The company served as the precursor to Swissquote, which was established in 1996 as a financial platform offering private investors real-time access to securities traded on the Swiss exchange.[4][5][6]

On 29 May 2000, Swissquote went public, listing 410,000 registered shares with a total value of CHF 100 million on the SIX Swiss Exchange under the symbol SQN. In the same year, the company obtained its banking license.[7][8]

In 2010, Swissquote made two significant acquisitions. In June, it acquired Tradejet AG, a Zurich-based online information platform and broker. Later, in October, it acquired ACM Advanced Currency Markets AG, expanding its operations to include online Forex trading.[8][6][9] In May 2012, Swissquote partnered with Goldman Sachs and UBS to launch the Swiss Derivatives OTC Trading System (Swiss DOTS). Commerzbank joined the platform in September 2014, followed by Deutsche Bank in October 2015.[8]

In February 2013, Swissquote partnered with Basellandschaftliche Kantonalbank to provide online mortgage services.[10][11] In September of the same year, Swissquote acquired MIG Bank for $44 million, a firm specializing in Forex trading. This acquisition placed Swissquote among the top ten online currency trading service providers. By January 2015, Swissquote reported a total FX trading volume of $330 billion for Q4 2014, averaging $110 billion per month.[12][13] Nationally, Swissquote also established a partnership with PostFinance.[14]

In January 2015, following the Swiss National Bank's decision to discontinue the minimum exchange rate of 1.20 CHF per euro, Swissquote allocated a reserve of 25 million Swiss francs to maintaining its financial stability.[15] On 9 February 2015, Swissquote Financial Services surrendered its Category 3 Investment Services License to the Malta Financial Services Authority.[16]

2018 – present

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In August 2018, Swissquote acquired the Luxembourg-based Internaxx Bank SA to expand its access to the European market.[17] Following regulatory approval by the European Central Bank and the CSSF in Luxembourg, the company was renamed Swissquote Bank Europe SA and became a fully owned entity of the Swissquote Group.[18][19] The acquisition coincided with regulatory changes by the European Securities and Markets Authority, which limited leverage for retail brokers and prohibited the marketing, distribution, and sale of binary options, indirectly benefiting Swissquote's business model.[20]

In October 2022, Swissquote launched a crypto exchange SQX and gained access to the Dubai Financial Market.[21][22] On November 11-12, the platform experienced a massive DDoS attack and was down for a significant time.[23]

In May 2023, Swissquote partnered with investment firm Stableton and Morningstar Indexes to launch an actively managed certificate (AMC) targeted at Swiss retail investors. The AMC provides exposure to 20 selected unicorn companies identified by Morningstar.[24] Later that year, Swissquote introduced a new investment and savings solution for asset management.[25]

In 2024, Swissquote introduced fractional share trading for retail investors[26] and expanded its collaboration with BNP Paribas' Securities Services business.[27]

Operations

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Swissquote provides a range of financial services, including trading in equities, funds, bonds, warrants, options, and futures, catering to retail investors, asset managers, and corporate clients. The company also offers digital solutions such as the electronic asset management tool ePrivate Banking, alongside traditional banking services like mortgages, savings accounts, and more specialized options, including currency trading (forex) and cryptocurrencies.[26]

While Swissquote advertises commission-free trading (excluding share CFDs), its spreads and swap charges are notably higher than the industry average, and it also imposes additional quarterly fees, custody fees for private customers that vary depending on the amount, as well as fees for withdrawals.[28][29]

Swissquote operates eight entities that are authorized in different jurisdictions.[28] As of June 2024, Swissquote managed over CHF 68 billion in client assets across more than 610,000 private and institutional accounts. In the first half of 2024, the company reported net revenues of CHF 316.9 million (USD 365 million), representing a 19.3% increase compared to the same period in 2023. Pre-tax profit grew by 35.9% year-over-year to CHF 169.7 million, while net profit reached a record CHF 144.6 million. Notably, net income from crypto assets surged by 369% to CHF 35.1 million, accounting for over 11% of Swissquote's total revenue during this period.[30]

Sponsorship

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Swissquote has been an official partner of the British football club Manchester United since 26 January 2015.[31] In 2021, the company singed a three-year sponsorship deal with UEFA, covering the UEFA Europa League and UEFA Europa Conference League.[32]

In its efforts to enhance brand visibility, Swissquote has also entered into sponsorship agreements with Swiss ice hockey teams. Since 2020, it has sponsored the Genève-Servette Hockey Club (since 2020), and in 2024, it extended its support to the ZSC Lions from Zurich.[33][34][35]

Fines and lawsuits

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Dubai papers

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In November 2019, the Swiss Public Prosecutor's Office launched an investigation into Swissquote Bank over allegations of money laundering. The bank was suspected of facilitating the concealment of over $100 million in funds allegedly evading tax authorities, which had been transferred from the Puerto Rican bank Blue Ocean by the Helin Group.[36][37][38] Critically, Swissquote reported these transfers to authorities only after the French newspaper Le Nouvel Obs exposed an international network of tax evasion and money laundering involving the Helin Group. This delay raised questions about the bank's compliance and internal monitoring mechanisms.[39][40][41]

2023 Sanctions Commission of SIX Group AG fine

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On the 1st of June, 2023, the Sanctions Commission of SIX Group AG fined Swissquote Group Holding SA CHF 75,000 'negligent breach of the provisions on ad hoc publicity' in relation to an announcement published on 16 June 2021.[42][43]

References

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  1. ^ "Registre du commerce". prestations.vd.ch. Retrieved 11 November 2021.
  2. ^ a b c d "Swissquote: Annual report 2023" (PDF). Swissquote. Retrieved 2024-11-12.
  3. ^ Skinner, Celeste (2019-07-08). "Are Swiss Brokers Benefitting from ESMA's Measures?". Finance Magnates. Retrieved 2024-12-11.
  4. ^ "Swissquote Forex Broker Review and Rating 2023. Detailed Swissquote information with traders reviews for 3 September 2023 – Forex-Ratings.com". forex-ratings.com. Retrieved 2023-09-03.
  5. ^ Grundlehner, Werner (2021-05-07). "Swissquote: 25-jährig, erfolgreich, überlastet". Neue Zürcher Zeitung (in German). Retrieved 2021-11-12.
  6. ^ a b Claude Baumann (2021-08-05). "Swissquote Captures Financial Zeitgeist". finews.com. Retrieved 2021-11-11.
  7. ^ "SWISSQUOTE N". SIX (in German). Retrieved 2021-11-12.
  8. ^ a b c Nikolova, Maria (2017-03-31). "This day in history: Swissquote announces plans to go public". Finance Feeds. Retrieved 2024-12-08.
  9. ^ "Swissquote Flags Renewed Surge in Profits". finews.com. 2021-06-16. Retrieved 2021-11-11.
  10. ^ "Die Online-Hypothek von Swissquote – ein Erfolg?". IFZ Retail Banking Blog (in German). 2013-03-02. Retrieved 2021-11-11.
  11. ^ "Ist die Online-Hypothek von Swissquote ein Erfolg?". finews.ch (in German). 2013-04-02. Retrieved 2021-11-11.
  12. ^ Mizrahi, Avi (2014-07-22). "Swissquote Reports Revenue Growth in H1, but Drop in Profits Due to MIG M&A". Finance Magnates. Retrieved 2024-11-15.
  13. ^ Segal, Gerald (2013-11-05). "Swissquote acquisition of MIG Bank – $70 million". Leap Rate. Retrieved 2024-11-15.
  14. ^ "Swissquote" (PDF). Archived from the original (PDF) on 2014-05-13.
  15. ^ "Swissquote" (PDF).
  16. ^ "Surrender of Licence by Swissquote Financial Services (Malta) Limited". MFSA. 2015-02-09. Retrieved 2024-12-08.
  17. ^ "Swissquote Aims to Double Profit by 2024". finews.com. 2021-03-18. Retrieved 2021-11-11.
  18. ^ "Swissquote acquires Luxembourg-based Internaxx Bank". Luxembourg Times. 2018-08-07. Retrieved 2024-12-08.
  19. ^ "Swissquote buys Luxembourg's Internaxx ahead of Brexit". Luxembourg Times. 2019-05-23. Retrieved 2024-12-08.
  20. ^ Golovtchenko, Victor (2018-03-27). "Breaking: ESMA Rolls-Out Draconian CFD Leverage Restrictions, Kills Binary". Finance Magnates. Retrieved 2024-12-10.
  21. ^ Oladipupo, Solomon (2022-10-25). "Swissquote Gains Access to Securities Listed on Dubai Financial Market". Finance Magnates. Retrieved 2024-12-08.
  22. ^ Shome, Arnab (2022-10-04). "Swissquote Launches Crypto Exchange SQX". Finance Magnates. Retrieved 2024-12-08.
  23. ^ Oladipupo, Solomon (2022-11-09). "Swissquote Confirms 'Massive DDoS Attack', Works on Solution". Finance Magnates. Retrieved 2024-12-08.
  24. ^ Oladipupo, Solomon (2023-05-15). "Swissquote Supports Launch of Unicorn-Focused Product for Retail Investors". Finance Magnates. Retrieved 2024-12-08.
  25. ^ Kirui, Jared (2023-07-04). "Swissquote Launches New Investment and Saving Solution". Finance Magnates. Retrieved 2024-12-08.
  26. ^ a b Shome, Arnab (2024-10-22). "Swissquote Enables Fractional Shares Trading". Swissquote. Retrieved 2024-12-10.
  27. ^ "Swissquote selects BNP Paribas as their custodian to benefit from integrated execution-to-custody services". BNP Paribas. 2024-05-13. Retrieved 2024-12-08.
  28. ^ a b "Swissquote Review 2024". FXEmpire. 2024-05-13. Retrieved 2024-12-11.
  29. ^ "Swissquote Review". Moneyland.ch. Retrieved 2024-12-11.
  30. ^ Segal, Gerald (2024-03-13). "Swissquote sees Revenues up 19%, Profit up 30% in record H1-2024". FX News Group. Retrieved 2024-12-10.
  31. ^ "Man Utd News | Team news, injury updates, transfers, new signings".
  32. ^ "Swissquote Signs Three-Year Sponsorship Deal with UEFA". Finance Magnates. 2021-09-01. Retrieved 2024-12-10.
  33. ^ Shome, Arnab (2020-09-16). "Swissquote Becomes Sponsor of Genève-Servette Hockey Club". Finance Magnates. Retrieved 2024-11-17.
  34. ^ Shome, Arnab (2024-08-28). "Swissquote Enhances Sports Presence: Becomes "Principal Sponsor" of Two Ice Hockey Teams". Finance Magnates. Retrieved 2024-12-10.
  35. ^ Steves, Rick (2024-08-28). "Swissquote becomes main sponsor of Swiss ice hockey team ZSC Lions". Finance Feeds. Retrieved 2024-12-10.
  36. ^ Michel-Aguirre, Caroline (2019-11-29). "INFO OBS. Dubai Papers scandal splashing Switzerland's first online bank". Le Nouvel Obs. Retrieved 2024-12-08.
  37. ^ Besson, Sylvain (2019-11-28). "Swissquote sperrt Konto mit verdächtigen Offshore-Geldern". Tages Zeiger. Retrieved 2024-12-08.
  38. ^ Besson, Sylvain (2019-11-28). "The court investigates suspicions of tax evasion at Swissquote". Tages Zeiger. Retrieved 2024-12-08.
  39. ^ "Tax evasion and money laundering exposed in Dubai Papers". The Shift News. 2018-09-07. Retrieved 2024-12-08.
  40. ^ "Dubai Papers: French media unveils UAE based International Money Laundering network". L'Obs. Archived from the original on 2020-03-02. Retrieved 2024-12-08.
  41. ^ "Belgian prince investigated in alleged global tax evasion network probe". Brussels Times. 2020-02-07. Retrieved 2024-12-09.
  42. ^ "Fine against Swissquote Group Holding SA". Six Group. 2023-06-01. Retrieved 2024-12-09.
  43. ^ "Swissquote Fined for Disclousure Rule Breach". FiNews. 2023-01-06. Retrieved 2024-12-09.
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