Swiss Forex Brokers will henceforth require a banking license

The « Foreign Exchange » market, commonly abbreviated to « Forex », represents the global currency market which boasts a daily trading volume of over USD 4 trillion*. Forex trading enables investors to speculate on, and thereby benefit from, fluctuations in the value of any one currency against another.

*Source : The Economic Times

What is the implication for Swiss Forex Brokers ?

By March 2009, all Swiss Forex Brokers like GFX Group SA (www.forex.ch) will be required to submit their application to the Swiss Federal Banking Commission in view of obtaining a Banking License. Without obtaining this banking license, Swiss forex brokers will no longer be authorized to function as such in Switzerland.

The laws and regulations which are being implemented will serve to increase the protection of investors and clients in this sector, to further contribute to the good-standing and reputation of the Swiss financial industry.

GFX Group SA’s reaction

GFX Group SA is a Swiss online broker founded in Geneva in 2005, currently offering a large number of currency pairs, all tradable online and commission-free. GFX’s clients benefit from 24 hours a day client service and multilingual support.

GFX is working on a daily basis towards fulfilling the conditions and requirements of its application for a banking license. As one of the numerous measures it has taken and is in the process of taking, the company has increased its paid-in share capital.

As GFX moves forward with the application for a Swiss Banking license, the company is in the process of structuring its organization according to the standards set forth by the regulatory authority, FINMA (includes what was previously the Swiss Federal Banking Commission). The new organizational structure will provide a framework with increased security, and allow to continue to serve clients with the highest level of service and trading conditions.

Subsequent to obtaining the banking license, GFX will be in a position to offer an even larger spectrum of financial products.