The Swiss Franc, one of the most important currencies in the world, is the official currency of Switzerland and Liechtenstein. In addition to this, it is also the legal tender of the Italian exclave of Campione d’Italia and widely used in the German exclave of Büsingen. The Swiss franc is usually ranked 5th or 6th in terms of value held as reserves. Since the Swiss franc has such a strong price, many online trading brokerages prefer to accept Swiss francs over other weaker currencies. Investors looking to trade with Switzerland brokerages are likely required to do so with Swiss francs.show more
The Swiss Franc does not have any sign or symbol used to represent the currency, but instead uses the combination of letters being “Fr” or “SFr” to represent the currency. As well, the currency can be distinguished by it’s abbreviation or code (CHF) which is primarily used when describing the currency’s exchange rates or trading pair on the global foreign exchange market. An interesting aspect of the Swiss franc is its number of nicknames. It’s sometimes called the franken, franc, and franco. The denominations that make up the Swiss franc are broken up into 100 sub-units and are called rappen. There is no other currency with the same symbolization as the Swiss franc, so traders should have no problems differentiating the currency from others when depositing funds to an online trading brokerage.
For international traders looking to invest with brokers based out of Switzerland, they may need to exchange their foreign currency for Swiss Francs. While some online brokerages accept a variety of currencies for deposits and withdrawals, some of them will only accept the Swiss franc. If this is the case, you will have to exchange whichever currency you deal with to trade with them. This can be done in a variety of ways, but the two most common are through an online exchange, or directly through the broker themselves. If the online brokerage can exchange the money this will be the fastest and easiest option and only costs a small fee for the conversion. If dealing through a third party online exchange, you will need to essentially sell the money to them and buy it back in Swiss francs for a small fee. This money can then be transferred to an e-wallet or bank account accepting Swiss francs. Either way you choose, it can be done quite easily.
Traders from Switzerland benefit from a variety of deposit and withdrawal methods such as direct bank transfers, bank wires, and debit/credit cards. Traders who are from other countries that deal with different currencies from the franc can apply for a foreign currency account with various banks. This will allow them to acquire Swiss francs for the purposes of trading. For traders who do not have Swiss franc accounts, they must deposit and withdraw funds through e-wallets, digital vouchers, or prepaid credit cards. Either way, there are methods for banking with Swiss francs for everyone.