How to Invest in Swiss Francs

How to open your Swiss franc account in the United States

Open your CHF account in 5 easy steps
  1. Open a Wise account (or log in if you already have one).
  2. Click on “Balances” and then “Get started”.
  3. Complete your profile and upload your documents to verify your account for security.
  4. Activate Swiss francs and any of our other 45+ currencies in your account. See the list of currencies we support.
  5. Order your debit card and start sending and spending money around the world.

Open your Swiss franc account now.

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Who is the Swiss franc account great for?

  • People with international investment portfolios.
  • Businesses who pay invoices to suppliers overseas.
  • International students studying in Switzerland.
  • Everyone who wants to spend money in Swiss francs without having to worry about converting from US dollars.

Return Leaderboard

CHF (Swiss Franc) and all other currencies are ranked based on their AUM-weighted average 3-month return for all the U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective currencies. In addition to price performance, the 3-month return assumes the reinvestment of all dividends during the last 3 months.

ETF Issuer Dividend League Table

ETF issuers are ranked based on their AUM-weighted average dividend yield of their ETFs with exposure to CHF (Swiss Franc).

Forex

The forex, or the spot foreign exchange, market is the platform for trading in different currencies that offer a wider variety of currency pairs. It works in the same way a stock market provides a platform to buy and sell stocks.

In the forex market, one would borrow one currency in order to buy another currency and close the transaction for profit or loss later. A profit occurs when the currency that was purchased increases in value compared to the currency used to buy it.

In terms of Swiss francs on the forex market, the U.S. dollar is most popularly used to invest.

The forex markets are in operation 24 hours a day and 5 days a week, allowing investors and traders a lot of freedom. Trading on margin is allowed in this market. This allows participants to increase investment amounts without having capital.

It is advised that those looking to get involved in forex should gain some basic knowledge of the market.

In general, long-term investors choose ETFs over the forex market.

Why Invest in Swiss Real Estate?

There are numerous reasons why buyers are considering real estate in Switzerland, including a new lifestyle, quality of life, a vacation home, a permanent home, better education, relocating for work, or an investment.

Due to steady economic growth that Switzerland has experienced in the past decade, investing in real estate in the country can be quite profitable compared to other European economies. The market has proven attractive for individuals and large multinational companies. In fact, Swiss real estate investments are some of the most profitable of the past 20 years. The real estate sector is stable with low market volatility.

The country is highly regarded as a strong nation for international businesses and it has a powerful presence with companies in the insurance, pharmaceutical, and banking sectors. In fact, there are 12 Fortune Global 500 companies based in Switzerland. That’s a lot for a country of that size.

Why should you specifically invest in real estate? The value of Swiss housing stock is four times the country’s annual GDP, at 2,516 Swiss francs! The commercial property contributes an additional 430 billion Swiss francs.

The residential rental property market is very attractive to investors, because home ownership rates are very low. Only about 40% of the Swiss population owns their home, which is low by international standards. This means that around 53% of 4.15 million people living in Switzerland live in rental spaces.

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International Checks and Drafts

Foreign checks Deposit checks drawn on an international bank in either U.S. dollars or foreign currency. In some cases, you may be eligible for immediate credit of funds to your account.2 Foreign checks must be deposited in person. Book an appointment at your local TD Bank International drafts An international draft is a secure form of payment that is similar to a check; it is drawn on a bank abroad in the local currency. International drafts must be done in person. Book an appointment at your local TD Bank

Exchange Traded Funds (ETFs)

Launched in 2006, CurrencyShares Swiss Franc Trust (NYSE: FXF) tracks the price of the Swiss franc against the U.S. dollar. Accessing the Swiss markets through an exchange-traded fund is a good option for those looking to take advantage of tactical opportunities in the short-term and strategic opportunities in the long term without having to own a foreign exchange account.

This route offers some advantages to investors. Investors can use their traditional brokerage accounts to buy shares of the ETF. These are treated as regular securities with transaction costs far lower than currency spot market transaction costs. The shares are traded on the NYSE Arca daily which provides eligibility for a margin account as well as a short sale which is permitted by the U.S. Securities and Exchange Commission (SEC).

Binary Options

The simplicity, flexibility, and ease provided by binary options have made them a popular choice for many in the forex market. Some of the popular currency pairs among binary options traders are the euro and U.S. dollar (EUR/USD), the British pound and U.S. dollar (GBP/USD), the euro and British pound (EUR/GBP), USD/CHF, and the U.S. dollar and Japanese yen (USD/JPY). The advantage of binary options is their simplicity. All you need to do is predict if the currency will move up or down. 

The is a less volatile pair compared to other currency pairs, which can make predicting its movement difficult. Keep track of events that may influence the pair such as announcements regarding economic factors, monetary action by the U.S. Federal reserve, and actions by the Swiss National Bank. Other triggers to a movement between the two currencies can be gross domestic product estimates for either country, unemployment data, industrial growth figures, and national debt.

Experiment with a few other currency pairs and gain basic trading experience before moving on to the more challenging USD/CHF pair. You must also gain knowledge about technical analysis which will come in handy in forecasting the movement of the pair; these estimates must be backed by fundamental analysis.

Trading Swiss Currency in the Forex Market

The forex market is another option for buying Swiss currency. This involves borrowing one currency (A) to buy another currency (B). Then, you close that transaction for a profit or loss in the future. A profit is realized when B increases in value relative to A. Losses are generated when the opposite occurs.

In the forex market, one of the most popular Swiss currency pair is USD/CHF. Traders that are bullish on Swiss currency will sell or short this pair—effectively reversing the order and using U.S. dollars to buy Swiss francs. This is done at very high leverage of up to 10,000:1 in order to make a profit on small pip movements (fractions of a cent).

Even though Swiss currency is considered a good investment, you should carefully consider the risks, particularly when using leverage, before committing any capital.

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