How to Invest in the Swiss Stock Market

Based in Zurich, the SWX Swiss Exchange trades not only stock in Swiss companies but also stock options and government bonds offered for sale by the Bank of Switzerland. Another Swiss stock market, based in Bern and known as the Bern eXchange (BX), lists smaller companies.

Difficulty:

Moderate

Instructions

Things You'll Need

• Financial adviser (recommended)
• Capital to invest
• Licensed stockbroker

1. Contact an experienced financial adviser who knows the ins and outs of investing in the Swiss stock market. She will be able to advise you if there are any laws in place that may affect your trading. Switzerland's banking laws are complex due to its status as a major international financial center.

2. Deposit a reasonable amount of start-up capital into a trading account with a brokerage. Because you'll need to forward your stock purchase request to a licensed Swiss stockbroker through a domestic trader, it is recommended that you stick to a well-known firm with established access to the Swiss stock market.

3. Leave yourself financially secure enough to cover your bills and expenses for several months. Doing so may help you in the event that an unfortunate market turn leaves your investment in the dust.

4. Keep in mind that banking is one of Switzerland's major industries. Of the big players in the Swiss stock market, many will be banks and/or financial services companies. If you are interested in a stock market with more diverse investing opportunities, consider investing in a country other than Switzerland.

5. Do the same due diligence you would perform before investing in stock on a domestic market: analyze the business' cash flow and price-to-earnings ratio, review its financial statements and look into the stock's short- and long-term trading history. If you're unsure how to do a stock analysis, brush up by doing some introductory reading on the subject.

6. Choose a company to invest in. Have your stockbroker forward your request to a licensed Swiss trading agent. There may be a slight delay before your order is filled.

7. Track your investment by watching the SWX stock ticker or setting up an email-alert program with your brokerage.

Tips & Warnings

• Learn all there is to know about the SWX Swiss Exchange at the index's official website.

• The derivatives trading options listed on the Swiss Exchange are recommended only for experienced, knowledgeable investors. Relative newcomers are advised to stick to standard buying and selling of regular stocks.

Resources

• SWX Swiss Exchange English website