Cashing out bitcoin through Swissquote

nomad999

Active Member
So Swissquote offers Bitcoin and Ethereum trading through partnership with Bitstamp apparently, has anyone tried this service ?

When you sell bitcoin on Swissquote and wire the money to your bank account, does it comes from the Swissquote bank or the Bitstamp bank ? can my bank know the origin of the funds is crypto trading from the wire alone ?

I am talking legally acquired bitcoin obviously.
 

Admin

Forum Moderator
Staff member
Interesting, what makes bitstamp better then any of the other known EMI's & exchanges? Just curious?

Legit earned crypto coins can be sold at any exchange and most often if you transfer them to your local bank that know you and you are able to provide backup documents for the coins there is no problem.

I had some troubles with my local bank from transaction origin from kraken, after a few screenshots and a signle e-mail all good never heard anything.
 

nomad999

Active Member
I think Bitstamp is among the oldest exchange out there, very reputable i believe, based in Luxembourg.

The point here is if Swissquote use their own banking for bitcoin trading then the bank you withdraw to won't be able to know you are dealing with crypto and and i am hoping will simply assume you are dealing with securities.

You could use transferwise directly from Swissquote without triggering any alarms for instance.

I believe the less your main bank knows you are dealing with crypto the better.
 

Admin

Forum Moderator
Staff member
okay, but there is no problem to receive payments from any crypto exchange to TransferWise, has been discussed here a few times already.

Anyway, if they have their "own banking" and you can use that for spendings etc. it may be fine. Otherwise I believe that while many world wide banks already know KRAKEN then they also already know BITSTAMP and you will get the same question. Specially because you say they are among one of the oldest.
 

nomad999

Active Member
okay, but there is no problem to receive payments from any crypto exchange to TransferWise, has been discussed here a few times already.

Anyway, if they have their "own banking" and you can use that for spendings etc. it may be fine. Otherwise I believe that while many world wide banks already know KRAKEN then they also already know BITSTAMP and you will get the same question. Specially because you say they are among one of the oldest.
What ??? I keep reading on here that people get their Transferwise account closed for transferring money to or from Kraken or other crypto exchanges, did I read that wrong ? The Transferwise TOS is pretty clear about that.
I get that some people get away with it but I don't want to take the risk as there are very few alternative to Transferwise and they are very useful.

Off course if they just use bitstamp as a kind of "white label" solution this is not interesting at all, that's what I would like to know actually.
Because if the money you get from trading crypto is mixed with the money you get from trading security then banks can't automatically see you are dealing with crypto and transfers from Swissquote won't trigger alarms.
The same goes for forex trading I think, I am not sure Swissquote offer that service but some other brokers do and while some banks will frown upon forex trading, like Transferwise, if done this way it won't be obvious to them and might not be detected through their automatic alarm system.

Nobody using Swissquote here ?
 
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Admin

Forum Moderator
Staff member
What ??? I keep reading on here that people get their Transferwise account closed for transferring money to or from Kraken or other crypto exchanges, did I read that wrong ? The Transferwise TOS is pretty clear about that.
I get that some people get away with it but I don't want to take the risk as there are very few alternative to Transferwise and they are very useful.
Did you also read around here that many report there is no problem. Count me in on that statement, no problems with TW and kraken what so ever, I have send a lot of transaction that way!
 

nomad999

Active Member
Stopped a while ago for personal reasons.

If you want to cash out crypto use the below Swiss bank if they accept your country. You will need a couple of million you want to cash out also so not for small boys - only qualified professional investors.

The Bank for the New Economy | SEBA
Thanks, haven't heard of that one. I am not there yet but might be useful in the near future :p

Did you also read around here that many report there is no problem. Count me in on that statement, no problems with TW and kraken what so ever, I have send a lot of transaction that way!
I know, but there is a risk ! Crypto is clearly against their TOS so I'd rather not tempt the devil lol ;)
I tend to be paranoid when it comes to banks, they can fuck you up so easily that I'd rather put effort before anything happens than after.
 

Elve

Active Member
When you sell bitcoin on Swissquote and wire the money to your bank account, does it comes from the Swissquote bank or the Bitstamp bank ? can my bank know the origin of the funds is crypto trading from the wire alone ?
From Swissquote (your iban). When you sell Bitcoin in SQ (1% fees) like any other value, the amount is credited to your SQ current account. Bitstamp provides only liquidity to Swissquote.

The same goes for forex trading I think, I am not sure Swissquote offer that service but some other brokers
Yes swissquote offers an iban multi currency (USD, EUR and CHF), They can easily convert between the 3 currencies with approximately 1% fees.

I also agree that it is not worth taking the risk of sending from exchanges to TW directly, now there are many other solutions without having to take that risk and without compromising your main accounts.
 
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nomad999

Active Member
From Swissquote (your iban). When you sell Bitcoin in SQ (1% fees) like any other value, the amount is credited to your SQ current account. Bitstamp provides only liquidity to Swissquote.

Yes swissquote offers an iban multi currency (USD, EUR and CHF), They can easily convert between the 3 currencies with approximately 1% fees.
Ah very good, thanks for confirming my idea !
Yeah the only problem with Swissquote are the very high fees ... although fixed low fees for SEPA or CHF withdrawal I think.

I also agree that it is not worth taking the risk of sending from exchanges to TW directly, now there are many other solutions without having to take that risk and without compromising your main accounts.
Care to elaborate a bit on those others solutions ? any that is reliable and low fees ?

I know advcash can be used as a bridge between the two, but seems shady and risky ... also very high fees.
Bank account in Georgia I have read on here, easy to open and they don't seem to care for crypto. but SWIFT only I think.
 

Elve

Active Member
Care to elaborate a bit on those others solutions ? any that is reliable and low fees ?
Some examples:

- Bitwala (IBAN DE / 1% but very favorable rate for ETH)
- Globitex (IBAN LT / Exchange platform 0 to 0.2%)
- Wirex (IBAN LU + visa card / 1 to 2%)
- Coinbase via Paypal (0.5%)
- Getchange / changeinvest (visa card / 0%)
- Bitvavo with withdrawal on Bunq (Exchange platform 0.2 to 0.25%)
- DSX with withdrawal on epayments
- fiat transfer from Binance to Advcash -> Mastercard advcash (0%)
 

nomad999

Active Member
Interesting thanks !

Although except for wirex and advcash all those are restricted to EU cash cow resident unfortunately.

Will check wirex in more detail, seems pretty goods on paper. people keep mentioning them but I don't know how reputable/risky they are.

Binance to Advcash might be interesting for low amounts, didn't thought of that. Crazy how Binance is growing at lightning speed ...

I guess the Swissquote fees don't seem that high in comparison, but the reputation is light years away from everything else.
 

Admin

Forum Moderator
Staff member
I also agree that it is not worth taking the risk of sending from exchanges to TW directly, now there are many other solutions without having to take that risk and without compromising your main accounts.
So what are these "many other solutions" if you don't mind to share your knowledge?

Do you believe that any of the major exchanges are unknown to the banks?
 

tux

Mentor Group Gold
The KYC/AML on bitstamp is horrible, they kinda wanna know the color of your underwear (They actually wanna know xpub in some cases, which means they wanna see all transactions you've ever done with the wallet you've transfered in or out to bitstamp with. Even though only a few transactions might be of interest to them).
 

gismor

New member
I would not recommend Swissquote, they are not a serious company at all!

For a long time they have fooled many clients (me included) believing that a) you could buy "real" bitcoin and that b) the counter party for the transaction was Swissquote itself, so a Swiss bank, so safe....
Unfortunately, a) you were not able to withdraw any bitcoin or crypto assets to an external wallet and, most importantly, b) few months after launching their crypto services they have notified the clients that the contract was changed and for all the crypto assets the counter party was Bitstamp.

So at the end, they are just a proxy to BitStamp but with much higher fees and more risks involved since your crypto assets are managed by 2 companies instead of 1.
Also consider that Swissquote not being the counter party means that if BitStamp gets hacked and your crypto are stolen Swissquote will not cover anything... So why should you pay such a higher fee if the asset is not even protected.

Long story short, avoid them
 

KJK

Entrepreneur
Hmmm interesting, thanks for the heads up.

How exactly did they explain this to you? "You cannot withdraw Bitcoin because we said so"? :p
If you want that exposure without direct BTC ownership, you can just buy GBTC (Grayscale) or something...

So you paid some fees only for them to buy crypto on Bitstamp for you? What fees did you pay?
 

Martin Everson

HNWI Offshore Consultant
Mentor Group Gold
Elite Member
So at the end, they are just a proxy to BitStamp but with much higher fees and more risks involved since your crypto assets are managed by 2 companies instead of 1.
Then that is a complete waste of time to deal with bitcoin on Swissquote:(. I suppose the only people who would use Swissquote for bitcoin are people who want to see all their portfolio assets in one report.
 

gismor

New member
Hmmm interesting, thanks for the heads up.

How exactly did they explain this to you? "You cannot withdraw Bitcoin because we said so"? :p
If you want that exposure without direct BTC ownership, you can just buy GBTC (Grayscale) or something...

So you paid some fees only for them to buy crypto on Bitstamp for you? What fees did you pay?
At the time, it was not possible to withdraw cryptos to any external wallet.
The issue was how they were marketing, like if you were buying crypto assets from a Swiss Bank while in reality you could have just bought any CFD which was following the value of the underlying crypto assets, it would have had the same result...

They were charging between 1% down to 0.5% for large transactions
 

extremedox101

Entrepreneur
At the time, it was not possible to withdraw cryptos to any external wallet.
The issue was how they were marketing, like if you were buying crypto assets from a Swiss Bank while in reality you could have just bought any CFD which was following the value of the underlying crypto assets, it would have had the same result...

They were charging between 1% down to 0.5% for large transactions
do you think they are good to sell bitcoin to them ? as mentioned in thread covering bitstamp is very good option in my case, specially if i don't want the bank know about crypto .
 

nomad999

Active Member
Well my initial point was to be able to trade bitcoin without your bank knowing.
I opened an account and it seems I am able to deposit and withdraw bitcoin. Haven't made any trade yet but everything is there and my bank wouldn't know I am dealing with crypto at Swissquote without asking me first.

I trust Bitstamp as much as Coinbase or Kraken so no worry there from my point of view.

An interesting options imho for the cat 5 hurricane that is heading.

Btw, this just came in :
 
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