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  #61  
Old 14.09.2014, 18:30
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Re: Low Cost Broker with no Regular/Custody Fees

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Well, not really. Where did you get this information ?

For US stocks:
- IB: 0,005/share Min 1USD
- Corner Trader: 0,02/share Min 12USD (Trader Capital)
where did you get this piece of the puzzle? I was unable to locate it on their site.
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  #62  
Old 16.09.2014, 00:25
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Re: Low Cost Broker with no Regular/Custody Fees

It's on page 19 of the document
https://www.cornertrader.ch/export/s...ommissions.pdf
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  #63  
Old 14.11.2014, 18:39
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Re: Low Cost Broker with no Regular/Custody Fees

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They should use Charles Schwab, you get a USD credit card, US Cheque Book & wire transfers to Europe are FREE. Takes 2 days for the money to arrive. You cant get easier than that.
BTW there is ZERO charge for a cash withdrawal at an ATM, I tested it by withdrawing 10 CHF
I'm leaning towards opening my first brokerage account with Schwab. Would appreciate if you can comment on my assumptions below.

Use case: non-US/EU/UK national Swiss resident looking to invest primarily into US-issued ETFs. I'm planning to open joint account to grant access to the account to my spouse in the event of my death.

So far I've identified the following benefits of Schwab:
- no running costs (10k USD minimum deposit)
- cheap trades at 8.95 USD per trade (in comparison to typical CH fees)
- commission-free trades of Schwab ETFs
- no Stamp Duty fees
- CH IBAN ensures no fees generated by regular transfers from CHF account [1]
- incoming transfers are processed for free [2]
- dividends taxed at 15% [3] vs 35%[4] in CH (?)
- awesome debit card reimbursing ATM fees

Things to be aware of:
- currency conversion rates for incoming transfers are not clear
- outgoing wire transfer is 25 USD, service fee waiver available if assets are above 100k USD and only for domestic wire transfers [2]
- US estate tax kicks in from 60k USD[5] and I'm not really sure what to do about it.

Anything else I've missed?

[1] http://international.schwab.com/publ...tructions.html
[2] http://www.schwabcdn.com/public/file...0-24_FINAL.pdf
[3] http://www.swissbanking.org/en/qitoo...urcepath=1.htm
[4] http://en.wikipedia.org/wiki/Taxation_in_Switzerland
[5] http://www.schwab.co.uk/public/schwa...ervices/us-tax
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  #64  
Old 14.11.2014, 19:10
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Re: Low Cost Broker with no Regular/Custody Fees

I'd be interested to hear about your experience zlj.

I probably should open a separate thread on this, but I'm wondering if it makes sense to buy non-US ETFs (e.g, Blackrock iShares) through a US brokerage. I want to trade (at some point) in CHF/EUR/GBP.

I guess I'm just scared to touch anything US with a 10-foot pole given all the restrictions. What do I need to consider besides the transaction, maintenance and ability to refund dividend withholding (which was discussed here)?

Last edited by AroundTown; 14.11.2014 at 19:21.
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  #65  
Old 22.01.2015, 15:58
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Re: Low Cost Broker with no Regular/Custody Fees

With the recent CHF/EUR change, a lot of these brokerage options such as SAXO and IB seem potentially shakey, until the true impact of their exposure is understood.

I'm want to make a couple of trades in US stocks, and was potentially looking as SAXO, but feel less confident in them now (I narrowly avoided the Ice save debacle), so would look to a more established/stable bank, accepting that the fees might be higher.

Any recommendations on bigger named bank who would offer a good trading platform, but who's fees are not extortionate? I'm with post finance, however there fees are definitely extortionate!
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  #66  
Old 20.05.2015, 15:16
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Re: Low Cost Broker with no Regular/Custody Fees

I'm not disagreeing that PostFinance brokerage fees are high, but they don't charge custody fees. E.g. if you intend to invest e.g. CHF 10k every quarter you'll see that there's virtually no difference cost-wise between Strateo or Swissquote.

European brokers can definitely be cheaper. However that requires a wire transfer into EUR which is at 0.5% spread minimum (TransferWise).
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  #67  
Old 02.06.2015, 13:54
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Re: Low Cost Broker with no Regular/Custody Fees

Hello all,

I am also an expat living in Switzerland. I come from a €-country and plan on saving my money in CHF. Especially since I currently plan on retiring in Switzerland.
I have looked at various online brokers. I do not mind having an account outside of switzerland (e.g. IB). But I do not want to exchange my CHF. Therefore it needs to be a CHF account were I can transfer my money directly from my bank.

I currently have an account with Postfinance and am very satisfied with day-to-day money withdrawals etc. However, their trading fees are too high for me.
I also have smart savings account and a trading account with swissquote. Now, I would stick with swissquote but their online platform is so terrible it is not even funny. Their log-in is terrible and overall the platform is so poorly designed I would be more than happy to switch anytime. Furhtermore I have to use separate (!) logins for my trading and savings account. This is for me the pinnacle of retardation.

Anyway, to make a long comment short: Do you know if it is possible to have a trading account (with IB or anybody else) that has low fees and I will not loose any money in exchanging my CHF?

Thanks

Fabian
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  #68  
Old 02.06.2015, 14:26
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Re: Low Cost Broker with no Regular/Custody Fees

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Anyway, to make a long comment short: Do you know if it is possible to have a trading account (with IB or anybody else) that has low fees and I will not loose any money in exchanging my CHF?

Thanks

Fabian
I don't know about other brokers, but IB allows you to set the base currency for your account to CHF, which means that no conversion will occur as long as you deposit and withdraw CHF. Bear in mind though that if you invest into securities or commodities denominated in any other currency, you will be exposed to FX fluctuations. E.g. if you buy US stocks, any gains or losses on that position will go on to a USD balance without being automatically converted to CHF. Also, you might realize losses in CHF terms in case the exchange rate moves against you, even though your investment has appreciated in dollar terms.
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  #69  
Old 02.06.2015, 14:30
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Re: Low Cost Broker with no Regular/Custody Fees

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I don't know about other brokers, but IB allows you to set the base currency for your account to CHF, which means that no conversion will occur as long as you deposit and withdraw CHF. Bear in mind though that if you invest into securities or commodities denominated in any other currency, you will be exposed to FX fluctuations. E.g. if you buy US stocks, any gains or losses on that position will go on to a USD balance without being automatically converted to CHF. Also, you might realize losses in CHF terms in case the exchange rate moves against you, even though your investment has appreciated in dollar terms.
Post finance gives you accounts in CHF / USD / EURO so no fx issues just high brokerage fees.
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  #70  
Old 02.06.2015, 14:43
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Re: Low Cost Broker with no Regular/Custody Fees

You can do that with IB but you have to spend a minimum amount on trading fees which is higher than Swissquote so make sure you're happy with those levels.

If you're otherwise happy with Swissquote service and fees I'd just learn to deal with their login. Their site is clunky but just think of it as a nostalgic trip back to the 90s. Their iphone app isn't as bad as you only have to do the login once when you first download it.
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  #71  
Old 17.08.2015, 17:51
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Re: Low Cost Broker with no Regular/Custody Fees

Allow me a dumb question.
I am an investor resident in CH.
I wanted to invest in US Equities.
I am not an active trader. I am more along the lines of Buy and Hold.
Which option would be better?
IB or SwissQuote or Charles Schwab?
I dont have an issue paying CHF 10 per month as account fees.
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  #72  
Old 17.08.2015, 18:00
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Re: Low Cost Broker with no Regular/Custody Fees

Charles Schwab as you will have only 15% withholding tax deducted rather than 35%.
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  #73  
Old 17.08.2015, 18:18
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Re: Low Cost Broker with no Regular/Custody Fees

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1) I have found that the spread and fee savings at IB more than compensates the $10 fee per month. I have between $1000-2500 per month for savings/investments that i manage to save. Xe.com has been charging me about 1.5 % commision. This means they take about $15-$37 per month. Plus I would need to pay a commission to a broker when buying shares. (between $7-10 per trade) IB gives an exchange rate thats extremely close to the interbank rate and charges $2. For me that means the other $8 that I need to spend at IB to reach the minimum is "house money"

How do you know that they use interbank rates, do you have some sort of proof from them and have you checked the out with an actual FX deal y
I second that. IB's commissions/spreads more than make up for the $10 per month cost (which is waived if you generate -- I believe -- around $30 per month of commissions anyways)
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  #74  
Old 18.08.2015, 12:39
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Re: Low Cost Broker with no Regular/Custody Fees

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Charles Schwab as you will have only 15% withholding tax deducted rather than 35%.
Haven't looked into this in detail, but you might shed some light on this. Is it correct that:
- If I have signed a W8-BEN form with my broker, I have the same 'reduced' 15% withholding tax deducted instead of 30%?
- When I invest in US total return funds (i.e. those that reinvest dividends automatically rather than pay out), the Swiss verrechnungssteuer and the withholding tax (for which I signed the W8-BEN) don't affect me, do they?

Thanks
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Old 18.08.2015, 12:45
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Re: Low Cost Broker with no Regular/Custody Fees

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Haven't looked into this in detail, but you might shed some light on this. Is it correct that:
- If I have signed a W8-BEN form with my broker, I have the same 'reduced' 15% withholding tax deducted instead of 30%?
- When I invest in US total return funds (i.e. those that reinvest dividends automatically rather than pay out), the Swiss verrechnungssteuer and the withholding tax (for which I signed the W8-BEN) don't affect me, do they?

Thanks
If dividends are reinvested they will be taxable, if they are not paid out they won't.

If the account is held in CH & your a Swiss resident you will have 15% plus 15% deducted, which is 30% to be 'fair' to normal withholding tax of 35%. This is reclaimable, but depending on your salary level possibly not in full. If taxable earnings 60k then about 20% is reclaimable of which you will then pay normal tax on.
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  #76  
Old 18.08.2015, 17:52
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Re: Low Cost Broker with no Regular/Custody Fees

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Charles Schwab as you will have only 15% withholding tax deducted rather than 35%.
Can you help me understand this better?
Why would I pay only 15% tax with CS vs 35% with IB?
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  #77  
Old 18.08.2015, 22:36
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Re: Low Cost Broker with no Regular/Custody Fees

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If dividends are reinvested they will be taxable, if they are not paid out they won't.

If the account is held in CH & your a Swiss resident you will have 15% plus 15% deducted, which is 30% to be 'fair' to normal withholding tax of 35%. This is reclaimable, but depending on your salary level possibly not in full. If taxable earnings 60k then about 20% is reclaimable of which you will then pay normal tax on.
Thanks, clear.

What about the federal stamp duty? As a EU national (Swiss resident), do I have to pay it? Also if I purchase through a non-Swiss broker?
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  #78  
Old 27.08.2015, 23:47
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Re: Low Cost Broker with no Regular/Custody Fees

I checked with IB.
They said that they dont retain any money at their end.
So who withholds the 35%?
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  #79  
Old 28.08.2015, 09:16
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Re: Low Cost Broker with no Regular/Custody Fees

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I checked with IB.
They said that they dont retain any money at their end.
So who withholds the 35%?
"don't withhold" doesn't mean "not taxed". What they probably do is, pay out 65% to you and transfer 35% to IRS or whoever's responsible.
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  #80  
Old 28.08.2015, 09:25
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Re: Low Cost Broker with no Regular/Custody Fees

Im with IB and a swiss resident. They do not withold any taxes from me. However, I am an American citizen and only buy US stocks so maybe thats why.
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