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  #101  
Old 31.12.2016, 14:53
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Re: Low Cost Broker with no Regular/Custody Fees

I am an resident of India, i have 5000 CHF to invest in swiss equity exchanges directly (i dont want to invest in ETF, would invest directly). Please answers me the following query below if i open an account with IB:

1) What would be the commission charges in tiered pricing for delivery transactions in only SIX stock exchanges, also give me the breakup of taxes levied after execution of delivery orders.

2) What would be an annual maintaince charges for the trading account.

3) What would be the interbank charges for allocation / deallocation of funds. Time period required to transfer the fund in my account after sale of any equity.

4) If dividends are paid by any swiss / nonswiss company listed in Switzerland, how would they be credited in my accounts. are there any charges.

5) Taxes on profit done on capital gains in Switzerland.
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  #102  
Old 31.12.2016, 23:32
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Re: Low Cost Broker with no Regular/Custody Fees

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I am an resident of India, i have 5000 CHF to invest in swiss equity exchanges directly (i dont want to invest in ETF, would invest directly). Please answers me the following query below if i open an account with IB:

1) What would be the commission charges in tiered pricing for delivery transactions in only SIX stock exchanges, also give me the breakup of taxes levied after execution of delivery orders.
Why don't you just look up yourself: https://www.interactivebrokers.com/e...p?f=1299&nhf=T (EBS = SIX exchange)

As I rough guide, it's an order of magnitude more expensive than trading on US stock exchanges, and an order of magnitude cheaper than what swiss brokers would charge you. No swiss stamp tax duty to pay with IB.

Quote:
2) What would be an annual maintaince charges for the trading account.
$120 if you keep less than $100k. Commissions are deducted up to $10 per month.

Quote:
3) What would be the interbank charges for allocation / deallocation of funds.
What does that even mean?

Quote:
Time period required to transfer the fund in my account after sale of any equity.
A few days for the sale to settle (for IB to receive funds from counterparty) + time for a bank transfer. I usually get money on my swiss bank account from them within 1-2 business days. India maybe would be a bit longer. But if you deposited the money just recently, I think there's a long waiting period of a couple of months or so until you can withdraw the funds you've just deposited. There's a page in account management which shows how much withdraw now and how much is waitlisted.

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4) If dividends are paid by any swiss / nonswiss company listed in Switzerland, how would they be credited in my accounts
Back into the cash part of your IB's portfolio.

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are there any charges.
35% withholding tax for swiss securities. I don't think they charged me anything on top of it, no any kind of "admin" fee unlike some other brokers.

Quote:
5) Taxes on profit done on capital gains in Switzerland.
As an Indian resident you would have to pay taxes in India, not in Switzerland. Swiss withholding tax is fully reclaimable, your indian tax officials should know how. Main case where you'd have to pay capital gains here is on a real estate sale only.

Last edited by ivank; 01.01.2017 at 00:24.
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  #103  
Old 02.01.2017, 15:23
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Re: Low Cost Broker with no Regular/Custody Fees

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2) What would be an annual maintaince charges for the trading account.

$120 if you keep less than $100k. Commissions are deducted up to $10 per month.
When i had read on IB's website it say, there are 2 options:
1) Fixed - wherein you can pay 10 CHF as commission of any amount of transactions on per transaction basis.
2) Tiered - wherein you can pay 1.25 CHF or 0.08% commission whichever is higher for the transaction amount less than 1,00,000 CHF per transaction.

Can you confirm for the same.

Quote:

3) What would be the interbank charges for allocation / deallocation of funds.

What does that even mean?
What are the commission to convert the amount from INR to CHF, while buying the shares.

Last edited by vishal jain; 02.01.2017 at 15:39.
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  #104  
Old 02.01.2017, 15:43
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Re: Low Cost Broker with no Regular/Custody Fees

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When i had read on IB's website it say, there are 2 options:
1) Fixed - wherein you can pay 10 CHF as commission of any amount of transactions.
You pay 10 CHF for *every* trade below 10000 CHF, and more for higher trade value.

Quote:
2) Tiered - wherein you can pay 1.25 CHF or 0.08% commission whichever is higher for the transaction amount less than 1,00,000 CHF.
The coefficients are wrong and that's actually how their 'fixed' pricing works. You pay max(0.1%, 10 CHF) per trade.

With tiered pricing, they pass on some of exchange charges directly onto you, so the final price depends on how the order was executed, e.g. was it on bid or ask. Anyway it usualy works out to be cheaper than their fixed pricing, at least for Europe. Read the link again, everything is really spelled out there: https://www.interactivebrokers.com/e...p?f=1299&nhf=T

Quote:
What are the commission to convert the amount from INR to CHF, while buying the shares.
Don't know about INR, no experience with it, but for other major currencies they're my forex broker of choice. Really low commissions compared to anything else I've seen on the market, like a few to low tens of dollars to converts 100k's. It's basically at the level of minute market rate fluctuations, so I can't care any less about exact pricing.

For a small amount like 5k, you should convert it all in one go, and not every time before a trade, as they have some surcharge for small orders below 15-20k$. I.e. you wire them 5000 CHF equivalent in INR, do a forex trade first to convert all of it to CHF, then buy stocks in CHF. I'd guess 5k conversion would cost you a couple of franks or so, compared to fair intrabank rate.

Last edited by ivank; 02.01.2017 at 16:02.
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