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  #361  
Old 28.08.2018, 13:29
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Re: Interactive brokers in Switzerland

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I agree, but let's make sure we are talkng about the same things here: cash accounts / margin accounts / portfolio margin accounts.


Schwab/PF/CH others may actually be providing you a margin account, or they are taking the risk on their side in a cash account (unlikely). Regulators may have a different opinion in CH comapred with US (more likely). US regulator in realation to Cash accounts is pretty clear and is implemented as the link describes.


Most margin account default to 2:1 and you have the cost associated with the privilege (low in the current interest regime).
What risk after a sale are Schwab taking?
Definitely not a margin account as you have to sign a special form & get charged interest. Schwab always updates cash as:-
a) Available to invest
b) Available to withdraw
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  #362  
Old 28.08.2018, 14:43
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Re: Interactive brokers in Switzerland

Let's not forget trading costs on IB are ridiculously cheap.

I think that's the main (or only) reason we all use it....and I love it

I seem to remember it was the same on HL, waiting for settlement. But that may have been to withdraw the cash rather than use it in another trade.
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  #363  
Old 28.08.2018, 14:45
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Re: Interactive brokers in Switzerland

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Let's not forget trading costs on IB are ridiculously cheap.

I think that's the main (or only) reason we all use it....and I love it
If prices fluctuated by 25% & you could not trade thats many years of savings lost in 1 failed order.
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  #364  
Old 28.08.2018, 14:47
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Re: Interactive brokers in Switzerland

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If prices fluctuated by 25% & you could not trade thats many years of savings lost in 1 failed order.
You're saying you think it's likely you would be able to sell a stock, buy another, and make 25% on that transaction due to your "fast wit" within 3 days?

For me, I just buy and hold stocks, and keep a bit of cash, so I doubt it will affect me.
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  #365  
Old 28.08.2018, 15:07
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Re: Interactive brokers in Switzerland

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You're saying you think it's likely you would be able to sell a stock, buy another, and make 25% on that transaction due to your "fast wit" within 3 days?

For me, I just buy and hold stocks, and keep a bit of cash, so I doubt it will affect me.
No you sell 1 day after a fall of 5%, the following day it has fallen a further 25% & you wish to repurchase. Such an opportunity will occur from time to time in a real market crash. The flash crash of 2010 is an even better example, I logged on after dinner & prices were all over the place. (BID went from $46 to $100,000) Unfortunately trades in over 300 companies were cancelled the following day. I executed a trade in BID which gave me a cash balance exceeding $10 million. Why should computer trading Banks be protected from their incompetence?
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  #366  
Old 28.08.2018, 15:40
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Re: Interactive brokers in Switzerland

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No you sell 1 day after a fall of 5%, the following day it has fallen a further 25% & you wish to repurchase. Such an opportunity will occur from time to time in a real market crash. The flash crash of 2010 is an even better example, I logged on after dinner & prices were all over the place. (BID went from $46 to $100,000) Unfortunately trades in over 300 companies were cancelled the following day. I executed a trade in BID which gave me a cash balance exceeding $10 million. Why should computer trading Banks be protected from their incompetence?
All sounds like market timing and trading to me... not my game
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  #367  
Old 28.08.2018, 15:41
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Re: Interactive brokers in Switzerland

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No you sell 1 day after a fall of 5%, the following day it has fallen a further 25% & you wish to repurchase. Such an opportunity will occur from time to time in a real market crash. The flash crash of 2010 is an even better example, I logged on after dinner & prices were all over the place. (BID went from $46 to $100,000) Unfortunately trades in over 300 companies were cancelled the following day. I executed a trade in BID which gave me a cash balance exceeding $10 million. Why should computer trading Banks be protected from their incompetence?

You are making the assumption that drop of 25% will go back up to its original level within the 2 to 3 days, which is very rare indeed.


Furthermore, catching a falling knife is not the most prudent strategy when it comes to shares, I could class that as gambling and there are many places you can gamble away your hard earned cash.
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  #368  
Old 28.08.2018, 16:05
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Re: Interactive brokers in Switzerland

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No you sell 1 day after a fall of 5%, the following day it has fallen a further 25% & you wish to repurchase.
and you are able to repurchase with both schwab and IB.
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  #369  
Old 28.08.2018, 18:13
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Re: Interactive brokers in Switzerland

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You are making the assumption that drop of 25% will go back up to its original level within the 2 to 3 days, which is very rare indeed.


Furthermore, catching a falling knife is not the most prudent strategy when it comes to shares, I could class that as gambling and there are many places you can gamble away your hard earned cash.
I am not assuming anything, the price could easily fall further, the business however is 25% cheaper than it was yesterday it may take 2 years to rise that 25%. Being greedy when others our fearful & being fearful when others are greedy to quote Warren Buffet who picked up a huge stake in Goldman Sachs for roughly 50% of the offer price 1 month before, it did fall further & he did make billions on the deal.
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  #370  
Old 28.08.2018, 18:55
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Re: Interactive brokers in Switzerland

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What risk after a sale are Schwab taking?
It's lot limited to 'sale', it is more open/close position.


Less of an issue for closing long positions, but if you are closing a short position, the broker has to locate the stock to balance the position. Otherwise they are left holding the can. e.g. Porsche/VW short squeeze 20008, GPRO 2015, etc.

Last edited by bill_door; 28.08.2018 at 18:55. Reason: clarity
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  #371  
Old 28.08.2018, 19:11
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Re: Interactive brokers in Switzerland

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I am not assuming anything, the price could easily fall further, the business however is 25% cheaper than it was yesterday it may take 2 years to rise that 25%. Being greedy when others our fearful & being fearful when others are greedy to quote Warren Buffet who picked up a huge stake in Goldman Sachs for roughly 50% of the offer price 1 month before, it did fall further & he did make billions on the deal.



and that is not how brokers caclulte risk. most brokers are happy at a 2 SD movement up/down (standard deviation). Volatility of the underlying needs to be factored into that caclulation, which the better brokers do and measure the risk. IB recently increaed the required margin necessary on TSLA for this reason.


Brokers are (should be) indifferent to price movement and the stock. They can't have specialised models for seperate underlyings. That would be incredibly difficult to manage and regulate.


you are almost (I know you're not) suggesting that after a 25% the risk of more downside is less and that the stock is 'expected' to rebound because it has fallen so far. That is a 50/50 bet at best! That scenario is the "Gamblers Fallacy". Many traders do think like that, Brokers can't and as I said are indifferent to the situation, point-of-time, price, volatility, 2 SDs are nearly all that matters. They have their models they trust them and they stick to them. Over a large number of occurrences they will settle to the mean. They can't and won't believe what ever you think, even when on rare occasions someone like this is right!
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  #372  
Old 28.08.2018, 19:24
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Re: Interactive brokers in Switzerland

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Why should computer trading Banks be protected from their incompetence?
Because heads I win... tails you lose!
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  #373  
Old 01.09.2018, 22:29
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Re: Interactive brokers in Switzerland

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I have been using Revolut to transfer money from my Switzerland UBS (CHF) to U.K lloyds account (GBP), I get good conversion rate but each time I pay UBS 5 CHF for the transfer. I also have interactive brokers account, can I load CHFs to my IB account (which is free), do the conversion in IB (charges < 1$) and withdraw to GBP (they say 1 withdrawal is free per month). Should be cheaper than Revolut on paper, am i missing something ? any one done this?
i transferred money with interactive brokers and it costed me 1 chf and the money was in my uk account in T + 2
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  #374  
Old 11.10.2018, 12:06
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Re: Interactive brokers in Switzerland

Whooooweeee the stock market at the moment is going up in flames vs 3 months ago. https://markets.businessinsider.com/...-10-1027606811

Strong nerves needed, but a great time to buy more.
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  #375  
Old 12.10.2018, 12:23
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Re: Interactive brokers in Switzerland

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Whooooweeee the stock market at the moment is going up in flames vs 3 months ago. https://markets.businessinsider.com/...-10-1027606811

Strong nerves needed, but a great time to buy more.
"Buy when there's blood on the streets, even if the blood is your own"

Although that was just a light tickle so far, let's see the next few months
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  #376  
Old 31.10.2018, 08:26
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Re: Interactive brokers in Switzerland

Hi! Can someone explain to me what this means? (it's on "other fees" page)

Withholding Tax Voucher requests for dividends paid on Swiss stocks CHF 15 per line.
Is that needed? What is that for?

Also does anybody know if I buy and hold a swiss company and I am a swiss resident, do I get registered in the company shareholder register with rights to vote?
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Old 07.12.2018, 22:30
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Re: Interactive brokers in Switzerland

Hey guys, I searched forum but found nothing. I'm planning to start trading options, more exactly, selling covered calls/CSP. At some point my stocks will be called away and I will have to buy them back. I don't ming paying taxes from selling options, but I wouldn't like to pay capital gain tax. I don't have a huge portofilo so I could do 3-5 contracts per month for a gain of a 5k per year. Could they classify me as a professional trader to impose new taxes?
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  #378  
Old 07.12.2018, 23:01
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Re: Interactive brokers in Switzerland

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Hey guys, I searched forum but found nothing. I'm planning to start trading options, more exactly, selling covered calls/CSP. At some point my stocks will be called away and I will have to buy them back. I don't ming paying taxes from selling options, but I wouldn't like to pay capital gain tax. I don't have a huge portofilo so I could do 3-5 contracts per month for a gain of a 5k per year. Could they classify me as a professional trader to impose new taxes?
try these:
20645
280700

capital gain is likely to be the least of your worries, if at all! you are more likely to be liable for personal income tax and state pension contributions on your profits. those are the proper threads for the discussion.
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Old 10.12.2018, 01:07
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Re: Interactive brokers in Switzerland

Hey guys...

I'm planning to move my portfolio to IB. How do they process dividends? My current broker deducts 15% US part of the tax and thats it. I get 85% minus cost. Does IB deduct anything for the CH part?
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Old 10.12.2018, 09:00
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Re: Interactive brokers in Switzerland

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Hey guys...

I'm planning to move my portfolio to IB. How do they process dividends? My current broker deducts 15% US part of the tax and thats it. I get 85% minus cost. Does IB deduct anything for the CH part?
No.
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