Interactive brokers in Switzerland - Page 23

jacek · #**441** 09.04.2021, 16:32

	Quote:	GenevaSculler
	I initially went with SwissQuote - CHF 53.85 per quarter custody fees. Trading fees are lower than the main Swiss banks from what I've seen, but higher than IB. I then opened an IB account a couple of years ago, and am adding almost all new holdings there. No custody fees once you get above 100k and trading fees are very low. I'm British and am at IB UK. SwissQuote still has the advantage of being able to trade some things that I can't do on IB eg Norwegian stocks and a couple of funds.

... or forlorn coins aka digital assets all in one

spark · #**442** 09.04.2021, 16:43

	Quote:	Urs Max
	Why not buy some money market fund instead? Or short term bond fund?

Cash is trash, I'm talking equities here. Money fund would still count towards 500k limit all the same.

Urs Max · #**443** 09.04.2021, 17:15

	Quote:	spark
	Cash is trash, I'm talking equities here. Money fund would still count towards 500k limit all the same.

AFAIA SIPC, or any other comparable protection, is irrelevant when it comes to securities you own, it only protects the cash in your account. It's your (limited) credit risk insurance against your bank/broker.

I may be wrong, but this is how I understand them.

spark · #**444** 09.04.2021, 17:17

SIPC insures securities up to $500k and cash up to $250k.

Urs Max · #**445** 09.04.2021, 17:28

	Quote:	spark
	SIPC insures securities up to $500k and cash up to $250k.

Interesting, didn't know that.

However, it looks like your plan won't work. From the SIPC rules:

	Quote:
	Rule 101 — Individual Accounts (a) Except as otherwise provided in these rules, all accounts held with a member by a person in his own name, and those which under these rules are deemed his individual accounts, shall be combined so as to constitute a single account of a separate customer. (b) [..]

Also, the examples by SIPC say that two (ordinary) individual brokerage accounts in the same name count as one.
"(Ordinary)" because Roth, IRA, and other types of accounts count separately, as if they were owned by a different person.

spark · #**446** 09.04.2021, 17:37

Well, the assumption is if I split stocks between several independent brokerages, it is unlikely that two of them would try to defraud me at the same time. So it's kinda still $500k/brokerage from this PoV.

fatmanfilms · #**447** 09.04.2021, 17:38

	Quote:	spark
	Well, the assumption is if I split stocks between several independent brokerages, it is unlikely that two of them would try to defraud me at the same time. So it's kinda still $500k/brokerage from this PoV.

It's unlikely that any large broker will try to defraud you.

spark · #**448** 09.04.2021, 17:40

Exactly. P(both are trying to defraud me) = P(unlikely)^2, negligible compared to any single one's P(unlikely) which is maybe not so negligible

Urs Max · #**449** 09.04.2021, 18:55

When did something like this last happen (the last two or three times), and what was the outcome?

spark · #**450** 09.04.2021, 19:53

MF Global in 2011

Customers were made whole in the end but were taken for a 5 year ride: https://www.sipc.org/about-sipc/history - 2016 - "The Trustee for the MF Global Inc. liquidation closes the case with a 100% distribution to customers and commodities claimants"

fatmanfilms · #**451** 09.04.2021, 20:17

	Quote:	spark
	MF Global in 2011 Customers were made whole in the end but were taken for a 5 year ride: https://www.sipc.org/about-sipc/history - 2016 - "The Trustee for the MF Global Inc. liquidation closes the case with a 100% distribution to customers and commodities claimants"

Hardly a normal broker, a commodities broker making bets on it's own account so somewhat different to say Schwab or IB.

spark · #**452** 09.04.2021, 22:28

But IB is also a commodities broker (at least in UK) and is known to dabble in market making for its own account in its Timber Hill subsidiary

What's the difference to MF Global here, besides Peterffy's impeccable reputation?

fatmanfilms · #**453** 10.04.2021, 10:32

	Quote:	spark
	But IB is also a commodities broker (at least in UK) and is known to dabble in market making for its own account in its Timber Hill subsidiary What's the difference to MF Global here, besides Peterffy's impeccable reputation?

If it's a subsidiary, then no risk to IB.

aitron · #**454** 08.06.2021, 19:48

I currently have my biggest portfolio with Trading212 but due to them introducing forex fees I wanted to open up an account with a broker that allows for a multi-currency setup so I also don't always have to convert back to CHF. In the end IB seemed to be the best option, any recent red flags or other recommendations I should be looking at? (checked DEGIRO, Schwab)

Many thanks!

trixxiee · #**455** 08.07.2021, 18:45

Interactive Brokers just got better!

	Quote:
	While many of our clients actively trade or maintain substantial equity in their account, we have decided to eliminate our monthly inactivity fee so there are no impediments to maintaining an account with IBKR. Effective July 1, 2021, you will no longer be charged USD 10 for not maintaining a minimum balance or transaction activity for your account. This change will be reflected in your August 2021 account statement. Our decision to remove inactivity fees aligns us with industry standards and reflects our ongoing commitment to provide clients with low-cost trading solutions.

Chuff · #**456** 08.07.2021, 19:18

	Quote:	trixxiee
	Interactive Brokers just got better!

Was nice to see that today, it will be good for a lot of people starting out.

fatmanfilms · #**457** 08.07.2021, 20:03

	Quote:	Chuff
	Was nice to see that today, it will be good for a lot of people starting out.

So what happened, I have an account & have not bothered to execute a trade, originally it was limited to 25k deposits for me as an EU resident, my trades are usually bigger than that.

Polymath · #**458** 08.07.2021, 20:12

	Quote:	fatmanfilms
	So what happened, I have an account & have not bothered to execute a trade, originally it was limited to 25k deposits for me as an EU resident, my trades are usually bigger than that.

As a Swiss resident I did not experience such limitations with respect to deposit amount.

They have now eliminated the minimum 10 USD account fee per month if you hold less than 100k USD equivalent in assets. The upshot is a marginal benefit for those on their way to accumulating 100k USD. However, even with the fee, they were still the broker of choice by my reckoning for a variety of reasons.

fatmanfilms · #**459** 08.07.2021, 20:21

	Quote:	Polymath
	As a Swiss resident I did not experience such limitations with respect to deposit amount. They have now eliminated the minimum 10 USD account fee per month if you hold less than 100k USD equivalent in assets. The upshot is a marginal benefit for those on their way to accumulating 100k USD. However, even with the fee, they were still the broker of choice by my reckoning for a variety of reasons.

I just sold a property on Saturday, funds hit my account on Monday & none has got as far as IB due to complications of actually doing what I want to do.