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  #21  
Old 13.01.2017, 20:13
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Re: Online broker

Interactive Brokers is my broker of choice. Low commissions, no management fees (as long as you keep $100k+) and practically free forex is a nice bonus. Schwab's not bad, but only for trading in US and in USD; it's not competitive for international trading. And as a non-US resident, it may actually in some circumstances (e.g. due to inheritance taxes) be preferrable to own US stock through European ETFs.

You'll pay swiss stamp tax duty only with swiss brokers, so avoid any of them.
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  #22  
Old 13.01.2017, 20:21
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Re: Online broker

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Interactive Brokers is my broker of choice. Low commissions, no management fees (as long as you keep $100k+) and practically free forex. Schwab's not bad, but only for trading in US and in USD; it's not competitive for international trading. And as a non-US resident, it may actually in some circumstances (e.g. due to inherirance taxes) be preferrable to own US stock through European ETFs.

You'll pay swiss stamp tax duty only with swiss brokers, so avoid any of them.
Dont they charge a min fee of 120 CHF per year. I am not looking to do too many trades. Maybe a couple every year to rebalance the portfolio.
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  #23  
Old 13.01.2017, 20:23
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Re: Online broker

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Dont they charge a min fee of 120 CHF per year.
Only if you keep less than $100k invested with them.

I think there are a few companies partnered with them like captrader which don't charge you this minimum fee in return for higher trade commissions, so that could be worth looking if you have little to invest.
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  #24  
Old 13.01.2017, 20:28
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Re: Online broker

Thanks, I dont think I will be investing that much at the moment.

any idea about TD Ameritrade or E trade?
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  #25  
Old 13.01.2017, 20:34
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Re: Online broker

No experience with them, but I suspect that, like Schwab, they cater primarily to US.
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  #26  
Old 13.01.2017, 20:50
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Re: Online broker

Another interesting broker I've recently heard of is degiro. No experience with them, but commissions look attractive at first sight: low trading fees, modest 2.50EUR/year/exchange for holding, and they seem to be based in NL, so shouldn't charge swiss stamp tax either. Dividend fees and default-on security lending is a bit worrying.
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  #27  
Old 14.01.2017, 10:08
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Re: Online broker

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Thanks, I dont think I will be investing that much at the moment.

any idea about TD Ameritrade or E trade?
TD Ameritrade is very good & similar to Schwab, E trade was not accepting Swiss residents when I applied.

Many UK/European stocks can be bought as ADR's in the US without the stamp duty that applies on local exchanges.
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  #28  
Old 14.01.2017, 10:17
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Re: Online broker

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Correct, it's cheaper to use US brokers.....
Much cheaper. I'd try to open tdameritrade or scottrade if im in your position. They also offer free trades to buy fractional shares with dividends (need to set up, but nice way to grow holdings without further action on your part.)
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  #29  
Old 14.01.2017, 10:30
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Re: Online broker

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Hi, and thanks for the answer !
I checked both out, although they both look good :
-for Charles Schwab, I would need to open an international account (as not a us citizen/resident) which costs 10k
-at td ameritrade, I am not sure how to wire funds from a swiss bank account, it seems you need to go through an american bank ...
Been with Ameritrade for way over a decade. No problems with having a Swiss address. You can wire from any bank. Online is best from either UBS or Postfinance. Costs around 10 SFr per transfer. No charge from Ameritrade.
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  #30  
Old 14.01.2017, 12:07
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Re: Online broker

I am also thinking about opening a Brokeraccount in the US.
I read a bit about all the ones you recommended.

I was wondering which one seems to be better for Buy and Hold investing in ETFs. I am very happy with the fees from both, Schwab and TD Ameritrade. (I think both with a free depot, and I can get free ETFs from the ones they give you as well)

Are there any disadvanteges from not trading activley with either of those brokers, or not having 100k USD invested right away? Not sure about the system from Ameritrade..


What I couldnt figure out are the costs for the moneyconversion from CHF to USD. Do I even have to convert the money?
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  #31  
Old 14.01.2017, 12:19
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Re: Online broker

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I am also thinking about opening a Brokeraccount in the US.
I read a bit about all the ones you recommended.

I was wondering which one seems to be better for Buy and Hold investing in ETFs. I am very happy with the fees from both, Schwab and TD Ameritrade. (I think both with a free depot, and I can get free ETFs from the ones they give you as well)

Are there any disadvanteges from not trading activley with either of those brokers, or not having 100k USD invested right away? Not sure about the system from Ameritrade..


What I couldnt figure out are the costs for the moneyconversion from CHF to USD. Do I even have to convert the money?
Expect no problems in the land where the customer is king. No lower or uppers limits that I am aware of. Small time investors unlike in Swiss banks are always welcome. As for money conversion, I always wire in USD $$$. Americans only deal in green.
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  #32  
Old 14.01.2017, 12:56
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Re: Online broker

I use a US based Schwab account, it's OK but I make a lot of trades so the 8.95 commission is starting to add up. Now I'm looking at opening an Optionshouse account where a trade is only 4.95.

Something I do like about Schwab is their excellent research tools and resources.

https://www.optionshouse.com/
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  #33  
Old 14.01.2017, 13:28
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Re: Online broker

TexasT I would switch asap to something like Interactive Brokers where you will only pay about $1 per trade!

IB is my recommendation: almost every asset class under the sun, cheap commissions for all products, access to extensive global markets as well as US. You won't getting pretty gimmick bells & whistles like on other US retails platforms, but if you know what you're doing then all you need is a good execution platform and good fees. Nothing in Switzerland comes even close for value for money.
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  #34  
Old 14.01.2017, 14:00
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Re: Online broker

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Expect no problems in the land where the customer is king. No lower or uppers limits that I am aware of. Small time investors unlike in Swiss banks are always welcome. As for money conversion, I always wire in USD $$$. Americans only deal in green.
But then I would have to convert to USD at Postfinance as I earn in CHF, and thats not cheap I guess?
And even with Transferwise its not exactly free to convert my money. I would prefer to have a broker which deals in CHF or which converts the money for me at a really good quote or at the same value as the exchange rate. No possibilities like this?

IB would be nice for this purpose, but I wont invest 100k there for now and I dont want to trade every month 10 times to get a cheaper rate.
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Old 14.01.2017, 16:11
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Re: Online broker

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TexasT I would switch asap to something like Interactive Brokers where you will only pay about $1 per trade!...
Wow, thank you! That's a great fit for the type of trading I'm doing!! I'll definitely open a IB account asap!
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  #36  
Old 14.01.2017, 18:07
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Re: Online broker

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IB is my recommendation: almost every asset class under the sun
Not every, no swiss bonds and mutual funds, for example.

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But then I would have to convert to USD at Postfinance as I earn in CHF, and thats not cheap I guess?
And even with Transferwise its not exactly free to convert my money. I would prefer to have a broker which deals in CHF or which converts the money for me at a really good quote or at the same value as the exchange rate. No possibilities like this?

IB would be nice for this purpose, but I wont invest 100k there for now and I dont want to trade every month 10 times to get a cheaper rate.
I already mentioned captrader to you - IB's partner without 100k requirement. Currency conversion with them should cost 0.003% per https://www.captrader.com/en/account/conditions/. Degiro seems to charge 10 EUR + 0.02% per conversion. Major american brokers (Schwab, etc) charge significantly more, as they mostly deal with Americans and don't give a shit about other currencies.
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Old 14.01.2017, 18:25
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Re: Online broker

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Many UK/European stocks can be bought as ADR's in the US without the stamp duty that applies on local exchanges.
No stamp duty is nice for some exchanges (e.g. LSE). I've considered buying them a few times, but they seem to be often trading at a good premium compared to native exchange, and aren't there complications with dividends - processing fees and a 15% cut that's lost to the US?
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  #38  
Old 14.01.2017, 18:26
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Re: Online broker

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Not every, no swiss bonds and mutual funds, for example.


I already mentioned captrader to you - IB's partner without 100k requirement. Currency conversion with them should cost 0.003% per https://www.captrader.com/en/account/conditions/. Degiro seems to charge 10 EUR + 0.02% per conversion. Major american brokers (Schwab, etc) charge significantly more, as they mostly deal with Americans and don't give a shit about other currencies.
I paid into Schwab's account in CHF & received very close to spot.
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  #39  
Old 14.01.2017, 18:48
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Re: Online broker

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I paid into Schwab's account in CHF & received very close to spot.
In general, you have no control of the conversion rate the banks would apply for a wire transfer. It's at the discretion of receiving bank. Schwab may be nice there (and they also seem to use fair intrabank rates for the debit card that can be requested for trading account), but I wouldn't count on an average bank being fair there. It's just too tempting for them to grab a bite of your money, because they can. Also on this page Schwab quotes rather unfavorable conversion rates for buying international stocks, like 1%: http://www.schwab.com/public/schwab/...global_trading, so their good convension rates seem to be one-way only.

With IB you can transfer the money in CHF and you receive it as such in your brokerage account. You can then explicitly initiate a conversion to whatever currency you need, at whatever time you need, and you can actually see the rate you'd be getting. This leaves you in charge, not the banks.
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Old 14.01.2017, 18:53
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Re: Online broker

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In general, you have no control of the conversion rate the banks would apply for a wire transfer. It's at the discretion of receiving bank. Schwab may be nice there (and they also seem to use fair intrabank rates for the debit card that can be requested for trading account), but I wouldn't count on an average bank being fair there. Also on this page Schwab quotes rather unfavorable conversion rate for buying international stocks: http://www.schwab.com/public/schwab/...global_trading, so their good convension rates seem to be one-way only.

With IB you can transfer the money in CHF and you receive it as such in your brokerage account. You can then explicitly initiate a conversion to whatever currency you need, at whatever time you need, and you can actually see the rate you'd be getting. This leaves you in charge, not the banks.
With Schwab, you pay the money into a Schwab account of the currency you send. It's nothing to do with the discretion of the receiving bank. If you sent CHF to their USD account you would be right, however that is not how Schwab work. Buy international stocks as ADR's & the problem of buying foreign stocks goes away http://international.schwab.com/publ...tructions.html

Last edited by fatmanfilms; 14.01.2017 at 19:07. Reason: Adding link to Schwab foreign accounts
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