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swissryan 31.01.2015 21:18

Buying Oil
Hi All

I wanting to invest in Oil. Please help me understand what is involved in buying into Oil. Say I want to invest 10000 francs, and in the future I earn 20000 francs on the investment, what are monthly costs, yearly costs, commissions, capital gains tax, etc etc. Also, how exactly do I buy Oil shares? Which are the best Oil shares to buy?. I prefer a Swiss based financial company.

Many Thanx


Ace1 31.01.2015 21:36

Re: Buying Oil
Can't help you there, and I suspect that if there is anyone with the magic key to doubling their money, they're not likely to want to share it here. But please do so if you work out how.

Guest 02.02.2015 17:39

Re: Buying Oil
Still interested? Do google.ch search for "open broking account", there shouldn't be any problem finding investment brokers in Switzerland. When opening account, state your intentions about trading in commodities. Oil is one of them. Apart from oil, you can also buy / sell other commodities like steel, zinc, copper, gold, silver, rice, wheat, soya, etc etc..

Fees? The sales representative should be able to explain you those very well. Be prepared to lose anywhere from zero to 100 CHF per year, on fees.

Guest 02.02.2015 18:02

Re: Buying Oil
buying oil is tough, because it's not meant for individuals like us. If you wanted to buy oil for real, you would need to buy a Future on the Nymex, let it expire, get delivered 1000 barrels of the greasy and stinky liquid. Delivered means go to Oklahoma and load your oil in your truck from the official delivery point.
Of course no ones does this, but people buy Oil ETFs instead. They're funds that replicate the price of oil, minus the costs of getting the oil actually delivered. Those costs are very high, you can add on top the fees from the fund manager (also high...)
The cheapest way is to buy the futures and roll them each quarter, paying the cost of carry on roll day but you can't just buy and forget about them (otherwise be ready to book a flight to Oklahoma!)

Guest 02.02.2015 18:17

Re: Buying Oil
Just go down the garage like the rest of us ;)

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