Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #101  
Old 01.10.2016, 10:37
Meadow's Avatar
Senior Member
 
Join Date: Jul 2016
Location: Zurich
Posts: 271
Groaned at 6 Times in 5 Posts
Thanked 95 Times in 63 Posts
Meadow has no particular reputation at present
Re: Swissquote (online broker) - any good?

Quote:
View Post
I'm sure there's FATCA in UK too, not only Switzerland, and as an US-origined company, IB is well aware of what they have to do to US citizens under it. I don't see where the swiss banks come into equation here at all.
I don't know why you mention UK. I thought IB was a US broker? FATCA is a US tool designed to make sure that all taxes due to US are paid. It works worldwide. Many banks will not accept clients who have anything to do with USA, like hold US citizenship, work permit, or even have an account there.

Quote:
View Post
At the end of the day it'll be the same security no matter through which exchange you've bought it. Why they sell it here - maybe because they can and have a way to derive profit from it. It doesn't cost anything if the sale doesn't go through. Also nore that European markets have different openings times from US.
That's not entirely true. I am speaking for example about Vanguard's ETF's which are domiciled in Ireland. They have billions of dollars invested in them. For S&P 500 you have VOO in USA and VUSA in Ireland. So maybe you mean that underneath they own the same stocks. Sure. But why are people buying the Ireland domiciled fund, when it is 10 times more expensive in fees?
Reply With Quote
  #102  
Old 01.10.2016, 14:27
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Swissquote (online broker) - any good?

Quote:
View Post
I don't know why you mention UK.
Their UK branch normally deals with Swiss customers. At least this is so for me

Quote:
View Post
Many banks will not accept clients who have anything to do with USA, like hold US citizenship, work permit, or even have an account there.
How's that a concern in opening an account with IB, especially if with IB US? They're a US broker, so presumably have substantial share of all kinds of US citizens and know exactly what to do

For your banking needs you presumably already have a Swiss bank that's happy to have you here.

Quote:
That's not entirely true. I am speaking for example about Vanguard's ETF's which are domiciled in Ireland.
I thought you were talking about buying the same security through different exchanges, US vs EU exchanges.

Quote:
For S&P 500 you have VOO in USA and VUSA in Ireland. So maybe you mean that underneath they own the same stocks. Sure. But why are people buying the Ireland domiciled fund, when it is 10 times more expensive in fees?
Taxes can be a reason.

Withholding tax is different from country to country. And whether you can claim it back and how much too. AFAIK for US dividends you can only claim 15% back, the rest stays in US. If you pay taxes to US probably this is however irrelevant to you anyway because your US taxes are much bigger than Swiss.

Then there's US estate tax an important consideration for retirees.

For reinvesting ETFs, the hidden taxable dividend amounts can also be different for different funds from the pov of Swiss tax authorities - they depend not only on holdings, but structure and actions of the fund.

Last edited by ivank; 01.10.2016 at 14:37.
Reply With Quote
  #103  
Old 03.10.2016, 16:56
Meadow's Avatar
Senior Member
 
Join Date: Jul 2016
Location: Zurich
Posts: 271
Groaned at 6 Times in 5 Posts
Thanked 95 Times in 63 Posts
Meadow has no particular reputation at present
Re: Swissquote (online broker) - any good?

Quote:
View Post
Withholding tax is different from country to country. And whether you can claim it back and how much too. AFAIK for US dividends you can only claim 15% back, the rest stays in US. If you pay taxes to US probably this is however irrelevant to you anyway because your US taxes are much bigger than Swiss.

Then there's US estate tax an important consideration for retirees.
US estate tax is something I didn't even have on my Radar. I guess it Needs a lot of reading to understand it.

Regarding FATCA: if you have an account in USA by IB, you might need to inform your Swiss bank about it. Then it might ask you to close your account. I'm not sure if it's like this, just thinking aloud.

Sure, IB seems to be extremely cheap, especially if you have more than 100 000 invested. But on the other Hand, with my investing plan, I should not spend more than 200 USD per year on my Swiss Broker. It's not the end of the world.
Reply With Quote
  #104  
Old 03.10.2016, 17:21
Forum Veteran
 
Join Date: Feb 2012
Location: CH
Posts: 2,304
Groaned at 87 Times in 73 Posts
Thanked 2,002 Times in 1,123 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Swissquote (online broker) - any good?

Quote:
View Post
Regarding FATCA: if you have an account in USA by IB, you might need to inform your Swiss bank about it. Then it might ask you to close your account. I'm not sure if it's like this, just thinking aloud.
Well, I'm not a US citizen, I hope to stay this way, so not really motivated to learn about FATCA... but I find it hard to believe that it would actually outlaw having accounts in whatever countries you please. Isn't FATCA supposed to be merely about the reporting of such accounts to the IRS?
Reply With Quote
  #105  
Old 04.10.2016, 10:38
Member
 
Join Date: Jul 2016
Location: GR
Posts: 183
Groaned at 11 Times in 9 Posts
Thanked 49 Times in 46 Posts
wantone has become a little unpopular
Re: Swissquote (online broker) - any good?

IB in Europe is based in the UK not the US.
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
swissquote dimli Finance/banking/taxation 4 28.01.2011 23:23
Swissquote Bank rates too good to be true? Beanie101 Swiss politics/news 0 16.02.2009 13:15
Swissquote kfcfriend Finance/banking/taxation 5 28.09.2008 21:18
Good free online game MattM Other/general 2 24.10.2007 12:27
Good online camera store in Switzerland? j_in_ch Other/general 6 22.09.2006 23:52


All times are GMT +2. The time now is 06:14.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0