Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation
Reply
 
Thread Tools Display Modes
  #161  
Old 24.10.2017, 01:10
ivank's Avatar
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 2,103
Groaned at 73 Times in 62 Posts
Thanked 1,815 Times in 1,017 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Interactive brokers in Switzerland

Quote:
View Post
I actually read on Swissquote, that it was more or less guarantee to be 22chf, or, to rephrase, they will surely not increase it beyond 22chf (which could imply it could be less).
Yes at these payout ratios and flatlined sales and earnings it surely can't grow much

Quote:
I am not familiar with the process, tax free stock buyback means you reinvest that 4.5% value into a share? The same share? What if you don't have enough to buy one?
Dividend is not the only and not always the most efficient way in which the company can distribute the profits to shareholders. It can use the cash to buy its own shares back from the market. You benefit from higher share price and higher dividend next time as it's going to be split among fewer shares. Unlike dividend it's tax free for you - capital gains aren't taxed on Switzerland

Quote:
Heavily taxed? I though it was "only" kind of 15% using IB and the WB8 form?
That's only withholding tax and only for american stocks. For swiss stocks it's 35%. In any case you owe full swiss income taxes on the dividend too and it can be even higher, especially considering the marginal rate of it if you have a job. Withholding tax is just an initial prepayment for it
Reply With Quote
  #162  
Old 24.10.2017, 09:10
Meadow's Avatar
Senior Member
 
Join Date: Jul 2016
Location: Zurich
Posts: 252
Groaned at 6 Times in 5 Posts
Thanked 81 Times in 56 Posts
Meadow has no particular reputation at present
Re: Interactive brokers in Switzerland

Quote:
View Post
Well it appears to me that it's a "almost secure" maximum profit of 4.5%, it seems decent in today's financial market!
I've got an even better deal. Buy shares of Meadow AG for 440. They pay 22 dividend annually (5%!) for 20 years. Can't say about further years
Reply With Quote
This user would like to thank Meadow for this useful post:
  #163  
Old 24.10.2017, 09:16
martin959's Avatar
Forum Veteran
 
Join Date: Oct 2009
Location: Basel
Posts: 955
Groaned at 15 Times in 11 Posts
Thanked 443 Times in 245 Posts
martin959 has earned the respect of manymartin959 has earned the respect of manymartin959 has earned the respect of many
Re: Interactive brokers in Switzerland

Quote:
View Post
Well it appears to me that it's a "almost secure" maximum profit of 4.5%, it seems decent in today's financial market!

So I though everyone was gambling on that, aiming for good dividend, and taking a risk with stock fluctuation.

Seems it's not done that way!?
In my opinion you gamble with any company that you buy stocks from... think about it this way... you invest 10.000 in Apple, they pay crappy dividends (remember that the yield is the % of the dividend in comparison to how much does the stock cost), you invested a lot of money there, and next thing you remember they released another phone that is exactly the same as the previous and by a miracle people open their eyes and realized was the same old crap... they produced millions of iPhones which only a few non retards would buy it... this causes the stock to drop 50% for example.

What happen? You ended up with 5000 in stocks and probably the company wont pay anymore stocks since it will need the money to survive...

So, what I would do is to simply distribute the 10k in buying stocks from different companies that pay high dividend yield, mainly on those that have been paying dividends for more than 10 years...

End of the line, in stocks you are always gambling ("gambling", because its not like actual gambling that you win all or you loose it all...), there is no guarantee that the company will go always good, but if you are gambling, at least go for a higher "prize"
Reply With Quote
  #164  
Old 24.10.2017, 09:39
ivank's Avatar
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 2,103
Groaned at 73 Times in 62 Posts
Thanked 1,815 Times in 1,017 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Interactive brokers in Switzerland

It's wrong to just focus on dividends, it's not the most important quality of a stock. But if you do, might as well load up on junk bonds too!

Are Google or Facebook bad companies because they pay no dividends? Top line, bottom line growth, ROA/ROE/ROI in double digits for years, very little debt, and the list can go on - none of that matters just because they don't pay dividends yet? You'd rather own a mediocre business whose growth long flatlined and which pays out everything it's got as that's the only thing they can think of to do with the money? To only then reinvest your dividends in another mediocre business at an overvalued share price once again?
Reply With Quote
The following 3 users would like to thank ivank for this useful post:
  #165  
Old 24.10.2017, 09:44
martin959's Avatar
Forum Veteran
 
Join Date: Oct 2009
Location: Basel
Posts: 955
Groaned at 15 Times in 11 Posts
Thanked 443 Times in 245 Posts
martin959 has earned the respect of manymartin959 has earned the respect of manymartin959 has earned the respect of many
Re: Interactive brokers in Switzerland

Quote:
View Post
It's wrong to just focus on dividends, that by far not the most important quality of a stock. But if you do, might as well load up on junk bonds too!

Are Google or Facebook bad companies because they pay no dividends? Top line, bottom line, ROE in double digits for years, very little debt, and the list can go on - none of that matters just because they don't pay dividends yet? You'd rather own a mediocre business whose growth long flatlined and which pays out everything it's got as that's the only thing they can think of to do with the money? To only then reinvest your dividends in a similarly mediocre business at an overpriced share price?
Im not saying its good or wrong, each one has its pros and cons... for the stock that pays dividends, you dont need to kill/sell the stock in order to get cash out of it... but the other one you have to, and at some point you will get to 0 stocks left sometime in the future.

The best approach is to have the portfolio diversify, so in that way you are more safer placing the eggs in different baskets

If you have 100 stocks that pay 20% dividends, and 100 stocks that increase the price every year by 20%... If you want to get that 20% in one case
Reply With Quote
  #166  
Old 01.11.2017, 10:55
Member
 
Join Date: Apr 2013
Location: Currently in Switzerland
Posts: 231
Groaned at 10 Times in 6 Posts
Thanked 183 Times in 68 Posts
logo123 has made some interesting contributions
Re: Interactive brokers in Switzerland

Some questions re. IB (apologies if they sound basic):
IB indicates that it charges CH residents -1.5% interest on funds they host with IB. Does this mean that I would lose CHF 150 immediately as soon as I transfer the CHF 10'000 they ask for? And this is in addition to the other charges they will levy?
Also if I want to invest in US Stock markets, how do I go about that?
Thank you for your help in advance.
Reply With Quote
  #167  
Old 01.11.2017, 11:09
Village Idiot's Avatar
Forum Legend
 
Join Date: Jul 2009
Location: Basel
Posts: 3,503
Groaned at 36 Times in 33 Posts
Thanked 6,572 Times in 2,111 Posts
Village Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond repute
Re: Interactive brokers in Switzerland

Quote:
View Post
IB indicates that it charges CH residents -1.5% interest on funds they host with IB. Does this mean that I would lose CHF 150 immediately as soon as I transfer the CHF 10'000 they ask for? And this is in addition to the other charges they will levy?
Also if I want to invest in US Stock markets, how do I go about that?
Negative interest rates are only charged on CHF balances of >100'000 (currently at -1.03% annually). Interest charges are calculated daily, so even if it was on smaller amounts (it isn't), you wouldn't pay the entire interest charge right away, only 1/365th. You only pay interest charges on cash that you hold exceeding >100K, not securities.

Investing in US stocks is very straightforward -- you buy or sell just like any other security.
Reply With Quote
  #168  
Old 01.11.2017, 11:11
Forum Legend
 
Join Date: Mar 2009
Location: Zurich
Posts: 10,538
Groaned at 606 Times in 459 Posts
Thanked 14,187 Times in 5,522 Posts
Richdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond repute
Re: Interactive brokers in Switzerland

Quote:
View Post
Some questions re. IB (apologies if they sound basic):
IB indicates that it charges CH residents -1.5% interest on funds they host with IB. Does this mean that I would lose CHF 150 immediately as soon as I transfer the CHF 10'000 they ask for? And this is in addition to the other charges they will levy?
Also if I want to invest in US Stock markets, how do I go about that?
Thank you for your help in advance.
Hmm doesn't it say something about negative interest? I got that message and then went to look and in fact CHF interest was not negative https://www.interactivebrokers.com/en/index.php?f=1595

I hope someone can clear this up...
Reply With Quote
  #169  
Old 01.11.2017, 11:17
Village Idiot's Avatar
Forum Legend
 
Join Date: Jul 2009
Location: Basel
Posts: 3,503
Groaned at 36 Times in 33 Posts
Thanked 6,572 Times in 2,111 Posts
Village Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond repute
Re: Interactive brokers in Switzerland

Your link was to interest payable on margin loans. Click on 'interest paid on credit balances' on the same page and you'll see that CHF, EUR, JPY and SEK balances attract negative interest.
Reply With Quote
  #170  
Old 01.11.2017, 11:30
Forum Legend
 
Join Date: Mar 2009
Location: Zurich
Posts: 10,538
Groaned at 606 Times in 459 Posts
Thanked 14,187 Times in 5,522 Posts
Richdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond repute
Re: Interactive brokers in Switzerland

Quote:
View Post
Your link was to interest payable on margin loans. Click on 'interest paid on credit balances' on the same page and you'll see that CHF, EUR, JPY and SEK balances attract negative interest.
Hmm that seems crap, considering other posters were saying how you usually save a percent or two of stamp duty?
Reply With Quote
  #171  
Old 01.11.2017, 11:32
Member
 
Join Date: Apr 2013
Location: Currently in Switzerland
Posts: 231
Groaned at 10 Times in 6 Posts
Thanked 183 Times in 68 Posts
logo123 has made some interesting contributions
Re: Interactive brokers in Switzerland

Attached the screenshot for easy reference.
Attached Thumbnails
interactive-brokers-switzerland-screen_capture.jpg  
Reply With Quote
  #172  
Old 01.11.2017, 11:36
ivank's Avatar
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 2,103
Groaned at 73 Times in 62 Posts
Thanked 1,815 Times in 1,017 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Interactive brokers in Switzerland

Quote:
View Post
Hmm that seems crap, considering other posters were saying how you usually save a percent or two of stamp duty?
You're only paying interest on above 100k CHF cash balance. Keep your cash in your swiss bank instead of broker and there's no problem, no?

1.5% debit interest for margin is also pretty reasonable when every credit company here wants to charge you 5-10%, or even 12% sometimes
Reply With Quote
The following 2 users would like to thank ivank for this useful post:
  #173  
Old 01.11.2017, 11:40
Village Idiot's Avatar
Forum Legend
 
Join Date: Jul 2009
Location: Basel
Posts: 3,503
Groaned at 36 Times in 33 Posts
Thanked 6,572 Times in 2,111 Posts
Village Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond repute
Re: Interactive brokers in Switzerland

Quote:
View Post
Attached the screenshot for easy reference.
The example you show is for a debit balance. You are charged negative interest on a credit balance.
Reply With Quote
  #174  
Old 01.11.2017, 11:43
ivank's Avatar
Forum Veteran
 
Join Date: Feb 2012
Location: ZH
Posts: 2,103
Groaned at 73 Times in 62 Posts
Thanked 1,815 Times in 1,017 Posts
ivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond reputeivank has a reputation beyond repute
Re: Interactive brokers in Switzerland

Quote:
View Post
Some questions re. IB (apologies if they sound basic):
IB indicates that it charges CH residents -1.5% interest on funds they host with IB. Does this mean that I would lose CHF 150 immediately as soon as I transfer the CHF 10'000 they ask for?
The charge starts only from 100k cash balance and interest is computed daily, so you'd only lose 1500 if you let 100k CHF sit idle for a year.
Reply With Quote
This user would like to thank ivank for this useful post:
  #175  
Old 01.11.2017, 11:44
Village Idiot's Avatar
Forum Legend
 
Join Date: Jul 2009
Location: Basel
Posts: 3,503
Groaned at 36 Times in 33 Posts
Thanked 6,572 Times in 2,111 Posts
Village Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond reputeVillage Idiot has a reputation beyond repute
Re: Interactive brokers in Switzerland

From the Interactive Broker's page above:

Quote:
When calculating rates, IB uses a blended rate based on the tiers below. With the exception of CHF, CZK, DKK, EUR, JPY and SEK, if the benchmark rate plus the interest rate paid is less than 0 then the interest paid will be 0%. For balances held in CHF, CZK, DKK, EUR, JPY or SEK IB will apply an effective negative rate to long balances held as outlined in the table below.
Attached Thumbnails
interactive-brokers-switzerland-2017-11-01_11-42-51.jpg  
Reply With Quote
This user would like to thank Village Idiot for this useful post:
  #176  
Old 01.11.2017, 11:44
Member
 
Join Date: Apr 2013
Location: Currently in Switzerland
Posts: 231
Groaned at 10 Times in 6 Posts
Thanked 183 Times in 68 Posts
logo123 has made some interesting contributions
Re: Interactive brokers in Switzerland

Thanks. I was clarifying my understanding rather than challenging the approach.
Reply With Quote
  #177  
Old 01.11.2017, 11:51
Member
 
Join Date: Jul 2016
Location: GR
Posts: 156
Groaned at 8 Times in 6 Posts
Thanked 45 Times in 42 Posts
wantone has no particular reputation at present
Re: Interactive brokers in Switzerland

IB changed the interest rates on many currencies recently. Now positive cash balances in CHF & GBP do not attract a negative rate (unless six figures).

Therefore it won't charge you anything.
Reply With Quote
This user would like to thank wantone for this useful post:
  #178  
Old 01.11.2017, 12:24
Forum Legend
 
Join Date: Mar 2009
Location: Zurich
Posts: 10,538
Groaned at 606 Times in 459 Posts
Thanked 14,187 Times in 5,522 Posts
Richdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond reputeRichdog has a reputation beyond repute
Re: Interactive brokers in Switzerland

Quote:
View Post
You're only paying interest on above 100k CHF cash balance. Keep your cash in your swiss bank instead of broker and there's no problem, no?

1.5% debit interest for margin is also pretty reasonable when every credit company here wants to charge you 5-10%, or even 12% sometimes
Ok in that case this is a non-issue as I will only transfer cash to IB when I buy shares, and transfer it back when I sell.

Thanks for clearing it up guys.
Reply With Quote
  #179  
Old 01.11.2017, 14:29
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 12,459
Groaned at 266 Times in 174 Posts
Thanked 14,807 Times in 6,275 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: Interactive brokers in Switzerland

I noticed Schwab paid quite a high amount of interest on unused cash. I recall it is swept into some kind of money market fund, but can't remember the details.
Reply With Quote
This user would like to thank Phil_MCR for this useful post:
  #180  
Old 02.11.2017, 11:18
Forum Veteran
 
Join Date: Feb 2014
Location: The World
Posts: 1,229
Groaned at 222 Times in 130 Posts
Thanked 963 Times in 548 Posts
Capo is considered unworthyCapo is considered unworthyCapo is considered unworthyCapo is considered unworthy
Re: Interactive brokers in Switzerland

I still don't get it why Switzerland has such a high tax (35%) on dividends and 0% on capital gains. You are basically incentivising people to trade and gamble instead of investing in the long term to help the Swiss economy as a whole. To me it would make much more sense the other way around (0% for dividends).

http://topforeignstocks.com/wp-conte...y-for-2017.png
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
Trading securities with Swiss brokers/ banks MikeUSA Business & entrepreneur 10 05.07.2009 10:11
Discount UK fund brokers for non-residents wategos Finance/banking/taxation 0 05.02.2009 22:58
Interactive advertising ... the latest trend Polorise General off-topic 0 15.07.2007 07:29
Getting BBC interactive on a FTA receiver Nickj TV/internet/telephone 6 12.04.2007 16:27
Regulatory bodies for Swiss brokers? AndrewD Business & entrepreneur 5 23.02.2007 12:24


All times are GMT +2. The time now is 23:13.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0