Hello folks
On DeGiro, I was used to investing in
1/ iShares Core MSCI World UCITS ETF USD (0,20%, DeGiro reduced brokerage fees)
Recently, I’ve discovered
2/ HSBC MSCI WORLD UCITS ETF (0,15%, also DeGiro reduced fees)
The 2/ seems to bo better.
However after two simulations of an order of 500 CHF, the results are in favor of the 1/
I do not understand why this difference, and is it a real thing or HSBC still better ?
It seems the difference is in the spread.
If your base currency is CHF why don’t you go for a world ETF traded in CHF on SIX to avoid currency exchange fees?
I do not think there is a “reduced fee” SIX ETF listed on DeGiro, or am I mistaken ?
I am currently thinking about going on IB to drive an easy Vanguard VT strategy (ok, in USD…)
I am not sure why do we need a reduced fee ETF when the fee at Degiro is very low already.
How much would it cost to buy SPDR ACWI ?
I think it might not be a lot. Perhaps 3 CHF per order
I bow, the SPDR ACWI in CHF looks perfect on DeGiro!
Why is everyone preaching for VT on Interactive Broker? (ok fees are quite better)
It’s not only because of fees of VT per say . It’s because of its domicile.
This is why IBKR + VT is being quoted in many places.
Have a look at this
For UCITS ETFs, Degiro is very good too
That one had a TER of 0.4%, I think, until very recently.
Indeed… for SWX, it seems to be 0.4%…
For XET for example, it is 0.12% (but the perf is killed by change and spread commission…)
Is it the same class, same ISIN? It should be exactly the same. Probably SIX has an outdated information somewhere.
Yes TER changed recently to 0.12% as of 1 Aug
That should be this one afaik:
And also because fees on IB, isn’t it ?
Assuming investing all 31.12.XXXX, 3600 CHF in SPDR (on DeGiro) VS VT (on IB)
If I am not mistaken, the difference is huge !
I am not sure what you mean
Fees to buy ACWI on Degiro is 3 CHF
Fees to buy VT on IBKR is about 0.35 USD or max 1 USD depending on pricing plan.
So that is the difference in terms of fees.
If you make 12 purchases in year, the difference would be 25-30 CHF in total regarding trading fees. And if you multiply this by 10 years then it would be 250-300 CHF. I wouldn’t call it huge. In my view IBKR is just very cheap. Everything else in its comparison would look expensive.
Custody fees & stamp duties on both platforms is zero
Exactly, it is the same orders of magnitude
On the right it’s like a simulation of IB
I thought the only fee on IB was the AutoFX 0.03%, isn’t it ?
The four orange simulations on the left are DeGiro-like (assuming 3 CHF for unlisted DeGiro ETF), for exemple, the SPDR World would match with the 3-/order, 0.12%/year scenario
I see. I didn’t fully understand the table.
I think if you really need cheapest broker, you should use IBKR because you can also buy ACWI there if you like.
IBKR fees are -:
Forex -: 0.03% currency conversion (or 2 USD based on plan)
Trading -:
The aim is not to get the cheapest one, but I just want to diversify my broker and not play on just only with DeGiro (and if VT as lower management fees it will be better)
1/ Can I ask you if/why you only get DeGiro (regarding diversification),
2/and why IB is not your preference (regarding everyone here who seems to preach for it) ?
3/ I am just testing IB (à 100$ limit order on VT) and found out that fees are not exactly 0.03% + 0.35 USD
Sorry if I confused you.
I was just responding to your questions
I use IB & Swissquote.
I don’t use Degiro
For me. Degiro & IBKR are more or less same except the fact that Degiro doesn’t offer US ETFs. I started with IBKR because I wanted US ETFs in beginning. Now I am less of a fanboy but since I am already using it, I don’t have incentive to use Degiro.
Maybe this Reddit thread might be interesting for you
I can’t say much about the simulations. I bought VT quite frequently in past and paid 0.35 USD per trade on IBKR using dollars. I used tiered pricing model just for reference as IB has two options.
