Hello Mustachians,
Usually me and my girlfriend we invest monthly 1500.-chf each in our Degiro account( we have one account each)in the VWRL(EUR) ams free once per month.
But the next 4 month’s we will invest each 4625.- chf, so in this specific case is cheaper invest in the Swiss Version CHF even if the spread is a little bit higher than the Euronext Amesterdam and is not free(2.5.-)or i’m wrong?
Thanks for your help
I assumed that the account base currency is CHF.
I calculated fees by multiplying directly with the total money used instead of applying it only to the actual volume. The error is negligible.
I calculate the following:
EUR
FeesEUR ≈ x * AutoFX
≈ 4.63 CHF
Where:
x (Money you use) = 4625 CHF
AutoFX (Fee for automatic FX) = 0.001
CHF
FeesCHF ≈ (ETFBase) * EURCHF + x * ETFScale
= (2.1528 + 1.3875) CHF
≈ 3.54 CHF
Where:
x (Money you use) = 4625 CHF
ETFBase (Base fee for trading an ETF position) = 2 EUR
EURCHF (Exchange rate) = 1.0764 CHF / EUR
ETFScale (Scaling fee on volume) = 0.0003
Spread
MaxAbsoluteSpreadDifference ≈ (FeeEUR - FeeCHF) / x
≈ 0.00023
Conclusion
Your statement is likely wrong. The difference in spread is likely larger than the calculated maximum. Even if not, you might want to keep things simple for the cost of 1 CHF or less. But check the actual difference in price on the given day. Any of them could have the better price.
Thanks for your explanation.Yes my base currency is CHF.Now i understand better, and i will continue investing in EUR version(keeping simple).