I have been reading for a while now, but there are still a few things I can’t wrap my head around. One thing I’m wondering is why CornerTrader is the suggested swiss broker. As far as I can tell, opening a trader account with them does not result in a new bank account for the customer. Instead, the customer is going to use the corner trade bank account and has to entrust them with his/her money. That’s the only way how they can offer a 0.0% maintenance fee.
There are brokers that cost a bit more, but where the customer will receive a personal bank account in his/her name. The broker will then “only” receive authorization to perform trades in the customer’s name. But the money, securities and everything legally belong to the customer at all times.
How do you feel about that? What would happen in the case of a crazy economic crisis like 2008, where many financial institutions and insurances went bankrupt? I have the feeling, that the investment is better protected in a personal account rather than a broker’s account. But I have no arguments. Feels like I’m missing something, since the entire MP community swears on CornerTrade and IB.
For example, I have been looking at the strateo bank/broker with their 0.02% fee. The FAQ are not really clear about it, but I guess the customer would have a private bank account. This would sound like a great deal to me and 0.02% would still be perfectly acceptable in my opinion.
Looking forward to your arguments. Please prove me wrong.