Cheapest way to buy VWRL at IB

Hi guys

I opened an account at IB and funded it with 1´000 CHF to test it.
My whole portfolio is cash and VWRL/VGWL/IE00B3RBWM25/…:
https://www.de.vanguard/web/cf/professionell/de/produktart/detailansicht/etf/9505/EQUITY/overview

Until today I bought everything at my german broker 1822direkt which I already used when I lived in Germany. I usually bought for 2000€ with a savings plan which was 2,95€ per order all inklusive (0,1475%).

When I tested IB today I bought 11 shares for 893,53 CHF and paid 10 CHF commission (1,12%). IB predicted the comission to be 10 CHF no matter if I bought 1 or 11 shares.
I know that the percentage would be lower when I buy more, but what´s the best way to buy this ETF at IB?
I´d like to invest about 10´000 CHF per month.

Buy at SIX (EBS) in CHF?
Convert CHF to USD and buy at LSE or another stock exchange?

Please note that I don´t want to invest in other US based ETF like VTI.
I saw a similar thread but it hat no answer where to buy:
https://forum.mustachianpost.com/t/comparing-vanguard-all-world-in-lse-vs-six/138

Hi there

If you are in Germany please note that IB won’t help you with taxes, eg. in the way that german brokers do this automatically with the tax office. This may or may not be a deciding factor to use IB, eg. you might want to stay with a german broker.

Since the underlying asset is the same wether you buy it in chf at SIX or in USD at LSE, SIX vs LSE comes down to where is cheapest. Some considerations:

  • If you convert a currency it will cost you a minimum of 2CHF each time.
  • The SIX has a unavoidable stamp tax of 0.15% on non CH stocks/etfs per trade
  • I am not sure if LSE has stamp taxes on ETFs i think ETFs do not have a tax
  • VWRL dividends are paid out in USD

It looks like the LSE is better in this case.

I am having a hard time understanding the 10 CHF fees, where are they coming from? according to IB the fees should be much lower: https://www.interactivebrokers.com/en/index.php?f=1590&p=options2

Maybe this includes the 10CHF / month fee for assets <100k?

Whatever you do make sure you are using the tiered fee’s instead of fixed, you can check this in account settings. tiered is always cheaper

May I ask why you arent considering US based assets like VT / VTI etc.?

Looks like you are on Fixed-fee structure. Switch to Tiered.

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  • The SIX has a unavoidable stamp tax of 0.15% on non CH stocks/etfs per trade
    => Only if the broker is CH, no stamp duty tax with IB
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Thanks for your replies guys!

I´m living in Switzerland and don´t have to do a german tax declaration anymore. :slight_smile:

Yes this seems to fix the problem. I switched to tiered and will try again next week.

As you can see by my 1 ETF Portfolio I like it simple. :slight_smile: Vanguard offers a fund that fits my needs and can be bought at a local stock exchange and in compliance with local regulations and (hopefully) less trouble with taxes. I don´t really care about the higher TER as long as the tracking difference is virtually zero. To be honest I don´t even understand why the european Vanguard funds have a higher TER but the relevant tracking difference is nearly identical to the US funds (I think it was really close to 0 when I checked it). Might be worth a own thread? ::thinking:

Thanks, I think this was the problem.

Yes that´s what I think as well. It should only apply for domestic brokers.

You guys are right, sorry I missed that!

One thing for US based funds:
There is US based “VT” which is a world fund. Even though tracking difference negates the higher TER of VWRL somewhat, US based funds have a 15% tax advantage compared to EU funds when it comes to dividends. VT has a good TR as well last I checked.

15% goes to the IRS, but with US funds you can reclaim that through your taxes (DA-1 Form). EU funds just pay the 15% and its “lost” you can’t reclaim it, there is plenty about this on this forum.

So at a average dividend yield of 2% thats 0.3% more expenses for EU funds to consider, above the already higher TER

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