Commission ETF Interactive Brokers

Investing / Brokers
1

Hello
I signed up to this forum because I am interested in opening an account with IB. I am a young and passive investor who is thinking of buying 3 ETFs monthly on SIX. At the moment I don’t have much capital to invest so I am thinking of buying 250 CHF of each ETF. Would it be better to use fixed or tiered commissions? I understand that with the fixed one I pay 5 CHF, but I can’t understand how much I pay with the tiered one. Isn’t 5 CHF for each transaction too much? Can you help?
Thanks

2

Sounds expensive for IB, which ETF on which market would you be buying?

3

Buy at SIX, Vusa

4

250 is a very low amount of transaction and you will have “high” fees in percentage because of that. Are you sure you want to buy 3 different ETFs ?

If you choose the tiered commission, transactions on SIX would probably be about 3.5 chf for low amount, but it will vary for example if the transaction is made of multiple transactions

5

Change to tiered? Tiered is 0.05% of trade value, with smart routing, acc. to pricing structure, with min. of CHF 1.50.
But I only buy US ETF and stocks on IB, so can’t say for sure for buying at SIX. Maybe someone else could confirm?

PS you’re young (and far away from death/inheritance situation), so for VUSA type exposure/investment, why not buy VTI at NYSE or similar? Would cost you 35 cents per order, for your order size.

6

Thanks Rolandinho

But there is a doubt, is it allowed? For example, I have friends who say that they cannot buy on swissquote.

7

VTI or VT @ ARCA is possible with IBKR, yes.

That is to be expected. Swissquote is much more restrictive with non UCITS fonds.

8

If you want to buy at SIX with a monthly total of CHF 750, I’d suggest to limit it to a single transaction per month. You can alternate between the ETFs from month to month.

Other stock exchanges are typically cheaper, so if SIX is not a requirement, you may want to consider trading at other stock exchanges. Automatic currency exchange at IBKR is inexpensive (0.03%).

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9

Investing few hundreds per month into 3 funds is overdoing. Take one global fund, you won’t be able to profit from splitting for long time.

You can also take a look at robo advisors (findependent allows VWRL-only Portfolio and is free up to 2k) or EU brokers without fixed purchase costs, e.g. flatex.

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