Being interested in a cheap swiss online-brokerage, i started inquiring about CT. Obviously, the whole Cornèr Banc financial soundness shebang sounds quite enticing.
As far as I understood though, CT does NOT have too much to do with CB when it comes to the relevant aspects of online broking. Not only has CT whitelabelled the Saxo platform (which really is a good thing!), but ALL transactions seem to run through Saxo. After reading their Terms, I even come to the conclusion that the bank account you open there is NOT with CB, but with Saxo (even though they don’t mention Saxo by name) and that your assets are held in the name of Saxo and NOT CT/CB.
I am not saying that this would result in a total no-go, not at all (they’re cheaper than Saxo - for now at least; Saxo is still a bank in CH; saxo is still a reputable international broker). But one should inquire about the real background of CT and not get blinded by how it is advertized as a part of CB, when in effect it doesn’t seem to be.
If someone has information to the contrary and can shed some light on this issue, i’d be glad to hear/read it!
Do I understand CornerTrade website right? If I buy and Hold and do no trade for 2 consecutive quarters I will be charged an Inactivity fee of 35 CHF/Quarter.
Thanks for this! I didn’t know it. I stopped trading on CT some time ago, just kept my current holdings. I will have to rethink what I do with this account.
I got the notification today in my inbox. Not too happy about that as I have some funds there from my early beginnings… Is the answer all-in on IB? Or transfer the stocks to PostFinance and live with the 90 CHF/a depot costs? Meh
Just got a call today from Cornertrade. Correct, they recently implemented a 35 CHF/Quarter fee for passive investors. If you “trade” once each second quarter you have the Depot for free the full year.
Trade 0 times in 1 year: total costs 140 CHF
Trade 1 time per year, costs 70 CHF
Trade 2 times per year in separate quarters: costs 0 CHF
until they change their mind again and charge you anyway…
At Swissquote I am currently at 16.61 CHF / Quarter. Total 66.44 CHF/Year. I was considering Cornertrade to avoid the Swissquote fee but now if I trade once a year I will be worst off… need to think…
I also got the email from CT today. Indeed, 140 CHF per year if you make no trades. I also only keep some securities I bought before I switched to IB. So I’m also considering abandoning CT.
I received the bad news too. Are there any disadvantage to trade CH-based ETF on IB? Is it even cheaper than on CT? I am also considering to sell everything and move it to the other ETFs on IB.
Yes it is! I have not executed but only simulated a trade with IB and VWRL.SW so I can’t exactly say how much cheaper it is. But I expect a combination of -0.15% and a cheaper fixed costs. Has anyone tried?
You don’t have to! I have moved funds from CT to IB in the past without selling for no cost. Just ask for a “Securities Transfer IN/OUT” form and fill it out as below. Additionally, let IB know that the funds are coming so they can accept the transfer from their side. Worked like a charm.
I’m going to move my securities to Postfinance. The CHF 90 is quite high, but at least some trades are included in this yearly fee. Furthermore, I will be able to save the CHF 60 yearly fee for my private account.
I’ve seen that Postfinance has some kind of “Sponsored trades” offer with lower fees for certain products. Vanguard is also listed as "Sponsored partner (Link Postfinance). Does anyone know what this is about?
This looks like CT charges 30 CHF for a physical delivery of your stocks. I always wonder if I can have my single stocks really in paper form… Has anyone ever done this?
Is it any good? How does it work? Does having stock in paper block the possibility to trade it? Otherwise what would be the point? You get your stock in paper and the next day you sell them online.
Then if a paper certificate is indeed the “original”, then what happens if you lose it? Can you reissue it at the custodian? What if you want to trade it again? So many questions
If they are Swiss Stocks your Name can be registered with the company. This will ensure your rights to dividends, vote and participate on annual meeting
you get your physical shares delivered. They may contain your name printed on it.
You let in the safe, or under your mattress and avoid those horrible Fees from CT, Postfinance or Swissquote
Wen you want to sell you send your paper stocks to the bank (back to CT for example) they “upload” it and you see it back on their platform for trade.
In between you are not able to trade of course as they are no longer listed on your “online” broker
it is basically a free Depot “offline”
and yeah, if you lose it, burn it or your dog eats it…well bad luck
Pretty much everybody can get a phone line, a mailbox and/or source out some support capacity - whether it be in the U.S., India or even Switzerland. However that alone doesn’t make them “based” there, from a legal standpoint. I’d consider legal domicile or residence more relevant, in case you’re having any serious issues.
Having said that, I can’t find any evidence of any Interactive Brokers entity being “based” in Zug, that I sue or file a complaint about with supervising authorities in Switzerland.
(that is, I fail how IBKR Financial Services AG being domiciled there would be significant to me, as that’s not the company I’m having my account with. Their entry in the company register states other business activities).
In theory the IB fee is: 0.08% (min: 1.50 CHF) + 2.38 CHF
In reality it might get a bit cheaper - selling ~2400 CHF worth of SWX:XD5E costed me 4,26 CHF
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