ETF in USD or CHF

Investing / Funding & Currency conversions
1

Hi,

Trading on Swissquote what makes more sense in terms of exchange- and further costs:

A) ETF in USD buy on SIX in CHF?

B) ETF in USD buy on SIX over Exchange-Account in USD (Exchange over Swissquote with “bader” exchange rates and additional 0.95% commission for CHF-USD conversion)?

C) ETF in USD buy on SIX over Exchange-Account in USD. Transfer money in CHF from bank account to (Transfer)wise account in CHF. Then sending from (Transfer)wise account to Swissquote in USD. Better exchange-rate + better “commission” of (Transfer)wise + additional SWIFT-costs transferring USD to Swissquote Bank). At the end the currency conversion costs should be lower?

Which variant makes more sense to you?

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2

Buy ETF that is quoted in CHF at SIX. That basically leaves Vanguard IE ETFs, which are totally fine.

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3

And don’t confuse the reporting currency with the trading currency.

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4

Why? I buy ETF which best fits. And this is not always Vanguard and CHF…

5

Sure. But you were asking what is most cost efficient, and I answered you.

4 Likes
6

By “bader” you mean “worse”? :face_with_head_bandage:

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7

If you went with SwissQuote it doesn’t really make sense to optimize this. Just swallow the 0.95% fee together with the already high order costs.

If you buy “small” amounts that one-time fee is not that high in comparison to other costs.
And if you trade big sums (e.g. tens of 1000s) the best thing would be to use IBKR to do the currency conversion… But at that point you might just use IBKR to trade.

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