I have been reading this forum for a while with great interest, but now I have a question myself, which I am sure you will be able to help me with:
What are the foreign exchange costs related to buying ETFs that are traded in USD at SIX when purchasing with CHF? Does the broker exchange the CHF to USD at the interbanking rate or would brokers charge me an unfavorable exchange rate?
Assumption would be a Swiss broker (SQ or CT) and only a CHF account (no USD account linked to broker). ETF could for example be SWDA traded at SIX in USD only.
For CT I already saw that there is a 0.5% exchange rate fee (horrendous!) on such transactions, but I’d at least expect that the purchase be done at interbanking rates.
Anyone has some experience with this issue? Any if (as I suspect) Swiss brokers are really using such transactions to make big money off their clients, what could be a possible way around it? Opening a foreign exchange account at the broker and feed this account via Transferwise?
I know by now most of you use IB/De Giro, which must be more favorable regarding exchange rates. But I would like to specifically know, how Swiss brokers such as SQ or CT are faring in this regard, so please no „switch to Ib“-comments