Hat jemand Erfahrung mit finanzen.net ZERO: Aktien & ETFs ohne Gebühren (zzgl. Spreads) als Broker im Vergleich zu IB?
Don’t know the offering but I would rather pay low transaction fees on IB than beeing a victim of PFOF.
Source: Commission-Free Brokers: Are You Trading Or Being Traded? (bankeronwheels.com)
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I think that’s more complicated, for most people PFOF/market maker routing is a benefit (you get improved execution, since the market maker know the transaction isn’t “toxic” and turning against them with large volume, like transaction from a hedge fund using IBKR).
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At least one thing, is that a german broken is unlikely to give access to US ETFs (so no VT etc.).
(I also don’t know if there’s anything painful tax-wise from using a german broken, e.g. withholding, tax reporting, etc.)
I was about to write a short post on them, but thread starter kind of beat me to it.
Been a customer for a few weeks ago.
Obviously no U.S. ETFs - but then, you don’t get (many) synthetic or accumulating ETFs in the U.S. either. The list of available securities is very straightforwardly accessible on their home page. Note that they won’t (or didn’t for me) open a crypto wallet for Swiss customers.
As I wrote just hours ago (albeit in a different context), I’m not aware of any tax pitfalls with German brokers (again, provided you aren’t subject to German exit tax, i.e. you weren’t filthy rich and moved to Switzerland to save on taxes). I’ve been using half a dozen German brokers over the last 10+ years - you just pay your Swiss taxes.
I’m very comfortable with paying a price to trade hold securities through a German broker/bank, rather than a U.S. one.
Also, when you’re looking at the actual article, especially below the headline “Most EU Countries Have No Doubt”…
…price deteriorations between €1.44 to €3.46 in 68%-83% of cases for €3,000 transactions…
…trades in PFOF trading venues underperforming, resulting in a 0.14%-0.16% price deterioration…
…I am, again, very comfortable with that - especially on monthly investments. The linked study from the German financial regulator BaFin also provides some figures not dissimilar and fits into my picture: A Euro or two, maybe three, of deterioration (including exchange-related costs) on such order sizes.
Thing is: a few hundreds of EUR up to 2000 or so per transaction is pretty much my personal range in which I’m investing into index funds on a monthly basis - buying and holding. Given that transactions are (for the time being) “free” with such neo-/low-cost brokers, it certainly seems to beat paying the minimum commission (about 10 EUR) at legacy brokers and having it routed through the exchange.
These brokers weren’t made for people that can drop five figures each month from current income each month. And that is OK.
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