Help to calculate fees from my current DEGIRO to IB

1

Dear all,

I have around 50k of VWRL in Degiro. Happy with it.
Does anyone know if it’s worthy to move it to IB?

I know VT has lower TER but at the same time IB will charge me more.
Does the break even point sits in the 100k? If I move to IB the extra cost would be 60 chf / year versus my current DEGIRO?

Thanks

2

Extra cost of VWRL is around 0.3% per year.

This puts the breakeven point at around 40k.

Note that you need at least 800 USD in dividends to claim da1 back. Without the tax reclaim, VT is a few basis points more expensive.

3

If I calculate well, you need around 49k USD of VT to get 800 USD (based on 2020 dividends). So basically moving from VWRL to VT now seems logical even with 50k and not 100k?

Thanks

4

Yes that looks right.

Although dividends can also get smaller.

It probably doesn’t make a big difference if you switch this year or if you wait one or two years.

5

Do you have the basic or custody account?

6

hi @xorfish can you please advise on where this limit is published?

I have just gotten a denial from the BS tax office for a DA-1 claim (2018 and 2019) for a dividend WHT of 297 CHF.

Would be glad if you could provide any tips/links on this. Thanks.

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7

Custody account
Thanks

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8

Check this one: Tax declaration guide (4/6): Wertschriften - mypersonalfinance.ch

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9

Are you aware that Degiro charges 2€ + 3% on each dividend payout? So with a dividend yield of 2.2% and 4 dividends per year, that’s an extra 42 CHF per year on your 50k.

10

Can’t you just avoid that problem by using VWRD?

11

Thanks Cortana.
I am trying to put all together to understand if it’s worth to me the change to IB. Seems like at 50k the option starts to be more favorauble at IB.

12

Is that the case?

@disaga87
I started at IBKR from the beginning, with 5k. Wouldn’t think twice about it with 50k. It’s not only about costs, it’s the superior broker. Degiro is a Fiat Punto and IBKR a Tesla Roadster :smiley:

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13

Thanks Cortana, I know you are right but I need to get familiar with this broker first. Learn how to do the forex operations and get my mind clear before doing it.
Also, I am not sure how to transfer my existing portfolio at DEGIRO or if I should sell it all and buy back again in BT. I guess this will take me good couple of weeks :slight_smile:

14

Forget the old discussions on this forum about complex or at least confusing forex operations on IB. That was all on the “old” TWS, now with the IB Portal or App it’s so easy I’d recommend it to my mother.

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15

Completely agree with that. It’s a breeze now if you use the “Convert Currency” feature.

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16

THanks :slight_smile:
What about moving the portfolio from DEGIRO or selling it and buy it back iN IB?
Thanks.

17

This is easy to do, but it can be much more expensive than you think with bad timing. Selling and doing the transfer on one side to your bank and then back from your bank to IB will take at least two working days, maybe more. If the markets goes up 2-3% during these days, you wil lose more than paying for automated transfers.