I used to have 2 brokers and liked having 2 because you don’t have all eggs in one basket and have a backup if something goes wrong with one.
However, you also have disadvantages including:
managing multiple accounts
two sets of tax forms
inefficient use of collateral (e.g. if using margin)
In the end, I had to pool everything into IB to maximize collateral to avoid margin calls, but now that I no longer use margin, I could transfer some positions back to the other broker just to hold it (I would avoid trading there as IB has much better execution and costs.
At the moment, this is just too much hassle, so all is in IB.
This should be checked.
With a joint account at PostFinance, some years ago, we could open an e-trading account. Initially, only one user was setup to log into e-trading, the other user would not see it at all. It was necessary to request a change for the second user to also see & use the e-trading.
Just don’t trade on PF? If you only hold the only fees are either reinvestment a couple of times per year (which can be paid by trading credit), or wire transfer to IB cost (2 CHF + intermediary for USD, free for CHF)
Yes, I thought about that.
Maybe the best option would be to buy a single large position accumulating ETF on IB, transfer it to PF and hold it there forever until I want to sell it, and in that case I can transfer it back to IB (~100 CHF).
It is quite simple to manage, and it will move a big egg in another basket, but I won’t have a second broker.
Similar situation. I am checking now with ZKB, if they can adjust their pricing.
Willing to pay for their system relevancy, high security and Swiss salaries. Moreover, the costs can be deducted from the taxable income.
I will only hold the assets at ZKB, but buying new assets will happen through IBRK.
??? That is news to me. I thougt it is explicitely only “Vermögensverwaltung” and that transaction costs or holding costs are explicitely not deductible.
Yes, I meant the “Vermögensverwaltungskosten”. Since it will be a hold-portfolio (bought through IBRK, transferred to ZKB), I will only pay these costs.
Any luck with that? Do they offer some hidden discounts if you bring enough to the table? I’m not considering such a move at the moment, but might after reaching a certain treshhold.
Would also be curious if they would offer something. However, judging by their price overview, I would assume that requires quite a substantial portfolio to get a discount. I found this overview: zkb.ch/media/zkb/dokumente/legal/preisuebersicht_anlagegeschaeft.pdf
1.1 mentions 0.4% p.a. for foreign assets. Not sure if my Finance German is good enough but seems under 2.1 there are additional costs in case of trading (?).
Yes, I did check with them and also got insight from a friend of mine who is working there:
First of all, you have to differentiate between a so called „execution only“ portfolio and „managed by ZKB“ portfolios (there are several levels you can choose how much you want to outsource it). This is basically, how they are generating revenue.
Now the interesting thing: „execution only“ portfolios do not count as „assets under management“ for the relationship managers and thus they do have no intention to lower the fees, even if you bring a shitton of money (maybe they will lower it, if you have a very high mortgage with them).
They are also not seeking for these assets, they just simply do not care. But if you want to have a wealth management model, then they are willing to talk about the costs.
As long as the „executive only“ is not rewarded though e.g. yearly individual goals or there is an outflow of money from ZKB, no chance that they will adjust these fees.
@DonaldDuck correct, the fees are 0.4% p.a. For foreign assets, which VT(I) is.
Meanwhile, I opened with Saxo an account; you will find online referral codes with some trading credits and - more important - a free „e-Steuerauszug“ (no advertising).
No, you will pay for it if you use the official sing-on link.
Not sure, if sharing the referral link is against the rules. Anyway, mods can adjust my post, if not ok:
It‘s a collaboration between Saxo and Finanzfabio. Check his blog or here the direct link:
[EDIT by Moderation - No direct referral link please - this time it looks inocuous, but we’ve seen in the past what happens when everybody starts sharing referrals].
I don’t want to distract too much from the thread’s topic, but I did test Saxo and was deterred by flashing charts, tier-like account levels advertising “trade more, collect points and get a discount”, buy crypto, buy CFDs etc., and it being owned by a CN car company. And of course the whole referral link culture with some bloggers
That impression is exactly the opposite of why I would consider moving assets to a higher-priced broker with a CH license.
Thank you a lot for your answer, though. It sounds like ZKB’s execution-only offering is take it or leave it for now. Guess I might try asking for myself in a few years.
Haha, I had the same thoughts. But I am not checking my balance regularly at Saxo, its an “hold” portfolio only - I will buy shares further through IBRK.
Regarding the 49% ownership by Geely: as long as it is a Swiss entity with and FINMA accredited, I do not worry much, tbh. But at a certain stage I might switch to ZKB as well; at some level, I will probably not care about the costs anymore.
I had the same thinking. While looking at alternate „Swiss“ broker to IBKR, I first finalized Saxo.
But then the following didn’t work out for me
Private accounts were not allowed to have US ETFs. I could get it if I signed waiver and moved to professional client status. It also meant I had to show history of large trades over a longer period of time. I didn’t really qualify so I didn’t even try. Maybe if I called them they would have found a solution.
I learnt about the holding and realized it’s not really that Swiss. It just have Swiss license.
Hence I finalized on Swissquote
US ETFs are allowed , so I can technically transfer positions if I want
trading on SIX for ETF leaders is reasonable
custody fees is capped between 80-200 CHF annum
I think SQ will be forced to cut prices eventually. Otherwise they might lose business.
To me, it’s not about the CH regulation, UK or US have those, too. Nor primarily the ownership. The flashing charts were already sufficient for a “no, thank you” for me. Just the wrong first impression for what I’d be looking for
Where I would be willing to pay a premium is for accessibility, for example in an inheritance scenario later on. In the sense of a boring brick-and-mortar offering with an unintrusive, yet available personal contact.
Well, OP’s question from 2018 is still up I’ll revisit it in a few years again
I think 200 CHF a year is a very attractive price for a broker regulated by FINMA and paying Swiss salaries. It’s worth the benefit of having your asset custody under Swiss jurisdiction.
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I’ll revisit it in a few years again