First, you should trade when markets are open, but not directly at opening and at closing. So 16.00-21.30 CET (note different dates to switch between summer and winter time here and in US).
Or better, because one security can be traded at different exchanges, even on those that you don’t see. SMART order routing will find the best existing price.
Yes. To avoid too many warnings from IB, it is better to use limit order, even if limit is equal to the current market price. And, well, just in case.
Interesting I did not know this ! So, the smart order is done automatically when you choose “market”, right ? Or you have to activate this option somewhere ?
It’s the different returns in the report. Time Weighted VS Money weighted. In our case I guess Money-Weighted is better, because it includes the impact of contributions to, or withdrawals from, the portfolio.
If you trade via customer portal, it is automatically using smart routing I think. It has nothing to do with market order! You can control order routing in Trader Workstation, which is in general an overkill for private investors.
Btw in the “Trade” report (part of Activity report I think) you see at which exchange your order was executed.
There is something about these additional exchanges. I saw some other pages describing how specifically IB doing order routing, but I can’t find it anymore.
I have fund LU1046421795 (fund is in USD) in my PostFinance funds account. I would like to move it to IB and then sell it there and buy a more cost efficient ETF.
But I cannot find LU1046421795 in IB. I guess this means IB do not offer this fund? If so then I guess I must sell the fund in PostFinance and move the CHF to IB. Meaning I get hit with PostFinance’s high USD->CHF charges…
You mean not E-trading, but a mutual funds custody account? I don’t think you can transfer positions from there. But selling it should be free. If you open a USD account, a new funds custody account in USD linked to that USD account and ask Postfinance to move that fund to the USD custody account, after selling the position you get USD credited to the Postfinance USD account. You can transfer this money to IB, will cost you around 20 CHF. Depending how much is your position, selling with a direct USD to CHF conversion might be cheaper.
Just open a USD account at PF (can do online), transfer it there and then onwards to IB. There‘s a topic on here on how much it costs to transfer USD out of PF.
Thanks both. I didn’t think about opening a USD account in PostFinance. I start that now.
Meanwhile, just to keep going with my original thought. Yes, mutual funds custody account. Funds can be transferred out from the PostFinance funds account. From their pricelist: Fees for securities delivery to third-party banks CHF 100+vat
It’s IB seemingly not offering LU1046421795 that blocks my original plan. Can anyone search in IB and confirm they don’t get results for LU1046421795? Just to make sure I’m not making a mistake when searching IB or my trading permissions are not correct.
The reason to transfer it then would be to pay less sell transaction fee? It can‘t be that bad really, make a USD account, sell it and then transfer from E-Trading to E-Finance (there‘s 2/3 days waiting period) and then onwards to IB
I only want to avoid converting USD to CHF by PostFinance because, while I cannot find the PostFinance price for this currency conversion, I expect it’s high. I am not worried about transaction fees or other fees, they would not be as expensive as the PostFinance currency conversion. eg. PostFinance taking 1% of a 200k conversion is 2000 USD or CHF wasted.
At the time of my original question I could see only these two options:
Transfer the USD fund as-is to IB, sell it in IB and buy the USD ETF. (Good, no currency conversion charges)
Sell the PostFinance USD fund into my PostFinance CHF account (allowing PostFinance to charge whatever they want for the currency conversion), transfer the CHF to IB, convert the CHF to USD in IB and buy the USD ETF. (Not good, this USD->CHF by PostFinance would probably be expensive)
You guys have very helpfully shown me a further option which I will try to go for:
3. Open a PostFinance USD account, sell the PostFinance USD fund directly into that USD account, transfer the USD to IB, buy the USD ETF. (Good, no currency conversion charges)
If option 3 fails for some reason, I would like to be able to try option 1 except if IB do not offer fund LU1046421795 then I doubt I can transfer LU1046421795 as-is from PostFinance to IB. So I am still interested if anyone else can see LU1046421795 in IB.
As this is not PostFinance E-Trading, the fee might be higher as they might use the regular PostFinance currency exchange rate, not the Swissquote one. Maybe around 0.75% above mid-market for >50k.
Postfinance E-Trading is Swissquote in the background, and in my experience uses the same fees and fees structure as Swissquote for currency exchange For example at Postfinance E-Trading I exchanged euro 50k to CHF and the fee was 0.5%, I played around at the time and the fee shown dropped from 0.95% to 0.5% at 50k, exactly as in the Swissquote table.
The currency overview you posted is for when one exchanges money in one’s Postfinance private account, and should probably be avoided if one has E-Trading.
Ah, sorry, I thought your comment “this is not E-Trading” was referring to my link to Swissquote fees. Yes, you are right, I missed that we’re talking about (selling) funds.
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