I just got an email about this. Might be interesting to discuss. Neon launched a new feature, where you can invest in popular but limited stocks and ETFs.
Just some quick info
-no custody fees
-0.5% purchase fee on swiss shares and ETFs
-1% purchase fee on international stocks
-no additonal fees for currency exchange
-BX swiss exchange
-limited stock and ETF selection
First impression is that the fees sound pretty high. I think IBKR has currency exchange fees but that it’s pretty low, not sure it offsets the higher fees in neon. Will have to sit down and run the numbers.
I wonder how many “hidden” costs there are with the spreads offered by BX. The FAQ of Neon invest themselves state that there might be differences between bid/ask prices provided by BX compared to bid/ask prices available at stock exchanges. On the other hand, BX needs to finance itself as well. Just not quite as transparent as neon itself insinuates.
I am new investor - don’t have IB account. I know it the recommended one but it seems a bit overwhelming. Is Neon Invest decent enough to invest in Global ETFs? Looking to primarily buy once a quarter, no trading or even selling as such.
Neon Invest looks like an amazing alternative to be honest. I am surely moving to them. 0.5% is a bit expensive but maybe day also reduce this fee after a while. BX works with Lang & Schwarz and they offer very good deals for ETF trades. So think for retail investors like ourselves it is a very decent exchange.
Seems quite decent, yes. Especially if you are a small investor and happy with European ETFs. If you‘ll be investing thousands each time, you may want to shop around for cheaper brokers though.
It’s also nice that Neon should provide a Swiss tax statement, according to their FAQ:
„At the beginning of the new year, the tax statement for your tax return will be available via the neon app (free of charge). We plan to make the tax statement available in the eTax format so that it is easier for you to fill out your tax return.“
At the moment we do not yet offer a custody account transfer from another bank to neon. However, we have just finished the product for the launch with a defined scope of functionality. Of course, we will now continuously expand the product, and will also look into the topic of custody account transfers.
Unfortunately not the Accumulating version, but I guess you can’t have everything.
For the Acc. version of the Vanguard FTSE All World, Degiro would still be the cheaper option. And this would not be dependant on the amount you invest and whether you have a custody or regular Degiro Account.
But yeah, it seems to be a good option and they will add more ETFs/stocks in July according to their roadmap.
Edit: Just wondered how they’d handle incoming USD dividend. According to their FAQ:
“Cash dividends, par value repayments, etc. will be credited directly to your neon account by our partner bank. If a foreign security (e.g. US stock in USD) results in a distribution such as a dividend, our partner bank will convert it into Swiss francs and credit the Swiss franc amount to your neon main account. The exchange rate is updated by our partner bank at least twice a day and includes an interbank rate margin of about 1.5%.”
That’s a good point. When reinvesting, this results in a dividend cost of 2.15% (1.5% + 0.5% + 0.15% stamp duty). With FTSE All-World’s current dividend yield of 2.17%, this would be a drag of 0.047% p.a. compared to the accumulating version.
Quick comparison to other Swiss brokers:
At Yuh the dividend reinvestment cost is only 0.65% (0.014% p.a.) but overall cost is much higher due to the 0.95% currency exchange fee for the main investment.
At Swissquote the dividend reinvestment cost is 1.115% (0.024% p.a.) when trading VWRL in CHF and reinvesting dividends together with the next regular investment. However, there you also have custody fees and higher trading fees if you invest less than about CHF 2400 at a time.
Am I seeing this right and I can simply buy the Swiss stocks I’ve been wanting to hold only for swag (swatch, Calida, maybe Lindt… someday ) on neon? I was holding off on this due to inability to do so on IBKR and custody account fees with other Swiss brokers.
Neon doesn’t currently offer direct registration of Swiss shares, as far as I know. Neither does Yuh. I.e., you can buy Swiss stocks but you won’t get any swag or AGM invitation, same as IBKR.
habe eben in der Neon App festgestellt, dass man komplett ohne Kosten den FTSE All World trafen kann. FX Kosten ebenfalls nicht vorhanden, da der ETF im CHF gelistet ist. Zudem ist der FTSE All World ETF mit 0.15% der günstigste am Markt laut Neon.
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) on neon? I was holding off on this due to inability to do so on IBKR and custody account fees with other Swiss brokers.