Mutual Fund-Only/ Non-brokerage Account

Hi guys,

I was wondering whether any of you could recommend me any suitable mutual fund-only/ non-brokerage account.

As a result of joining a financial organization I’m not allowed to have brokerage accounts even when my job doesn’t really relate to trading or to any other significant activities.

Would there be any way to acquire VT (or its mutual fund brother VTWAX) with a non-brokerage account?

Thanks,

Javier

But you are allowed to hold a brokerage account at your financial institution with privileged conditions, I guess? If not, I’m sure you can ask for an exception to the compliance department provided you agree you give them some statements upon their request.

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Thanks for your response.

I don’t want to get into the details but I’m afraid that while the conditions for employees are better than the ones for customers they actually leave a lot to be desired when compared to any of the suggested brokers for mustachians.

Yes, I guess I could do that: to ask an exception but I’m not sure it’s worth it: I’d eventually wind up fighting a losing battle against compliance.

I was wondering what mustachians do in these cases.

Well I can tell you my experience and the experience of coworkers since I am in the same boat.

Option 1: You just bare the expensive transaction fees. I guess you get free safe keeping so you will trade once every 2/3 months buy VT or VWRL and that is it. This is what I am doing. I know it’s not optimal but since trading is so expensive it’s also a deterrent to just leave things and to not play.

Option 2 Go with a robo advisory like Truewealth. Some of my coworkers do this as it’s rather simple and you can do monthly investments instead of the once a quarter. Run the numbers based on your savings rate and see which is more cost effective for you.

Option 3 You can get an exception from these rules in general only if you want to buy an instrument now available in your own bank, at least this is the rule in our compliance department. I also know of one coworker that has done this. Once you get the exception you can use the external account for other things too. For me personally it’s not worth the hassle.

As for mutual funds I don’t know of any provider offering this to Swiss clients. I know some Swiss banks have mutual funds but they are mostly CH based so not the most tax efficient funds outside your pension accounts.

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Thanks @omen, appreciated.

It’s not just about expensive transaction fees (eg stamp duty, forex, etc)…we’re talking about custody fees.

To add insult to injury those custody fees are inexistent in many brokers.

I’m in the same situation than you, working in a bank in Switzerland.

When hired, I had to close my account with Degiro and transfer to my employer brokerage account.

Even with special conditions, brokerage fees are more expensive than before. That’s the rules. I got used to it. I optimise by buying less often and with bigger amounts.

Your employer may autorise to use an external robo advisor. It was not possible in my situation without the permission of the compliance. I didn’t bother trying.

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Are you sure they will be charging you custody fees. In my Bank they are waived for employees since you are forced to also move stocks you previously owned. You should double check on this point. I guess you have some kind of hotline for staff clients where you can call to ask.

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Yes, it was confirmed.

I was shocked as you can imagine.

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