I am with PF since 2016, I invest regularly in irish/CHF based ETFs like(https://www.six-group.com/exchanges/funds/security_info_de.html?id=IE00B3RBWM25CHF4)
Lately I had to consolidate some of my investments that were a bit all over the place in different currency and realised that I easily paid like 300CHF just trade fees by selling and rebuying a similar fund in CHF (banque fees + federal stamp)…
Is the fees the only reason to switch to another broker? Is is easy and safe to do? Is there hidden fees when you transfer securities? Is there other tax advantages that I am missing?
What would be the best course of action for me?
If cost was not a factor, I would easily go for PostFinance for convenience and feeling of “security”. So I would say, yes, cost is the main reason why you would choose a different broker. If I were you, I would not switch from PF to CT, too much of a hassle. Keep your PF and just open IB and from now on, send new savings there. Having two brokers won’t hurt you. On a second thought, PF charges you 90 CHF annually just for having an account…
You know, if you decide to close, you can try to search for the info how much it will cost to transfer, etc. But the easiest solution is just to sell it all, take the cash and send it to IB. You can instantly tell how much it will cost. Just be careful not to trigger the “professional investor” clause.
I decided to close my PostFinance e-trading account. I am waiting for them to transfer one position, the cost should be 107.70 CHF per position. It’s a lot but sometimes you would pay more in commissions when selling and buying again. I just chose the cheaper option.
I decided 90 CHF per year plus the high brokerage fees were just too much. And so it will be easier if I decide to close the private account since they will charge fees from January on.
I am with PF for longer already too.
I made an account at IB a year ago, and use that for most new “acquistions”.
The fees (currency exchange fees, stamp tax, depot fees) in CH / at Pf are the reason for me.
I keep PF for the old stuff and because I feel better/safer with 2 brokers, also for the occasional CHF “acquistions”. I use the CHF 90 yearly fee to cover the limited trades that I do at Pf, so it does not hurt that much, even if it’s theoretically a mustachian “waste”.
There are no tax advantages.
With time I will reduce my amount at Pf, and maybe close it one day, but not by transferring anything out, but by selling gradually, when I would sell a position anyway.
Thanks for the feedback. You decided me to open an account with them.
Hi there, sorry to bring up this old topic.
I have an (old) PF account containing 15 titles of a single stock (ZH Airport) which I might buy again these days. Having opened recently an IB account too (unfunded yet), I wonder now on which platform I should buy those new titles.
I’ll have to pay the annual fee (CHF 90) of PF anyway, as transferring out the titles is too expensive and I don‘t want to sell them these days. So I‘m basically stuck with PF currently, even though I‘d like to close it eventually.
On IB, i‘d have to (start) paying the 10 bucks/month upon funding. Given that I plan to wait for investing in ETFs on IB,
Please no discussion about stock picking and timing. I‘m pretty well invested in TrueWealth and will close/move it to IB when the referral discount expires.
Why not sell them on PF and buy them on IB at the same time?
10$/month will start 3 months after you opened up an account.
I’d keep that PF account for broker diversification, especially if you have a regular account with them. PF is anyway one of the three financially “attractive” Swiss brokers (PF, CT, SQ). Imagine some years go by, and you have big portfolio value, I think it would make sense to split between brokers.
Thanks Cortana, didn‘t know they charge the fee 3 months after opening. So I‘ll buy it there.
@Bojack: I don‘t see the point of broker diversification unless one of the used broker is domiciled in a shady jurisdiction or has adverse news. Splitting between two reputable brokers means to me just two times cost (not planning on shoveling more than 100k to IB right now).
For me having two brokers is for safety. Even if I don’t think they are going to be broken, imagine that you are in FI, living nicely and one of them for whatever reason (government changes, customer verifications, tax blocks, etc) they suspend your account. We know that soon or later will be available again but imagine you need 2 or 3 years to clear the situation.
If I have two brokers I can live from one until the situation clarify.
PF is actually a white-label version of SQ. Used to be TD, now SQ since 2016 or 2017, I think.
Didn’t know about the 5% acquisition, thanks! But apart from that, it still holds that it’s the same broker.
Same broker? Doesn‘t the strategic partnership not just mean SQ licensed their trading platform to PF? I assume neither SQ or PF will be liable in case the other one goes under water. So I guess it‘s not „the same broker“.