as mentioned by @nabalzbhf you should wait 1-2 days if you are on a cash account (i.e. not margin). There are posts in this forum that the settlement of IB is not fully transparent and immediate purchases got rejected on a cash account.
Still, if you have a >10 year horizon, one or two days will not make that much of a difference on your long term performance.
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One option to reduce this risk is to split the sales/and buyings in several days.
E.g. you sell 50% of VT on Monday and buy 50% of VALL on Wednesday when you are able to buy it.
Then you sell the remaining 50% od VT on Wednesday and buy VALL whenever you are allowed to (probably on Friday).
I think that in IB for these amounts there should be no differences in fees, or they should be minimal.
I guess anyway that you at least get interests for the 120kUSD during the days while the cash gets settled?
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If you use AutoFX for the exchange from USD to CHF, not manual conversionÂč, it might be possible as the USD proceeds should be available T+1 and the SIX settlement would be after that, on T+2. But thatâs just a guess, please donât rely on it. If you want to be sure, switch to a margin account, as has been mentioned. I guess you could also try it with a small amount.
Âč Manual conversion might even be fine as well. I think the main issue with manual conversion (T+2) and settlement is when buying shares in the US (T+1), but probably not when buying shares in Europe (T+2).
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Maybe try âpostmaster@x.comâ
Hello
Why wouldnât I buy VALL on IB?
Because IB is US based, and the estate hassles?
Cheers
There is no reason why this would be a bad combination.
US estate tax doesnât apply to ETFs with an European domicile such as VALL. Thus, you donât have to worry about that with VALL at IBKR.
Thanks.
MP didnât mention it on https://www.mustachianpost.com/vt-vwrl-valld-world-etf-swiss-investor so I wondered why only Saxo/Degiro were mentioned
What is the advantage of holding VALL in CHF at IB. Currency conversion is almost negligible at IB. Spreads might lower at different exchanges.
Why is IB preferred over Degiro? Cost comparison for larger amounts (CHF at SIX):
- IB: 5 CHF (fixed pricing)
- Degiro: 2 EUR + 1 EUR service fee
Thus, Degiro is even cheaper.
This is a question I myself find very interesting.
This is because IBKR is clearly the cheapest broker.
Intuitively, something like SwissQuote would be the most straightforward setup.
But the stamp duty and currency conversion fees make it extremely costly, especially if you suddenly change your investing strategy and want to switch from one ETF to another.
I tried asking ChatGPT but I didnât get a definitive answer. IBKRâs legal structure is complicated. For sure, through holding of UCITS ETFs youâre shielding yourself from the US estate tax law.
Iâm not sure if youâre shielding yourself from US law entirely, though.
The interesting cases are black swan events, that usually donât happen.
I mean:
- you die
- your account gets hacked
- your broker gets hacked
- your broker goes bankrupt
- the US introduces a new funny law
Intuition tells me it would be more straightforward to deal with these situations if you were a client of a Swiss broker. But of course, thatâs only intuition, no real knowledge. If you go the Swiss broker route with a large portfolio, this âinsuranceâ can be very costly, and can cost you thousands of CHF per year in fees.
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Youâre right that for positions in CHF Degiro is cheaper than IB. I was thinking of the currency conversion, IB is cheaper than Degiro (Auto FX is 0.25%). But for buying and holding, Degiro would probably be the cheapest choice if they offer VALL in CHF.
And what is the advantage of buying it in CHF at SIX once available?
Currency conversion is very cheap at IB and fees at NYSE or LSE might be lower than at SIX.
If this is the case, you are completely right. My suggestion for buying in CHF is based on the assumption that the total fees (including stock exchange fee) for the CHF share class is equal to the one in USD or EUR. If the EUR or USD share class is cheaper, it would make sense to keep EUR or change to USD.
Tiered pricing at IBKR can be a bit cheaper than Fixed and should be around CHF 3.50 up to a trade volume of CHF 3000, so still more than Degiro. But all my recent buy transactions at IBKR (in CHF at SIX) with a volume of around CHF 1500-2000 only cost CHF 1.50 to 1.70. 
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I checked the IB pricing of exchanges in Europe: Itâs always 0.05% of the trade volume (tiered and fixed smart routing). However, the minimum per order is lower for tiered pricing.
This is acceptable for small volumes, but becomes expensive for larger ones.
In my perspective, IB is beneficial for shares traded in the US (e.g. NYSE) or small volumes in Europe.
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I would even go as far as saying it would be even better to use a Swiss broker with physical branches. Real people you can talk to.
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But it only helps if the âfirst-levelâ support can actually help. I donât see an advantage in the case of a larger problem. For example something like that, but i somewhat agree with you:
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I wonât hold a 7-figure portfolio with a non-Swiss broker, thatâs for sure. Especially not a US one.
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And with DeGiro? I donât know why but I donât trust them. Weird (me)
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With a seven-figure amount you want two or three custodians, not whoever is cheapest.
Thereâs a reason wealthy private clients park money at painfully boring banks that donât do investment banking and donât have a big footprint abroad. Iâm not saying thatâs the only way to do it. I would put 50% or more with a Swiss bank and maybe split the rest 25/25 across two other custodians.
DEGIRO wouldnât be one of those. The group is still too new for my taste (the Flatex merger isnât ancient history), one guy owns ~15%, and the EU has been a bit too enthusiastic with rule-making lately.
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Is that so? I understood that Swiss banks (or Singapore for that matter) generate not insignificant wealth from offshore clients. Also, I doubt that IB is not attractive to wealthy private clients.