Im new to Switzerland and Mustachian and Investing! Somehow I found this forum to be more friendly than other places on the internet.
I would like to start investing therefore all I did in the past few weeks was reading everything there is to read on the internet about “Swiss homegrown investors”. Unfortunately what I also found is that every thread starts with a question and finishes with … go IB in the US.
I understand that US brokers are the cheapest BUT I would like to fully understand “local” options. Could you share your experience (positives and negatives) on the most common platforms: PostFinance e-trading vs SwissQuote vs DeGiro vs CornerTrader?
With focus on:
Few trades per year as investment in e.g. ETF
20k chf available every year
10, 15, 20 years of investment possible
Slowly building comparison/summary and so far I got:
Custody per year
Brokerage Fee <5000chf
Brokerage Fee <5000chf (Swiss market)
Swiss Stamp on Swiss
Swiss Stamp on foreign
Open a PostFinance e-trading custody account before 31 May 2018 and receive 500 francs of trading credit for free.
The fee amount of CHF 90.00 can be used to pay for transaction fees.
0 to 19 transactions per year: discount of 10% per transaction.
All these options are terrible. But if you insist cornertrader is probably the cheapest at the moment. And who do you even call ‘local’? Degiro ain’t local, they just buy advertisement spots here. And IB has a large office right here in Zug, 120 FTEs or so .
Same for all swiss brokers (and 0% for everyone else), it’s set in the law, not by their own greed.
Don’t fall for these cheap marketing tricks, it’s not real money. They are not competitive at all even with swiss cornertrader
Thank you for quick reply guys!
All of the above brokers have many customers. I believe some of those customers play with big numbers. Even based on this Mustachian poll, there are people who use them.
If anyone is in investing game and they are serious about it, I imagine they know about e.g. US brokers that are much cheaper. So what I am trying to find out is … why those people use them?
If trading costs are important you can forget about any Swiss broker basically. For the (minor) investments I have in Switzerland I buy stocks maybe 3x a year. I do not like the lack of transparency in Swissquote’s costs, I don’t like the way Cornertrader wants to receive payments, therefore that part is with PF. Not because its great, but the least bad.
Other investments are abroad, but I don think IB is the holy grail either. It depends on your own wishes and needs.
well if you are under 100k and only do 2-3 buy per year the first years IB may not even be cheaper than cornertrader (inactivity fee). I do 2 purchases per year, when I will be at 100k I will be switching to IB.
I dislike degiro which in custody account takes 3% ofyour dividend, min 1 dollar. If you have 3 different vanguard etf that is 12 chf minimum per year (3x4 distributions), and can easily go to 60-100 chf per year