Swiss bank fees - are mine too high?

Banks, Insurances & Third Pillar
1

Hi all,

I wonder if these fees are OK for a (relatively small) private bank:
Buy/sell - 0.7%
Custody - 0.35% p.a.
I am not a resident of Switzerland and live abroad (EU).
The way I see it, such fees make it prohibitive to use the bank even for a buy and hold approach.
Are there banks with lower fees and is it generally possible to negotiate these?

Regards,
M

2

Yes, it’s high but standard for a bank.
Choose a broker like IB, Degiro, Swissquote, ect

3

I forgot to mention it, but I already have accounts at IB and Saxo :slight_smile:
I wonder if it is possible to renegotiate the fees or find a bank with lower fees. And is the custody at banks any different from custody at brokers? Is using a bank more “safe”?
Thanks,
M

4

normal for old school banks

discount broker != bank

why did they even let you open the account then? typically it’s only for residents or hnwis

6

I agree about transaction costs as they become negligible if one buys and holds for a long time. However, transaction fees also apply when rebalancing …
Re: custody: if I am correct, it is not even real custody as the shares are “kept” in the name of the bank and not in my name… so what is the logic behind high custody fees?

8

then direct your q’s to your advisor, that’s what you’re paying them for

9

As I mentioned, I am not a resident :slight_smile:

10

Update: I was able to negotiate a .35% trading fee and .25% for custody. Still high but seems normal for a Swiss bank.

M

2 Likes
12

It was fairly easy - I called my banker and insisted on better pricing :slight_smile: Fortunately, they were able to give me a discount.