Swiss bank fees - are mine too high?

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

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

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

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

I know I may be in a minority here, but I don’t consider transaction fees a bad thing. Personally it gives me an incentive to be very frugal with transactions, which is both good to not meet the professional trader criteria and to avoid making losses by being too emotion driven. Free transactions would probably be bad for my portfolio because it would be too tempting. And this also gives me more choice in brokers, as I can pick some with a good and established reputation: of course I prefer lower fees to higher fees, but I prefer even more to know that my retirement savings are safe, and this safety has a price.

About custody fees: 0.35% seems high, but I looked what is done in other countries for retail offers in all sorts of investment products and found many banks that take 1% and more just for custody (and that’s not to mention the TER of the funds). I think that in Switzerland we are very lucky.

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?

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

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

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