Does anybody know a Swiss broker (preferably without custody and inactivity fees) that does not lend out securities and is putting that on record in the terms and conditions?
I already use the German broker Smartbroker for EUR-ETFs, but I’d like to have a second broker, preferably a Swiss one, because the ETF I’d like to invest now is in Swiss francs, traded at SIX.
I’ve already contacted FlowBank and Cornertrader, but they didn’t answer my message. Many thanks for your help in advance!
Welcome to the forum Behold!
I’m not 100% sure, but I guess that brokers that offer security lending explicitly probably don’t lend them otherwise?
Under Swiss law I understand that customer assets are segregated from company assets, but I don’t know if that also means lending customer securities without their consent would be forbidden.
But inside an ETF, there is no guarantee and many ETFs have low fees because they lend their positions.
Swissquote seems not to lend securities as you need a special contract if you want to do it and it is remunerated.
Thank you for the warm welcome and your good answers! Actually, I got a call today from a very nice person representing Cornèrtrader. He confirmed that they are not lending out any securities.
But inside an ETF, there is no guarantee and many ETFs have low fees because they lend their positions.
I’m aware of that and in some cases it’s a risk I’m willing to take. However, the ETF I’m planning to invest now (L&G Gerd Kommer Multifactor Equity UCITS ETF USD Accumulating) does not do any security lending, but on the other hand, the TER is 0.5%.
Swissquote seems not to lend securities as you need a special contract if you want to do it and it is remunerated.
Nice, didn’t know that!