Swissquote - ABTC and ABBA

Hi guys!

Is it worth it to open a Swissquote account just to buy ABTC and ABBA?
I’m with IB for my current portfolio and as I cannot buy ETPs there, I’m looking for an alternative.
Any ideas on this? Thanks!

Hello,

It is what I’m doing, I’ve bought some ABBA on Swissquote in April as I cannot do it with IB, but I’m considering to stop it and to maybe start to trade CoinShares Physical Bitcoin (BTC) | Ticker: BITC | Crypto Exchange Traded Product (ETP) and CoinShares Physical Ether (ETH) | Ticker: ETHE | Crypto Exchange Traded Product (ETP) as they are tradable with IB.

Hi Yanikuza, thanks! Can I ask you the reason why you want to stop it? BITC and ETHE are available on IB but I cannot trade it as well. Permissions…

The first reason is for simplicity as I would like to have one broker at the moment to trade and manage my investment. I’m at the start of my journey and I think it is easier to have all your investment in one place until I reached a decent amount of investment (500K ?).

The second reason is related to the fees, having an IB and Swissquote broker will occur more fees than having one of them, although these fees are really low. However, purchasing every month ABBA on Swissquote (~13 CHF) will cost me more than doing it with IB (~2 CHF)

Finally, the third reason will be the allocation of these two cryptocurrencies, for exemple 50/50 instead of the 80/20 from ABBA.

Despite what I’ve said, I don’t know if I will do it as I like 21 Shares products… I will see how ABBA will do this month.

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Thanks for the feedback. Really helpful!

I agree with you to keep things simple and I’m also a fan of 21 shares but in case of no permissions to trade crypto on IB, I’m considering Swissquote (even with higher fees). Better invest and earn something that nothing right? :slightly_smiling_face:

But, for some reason, I just rechecked IB and it seems I might be able to trade crypto after all and in this case I will definitely consider your suggestion of BITC and ETHE!

I think that IB only allows you to trade ETP of Cryptocurrencies if they are registered in UK or in the US, at least this is what they allow me to trade when I was looking for this kind of product.

You will be able to trade other ETP if you meet some criteria as for example: having more than 500’000 USD in asse, if you are considered as a professionnal or if you can passed their “test” about your knowledge in investment.

Some mustachians here can trade 21 Shares products :slight_smile:

This is what I’ve also considered when I made my first trade about ABBA on Swissquote. I also like their webtrade solution, easy to use, and the fact that you have your own bank account with them. In the long run, I think that I would go with them once my investment will reach a certain amount.

Currently I’m not allowed to trade but already updated my trading permissions and will wait if IB allows me.

Not possible for me yet :slightly_smiling_face:

I’ve opened a demo account and been playing a while. Looks quite intuitive but let’s see about the IB’s outcome to make a decision.

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I was one of them but for some reasony my permissons also no longer allow to buy :frowning:

Just to follow up on the IB trading permissions, I was able to change my permissions for crypto trading but only for US. So, not a chance (at least for me) to buy 21shares ETP on IB.

Swissquote offers crypto directly without custody fees and swiss stamp tax. What are the advantages to buy an ETF or ETP?

Just as matter of simplicity as I’m new to crypto world.

If you have an account with Swissquote, it’s easier to buy directly from them than buying a fund/ETF

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Do you think that their fees are ok as for exemple would transfer CHF to Swissquote and then buy crypto in USD. The fees of esch crypto is about 1% and their currency fees 0.95%. I was thinking of that this last days since I want to hold some crypto and invest monthly a bit of my savings (like a very bit; 500 CHF).

Also I discovered today their theme trading about their multi asset crypto (MOONTQ) which could be very interesting.

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ABTC/ABBA

  • 1.49% per annum for ABTC or 2.5% for ABBA
  • 9.- to buy the fund if considered by Swissquote has an ETF (I’m not sure it’s considered as an ETF or a stock)
  • Swiss stamp 0.075%

MOONTQ
It’s a certificate, so a structured product. A lot of hidden fees, you can find them on the term sheet
(didn’t find the one of MOONTQ, but it would look like this one https://www.swissquote.ch/sqi_premium/FileServlet?file=termsheet/0/0/3/CH0521605003.pdf)

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You can transfer EUR and buy crypto with EUR.

I know the fees for ABTC and ABBA, and you can trade it like an ETF. Moreover, they are considered as a leader ETF so it « only » cost 9 CHF (more like 12.85 CHF).

For MOONTQ I’ve read their termsheet and know that their is a lot of hidden fees unfortunately…

I think I will try to buy crypto directly, maybe sending some CHF to IB for conversion and the withdrawing it to Swissquote.

Unfortunately I don’t earn EUR as income or coming from other sources. So the issue is the same as in USD. Otherwise I would use EUR.

Thank you for your contribution :slight_smile:

Doesn’t matter. You can find an exchange rate EURCHF with a better markup than at Swissquote (e.g. Revolut), and EUR transfers are free.

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And why not buying directly in CHF?

Because of the FX rates from Swissquote.

From what I understand, if I want to trade for exemple ABTC in USD and I only have CHF in my Swissquote account, I can do it without making any conversion CHF.USD before the trade like in IB where you need to convert CHF in USD before trading VT for example.

At the end of the day Swissquote will do a balance between your CHF and USD and apply their FX rates of 0.95%. So it will cost you a bit more than doing the conversion with IB.

That’s why I’m asking myself if it is worth to do it or just forget this kind of fees for small amount.

I will maybe try to do it with neon and their “international transfert” with wise. Could be a good solution, thank for the tips.

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