Top right click on your name → settings → account configuration “IBKR Pricing Plan:”
Tiered is always cheaper. They try to trick people into paying more by having one stable transaction fee with the fixed model.
I think this is done automatically with smart routing when doing trades in the web interface. AFAIK you can only change this in the TWS application if you strictly want to change to direct routing on a certain exchange. But why bother? If you choose the tiered plan just buy on the web interface and IBKR will find the best price for you.
Degiro has really lost its edge when they surprise hiked the currency conversion from 0.1% to 0.25% (150% increase out of the blue).
In a similar vein, Swissquote also suprise-hiked their custody fees on Jan 1st 2023, and added a new nonsensical fee for large portfolios. To me, both brokers have lost my trust if they think they can just increase their fees whenever they want and without cause. Meanwhile IB has decreased their fees in recent years and is now the most reputable and cheapest broker by a mile.
I mean sorry for the confusion… It was mainly just for the fees comparison (consider maybe better the case as fees comparison for buying a non-European ETF? Does Degiro provides this possibility, I even don’t know because I am using only IBKR myself?)
So in a nutshell, it looks we have a clear “winner” for 2023 in terms of broker’s fees as Interactive Brokers (esp. with Tiered account) is unbeatable!
Isn’t Degiro cheaper for buying ETFs (and possibly stocks) in CHF at SIX? This only costs a fixed EUR 3 fee per trade, which would be cheaper than both Swissquote and IB, especially for larger amounts. Or does Degiro have additional fees for such trades that I’m missing?
One downside is that it’s not possible (for new customers) to opt out of stock lending. While the risk should be low, it should be taken into account.
Having bought and sold some CHDVD a year ago on DEGIRO I can confirm that DEGIRO is in that case cheaper paying around CHF 2.50 per transaction (amounts ranging from 8k to 30k). But, DEGIRO takes their own fee on dividend payments. I can’t remember the exact numbers but it might be around 2-3% of the dividend, so maybe this should also be taken into consideration if you have bigger amounts of an EFT which pays a nice dividend yield.
As I understand it, this only applies to DEGIRO custody accounts, which can no longer be opened. For existing customers this is indeed relevant, though. This can even get more expensive than e.g. Swissquote custody fees.
This is actually a part of the deal, even if it is not clearly stated. Degiro has cheap transaction fees because they earn money with your portfolio. Not only them, all cheap brokers are doing that. It should be even clearer now when they stopped creating new custody account.
I still kept my DeGiro custody account (in Germany, so I don’t pay an exchange fee for Xetra), but for that reason there are only two things in there:
Both are accumulating, when I have some Euro’s to get rid off I might buy some more, but my main investments are at IB, and that is also where I convert currencies.
So, it’s kind of a sleeper account now - a good way to not touch anything. But I don’t trust DeGiro to keep things stable and am kind of waiting for a message that they will convert all custody accounts to standard accounts, or implement a custody fee. Any of that and it will be the end.