Swissquote VWRL cost estimate

[yaw]

Hello,

I am based in UK but asking on behalf of my mother in Lausanne. I have managed to convince her to move some cash from exhorbitant BCV/UBS fees into something will lower fees.

She also already has a Swissquote account. Easiest for her if she can buy an index fund there. Based on my reading of their website1 (and bits of this forum), fees for something like VWRL (income) would be as follows:

• VWRL fees themselves (0.25% + 0.01% transaction fee)
• USD/CHF VWRL is traded on SIX, quoted in CHF, so purchasing would not require currency conversion.
• Does VWRL on SIX count as a “Swiss ETF”? In which case Swissquote’s trading fee would be 9 CHF?
• Dividends would be USD (correct?) and thus cost 1% currency conversion to get back into CHF (for spending, not reinvestment).
• Swissquote “custody fees” for having money in their accounts are 0.025% quarterly (min 15; max 50 CHF) - i.e. that times 4.
• tax on dividends would be at swiss income tax rate part of her normal tax return.(since she already has stuff in Swissquote, she already pays 100CHF/year to get the relevant tax certificate from them)

Thanks v much,
yaw

[weirded]

@yaw

• VWRL fees themselves (0.25% + 0.01% transaction fee)
  yes

• USD/CHF VWRL is traded on SIX, quoted in CHF, so purchasing would not require currency conversion.
  correct

• Does VWRL on SIX count as a “Swiss ETF”? In which case Swissquote’s trading fee would be 9 CHF?
  yes

• Dividends would be USD (correct?) and thus cost 1% currency conversion to get back into CHF (for spending, not reinvestment).
  Correct. They won’t be automatically converted in CHF so if you keep them in USD no 1% conversion fee, otherwise you could transfer them out, convert them and re transfer to SQ (maybe not worth the hassle for your mother and/or far small amounts though…)

• Swissquote “custody fees” for having money in their accounts are 0.025% quarterly (min 15; max 50 CHF) - i.e. that times 4.
  yes

• tax on dividends would be at swiss income tax rate part of her normal tax return.(since she already has stuff in Swissquote, she already pays 100CHF/year to get the relevant tax certificate from them)

yes, there is no withholding tax so the dividends will be taxed as usually

[Bojack]

@weirded

Correct. They won’t be automatically converted in CHF so if you keep them in USD no 1% conversion fee, otherwise you could transfer them out, convert them and re transfer to SQ

At Corner Trader they get automatically converted to CHF, although I don’t know what is the exchange rate or if there are any fees.

[weirded]

OK. On SQ you can keep your balance in CHF if you want (you usually have EUR, CHF, USD separated balances). But if you decide to convert you then pay this 1% markup…

[yaw]

Super - thanks v much @weirded and @Bojack - this is v v helpful!

[mondopiccolo]

As Swissquote is a Swiss broker, I think you will have to pay also the Swiss stamp duty of 0.15% during the purchase

[weirded]

yes, correct, Swiss stamp duty will be applied to the transaction

[bamboo]

To be complete, there is also some stock exchange fee which is about 10% to 20% of the Swiss stamp, depending on the amount of the transaction.

[weirded]

Right, I attach a screenshot of a transaction for @yaw (in Italian, sorry…)

[yaw]

Cool - thanks for clarification!! @weirded @bamboo @mondopiccolo

[rolandinho]

Good solid questioning helps get good answers efficiently
For completeness sake remember to add VAT (7%) to custody fees in your calculations
…and CHF 2 for each cash transfer out (“for spending”)