I’ve been using Interactive Brokers for quite some years now. I’ve never had any fees applies to my transfert from a Swiss bank account and I could always use IB CH-IBAN with their coordinates in the US (“Transfer Funds to Beneficiary/Account Title)”.
But recently I was charged by my bank CHF 25 for the transfert. Both my bank and IB told me that the fees was due to the other party. I therefore tried to modify my paiement but I am now facing a technical dilemma:
When I use the IB CH-IBAN, my bank asks me to indicate a Swiss adresse (IB doesn’t seem to have one) and I cannot choose the option “Fees to be paid by the receiver”.
To be able to choose the option “Fees to be paid by the receiver” and indicate the correct IB adresse, I have to use an alternative IBAN provided by IB (starting with GB). I fear that I will be subjected to the same fees by using this GB IBAN.
Is anybody facing the same issue? Does anybody has a solution to this problem ? I have asked IB for a Swiss address, but I imagine I’ll receive a negative answer about it…
I’m using Migros Bank. But I also check with BCV and Neon : the same problem happened. When I enter a CH-IBAN I have to enter a Swiss address. So far I couldn’t receive a clear answer from Migros Bank on how to solve this issue.
I want to stress that I could use the IB CH-IBAN before with Migros Bank but it doesn’t work any more. I feel like there was a recent change in this regards…
I thought about entering a “fake” Swiss address (for example mine) to try, but that would be my last resort solution.
Regarding the fees. Both banks indicated me that they would charge me CHF 25 or 26, if the fees apply to the issuer. They don’t know what IB does if the fees apply to the receiver. According to the Mustachian guide, IB doesn’t apply any fees:
“Also, if your e-banking asks you to choose “Fees to be paid by the issuer” (i.e. you) or “Fees to be paid by the receiver” (i.e. IB), choose the receiver version because IB does not charge anything.”
Writing “8000 Zurich” at the end of the adresse seems the most pragmatically things to do. Or even the adresse of the City Bank in Zurich as indicated in the other topic which was shared here.
I won’t have any possibility with a national payment to indicate how the fees should be split (BEN/SHA/OUR). I wonder how my bank will consider the payment (national = no fees ; international like last time = 5.- for the transfert and 25.- for fees). If it happens again I’ll argue it’s a domestic payment to a US beneficiary’s bank account held at Citybank in London that is reachable through the Swiss domestic payment clearing system.
Regarding fees from IB, I could imagine that IB don’t charge anything for the transfert of funds, even if it costs IB a little amount. IB knows it will make money later as the money sent will be invested in their platform. But that’s it’s a guess.
I’m also with Migros Bank and had the same problem. The last time (more than 2 years ago) that I tried to make a transfer Migros → IB using the CH IBAN and correct address, I was charged 5 CHF. No fees of 25 CHF though.
I have never tried to falsify the address but now I wonder if I should have.
My workaround since then has been to transfer Migros → SwissQuote then SQ → IB. Since SQ in 2022 stopped charging 2 CHF per outgoing transfer and doesn’t consider IB’s CH IBAN as a ‘foreign recipient’, it’s been a good solution.
Just adding my experience so far with Neon (which you mention you are using).
When I have to make a transfer from the Neon app I specify the CH IBAN and in the country field I fill in “United States” with the correct information (postcode and everything).
I’ve never been charged by anyone. The first time I was a bit worried because it is a “national” transfer, but you fill in “United States”. So I wrote to Neon and they explained to me that it was fine.
No surprise. That’s the one Swiss bank I remember someone on the forum mentioning that they charged international transfer fees even when transferring to IBKR‘s Swiss CH IBAN (though it is Citibank, so not wrong, technically).
Edit: actually, here‘s the original post.
Edit again: …by same user (@achpl) that posting above, didn’t notice immediately
You‘d just be serving them reason & argument for charging international transfer fees on a silver plate:
Citibank is a foreign bank and you know it.
Honestly, I‘m not seeing much of a point - or prospect of success - in arguing about or putting up with such levels of assholery. Similar to an EU bank charging me higher fees for a SEPA transfer to CH than other EEA countries. I‘d just quit and close my accounts with them and move on.
IB customer service answered me that I can try testing to transfer a sample amount and mention their branch office in Zug (Gubelstrasse 28, 6300 Zug).
I’ll try doing that from my Neon account. And if it works I’ll simply transfer money from Banque Migros, to Neon and then to IB when I want to increase my investments on IB. Not the most convenient by still better than before no charge more than 30.- for each transfer.