Transfer Securities from Interactive Brokers: no fees apparently

Investing / Brokers
1

Hey all,

has anyone tried transferring some positions from IB to a Swiss broker like Postfinance or SwissQuote / got any experience to share, also about fees?

Thinking about using IB to purchase shares but then moving to Postfinance for keeping them long-term (under Swiss regulation / protection etc.) - not sure if it’s a good idea though.

Any thoughts?

Cheers!
-Pom

2 Likes
2

I only moved a position from swissquote to ib and sq charged me a 60.- transfer fee if I remember correctly. I would think it is similar the other way round. I am sure if you google “position transfer fee” you will find the required infos asap.

3

Thanks Arthur - I did google and found this site https://www1.interactivebrokers.com/en/index.php?f=14718 - however I don’t understand which of the transfer methods is applicable, if any. Thought somebody here might have had similar thoughts or even better experience.

4

I found this in the FAQs, but no mention of the cost. Apparently you need to coordinate with the Swiss broker to initiate the transfer…

TRANSFER POSITIONS

Use the button above or follow the steps below to submit an outbound position transfer to a bank or broker outside of the U.S. or Canada:

  1. Log in to Client Portal
  2. Select the Transfer & Pay menu followed by Transfer Positions
  3. Select Outgoing
  4. Select Basic FOP Transfer and provide your receiving Bank or Broker Information
  5. Click ADD ASSET, follow the prompts on the screen, and then click CONTINUE
  6. On the page that appears, click BACK if you need to modify the transfer request. If all is fine, type your signature in the Signature field and then click CONTINUE
  7. On the Confirmation screen, review your request and click FINISH
  8. Once you submit the request, please contact your receiving broker and inform them to create instructions to receive the shares.

Our Client Services department will process your request and update you via Message Center. Transfers are generally completed within 4-8 business days, depending on the third-party financial institution.

Find more information on the Funding Reference page of the IBKR website.

Please Note

  • When transferring Asian positions from your IBKR account, a charge applies to each request. Find more information on the Other Fees / Security Transfer Fees page of the IBKR website
  • Settlement date should be a minimum of two days after submitting the request. You will need to ensure that your current broker uses the same settlement date.
2 Likes
5

Did someone do such a “Basic FOP” from IB to another broker recently? What are the costs (per position or in total)?
Thanks!

6

I finally wrote a message to IB asking how much would it cost to transfer some ETF (irish or us) to a swiss account (I said Swissquote and Postfinance).
They replied stating that it is free from them. The receiving bank might ask for something, but for what I know both PF and SQ are free.

Can anyone try it? :slight_smile:

2 Likes
7

Just out of curiosity: Why would you transfer funds to expensive Swiss brokers?

3 Likes
8

It’s documented that they don’t charge security transfer fees.

9

I assume diversification (there’s already a few threads about that). Postfinance doesn’t cost that much (90CHF per year, which can be used in trading credits, and allows making the regular banking account free).

1 Like
10

Holding the funds at a Swiss broker is free of charge (apart from custody fees).
I guess it’s to diversify broker accounts. :slight_smile:

2 Likes
11

Would be interesting to have some first hand experience. Otherwise it might turn out that the transfer is free, but the customers support work is not and so on.

https://www.reddit.com/r/Jokes/comments/1bqes6/ryanairs_micheal_oleary_arrives_in_a_hotel_bar/

3 Likes
12

I have done it. it is free on both end.

1 Like
13

True. However, trading fees can sum up quickly in the long run, especially if you make monthly contributions.

Then there is another issue: UCITS TER (SWDA: 0.2%) vs US TER (VT: 0.07%). And lastly: 15% withholding tax with UCITS.

Or am I mistaken?

14

Yes, it’s for diversification.

It is only if you understand it. I’ve read their fees page and got so many different types of transfer that I got confused.They don’t have something like “Transfer to european’s brokers is free” written anywhere.

15

0% with Irish or Luxembourgish funds.

16

It would be possible to, e.g., buy shares monthly at IBKR and rarely (maybe once a year or not even that) transfer some of them to a Swiss broker.

You can hold US-domiciled ETFs at Swiss brokers, i.e., the ETF domicile/regulation is a completely separate question.

1 Like
17

I wouldn’t trade anyway if you already have IB, just transfer e.g. half of your holdings to diversify. The dividends can either be transferred back to IB (afaik costs 2 CHF) or reinvested using the trading credits.

AFAIK postfinance still allows trading US ETFs, and as other said even if that was an issue, you can anyway hold a US ETF position without any trouble. And still even if that was an issue (it isn’t so far), if you do worry about diversification you might not be far from the qualified investor threshold as well (2M wealth iirc).

It is true though that the (recoverable) withholding will be 30% instead of 15% but that’s likely a tiny opportunity cost in the end (esp. if you have enough assets that you worry about diversification).

(but we’re getting really offtopic here :slight_smile: )

2 Likes
18

I did the transfer because I want some free chocolate. (check Free Shareholder Swag in CH)

Well, turns out it’s not free. It costs me 90 franks.

1 Like
19

You know where the free chocolate is :laughing:

20

Can you clarify? I thought since PF is not a Qualified Intermediary you are not able to get back the whole 30%?