Which Broker would be the best for my "special" situation?

Hello Guys!
Before I want to say sorry for my bad english writing as it’s not my first language.

I am in search of a Broker, I am with siwssquote right now but now I heard of IBKR.
I am a Swiss-Residence.

S for my “special” situation: I am currently studying and can invest 500-1k CHF every Month. But after my studies I can invest 3-4k CHF every month.
Bc if that I don’t know what broker would be the best, as I don’t want to change Broker all the time.
I saw that IBKR only secures your assets up to 500k$ (not the cash, the stocks etc) And SQ secures unlimited amounts.

I am right now investing in US ETF’s (VT, SHCD ect) and also in US stocks but also in CH stocks and CH ETF’s.

I thought of just staying with SQ bc after my studies I can invest way more and I want to be with only one Broker to get the most out of. “zinseszins”.

What do you guys think about? And thanks for your time and answers!

I will say you should register to IBKR like 78% participants of this forum

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IBKR is likely the best choice for you, now and after graduation, especially as you’re investing in US ETFs and stocks where IBKR has much lower total fees than Swissquote.

There are a couple of advantages of Swissquote for CH stocks and funds. One is that you can register your CH shares such that you can e.g. attend the AGMs. Another is that Swiss mutual funds are available at Swissquote but not IBKR. If you don’t care about these aspects, I’d suggest IBKR for everything. Otherwise, you could consider Swissquote for Swiss investments and IBKR for everything else (that’s what I’m doing).

IBKR accounts are insured up to USD 500k through SIPC and IBKR does have an excess insurance for higher amounts (but with a low cap across the whole broker). However, in case of broker bankruptcy without (major) fraud, you still get all your shares back even if you hold many millions at IBKR.

To my knowledge, Swissquote doesn’t have or at least doesn’t advertise any insurance (unlike many other countries it’s not mandated by law here) but maybe I just missed that information. What’s your source for the unlimited insurance? Again, in case of broker bankruptcy without (major) fraud, you will also get all your shares back.

I.e., based on my information, IBKR provides better protection. The only potential disadvantage is that it’s not under Swiss jurisdiction.


Thanks for your answer!
Maybe I will use SQ and IB together, as I want to buy CH Stocks etc too.
Stocks are not cash, so all of your stocks and etfs will be unlimited secured in case of bankruptcy. Only the cash is secured up to 100k but shares belong to you. Thats always the case in Ch: Geldblog: Einlagensicherung und Wertschriften - Was passiert mit meinen Aktien bei einem Bankkonkurs? | Tages-Anzeiger

Just to be clear, you can buy CH stocks at IBKR as well, you just can’t register them (or at least not cheaply), which means that you can’t attend the company’s AGM.

As mentioned in my previous post, in the case of a non-fraudulent broker bankruptcy you indeed will not lose any stocks or ETFs. This applies to both Swiss and US brokers (and brokers in many other countries). The USD 500k SIPC insurance is for the case of fraud by the broker. This is an extra layer of protection which Swiss brokers don’t have (by law).

Ah thats good! So are you swiss and using both IB and SQ? SQ just for CHF stuff?
Then it was a misunderstanding, good to hear that the stocks are safe. So its the cash that is secured up to 500k. Thats nice.

I don’t understand what you mean here. Let’s say you have 1 million in VT. You’ll get the same amount of dividends and capitsl gains whether you have it split up across 10 brokers or at one broker.

Dividens yes but not the “zins” of the portfolio. If I have 500k in one portfolio with one ETF ut would be better than 5 different portfolios with 100k in the etf? Or am I wrong?

Yes, I use IBKR as my primary broker but use Swissquote for Swiss ETFs and index funds.

The cash protection of SIPC is limited to 250k. The 500k is for the combination of stocks and cash. The important point is that this limit is not relevant for ‘regular’ broker bankruptcies, it’s only for the fraud case. Think of a broker behaving like FTX. This should hopefully never be a concern for a widely regulated broker such as IBKR.

The performance would be identical whether you hold it all in one portfolio or across 5 brokers (except for potential differences in fees).

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Yes, you are wrong, there is no “zins” on your portfolio. You only get “zins” for cash, and even then it wouldn’t make a difference.

E.g. CHF 1’000 with 10% interest

No Split
Year 0: 1’000
Year 1: 1’100
Year 2: 1’210
Year 3: 1’321

2 accounts
Year 0: 500 and 500 = 1’000
Year 1: 550 and 550 = 1’100
Year 2: 605 and 605 = 1’210
Year 3: 665.50 and 665.50 = 1’321

Can anyone tell me how much the fees are for transfer money to IB? I have a bekb account. Bc if I have to pay 1% its the same as if I use SQ bc there I don’t have to pay transfer money but 1% fee for FX exchange.

Zero (in most cases).

And FX fees are “near zero”, given that you pay 2 usd to exchange e.g. 10k usd.
As well as trading fees. :slight_smile:

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Nice, thanks! I just opened an account on IBKR!

I just have to write my experience with IBKR so far… The site looks so old haha and why is it that the money transfer takes multibl days? (With SQ it took 30 minutes) And I think I had like 50 error messages sites already. Swissquote is so much better ui and ux. Sadly I have to use it as the fees are only thing I like on IB lol!

I hope you are not using the desktop TWS tool…
which is indeed a horrid and intimidating piece of software. :grin:

The website on the other hand is definitely not “old looking”.
The mobile app perhaps a bit “basic”, but I prefer it that way.

Money transfer is 1 day for me.

You should take a look at the app IBKR Global Trader. Very straight forward with limited options (compared to the website or the “standard” IBKR app), but the design is sleek and pretty simple to use :wink:.