Interactive Brokers Canada Inc. is an execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives. But this remains the same broker. Let’s see what would happen if this standard investor would invest 5000 EUR per month instead of 1000 EUR. We can also observe that the Custody account of DEGIRO starts to become expensive because we get more dividends. For instance, if you pay 1 USD in fee, you will only pay 9 USD in custody fees. You will entrust your investments with this broker. This scenario would give us these detailed results: Here are the prices for each broker account: This time, DEGIRO Basic is the winner. This is also called the Swiss Securities Transfer Tax. For European investors, DEGIRO is very slightly cheaper but the difference is almost not significant. So we are going to compare these two. If you are interested, I have a tutorial on how to open an account with DEGIRO. So, in this particular case, DEGIRO Basic is the best option. The Poor Swiss a message here. It is a very established broker, funded in 1978. However, Interactive Brokers is very close behind. Interactive Brokers is a broker from the United States. The purpose you have a trading account is to buy securities and majority of the securities that you are interested in tends to be overseas in If you need more information on these brokers, you can read my reviews: If you do not know where to start, you can learn about how to start investing in the stock market. However, I have only considered portfolio weighted towards U.S. ETF. Interactive Brokers Trading fees charged for shares and ETFs are lower than average and this company offers a neat web platform and mobile app for its users. Spread & fee comparsion The spreads below are illustrative. For the second scenario, we can take an investor with 100’000 CHF and investing in 2000 CHF every month. This means that your cash is converted automatically when you make a trade in another currency. But the minimum fee is only 4 EUR (4.28 CHF), and the maximum is 29 EUR (31.05 CHF). All the others are simply too expensive. And they also have some special things like virtual positions for the cash you have converted that can be disconcerting at first. If an exchange or other market center charges Interactive Brokers a trade bust, trade cancel fee or trade adjust fee because of an order placed by an IBKR customer, or because of a customer bust or adjust request, the customer is fully responsible for the fee and the fee will be deducted from the customer's account. I have my IB account created through TradeStation Global to get rid of the monthly fee. When you compare brokers, you will see that the difference is too big to ignore! You can probably trade directly with your bank. I understand the need for taxes. We found 23 broker accounts (out of 147) that are suitable for Switzerland. What about you? I wish DEGIRO had the same prices regardless of which country you come from. Get personal finance tips that will help you towards Financial Independence, for free! Aside from these two differences, they are both really good brokers. Website: www.interactivebrokers.ca. This scenario yields the following results for the different brokers: And here are again the total fees for each broker account: In this scenario, the Tiered account of Interactive Brokers become the cheapest option. Regardless of which account you use, you will have to pay a connectivity fee of 2.5 EUR (2.68 CHF) per year, and per stock exchange on which you own shares. Re: Interactive brokers in Switzerland The answer depends on how big, and what other options do you have and how much they cost. Interactive Brokers has some of the lowest fees on the market, however there are additional costs such as the tiered inactivity fee, which isn’t immediately obvious. Registered Office: Level 40, Grosvenor Place, 225 George Street, Sydney 2000, New South Wales, Australia. Notes: When transferring Asian positions from your IBKR account, there is a charge of 50.00 USD for each request or the amount listed in the above table. Global trading platform Interactive Brokers isn't well-known in Switzerland, despite a sizable office in Zug. But you do not have to worry about all of this. Give your bank a call and ask what spread they can offer you, some people reported PF's trading desks can be very, very generous with spreads on the phone, much lower than their online offers Moreover, you will save on the Swiss Stamp Duty that you only have to pay with Swiss brokers. Trade Bust/Adjustments. It is my favorite broker and the one I recommend! Interactive Brokers U.K. Limited But when you invest 10’000 CHF per month, the difference with DEGIRO Basic is very small! It is not a typical scenario since this is a lot of money. The investor begins with 25’000 CHF and invests 1000 CHF every month. I have talked about several brokers on this blog. It is a good and cheap broker. Online brokers compared for fees, trading platforms, safety and more. DEGIRO Custody account starts to be expensive once your portfolio increases and generates more dividends. Some brokers waive certain fees as part of temporary special promotions. To see that it is the case, we are going to compare the fees of the different brokers. The difference between Interactive Brokers Tiered and DEGIRO Basic is quite small. Fees are based on exchange assessments for market data and are applied on … Website: www.interactivebrokers.com.au If you would like to have more brokers included in this comparison, let me know, I can extend the list if many people are interested. For starting, the best option is the DEGIRO Basic option. Once you pass the minimum of 100’000 CHF, Interactive Brokers become very competitive. DEGIRO Custody is quickly becoming expensive as your portfolio grows in size. Trade U.S. security for as little as 0.5 USD! But there is only a minimal difference with DEGIRO Basic. I would recommend going with Interactive Brokers Tiered account for everybody. From a fee point of view, only Interactive Brokers and DEGIRO are good choices. The firm also offers more than 2,900 No Transaction Fee (NTF) funds where the broker is compensated with a 12b-1 fee rather than a trade execution fee. But we can also see that the gap between Tiered and Fixed pricing is not that big anymore. But it barely reduces fees, and it makes you keep more cash. Interactive Brokers is an outstanding broker, with extremely affordable fees! We can quickly compare the fees of some of these brokers for some operations. You need to choose carefully since changing brokers is neither easy nor free. And the Custody account is starting to get expensive because of the fees on dividends. Get personal finance tips that will help you towards Financial Independence, for free! If an exchange or other market center charges Interactive Brokers a trade bust, trade cancel fee or trade adjust fee because of an order placed by an IBKR customer, or because of a customer bust or adjust request, the customer is fully responsible for the fee and the fee will be deducted from the customer's account. However, for many investors in Europe, it is currently not possible to invest in such ETFs because of PRIIPs. Finally, given that they offer access to U.S. ETFs, IB can help you save a lot of money. Keeping fees low should be your second priority after broker stability. And here are the total fees for each broker account: DEGIRO Basic: 43.76 CHF; DEGIRO Custody: 65.48 CHF; Interactive Brokers Fixed: 120 CHF; Interactive Brokers Tiered: 120 CHF; In this case, because of the custody fees, Interactive Brokers is significantly more expensive than DEGIRO. For starting investors and people that do not plan to invest a large amount of money, this is probably fine. Most people do not realize this! This should definitely help showing what are the best brokers in Switzerland. So, if you plan to invest in them, IB should be your choice. With a custody account, they cannot lend your shares. Therefore, it is better to go with a more professional broker, Interactive Brokers. This set of investment regulations went into action in 2018, Swiss Investor – Portfolio Swiss / Europe, European Investor – Europe Only ETF Portfolio. Finally, you need to look at the prices. Headquarters: One Pickwick Plaza, Greenwich, CT 06830 USA Website: www.interactivebrokers.com Interactive Brokers Canada Inc. Is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Member - … And the clearing fee will be 0.1 EUR. The alternative is to invest in European ETFs. Both are excellent choices for this scenario. Website: www.interactivebrokers.ca. But this tax effectively moves people away from Swiss brokers. From a fee point of view, only Interactive Brokers and DEGIRO are good choices. This makes them the two best brokers in Switzerland. The newest video to enrich lives was produced by Brad Reed. I know that some people want to have a Swiss broker. If you want to buy gold, the most direct way is to get a hold of some physical bullion in the form of bars or coins. Currently, Swiss investors can still invest in the U.S. ETF with IB. If you convert currency on your account, you will pay a fee of 0.10%. I already compared Interactive Brokers and DEGIRO for different cases. For this European investor, we are going to compare DEGIRO vs Interactive Brokers for the same scenarios as before. You may be surprised by the results! DEGIRO vs Interactive Brokers for a Starting Swiss Investor. To view, add, or delete subscriptions, sign into Account Management. What is the best broker in Switzerland in 2021? 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