Interactive Brokers vs DEGIRO, Switzerland
Interactive Brokers vs DEGIRO: which is the better broker for Swiss investors?
Same portfolio at both providers: CHF 50,000 to start, CHF 500 a month, 5% a year, held for 30 years. Interactive Brokers costs CHF 614 in total fees. DEGIRO costs CHF 3'200, which is CHF 2'586 more, roughly 5 times as much. To run the numbers on your own portfolio, use the broker fee calculator on etfschweiz.ch.
Referral link: ibkr.com/referral/marco1592. The bonus is paid by Interactive Brokers. Using it costs you nothing extra.
Cost comparison, side by side
| What you pay for | Interactive Brokers | DEGIRO |
|---|---|---|
| Total fees over 30 years | CHF 614 | CHF 3'200 |
| Custody fee | None for normal accounts | No custody fee, but exchange connectivity fees per market |
| Cost per trade | From USD 0.35 on US listings, from EUR 1.25 on European listings | Low flat fees, with a free ETF list |
| Currency conversion | Around 0.002% of the amount, minimum USD 2, at the interbank rate | 0.25% per conversion |
| Swiss stamp duty | Not charged: the account sits outside Switzerland | Not charged: the account is held abroad |
Figures are indicative, based on published tariffs and moneyland.ch style comparisons for the portfolio described above. Tariffs change, so check both providers before you decide.
Where DEGIRO is genuinely good
- Cheap and simple for European listed ETFs
- No Swiss stamp duty, same as Interactive Brokers
- Easy interface for beginners
Where it costs you
- No access to US listed funds such as VT
- Currency conversion is over a hundred times the IBKR rate
- Thinner reporting for Swiss tax returns
My take
Fine for a simple European ETF portfolio. Interactive Brokers wins on currency costs, product range and reporting depth.
Both accounts are legitimate and both are regulated. The question is what you are paying for. If you want a Swiss adviser and a Swiss tax statement handed to you, DEGIRO does that. If you want to keep as much of your return as possible, Interactive Brokers is the cheaper account and the paperwork takes about half an hour a year.