Interactive Brokers vs PostFinance, Switzerland
Interactive Brokers vs PostFinance: 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. PostFinance costs CHF 3'900, which is CHF 3'286 more, roughly 6 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 | PostFinance |
|---|---|---|
| Total fees over 30 years | CHF 614 | CHF 3'900 |
| Custody fee | None for normal accounts | Yearly custody fee tied to the account package |
| Cost per trade | From USD 0.35 on US listings, from EUR 1.25 on European listings | From around CHF 9 on Swiss listings with the e-trading plan |
| Currency conversion | Around 0.002% of the amount, minimum USD 2, at the interbank rate | Retail spread on every conversion |
| Swiss stamp duty | Not charged: the account sits outside Switzerland | Charged: 0.075% Swiss, 0.15% foreign securities |
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 PostFinance is genuinely good
- Simple to add if you already bank with PostFinance
- Swiss regulated, German interface, straightforward tax paperwork
- Cheaper than the big banks for small portfolios
Where it costs you
- Still around six times the lifetime cost of Interactive Brokers
- Limited access to cheap US listed funds
- Currency conversion is not competitive
My take
A reasonable starter account. Once the portfolio passes a few tens of thousands, the fee gap starts to matter more than the convenience.
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, PostFinance 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.