Interactive Brokers vs Saxo, Switzerland
Interactive Brokers vs Saxo: 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. Saxo Bank Switzerland costs CHF 2'900, which is CHF 2'286 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 | Saxo |
|---|---|---|
| Total fees over 30 years | CHF 614 | CHF 2'900 |
| Custody fee | None for normal accounts | 0.12% to 0.25% a year depending on tier |
| Cost per trade | From USD 0.35 on US listings, from EUR 1.25 on European listings | From around USD 1 on US listings |
| Currency conversion | Around 0.002% of the amount, minimum USD 2, at the interbank rate | Around 0.25% to 0.5% per conversion |
| Swiss stamp duty | Not charged: the account sits outside Switzerland | Charged on the Swiss entity |
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 Saxo is genuinely good
- Closest Swiss based competitor on price
- Good platform and broad product range
- Swiss entity, so the tax statement is easy
Where it costs you
- Custody fee still applies where IBKR charges none
- Currency conversion costs multiples of IBKR
- Around five times the total cost over 30 years
My take
If you want a Swiss based account and low fees, Saxo is the serious alternative. Interactive Brokers is still the cheaper of the two.
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, Saxo 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.