Interactive Brokers vs Swissquote, Switzerland
Interactive Brokers vs Swissquote: 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. Swissquote costs CHF 8'100, which is CHF 7'486 more, roughly 13 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 | Swissquote |
|---|---|---|
| Total fees over 30 years | CHF 614 | CHF 8'100 |
| Custody fee | None for normal accounts | Yearly custody fee, capped but charged every year |
| Cost per trade | From USD 0.35 on US listings, from EUR 1.25 on European listings | From CHF 9 on Swiss listings, more on foreign exchanges |
| Currency conversion | Around 0.002% of the amount, minimum USD 2, at the interbank rate | Spread of roughly 0.95% unless you upgrade the account |
| 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 Swissquote is genuinely good
- Swiss bank licence and Swiss deposit protection on cash
- Everything in German, French and Italian, with Swiss support
- Tax statement built for Swiss returns, no manual work
Where it costs you
- Currency conversion is where most of the cost hides
- Custody fee is charged whether markets go up or down
- Commissions on foreign ETFs are several times higher
My take
Swissquote is the comfortable option and a real Swiss bank. You pay for that comfort roughly 13 times over across a long investing life.
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, Swissquote 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.