Which online brokers offer fractions
Money blog -
Small cattle also make crap: Those who like to invest small amounts should pay attention to the fees. Photo: iStock
I am a little trader. The maximum amounts that I can trade are between CHF 20,000 and CHF 25,000. The brokerage fees of my two banks, Raiffeisen and Clientis, are too high for me. That's why I'm considering opening a trading account with Cash. Could you please tell me whether this is serious, because I don't want to risk losing everything. J.B.
With Cash you can open a securities account and pay just CHF 29 brokerage fee per transaction on this platform.
Unlike many other platforms, this fee is not dependent on the transaction volume. In this case, it doesn't matter whether you buy just a few shares or many: you pay a fixed amount of 29 francs per transaction.
There are also possible third-party fees. However, Cash is not a bank. That is why you have to open the actual bank account and custody account at Cash's partner bank, Bank Zweiplus. I don't see any particular risks for you: Bank Zweiplus, like all banking institutions operating in Switzerland, is subject to the Esisuisse deposit insurance.
As with all other banks in this country, your liquid funds are subject to the statutory deposit protection of a maximum of CHF 100,000 per customer. If you want to be on the safe side, you should not park more than 100,000 francs in the form of liquid funds in the account.
But that doesn't make sense in terms of returns either, otherwise your money would lie idle and you want to invest it as you write. Securities remain in the customer's possession even in the event of a bank breakdown.
A possible alternative to Cash and its partner bank Zweiplus is Swissquote. The largest online stock exchange broker in Switzerland, which is itself listed as a company on the Swiss stock exchange, has a different system: Here you pay only 9 francs per transaction for online trading for transaction amounts of up to 500 francs, and 20 for amounts between 500 and 2000 francs Francs, between 2,000 and 10,000 francs 30 francs and between 10,000 and 15,000 francs 55 francs. In the case of higher transaction amounts, the brokerage fees increase further up to a maximum of 190 francs for volumes of over 50,000 francs per transaction.
Swissquote itself has a banking license - it is not only a broker, but also a bank itself and is therefore also subject to statutory deposit protection. If you mostly trade with very small amounts of up to CHF 2,000, you can drive even cheaper with Swissquote than with Cash and Bank Zweiplus.
Saxo Bank, Postfinance and Degiro also offer low brokerage fees. The latter is not a bank, just a broker. Here, the lowest brokerage fee for small transactions is just 5.40 francs, but then also increases depending on the transaction volume.
Degiro is particularly cheap in terms of fees, but in my opinion it has the disadvantage that the foreign company is not monitored by the Swiss Financial Market Supervisory Authority Finma, but is subject to the financial supervision of the Central Bank of the Netherlands (De Nederlandsche Bank, DNB). Since Degiro is not a bank, the securities held by customers are kept in an investment account with a separate custodian.
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