[Jerome]

Especially since this is not the best time to buy in bulk. The devil is in the details.

 

[Jerome]

Bro, I hope you don't get hit by a truck, my God!

The idea is good, especially to take advantage of their offer. In terms of security, I don't know if it really brings a big plus. If your PC and/or network is hacked, you get both passwords hacked. And then anyway, there is two-factor authentication, so the security risk is very low.

And from a financial institution security point of view, you don't diversify. At the same time, there too, the risk is very low with Postfinance.

Ultimately the only big risk with your solution is that your wife will go to the Caribbean with your money :)

[Jerome]

Gladly for a little update in due time bro!

[Jerome]

Hello frouzback,

Thank you for this email from an enlightened professional! It doesn't even surprise me and I always thought that the opacity of these products, as is too often the case in finance, was designed to enrich its issuers.

Finance doesn't need to be complex to work. Quite the opposite...

[Jerome]

Hi bro. I have tried to get interested in options several times in the past. Several readers, including Paul Marcel from Celtinvest, also talked about it here at the time (he was more oriented towards selling put options). Apparently some have good results with these strategies.

However, as much as I am comfortable with financial ratios, the jargon and concepts related to options seem to me to come from another galaxy. I need to understand the mechanisms of an investment before getting started and from this point of view options seem too nebulous to me. But it is possible that one day I will change my mind. I did it for gold and Bitcoin…

[Jerome]

Ah, there you go! The team worked really hard!

[Jerome]

They didn't fix it for you, are you sure?

That said, I sometimes wonder how much control (and understanding) they have.

[Jerome]

Yes, IB only withholds foreign tax, not Swiss tax. It is therefore income that will be taxed by the Swiss tax authorities following the declaration.

Normally on your software you should be able to indicate yourself separately the value of foreign withholding tax and additional withholding tax in Switzerland (for American securities).

On VSTAX for example the two fields are independent, there is even a “Swiss deposit” checkbox, if you remove it, the USA deposit becomes grayed out.

[Jerome]

Very easy

you go to the details of the DA-1 form

you create a line indicating your IB account number

you indicate under total in francs the total value that the report gives you under Net assets

you indicate under gross yield the total dividend value in CHF that you find under Dividends

under foreign tax you indicate the total value of withheld taxes in CHF which you find under Withholding taxes

and that's it

[Jerome]

I contacted Will31, but unfortunately no answer yet. It's a pity, because he had already started thinking about the subject.

[Jerome]

After just over a month of use, here is a first assessment.

The brokerage fees are attractive compared to what is done at most banks and brokers, especially in Switzerland. On the other hand, the fees are still much higher than IB.

There are certainly a fair number of Japanese small caps there, but not all of them, unlike IB.

After opening the account, it is not possible to trade certain stocks immediately, especially Japanese small caps. You have to pass a certain number of tests to show that you know what you are doing. This stigmatization of these stocks is surprising... Probably a residue of the paranoia of the bursting of the Japanese bubble in 1990...? At the same time, the questions are not too complicated.

There are some somewhat curious limitations and blockages with respect to certain orders. For example, still on Japanese securities, market orders are limited to a certain number of shares, sometimes even just one (even if the price is small). Of course, this is not catastrophic, since you can use a fairly large limit order, but I don't see the purpose of these restrictions.

The platform itself is user-friendly, intuitive and easy to use (much more so than IB's web platform). A good point on that side. I didn't need to install the application, so I can't comment on the latter.

In short, not bad, but not great. I still much prefer IB. Given the absence of certain stocks, the slightly higher rates and the slightly strange restrictions, for the moment I currently only have one position and I don't think my portfolio at Degiro will grow significantly in the near future, at least not for Japanese stocks. This could change if the Swiss and American markets become cheap again one day.

[Jerome]

Hi

This is outside my area of expertise, but you can already read this post by a reader who is following a similar path to yours. I'll try to contact him about your topic. Maybe he'll have some ideas...

Will31 presentation

[Jerome]

You did well. I had also read your other article but did not have time to answer it, sorry.

[Jerome]

Hi Xavier,

Ok, thanks for the info. I was also thinking that it had nothing to do with a cash or margin account.

No worries, I understand because I have the same problem as you. I work endless overtime, it really tires me out. I would like to be able to move forward fully on my personal projects and it limits me considerably. At the same time I don't want to complain because many are in a nameless mess much worse than me, because of the closure of their establishments.

What a paradox, some work like crazy and others are unemployed... This Chinese virus exacerbates the inequalities of the Rat Race.

 

[Jerome]

Ok thanks for the feedback. Keep us informed if ever of the result of your efforts, it is always interesting to know.

 

[Author]

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