[Jerome]

Oh, the bad guys! Deception on the merchandise!

Well, I'm still interested in it as a diversification for other markets.

[Jerome]

Can you try again for the comments?

I can't find Japanese titles, even big caps, but that may be because of the test platform.

[Jerome]

I am testing the cornertrader platform, in any case it is nice. I do not find the Japanese market there, but it could be a good complement and a source of diversification to Postfinance. Thanks for the tip bro.

I guess you took the "capital" account?

[Jerome]

This is a bit of a problem with this tax statement: when you have several financial intermediaries, you accumulate costs.

With IB there are no worries though. No withholding tax and you can print your income and capital statement for free.

[Jerome]

Thanks for this information about Cornertrader. Is it also possible to have a tax statement? If so, what is the price?

Is there also the Tokyo market?

Yes I recommend IB. It's hard to do better in terms of brokerage fees. No custody fees. This is valid for both trading and b&h.

There is however a system of minimum transactions per month to reach, failing which they charge you a small amount, but it is trifles, nothing compared to custody fees. Moreover it disappears as soon as your account is sufficiently funded.

Top security. The user interface on PC is a bit complex, but I only use the App, which already allows you to do a lot of things.

You can trade almost anything and everything in almost any country in the world. If you are daring you can short sell and use leverage by buying on margin.

In addition, opening and managing the account is quick and simple, entirely online.

[Jerome]

I agree with you that the risk is low in the event of hacking for the customer, unless of course he commits a serious act of negligence.

I see you seem satisfied with Cornertrader. Can you tell us more about it? Strengths – weaknesses?

Are you limiting yourself to Swiss players? Have you not thought about Interactive Brokers?

[Jerome]

I wonder what the risk is of a hack. It seems to me that the security of bank and brokerage accounts is pretty robust. But it's a good question, and goes beyond the issue of spreading the risk across multiple accounts.

Regarding this last point, opening additional accounts with the same broker does not offer any additional security, neither in the event of hacking, nor in the event of the bank going bankrupt.

I would like to point out that in the event of bankruptcy, assets such as shares are the property of the client and not of the bank, unlike cash. Regarding the latter, it is however guaranteed up to CHF 100,000 in Switzerland, per establishment. In the USA, the SIPC offers a guarantee of USD 250,000. IB has also just launched a program that automatically distributes the cash across several banks, so as to potentially increase this guarantee to as much as 2.75 million dollars. So there is room for improvement…!

In short, I think that in all cases you should at least spread your assets across two institutions. Financial intermediaries all have their own qualities and defects. Having several allows you to use the best characteristics of each according to your needs. It also allows you to sleep more peacefully. On the other hand, I think that it becomes counterproductive to have too many because the taxation and management (cash transfers, or even securities) become more complex.

In your case I find that with 4 establishments you are already more than covered. Nothing prevents you from balancing a little more towards the two less provided establishments, in any case towards Swissquote, because given the prohibitive custody fees of the Migros bank I understand that you limit yourself to the least.

If there is a banking IT security expert around I would be happy to hear from him especially on the hacking issue.

[Jerome]

Surprising for AUCHAH because it is still quite liquid. I think I tested the market and limit orders and I don't remember noticing this phenomenon. I will keep an eye on it next time.

For your question, I had already answered it (see my very first answer on this same topic). Otherwise, don't forget that one of the filters of the QVM strategy, which I will not mention here since we are in public, already largely answers this liquidity problem.

 

[Jerome]

Normally on liquid securities the difference is insignificant between a market order and a limit order. On which ETF did you get 2% difference?

Otherwise you have already given the answer to your question. On illiquid securities you must of course use a limit order.

 

[Jerome]

biz…i don’t have this problem and never have

maybe try with another browser or clear the cache…

[Jerome]

yes, in any case I managed to create two cash accounts

Now I just did the test to create a 3rd account in another currency and it does the same thing to me as you, it overwrites my second account

so you should at least be able to create a second account, unless there is a bug at FT at the moment

but as I said, unless you make large currency movements and/or leave foreign currencies sitting in an account for a long time, which I do not recommend, I do not really see the point of this approach.

[Jerome]

Hello

 

Regarding questions related to quantitative analysis, please post them in the members section please.

 

Thanks for the crypto entry. I have to say that I am not at all comfortable with crypto platforms, even the ones with the well-known names you mention. I can't see myself depositing more than tens of thousands of francs there. I trust Interactive Brokers more.

As for the off-grid solution, it's a bit too geeky for my taste.

I have already taken a huge step by putting some BTC in my wallet. Until recently I was totally against it. For now I am sticking to the ETN solution of the Stockholm stock exchange. We will see later if I consider other alternatives😄

[Jerome]

Hello Xavier,

 

FT is relatively simple to use once you understand how it works. When you buy, you indicate the number of positions, the amount, possibly the transaction fees and possibly also from which source you are financing the purchase (this is interesting precisely because you can buy from different accounts, in different currencies, but to do this you must first have created and funded these accounts, as we will see immediately). Be careful, when you sell, do not delete the line! Otherwise you lose everything... You must make a "SELL LONG" transaction, exactly as you did for the purchase.

 

To create cash accounts it's very simple, you do as if you wanted to make a transaction, as an asset type you choose cash, then OPEN, then you choose a name for your account, the amount you want to already indicate there and the currency. You can repeat the operation depending on the number of currencies you want to have fun managing. To fund pre-existing accounts, you do the same, but instead of OPEN you choose credit. And to withdraw money, you choose... debit. Very simple.

 

Be careful, under "settings", you choose your reference currency for the entire portfolio, independently of your cash accounts. I think this is where the confusion comes from for you.

 

Personally, I never keep large amounts of cash in foreign currencies for a long time. My real accounts in USD, JPY, EUR, CAD, etc. are slowly replenished by dividends and from time to time when the currency has appreciated well against the CHF, I change it to CHF. So, in the "manage dividends" options, I put: "move to cash holding" and I chose my account in CHF. A few hundred francs for a while in other currencies are not going to make a big difference. I could also have chosen to "manage manually" to be more precise, but that would have required more monitoring work for not much more, or "reinvest" but I never systematically reinvest my dividends in the same positions, or "include in return, but not in value", but I want to know the evolution of my account in value and again "don't include dividends", which is of no interest to me.

 

The only case where I have large amounts of cash in foreign currency is when there are several sales of securities in the same foreign currency. I experienced this for example in 2018 with my American securities, which is why I created at that time a USD account on FT "cash open", which allowed me to put the proceeds of the sale in this currency and to be fairer in monitoring the performance of the portfolio in relation to the variations of the greenback.

 

So in summary unless you have large amounts in foreign currency, you don't need to worry about creating other accounts, but it is of course possible.

 

[Jerome]

Well, when they say 100% physical, even if we can imagine the analogy to more classic values, it still makes us smile when we talk about cryptos…

It seems to me that the volume is the problem with ABTC, which must be problematic when trading and/or have a fairly strong impact on transaction costs. XBTE is very easy to trade, however.

Direct purchases via platforms dedicated to cryptos pose a problem for me in terms of security and do not seem to me to be dedicated to large transactions. But I admit that I do not know enough about it. Even if they have acquired a certain degree of recognition in financial circles, cryptos still retain a "geek" side that is not given to everyone. Besides, when you talk about off-grid storage, for me it's science fiction 😉

 

 

[Jerome]

Nice job! I see you use ABTC for bitcoin, since you know about cryptos, is this tracker good? In any case, it has the advantage of being traded on SWX, unlike the XBTE ETN on the Stockholm Stock Exchange. Are the daily volumes sufficient to trade easily?

[Author]

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