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Sorry for you and these disappointing first experiences. I also find the brokerage fees for foreign stocks prohibitive, it is not for nothing that for years now 9 out of 10 stocks that I have bought are Swiss stocks. My only exception concerns a few British stocks because their dividends are not taxed and that allows me to expose myself to sectors that do not exist in Switzerland (such as tobacco or oil).
Ouch, you'll only be half happy : 🙁
LIVE: ok (minimum amount 50 USD)
BEGR: ok (minimum amount 1000 SEK)
NIL-B and BMS: not found on Corner!I now remember that about a year ago I also wanted to buy a UK small cap with a market capitalisation of less than 100 million, without success.
@Jerome
With Cornertrader I have always been able to buy everything I wanted on the Swiss market, including small caps. Apart from the Swiss market, I have only bought British mid and big caps so far.
Give me 3-4 names of European and American small caps that interest you so that I can test the search and order placement on Corner.
Try to get your deposit with them over 75k pretty quickly, that way you'll move up a category and pay less brokerage fees.Thanks bro for this info. It's true that in Switzerland it's really a misery. Apart from PostFinance and Cornertrader I still can't find anything worthwhile. Very disappointed by Yuh's offer with their 0.5% brokerage fees. I looked at Flowbank, nothing to say about the transaction fees, on the other hand they make up for it with the custody fees!
Well, the first impression with Yuh is frankly not extraordinary and I don't think I'll open an account with them.
Positive: no deposit fees.
Negative: brokerage fees of 0.5% / minimum 1 fr. It's ok for small amounts but not at all for large ones. For example for a position of 10,000 fr it represents 50 fr, which is not at all competitive with Corner!
Finally!!! We will know on May 11th what this new YUH app has in store 🙂
Thank you Yakari for this reference that I will gladly read. I also have an option open on Novartis for a few weeks and I am in the process of making my first experiences.
Yes, it is definitely a tempting offer. That is why I had asked myself the question of opening a new account in my wife's name.
Be careful, I think there is a bit of confusion:
500 CHF trading credit is huge.
Dividinde is talking about 90 CHF credit
No, Jerome, that's correct: normally you have 90 francs in annual account fees, convertible into 90 francs in trading credits. The current promotion for new customers offers you, in addition to these 90 francs, another 500 trading credits that can be used until December 31.
Hello Caribou
In addition to Jérôme's response:
– Start with a CHF account if you just want to buy ETFs and some stocks.
– Indeed 90 fr annual deposit fees but convertible into trading credits.
– Money transfers are free.
– I don’t know what ETFs are available because I only buy individual stocks.
– Yes, the stock market is high at the moment, but no one can predict whether it will continue to rise for years to come or fall in 2 months. Go for it like Jerome said: by spacing out your purchases, for example 5K every 3 months.
– The important thing is to start without procrastinating too much, because no one can have perfect timing in the stock market. On the other hand, the earlier you start, the more you benefit from compound interest.
– Take advantage of the current promotion valid until June 30: https://www.postfinance.ch/fr/particuliers/produits/banque-digitale/e-trading/conditions-de-participation-trading-credits.htmlTo my knowledge, there is no exhaustive list of stocks that pay dividends that are fully or partially tax-free.
This fairly current article shows a large part of it:
Indeed, if you want a Swiss broker, choose PostFinance or Cornertrader. For a foreign broker, IB or Degiro. PostFinance currently has an interesting special offer for new customers.
My most important advice: don't just look at brokerage fees but also custody fees, in the long term and with a portfolio of a certain size these are the ones that will cost you a lot!
But above all, do your research before rushing in (just like you did with real estate), otherwise things will go badly. Nowadays, you can find everything for free on the internet. You absolutely must know the basic information about the stock market, dividends, their taxation, the different sectors, etc. You must understand what you are doing and find the strategy that suits you, otherwise you will panic at the wrong time and dig your own grave. Don't repeat the same pattern that already cost you your big loss on the stock market!
For example, I invested with stop losses for a long time, before realizing that it did not suit my character and that it worsened my performance. If you invest 50k and place a stop order for example at 20% on all your positions, be aware that at the next crash all your positions will be liquidated at a loss. Is this really what you want? Do you know in advance when you will return to the market after selling?
For my part, I prefer to let all my positions "breathe" freely, but I know the risks, I accept that some stocks will lose 20 or 50%, temporarily or permanently. Others will gain tens or even hundreds of %. That's why diversification is so important and why 5 stocks are not enough. From 12 or 15 you already have a certain distribution of risks. Personally, I don't feel relaxed with less than 30-35 stocks.
Welcome Caribou among the financial independence hunters 🙂
Your journey is very original and you were able to bounce back rather than follow the beaten path. I advise you to invest in the stock market in order to diversify your income and have a passive 100% income. It is not because you had a bad experience with the stock market that you should give up on it. On the contrary, take advantage of your mistakes to learn something from them and not repeat them.
Avoid at all costs going through a banker or other advisor who will just sell you his home products with indecent margins. If you really don't know anything about the stock market and don't want to take the time to get interested in it, place your 50k little by little on a few ETFs.
But I would rather advise you to do some research and buy individual stocks. You can thus aim for a dividend of 3 to 3.5% without taking too much risk, and which is well above what most ETFs distribute (there are ETFs focused on large dividends that distribute 4 or 5%, but they are of very poor quality!).
For about 2 years, a change in legislation has meant that there are almost no dividends that are completely tax-free. However, since this change in law, there are still many Swiss companies that distribute a dividend, of which 50% are tax-exempt.
Finally, with 50k I would buy much more than 5 positions. It is by far not diversified enough and you risk too much if 1 or 2 stocks do badly or remove their dividend. Aim for at least 10 positions at 5k each, and even then it is still not diversified enough!
For a buy and hold strategy, choose solid, non-cyclical companies and spread your purchases over several months or years.
I am currently building a "cushy" portfolio for my mother who is rather cautious about volatility and wants a stable average dividend of about 3.5% without risking losing all her money. Perhaps you can use this list as a starting point:
Nestle
Novartis
Rock
Galenica
Lindt
Barry Callebaut
Emmi
Geberit
Schindler
Cembra
SGS
Swisscom
BB Biotech
HBM
PSP
Allreal or Mobimo or Warteck
Intershop
Zurich
Swiss Life
Basel
Vaudoise Insurance
Cantonal Bank of Lucerne
Valais Cantonal Bank
Vaud Cantonal Bank
Glarus Cantonal Bank
EMS Chemistry
Givaudan
Belimo
Please note that all the stocks on this list are NOT buys at current prices. This is just the type of portfolio I want to build for him over several years, buying 1-2 new positions per month and each time choosing the stocks that seem to me to be most reasonably valued at that time.
LOL, I would rather go under a cannon than under a truck, but hey, in life you can't always choose. 😉 On the other hand, if my wife goes to the Caribbean without me, I will definitely take a closer look at this cannon story!
FYI, I just saw that BCV was doing more or less the same promotion as PostFinance, except that in addition to the 500 fr brokerage fees they charge up to 500 fr in securities transfer fees. It seems super interesting, except that when you read the offer in detail you discover the scam: the offer is only valid for the Swiss stock market and above all you have 1 month (!!!) to use these trading credits, after which they expire… So basically you have to buy about twenty securities in one month if you want to take advantage of their offer. Very realistic… 🙁
I had a new idea: as I wrote before, opening a second account in your name with the same broker is not a great alternative for security reasons. On the other hand, I could open another account in my wife's name (so with a different email, login, password, ...)
I thought of this alternative because PostFinance is currently offering a really interesting deal: 500 francs of trading credits (brokerage) offered, to be used by 31.12. This basically allows you to make about twenty share purchases for zero francs.
What do you think of this idea? It would also have the administrative advantage that all my trading accounts would no longer be in my name. If, for example, I get hit by a truck, my wife would have direct access to this/her account.
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