[Mystic]

I can understand that the pricing policy does not please everyone.

Personally, I see (finally) the opportunity to be able to have an average purchase price of shares at a lower cost. Until now, either I invest everything at once, or I buy the shares in stages (and therefore with high brokerage fees) or I have to go to a bank in Germany to be able to invest every month in shares (like a fund savings plan).

 

This time, there is finally an opportunity to regularly buy shares of company X to get an average price.

What I don't like, however, is the fact that it lacks options like tax certificates, etc. And of course, as with any bank on an App, in the event of my death, few people will know that I have an account with them.

 

However, if there are people who want to register, to benefit from the welcome offer, they can choose my sponsorship code: baibe7

[Mystic]

And BCV regularly makes an offer (in fact all year round, but they adapt the dates, duration and amounts depending on the period). So you just have to wait and an offer will come back 🙂

[Mystic]

Jerome,

What do you think of brokers who work with IB but have a white label? I am thinking in particular of Lynxbroker.fr, for example.

They are certainly more expensive in trading but depending on the size of the portfolio and the frequency of trades, it can be cheaper than being with IB.

Of course, lynxbroker.ch is in German. For the French version, you have to wait until IB has received a license in Ireland so that you can open an account in French again (.fr site).

However, isn't this a good middle ground between Swiss banks and IB?

In addition, what is the difference between BATS Europe (BATECH), CHI-X Europe Ltd Swiss (CHIXCH), Swiss Exchange (SWX), Turquoise CH (TRQXCH) and VIRT-X (VIRTX) exchanges?

[Mystic]

At degiro there is a form to fill out and send by email. It costs €10.00 per line + external costs.

 

In short, peanuts compared to what is done in Switzerland. Even Mr. Prix believes that the price of a transfer of securities is disproportionate to the work generated.

[Mystic]

There are several types of ETFs, general, sectoral, index replications, etc. and ETFs with physical products, others using synthetic products. You must first understand all these differences.
I am by no means an expert, I am also learning and trying to understand how to better protect myself by buying stocks individually.

If you want an ETF as close as possible to the desired index (e.g. the SMI), you have to buy all the shares of the SMI in the same proportions then leave it in buy and hold 🙂

We just have to hope that an action from the SMI does not go into the SPI 🙂

PS: my idea is limited because if you want to replicate the S&P 500, good luck :)

[Mystic]

So, if you have informed your partner where you have the accounts and you have given her access, she will have time to repatriate the money to your Swiss account.

As long as the bank account you linked to the Degiro account is not closed, it….

[Mystic]

I have been with DeGiro since 2017 and honestly, I have never had any problems with Swiss stocks and dividends. Everything is clear.

And if there is ever a corporate action (e.g. capital increase or takeover bid), I am contacted by email to ask me to take a position. This went very well with Sunrise, for example.

[Mystic]

1. How does it work with the withholding tax on dividends? Do you receive 100% from the dividend and then have to declare it in your tax return? Or is there also a withholding of 35%?

You receive the dividend at 100% in your account and at the same time, Degiro deducts 35% from you, in the accounting, it's clear. In the end, you therefore receive 65%.

Example with one of my actions:

2. According to the article I linked to, you can't have a CHF account? Does that mean you have a EUR account and the exchange to CHF is done when you buy Swiss stocks?

If you are on Degiro.ch, you have an account in CHF. If you are on degiro.fr, you have an account in EUR (with a difference in pricing for each country (.fr, .de, .ch, etc.). So if you have an account in CHF and you receive a dividend in EUR or USD, it is automatically changed to CHF.

You still have the option in the settings to say that you don't want automatic change but manual.

Please note that you can have multiple accounts (e.g. degiro.ch, degiro.fr, degiro.de) linked to the same address. You just need to have another username.

With Degiro, I have never had any dividend problems. Even for foreign stocks, I receive a breakdown in March of each year: how much dividend (in CHF, EUR, USD) per country and then per company. Always useful for requesting the refund of withholding tax from each foreign country as well as for my tax return.

 

Another calculation: if I buy 5000 francs of Nestlé and pay 20-25 francs in transaction fees, we are talking about 0.4 to 0.5% of the purchase amount (I was at 2% in 1998!). If I keep these shares for life, I never pay anything else. Over 25 years for example, these 25 francs annualized represent only one franc…

For someone who mainly buys and holds Swiss stocks like me, I find that brokerage fees are more of a secondary argument.

This point of view is perfectly defensible. On the other hand, if we start to reinvest the dividends, then the yield takes a hit!

[Mystic]

In fact, why look in Switzerland if brokers abroad are cheaper?

Swiss establishments are subject to the federal stamp duty and charge high prices.

I have shares in Degiro, but also a bank in Germany whose idea is to forget that I have shares (out of sight….) and thus stick to my buy and hold strategy 🙂

Swiss institutions allow you to have your name in the share register. Given the status of small shareholder, what role do we really have? Apart from the aperitif after the meeting, I don't see (if the meeting is in person).

With the automatic exchange of information, the tax certificate is made automatically between the broker who transmits it to the tax authorities of the country who transmit it to the AFC in Bern. I have always received the tax certificate from my 2 brokers for free. So it is easier for us.

The more I think about it, the more I realize that brokers abroad have almost only advantages.

However, I am careful that the supervisory authority is in the EU for a question of trust.

As said above, we can also see what Swissquote / Postfinance and CSX will come up with. I don't expect a revolution but rather a breath of fresh air.

[Mystic]

Now that 2017 is behind me, I was able to test the services of De Giro:

Around February-March, we receive an activity report. This mentions purchases and sales. It also classifies dividends received by country but not by company. This can cause some difficulties in requesting a refund of withholding tax (I have a few companies in Germany in my portfolio and on the request, I have to mention each company with the dividend that goes with it).

On the other hand, we agree that in terms of price, it is unbeatable.

[Mystic]

What I appreciate about Degiro is their responsiveness in terms of customer service.

I wanted to test dividends and received 2 dividends (2 different stocks). Seems to be fair so far.

So far I have had good experiences with them, both in terms of price and service.

 

[Mystic]

I am with a basic account and not a custody account. The custody account gives you access to more products. Since I am stopping at stocks, the basic is fine.

For now, the fees are good. I haven't had any bad surprises to date.

I find the platform pleasant. The exchange fees are 0.1% on the current rate if you choose an automatic exchange

[Mystic]

I'm there with a normal account.

To date I have voluntarily a small portfolio and wish to verify their reliability. I will be able to take a position as soon as the documents for the 2017 taxes have been issued, in March 2018.

[Mystic]

Why buy dividend-paying stocks if you don't want to get them? Simply because the dividend is "paid" by buying the stocks at ex-dividend.

My strategy is dividends because even if it crashes, we've received the money :) My entire portfolio related to stocks is in high dividend stocks.

[Mystic]

So I'll give you some more detailed figures on this idea. Of course, for it to work, it has to be a high dividend stock.

I take the example of 2 large dividend stocks in Germany: Allianz and Munich Re, each paying one dividend per year.

Allianz dividend: €7.60 (4.6%)
Munich Re dividend: €8.60 (4.8%)

When paying dividends, there is German withholding tax which amounts to 26,375 %

This tax can be subject to a partial refund request (a part remains with the German State). The German State takes 15% from the dividend after refund of the tax.

Result: per share, I therefore receive €6.46, respectively €7.31. So per share, I lose €1.14 + €1.29 of the dividend. However, in the eyes of the Swiss tax authorities, I am taxed on the entire amount.

With just 100 Munich Re shares, you "recover" €129 without being taxed! The only costs are the purchase and sale fees.

I know many people here are interested in US stocks. Unless I'm mistaken, US dividends are not subject to US tax, which is a plus.

[Author]

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