Private banking - 7/8 figures, white and safe
- Thread starter manilobino
- Start date
- Status
Valid points.
I would not recommend anybody to use a private bank for︁ it's priced wealth management. Most multi-stategy mutual funds have a better performance.
However, for a︂ DIY guy it can be attractive if he is able to negotiate the fees (not︃ a difficult task). Since these negotiated fees will still be much higher than the ones︄ of IB it will also let him think twice before placing a stock market order.︅ Let's face it: Most people loose money with online discount brokers because the hop on︆ every insane idea they read on investment websites. So, the higher fees do put a︇ psychological barrier and may prevent excessive trading.
A relatively cheap loan from a private bank︈ is certainly an interesting antspect. However, never speculate on credit! So, I would dismiss a︉ loan as a "positive incentive" for placing your assetswwith a private bank.
A very often︊ overlooked point are OTC bond trading fees (see above post #71 and #76). Plus their︋ term deposit offerings: A selection of banks you can choose from (usually minimum A-rated) with︌ negotiated higher interest rates than you will get as an individual from the same bank.︍ The private bank takes a comminssion and books it with the other bank.
Of course,︎ if it is just about trading stocks and derivatives than a private bank is not️ a good place to be.
I would not recommend anybody to use a private bank for︁ it's priced wealth management. Most multi-stategy mutual funds have a better performance.
However, for a︂ DIY guy it can be attractive if he is able to negotiate the fees (not︃ a difficult task). Since these negotiated fees will still be much higher than the ones︄ of IB it will also let him think twice before placing a stock market order.︅ Let's face it: Most people loose money with online discount brokers because the hop on︆ every insane idea they read on investment websites. So, the higher fees do put a︇ psychological barrier and may prevent excessive trading.
A relatively cheap loan from a private bank︈ is certainly an interesting antspect. However, never speculate on credit! So, I would dismiss a︉ loan as a "positive incentive" for placing your assetswwith a private bank.
A very often︊ overlooked point are OTC bond trading fees (see above post #71 and #76). Plus their︋ term deposit offerings: A selection of banks you can choose from (usually minimum A-rated) with︌ negotiated higher interest rates than you will get as an individual from the same bank.︍ The private bank takes a comminssion and books it with the other bank.
Of course,︎ if it is just about trading stocks and derivatives than a private bank is not️ a good place to be.
Yup. If you don't have a buy and hold strategy and want to day trade the private banking is generally not a good choice for such people. They need to stick to discount brokers like IBKR etc.
- Status