Swissquote vs. Saxo for keeping money

[Suzy Emerald]

Hello, I wonder if
Swissquote and Saxo bank are good just to park money <100k? I may use them for trading but just buy and hold but principally I would use them for keeping a balance in Eur.

 

[Tax Cow]

Yes and No. Expect complaints after 6-12 months of inactivity.

Just buy some short-term low risk EUR-denominated bonds. About 2% p.a net yield will keep you on par with inflation and is much better than 0.1% yield EUR savings accounts.

If you absolutely need liquid cash, go to ING Luxembourg - non-EU resident individuals accepted at 50 EUR/Quarter fee (200 per year).

 

[mrau]

xzars said:
Yes and No. Expect complaints after 6-12 months of inactivity.

Just buy some short-term low risk EUR-denominated bonds. About 2% p.a net yield will keep you on par with inflation and is much better than 0.1% yield EUR savings accounts.

If you absolutely need liquid cash, go to ING Luxembourg - non-EU resident individuals accepted at 50 EUR/Quarter fee (200 per year).
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Does ING LU accept remote opening for non-EU residents?
I actually couldn't find any product offer in their website aimed for residents outside BE LU FR and DE

 

[rowena]

Go with Interactive Brokers. No complaints for inactivity and 10 times cheaper than all of them and you will get interest for your cash.

 

[Martin Everson]

Suzy Emerald said:
I wonder if
Swissquote and Saxo bank are good just to park money <100k?
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For Saxo yes. However why you want to park money in a broker as opposed to a bank. Euro transfers are quick if needing to send funds to a broker quickly?

P.S Disclosure....I am a VIP customer at Saxo for ages.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[rowena]

Martin Everson said:
However why you want to park money in a broker?
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Why not ? You can use a good broker for parking your money like a bank.

 

[Martin Everson]

rowena said:
Why not ? You can use a good broker for parking your money like a bank.
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However if your money is already protected in a good bank why use a broker. You run risk (in EU) that in insolvency your assets can be used to pay of liquidators if their is a shortfall...thats why not.

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[rowena]

Martin Everson said:
However if your money is already protected in a good bank why use a broker. You run risk (in EU) that in insolvency your assets can be used to pay of liquidators if their is a shortfall...thats why not.
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Good brokers are safe as a bank maybe more. For example, if you use Interactive Brokers you will get SIPC insurance for your assets. You will get $250K insurance for your money and another $250K for your other assets. If you have more money you can use their "Insured Bank Deposit Sweep Program" for cash assets up to $2.5 million. Your money will be insured by FDIC.

 

[Martin Everson]

rowena said:
For example, if you use Interactive Brokers you will get SIPC insurance for your assets. You will get $250K insurance for your money and another $250K for your other assets. If you have more money you can use their "Insured Bank Deposit Sweep Program" for cash assets up to $2.5 million. Your money will be insured by FDIC.
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This is completely wrong.......lol. It all depends which entity of interactive brokers you use. EU entity of IB is in UK and UK FCA rules apply for compensation...lol. You may get to use IB USA coverage but not EU folk who use IB UK. This is where peoples lack basic knowledge sadly falls apart belieiving they have FDIC coverage when they don't.......lol 🙁

https://ibkr.info/node/2012
Do your research on brokers and compensation they offer properly.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[rowena]

Martin Everson said:
This is completely wrong.......lol. It all depends which entity of interactive brokers you use. EU entity of IB is in UK and UK FCA rules apply for compensation...lol. You may get to use IB USA coverage but not EU folk who use IB UK. This is where peoples lack basic knowledge sadly falls apart belieiving they have FDIC coverage when they don't.......lol 🙁

https://ibkr.info/node/2012
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Actually not correct. First of all you're talking about IB UK entity, not the US one. I have US entity account(I'm UAE resident). Even if you're European, you can still open US entity account with correct residency.

https://ibkr.info/article/1000

 

[Artemis Eleutheria]

Martin Everson said:
However if your money is already protected in a good bank why use a broker.
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IF!

 

[Martin Everson]

rowena said:
Actually not correct. First of all you're talking about IB UK entity, not the US one. I have US entity account(I'm UAE resident). Even if you're European, you can still open US entity account with correct residency.
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Did you not read what I said i.e "it all depends on which entity of interactive brokers you use". IB does not allow EU resident to open with US entity...ask them. Topic has been discussed before on forum see below 🙄. I am not trying to be rude just ensuring you understand what I wrote above is accurate. If your not EU then don't sweat.

https://www.offshorecorptalk.com/threads/opening-ib-us-account-from-eu.25388/#post-92047

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[rowena]

If you're an EU resident then of course they will not open US entity account but that's why I wrote "correct residency". You can open with non-eu residency even you're EU citizen and when you open US entity account your assets will be insured up to $2.5M as I described above. This is very good solution to store cash safely, other brokers including saxo does not offer that much insurance.

 

[Martin Everson]

For her needs i.e <100k eur saxo works well. Your covered at saxo for up to 100k and after all it is an EU bank with deposit protection. Any inactivity fees saxo may charge is another issue.

https://www.home.saxo/legal/protection-of-client-funds/protection-of-retail-client-funds

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[rowena]

I have a Swissquote account and I checked Saxo last week and almost bad as Swissquote.

I don't understand EU broker firms. They're just trying to rip off customers. If I deposit $1m to IB I will pay NOTHING to IB and I will get around $20k interest end of the year but If I deposit same amount cash to SQ or Saxo they will rip off me via hidden/inactivity fees and pay me $0 interest. Trading fees are another topic. Generally, they're charging 10-50 times higher commissions than IB.

 

[Martin Everson]

I wonder who is more loyal IB fans or Tesla fans? 😎

P.S I have an IB Friends & Family account also.

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[rowena]

I can be a fan of any company that provides a quality service. cig-:,

 

[Suzy Emerald]

Thanks @rowena @Martin Everson for your comments. Thing is that euro on my IB US account generate negative interest and are not covered by FDIC but only USD balalances. At e.g. Saxo I will get zero interest but can some Euro bonds or moneyfunds. Will buy stocks again when Trump makes the markets tank. Saxo etc so report under CRS I assume.

 

[Suzy Emerald]

And i prefer my money with a broker with deposit guarantee scheme than with an EMI. I am EU resident but living far outside EU so all broker and bank opening preferably remote, which Saxo and SQ can do .

 

[KJK]

rowena said:
Go with Interactive Brokers. No complaints for inactivity and 10 times cheaper than all of them and you will get interest for your cash.
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How does that work? I guess it applies only to USD balance (or other currencies?) and above some amount, right?

I remember they had something like $10k minimum balance to get started and then something with $100k regarding the interest.
Sorry, I'm too lazy to find it now / I'd prefer someone with direct experience to share it. 🙂

IB really seems pretty good, better than some banks (offering you mutual funds...) in some aspects and at a similar level of safety compared to banks. Then there's Degiro, Internaxx, Swissquote, Saxo... What's the deal with Swissquote, they look like some fancy Swiss bank but what are the advantages? Maybe you get your own account number compared to IB where you just have a trading account and compared to Degiro which isn't even allowed to hold your funds by law (so they hold them in cash funds through some strange structure).