Usd gets you almost 2% interest on free cash if you have at least 100K NAV. Euro etc have a negative interest (eur -0.8% or so)
Swissquote vs. Saxo for keeping money
- Thread starter Suzy Emerald
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Yes, they have min balance requirements. You can find︃ the details from their website.
The most important difference IB is USA based broker. Swissquote,︄ Saxo, Degiro etc are EU.
IB will not issue own account number to customers. You︅ need to deposit their bank account but you can put your money and enjoy the︆ interest you earn. No need to invest or trade. IB is the biggest broker company︇ in the world.
Yes, they have min balance requirements. You can find︃ the details from their website.
The most important difference IB is USA based broker. Swissquote,︄ Saxo, Degiro etc are EU.
IB will not issue own account number to customers. You︅ need to deposit their bank account but you can put your money and enjoy the︆ interest you earn. No need to invest or trade. IB is the biggest broker company︇ in the world.
interesting topic. These brokers can compete with EMI's / banks. When it comes to holding funds. IB even now can issue a debit card and pays as mentioned 2% interest on idle cash. NOTE: FDIC insures 250k USD (no other currencies) but cash above 250K can be distributed over multiple banks. So if you have 800K, its just broken up in slices of 250K and all you money is insured..... in theory. I have still my doubts on the FDIC reserves available when the s**t really hits the fan.
Banks in EU can't overtly advertise any degree of openness to non-EU residents as it will only cause problems. Nasty commies will be at their throat if the percentage of non-resident account exceeds ~25% of all accounts. Fines aimed at big financial institutions are the new form of taxation to make up for the shortfall in states' coffers.
If you check their Price List for Individuals, you will see that 50EUR/Quarter︀ fee specifically applied to non-EU residents. This will answer your question.
If you check their Price List for Individuals, you will see that 50EUR/Quarter︀ fee specifically applied to non-EU residents. This will answer your question.
In my opinion SQ is much better than Saxo for keeping balance. With SQ I have never had inactivity charges and with own multi currency IBAN (USD, EUR, CHF) for banking operations.
Saxo can only be received and sent to or from own bank accounts and there are inactivity charges.
Another broker in Switzerland that has no inactivity charges is strateo.ch but without personal IBAN.
Saxo can only be received and sent to or from own bank accounts and there are inactivity charges.
Another broker in Switzerland that has no inactivity charges is strateo.ch but without personal IBAN.
Some Feedback:
I used Degiro but ended relationship with them last year after too many failing in their handling of interest payments and withholding taxes not to mention my move out of EU. They also︀ use Deutsche Bank to receive hold funds before moving euro balances to JPM's AAA rate︁ liquidity fund as they can't hold cash funds as you mentioned. If you transfer in︂ i.e 50k they freak out. They are little man broker. You don't get a dedicated︃ iban account either.
Internaxx is Swissquote and you do get dedicated iban account in multiple︄ currencies. I used it for low cost back to back loans when arranging my affairs.︅ You can't trade bonds with them so not exciting to use but a useful broker︆ in AAA country.
One of the best and cheapest European brokers I use because of︇ their off exchange trading plus low cost is flatex.de in Germany. They offer dedicated iban︈ in EUR and GBP and USD. However you need to be ideally proficient in German︉ (which I am). Their bond trading is 200 x cheaper than IB and securities trading︊ way cheaper than IB due to use of dark pools aka OTC securities trading with︋ liquidity provided by UBS, GS, DB, HSBC, BNP. They also offer a low cost flat︌ fee charged trumping IB by a large margin.
There are so many brokers I use︍ (12+) I see a world beyond IB smi(&%. However I still like IB for the︎ desktop platform that is the best in the industry.
I used Degiro but ended relationship with them last year after too many failing in their handling of interest payments and withholding taxes not to mention my move out of EU. They also︀ use Deutsche Bank to receive hold funds before moving euro balances to JPM's AAA rate︁ liquidity fund as they can't hold cash funds as you mentioned. If you transfer in︂ i.e 50k they freak out. They are little man broker. You don't get a dedicated︃ iban account either.
Internaxx is Swissquote and you do get dedicated iban account in multiple︄ currencies. I used it for low cost back to back loans when arranging my affairs.︅ You can't trade bonds with them so not exciting to use but a useful broker︆ in AAA country.
One of the best and cheapest European brokers I use because of︇ their off exchange trading plus low cost is flatex.de in Germany. They offer dedicated iban︈ in EUR and GBP and USD. However you need to be ideally proficient in German︉ (which I am). Their bond trading is 200 x cheaper than IB and securities trading︊ way cheaper than IB due to use of dark pools aka OTC securities trading with︋ liquidity provided by UBS, GS, DB, HSBC, BNP. They also offer a low cost flat︌ fee charged trumping IB by a large margin.
There are so many brokers I use︍ (12+) I see a world beyond IB smi(&%. However I still like IB for the︎ desktop platform that is the best in the industry.
I am in the process of opening a bank account with Dukascopy justfyi. It is covered by the Swiss bank deposit insurace, has Swiss bank license, fees can be workarounded or are small imo, they do remote, haven't read any horror stories in the web, they told me they are happy with idle cash... My 2cts
Dukascopy brings back memories..small world. Another Russian founded broker who obtained a Swiss passport. I remember the CEO's wife approached me on email to an advert I put out for a bank for sale. This was back when Switzerland insisted all Forex brokers must obtain a banking license to continue offering forex services in Switzerland. I had never heard of their company at that point and never took them seriously. It's good however to see they managed to survive the crisis that at the time all brokers in Switzerland went through.
https://www.financemagnates.com/for...ofit-in-h1-2019-but-revenues-remain-flat-yoy/
https://www.financemagnates.com/for...ofit-in-h1-2019-but-revenues-remain-flat-yoy/
Unfortunately, for europeans lots of bonds (i.e. US corporate bonds) are restricted now with Flatex. Thus, I use mainly IB for bonds picking. I have Swissquote, Saxo, Tradestation aswell.
Always for bonds (but never used): there are Oblis.be (not cheap), Cornertrader/Corner Bank and obviously private banks.
Always for bonds (but never used): there are Oblis.be (not cheap), Cornertrader/Corner Bank and obviously private banks.
Thanks didn't know that as I never buy anything US due to inheritance tax on US assets.
btw US interest rates are heading to zero which will drive US stock market into an even bigger bubble. I looked at my old brokerage account I used to hold assets in i.e medirect and saw their fixed term deposit rates have reduced and now inverted on USD eek¤%&. You get a higher deposit rate on 1 year fixed than 5 year fixed. The USD rate on 3-5︀ year is also less than EUR rate even eek¤%&. Crazy times.
https://www.medirect.com.mt/save/fixed-term-deposit
P.S Now ECB︁ deposit rate has gone even more negative i.e moved from -0.40% to -0.50% from Sept︂ 18th I am sitting pretty with my 30 year treasury eurobonds 😎. Stay safe out︃ there and if your into US stocks ride the bubble which will be stimulated by︄ further treasury rates cuts but get out when hedge funds start to dump shares. Passive︅ hedge funds hold like 60% of the entire US stock market I think.....lol.
btw US interest rates are heading to zero which will drive US stock market into an even bigger bubble. I looked at my old brokerage account I used to hold assets in i.e medirect and saw their fixed term deposit rates have reduced and now inverted on USD eek¤%&. You get a higher deposit rate on 1 year fixed than 5 year fixed. The USD rate on 3-5︀ year is also less than EUR rate even eek¤%&. Crazy times.
https://www.medirect.com.mt/save/fixed-term-deposit
P.S Now ECB︁ deposit rate has gone even more negative i.e moved from -0.40% to -0.50% from Sept︂ 18th I am sitting pretty with my 30 year treasury eurobonds 😎. Stay safe out︃ there and if your into US stocks ride the bubble which will be stimulated by︄ further treasury rates cuts but get out when hedge funds start to dump shares. Passive︅ hedge funds hold like 60% of the entire US stock market I think.....lol.
Currently it's not easy indeed to invest without important risk. Bond rates are so low, especially in Europe. I have a very conservative diversified portfolio (stocks, bonds, REIT, gold) with a big portion of cash if there is a crash in the next coming years.
Holding cash like instruments is the way. Right now everything is overvalued, stocks, bonds and REIT etc. I don't see any asset class that offers value right now. Saying that the US market will continue to rise if the Fed continues to cut rates next week and continues along that line smi(&%
Agree, right now hold cash or put it in a moneyfund or maybe ultrashort bond fund. IB still pays 1.9% on idle USD balance.
Welcome to the new world. I think the EU will die of overregulation, subsidies and stupidity. It is similar with American ETFs, until last year you were allowed to buy an ETF, now there is a new stupid regulation that requires ETF issuer to provide a "KIID" document localized into the language of the client to inform him about the risks of the fund. Let me show how retarded this is:︀
What exactly are "passive hedge funds"? Did you mean to say passive index funds/ETFs? I imagine hedge fund like "clever" guys doing stockpicking, options, shorting, leveraging - doing all this and trying to beat the market while taking the standard "2+20%" commission.
Passive funds on the other hands I imagine like an average guy opening a Robinhood account and putting it all into VTSAX or even worse SPY.
I don't know how a "passive hedge fund" would work.
It may be true but there were people︃ saying exactly this ("everything is overvalued") 4 years ago. If they stayed out of the︄ market, they missed at least 50% gains. The problem is that there is too much︅ cheap money in the economy (both euros and dollars), so logically people put it into︆ real estate (via REIT), stocks (via ETFs), if you are desperate you put it into︇ bonds.
Is that going to change in the near future? Is there any good reason︈ why more money would STOP flowing into stocks? If you have zero or negative interest︉ on your bank account, that may motivate people to actually put MORE money into an︊ index fund.
In my opinion having 100% cash would be stupid. I'm not saying there︋ isn't an "everything bubble" but it may go on for longer than you think, Trump︌ getting reelected may have big impact on it.
Many things are overvalued (S&P500, Nasdaq...) but︍ staying out of the market sounds boring.
I'm thinking of dividing some free cash into:︎
- low volatility world ETF
- Bitcoin
- physical gold and gold miners stock
- US treasuries if there is nothing better
- there are 24 official languages in EU, the ETF issuer would have to create a︁ document for each fund and then translate it so hundreds of new PDFs
- this fucking︂ information is publicly available on hundreds of websites, go to etf.com or morningstar.com or finance.yahoo.com︃ and you will find 10x more detailed information about any ETF you want, much better︄ presented and more info than in this KIID document
- this regulation is supposed to "protect"︅ retail customers from investing into "highly speculative" instruments such as ETF which is nice because︆ an index ETF with 0.1% fee may be just ideal for a customer but that︇ is banned. On the other hand, a shitty local fund with 3% entry fee and︈ 2% TIR yearly fee is allowed to be sold and it doesn't even need and︉ "KIID" document at all because it is distributed through a "financial advisor" (read as salesman).︊
What exactly are "passive hedge funds"? Did you mean to say passive index funds/ETFs? I imagine hedge fund like "clever" guys doing stockpicking, options, shorting, leveraging - doing all this and trying to beat the market while taking the standard "2+20%" commission.
Passive funds on the other hands I imagine like an average guy opening a Robinhood account and putting it all into VTSAX or even worse SPY.
I don't know how a "passive hedge fund" would work.
It may be true but there were people︃ saying exactly this ("everything is overvalued") 4 years ago. If they stayed out of the︄ market, they missed at least 50% gains. The problem is that there is too much︅ cheap money in the economy (both euros and dollars), so logically people put it into︆ real estate (via REIT), stocks (via ETFs), if you are desperate you put it into︇ bonds.
Is that going to change in the near future? Is there any good reason︈ why more money would STOP flowing into stocks? If you have zero or negative interest︉ on your bank account, that may motivate people to actually put MORE money into an︊ index fund.
In my opinion having 100% cash would be stupid. I'm not saying there︋ isn't an "everything bubble" but it may go on for longer than you think, Trump︌ getting reelected may have big impact on it.
Many things are overvalued (S&P500, Nasdaq...) but︍ staying out of the market sounds boring.
I'm thinking of dividing some free cash into:︎
- low volatility world ETF
- Bitcoin
- physical gold and gold miners stock
- US treasuries if there is nothing better
Thats the EU PRIIPs regulation that affects only retail investors. Luckily I am not one. I discussed it in this thread below back in March
https://www.offshorecorptalk.com/threads/opening-ib-us-account-from-eu.25388/post-92085
Sorry....passive funds.
You mean︁ the stupid people do this. If you have small capital to risk then take the︂ leap but if you have big capital to deploy do not. 99% of people who︃ buy an ETF have never ever read the typical 100-300 page prospectus that comes with︄ it. Most don't even know it exists when they are buying an ETF. KIID is︅ no replacement for reading the prospectus and I agree is no basis for making an︆ informed investment decision. I read the prospectus for every ETF I was interested in and︇ walked away from them all i.e SPDR S&P500 ETF....lol.
https://us.spdrs.com/public/SPDR_500 TRUST_PROSPECTUS.pdf
Hold cash and cash︈ like instruments for me is the most sensible way to go in an overpriced market︉ where valuations are at all time highs. I won't risk big capital on speculating. You︊ have certainty with AAA treasury bonds and cash but with equities your simply speculating in︋ where you think the stock price might go. The market seems to agree with that︌ with yields on most AAA turning negative globally. I would rather know I am loosing︍ 0.5% a year on a bond than buy equities and lose 30-50% and thats how︎ the market is seeing it right now.
I discussed last year how Warren Buffett stock️ piles cash ($90bn) in Berkshire Hathaway in the form of US treasuries. When there is nothing to priced right to buy and you need safety then treasuries are the way to go if your in dollars. Forget buying into a bubble for the sake of buying into it and trying to beat inflation...lol. Patience is a virtue especially in investing. A market correction is ugly as hell on your finances.
https://www.offshorecorptalk.com/threads/fscs-depositor-compensation-schemes.24550/post-84732
https://www.offshorecorptalk.com/threads/opening-ib-us-account-from-eu.25388/post-92085
Sorry....passive funds.
You mean︁ the stupid people do this. If you have small capital to risk then take the︂ leap but if you have big capital to deploy do not. 99% of people who︃ buy an ETF have never ever read the typical 100-300 page prospectus that comes with︄ it. Most don't even know it exists when they are buying an ETF. KIID is︅ no replacement for reading the prospectus and I agree is no basis for making an︆ informed investment decision. I read the prospectus for every ETF I was interested in and︇ walked away from them all i.e SPDR S&P500 ETF....lol.
https://us.spdrs.com/public/SPDR_500 TRUST_PROSPECTUS.pdf
Hold cash and cash︈ like instruments for me is the most sensible way to go in an overpriced market︉ where valuations are at all time highs. I won't risk big capital on speculating. You︊ have certainty with AAA treasury bonds and cash but with equities your simply speculating in︋ where you think the stock price might go. The market seems to agree with that︌ with yields on most AAA turning negative globally. I would rather know I am loosing︍ 0.5% a year on a bond than buy equities and lose 30-50% and thats how︎ the market is seeing it right now.
I discussed last year how Warren Buffett stock️ piles cash ($90bn) in Berkshire Hathaway in the form of US treasuries. When there is nothing to priced right to buy and you need safety then treasuries are the way to go if your in dollars. Forget buying into a bubble for the sake of buying into it and trying to beat inflation...lol. Patience is a virtue especially in investing. A market correction is ugly as hell on your finances.
https://www.offshorecorptalk.com/threads/fscs-depositor-compensation-schemes.24550/post-84732
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