Started investing in ETFs with neon bank but thinking to switch to degiro or IBKR

[marymadeleine]

As the title suggest, I started investing modest amounts (below 400 Fr) on a monthly basis with neon invest almost a year ago because of the simplicity and relatively low fees (0.5% per transaction). My strategy is to focus on highly diversified world ETFs such as MSCI ASCII (TER 0.20%) and emerging markets (TER 0.18%) because I prefer a simple portfolio that ideally grows in the long-term. So I don't need over 1000 different ETFs if 2-3 are enough, but I'm aware that the VT ETF has a TER of 0.07%, and it's not available in neon.

However, I'm not sure if I should stay with neon now because I saw that many people here recommend using IBKR or degiro despite the fact that neon has relatively low fees. Would you still switch to one of these brokers, and would it make sense to transfer all my ETFs to the new broker? Are they still cheap alternatives if I decide to invest on a monthly basis?

Edit 1: 0.5% per transaction

 

[quant]

@marymadeleine neon will introduce automated monthly investments soon. Some ETFs bought this way will be free (no 0.5% commission), among those the Invesco FTSE All-World.

 

[marymadeleine]

@quant but the question is will the no comission ETFs stay this way forever?

 

[quant]

@marymadeleine Well, there's no way to know of course. But does it matter? Because you can still switch to another broker at any point in the future should the offer run out (and transfer the assets, no need to sell and re-buy them, or leave them at neon as there are no custody fees).

 

[marymadeleine]

@quant the asset transfer at neon is quite expensive, so I would probably keep them there or sell and re-buy

 

[quant]

@marymadeleine Depends on where you transfer to. E.g. Swissquote has promotions all the time where they give you transfer costs as trading fee credits.

 

[reveddie]

@quant where did you get this information? when will this be introduced?

 

[quant]

@reveddie From a newsletter they sent a month ago.

 

[reveddie]

@quant You mean this:
https://www.neon-free.ch/de/0-gebuehren-etfs?

«Das Angebot gilt bis zum Launch unseres Sparplans und die Handelsgebühren werden dir jeweils am nächsten Werktag nach Ausführung des Kaufs/Verkaufs auf dein neon-Konto rückerstattet.»

I cant find anything about a free savings plan.

 

[quant]

@reveddie As I said, they announced it in a newsletter, not on their website.

 

[reveddie]

@quant Ok thank you. Found it

 

[laynson]

@quant Their current 0% fee ETFs offer will end 31.03.24 according to their website (yesterday). No idea what they will do in the future.

 

[quant]

@laynson As I said, they will introduce an automated monthly investment feature, and shares of the Invesco FTSE All-World and Invesco MSCI World ESG bought through that will still cost 0% commission.

 

[onewayjesus]

@marymadeleine Relativ low fees?
I dont know, but it seems you have not done any kind of math….

Please go to VIAC, and use their calculator (its the one that came to my mind first) to see what differences fees can do to you.

Then come back here again and ask for a referral code for IBKR

 

[johng3624]

@onewayjesus Compared to most other services in Switzerland (backed by a Swiss licensed bank), 0 depot fees and 0.5% transaction fees are pretty good imho

 

[marymadeleine]

@onewayjesus couldn't find a calculator but I read (among other things) "the little book of common sense investing" by John Bogle and I'm aware what compound interest and fees can do to you . I just don't have the full overview if 0.5 % per transaction is a lot or not. Compared to ZKB or UBS it's relatively low I guess. But how does it behave on degiro or IBKR if you want to automize your investing as much as possible on monthly basis? I saw that the mustachian invests on quarterly basis to lower transaction costs but I would prefer on monthly because it spreads the risk more in my opinion

 

[onewayjesus]

@marymadeleine Mustachian does what fits his needs - its not a rule book to follow.

IF you transfer CHF to IBKR and purchase in USD, the conversion costs ca. 2 USD (depends of normal account or pro).

A purchase of stocks/ETFs is around 0.33 to 0.35 per purchase…so very low

When you purchase over 50k you have to switch how it is caculated because with bigger sums the other version is less fees.

Options etc. are obviously different.

You can literally check fees of IBKR with google

Now ask me for the referral code
We all know you will end up at IBKR

 

[littleangelic]

@marymadeleine Got any referral code for IBKR?

 

[gideonn]

@marymadeleine If you’re swiss, go with degiro.