Custody Fees in Switzerland: Questions and Answers

Investing in stocks, bonds, and exchange-traded funds (ETFs) generates fees and charges. In this guide, moneyland.ch answers the most important questions about custody fees, and shows you how much you will have to cough up to keep your securities at different Swiss banks.

What are custody fees?

Alongside brokerage fees, custody fees are one of the most important costs to consider when investing in securities. Banks charge custody fees for the use of securities custody accounts. Custody fees are often charged on a quarterly basis. Most banks have fees that are based on a percentage of your account’s value, often with a fixed minimum fee above which the percentage-based fee applies. But there are also banks that have flat custody fees.

In exchange for these fees, the bank handles the administration of your securities, such as the collection of dividends.

How common are custody fees?

Custody fees are very widely used in Switzerland. Nearly all Swiss stockbrokers and conventional banks charge custody fees. Exceptions include Saxo Bank and the neobanks Neon and Yuh.

How high are the custody fees from Swiss banks?

There is no single answer to that question because custody fees can vary hugely depending on which bank you use and the value of your assets. Some banks use different custody fees for different categories of securities. For example, Raiffeisen charges higher custody fees for securities from certain countries – including the US – because they require more administration.

Holding assets worth 500,000 francs in a custody account can cost you as much as 1891.75 francs per year, or it can cost you little or nothing at all, depending on which bank you use. You can find an overview of custody fees from Swiss banks in the graph below.

Important: Custody fees are just part of the total cost of investing. In order to find the total costs, you also need to account for other fees – primarily brokerage fees. These costs also vary hugely between banks, and also depend on your personal investment needs. You should also account for possible fees charged by stock exchanges, currency exchange fees, and stamp taxes. The stamp tax is identical regardless of which Swiss bank you use. The interactive online trading comparison on moneyland.ch accounts for all of these costs, and makes it easy to find the right stockbroker for your needs. 

There are also fees that are not determined by the stockbroker, but by which kinds of investment vehicles you use. For example, investment funds like ETFs have their own fees, which are shown as the total expense ratio (TER). You pay these fees regardless of which stockbroker you use to invest in a certain fund. You can find more information in the detailed guide to the investment costs. 

How can I cut the cost of custody fees?

If you are paying high custody fees, it can be worth considering a change of banks. But you should not make a change based on custody fees alone, but should account for other costs like brokerage fees and currency exchange fees as well. The online trading comparison on moneyland.ch can help you find a more suitable stockbroker.

If you do decide to change banks, you should carefully calculate whether it is cheaper to transfer your securities or to sell them and re-buy them using your new bank. Many banks charge extremely high securities transfer fees for transferring your securities to a different bank. You can find detailed information in the guide to securities transfer fees.

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