First Time Buying Shares

Hello,

I am thinking of buying shares for the first time in my life and I don’t know how to proceed. I did some research and I came across your website when looking for a broker to buy shares. I am interested in buying shares in a specific pharmaceutical company in Switzerland (Novartis) for US$ 10,000. How can I buy shares at Novartis?

Thank you

Hi there,

The easiest way to buy shares is using an online broker.

The main thing to consider when choosing a broker is whether you plan to hold your shares for a long time after you buy them (as a long-term investment), or whether you expect to sell them soon after buying them (as a short-term investment).

The reason for this is that the two main costs of buying and owning shares (aside from the cost of the shares themselves) are brokerage fees and custodial fees. You pay brokerage fees just once when you buy shares and once when you sell them. You pay custodial fees on a recurring basis for the entire time that you own the shares.

Some brokers have low brokerage fees but high custodial fees, making them more affordable for short-term investments. Other brokers may have higher brokerage fees but then charge lower custodial fees or none at all, making them more affordable over the long term.

You can compare the costs of using Swiss brokers based on your specific needs using the online trading comparison on moneyland.ch.

The brokerage fees charged by Swiss brokers can be somewhat higher than those charged by internationally operative brokers. Consider comparing the costs of Swiss brokers with those of other major online brokers. If you do not live in Switzerland, you may find it easier to open a brokerage account in your country of residence.

Make sure that the broker you use has access to the shares you want (Novartis shares on the SIX Swiss Exchange, in your case). Most major brokers will broker Novartis shares.

Best regards from Moneyguru

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