Buying Stocks: How Much do Swiss Stockbrokers Charge?

A growing number of Swiss invest their money in the stock market. That is no surprise considering that the stock markets long term performance. While stock investments do not have guarantees against loss, over the long term they have consistently outperformed more conservative investment vehicles like savings accounts. But investors should pay attention to fees charged by stockbrokers, as these can substantially reduce your returns.

The only comparison service moneyland.ch analyzed the fees charged by the most important Swiss conventional banks and online trading platforms. The study reveals wide differences in costs between different stockbrokers. For the analysis, moneyland.ch calculated the costs for three different profiles: passive portfolio, occasional trader, and frequent trader. The profiles are explained in detail in the methodology box.

“It is important to understand that depending on how you invest, the actual fees can vary from those shown here,” remarks moneyland.ch editor Dan Urner. It is beneficial to compare stockbrokers based on your individual investment needs.

The most important costs to pay attention to

Most of the costs generated by investing are directly related to which stockbroker you use. The most important fees charged by stockbrokers are custody fees and brokerage fees for buying or selling assets, and recurring custody fees and account fees. The currency exchange fees are also worth paying attention to. Some stockbrokers pass on stock exchange fees to investors, but these are generally a relatively small cost. No matter which Swiss stockbroker you use, you will always be charged the government stamp duties for trades.

The moneyland.ch analysis accounts for custody and accounts fees, as well as brokerage fees and stamp duties, for a period of one year. The calculations are based on specific portfolio values, and on trades made on specific stock exchanges (refer to the methodology box). The analysis does not account for third-party costs such as the total expense ratios (TERs) of funds and structured products. The comparison is based on the fees that apply when all interaction is made through the online portal, and does not account for phone-based orders.  

Profile 1: The cheapest Swiss stockbrokers for a passive portfolio

Not all investors actively buy and sell securities. Many simply want to hold their existing portfolio. The passive portfolio profile does not account for any buy or sell trades, but only the fees applicable to holding an existing stock portfolio worth 45,000 francs. 

The leading stockbroker for this profile is Saxo Bank, which does not charge any custody fees or basic account fees. For the passive portfolio profile, Saxo Bank does not have any costs at all. The only possible costs are third-party fees, such as the total expense ratios charged by fund or structured product operators. The second and third places are taken by Trade Direct (48.60 francs) and Postfinance (72 francs).

Profile 2: The cheapest Swiss stockbrokers for occasional traders

The occasional trader profile assumes a portfolio worth around 45,000 francs, and a total of 12 trades per year.

Here too, Saxo Bank takes the first place by a wide margin, with costs of 68.30 francs. Next in line are Cornèrtrader (245.35 francs) and Postfinance (345.45 francs).

Profile 3: The cheapest Swiss stockbrokers for frequent traders

For the frequent trader profile, moneyland.ch assumes a portfolio worth around 75,000 francs, and a total of 70 trades per year.

Here too, Saxo Bank is the clear leader, with costs of 748.20 francs. It is followed by Cornèrtrader (245.35 francs) and Postfinance (345.45 francs) in second and third place.

Neobanks as an alternative

Some Swiss neobanks also provide stock and ETF investment services. These are particularly attractive for small investors, for whom they can be very affordable. “For larger investments, using a specialized stockbroker can cost less. It is also important to note that neobanks have more limited selections of securities and services,” explains Dan Urner.

Neobanks are also poorly suited for investors who prefer to trade on a desktop, as most of them only provide services through a mobile app. You can find more information in the moneyland.ch guide to investing with neobanks.