Whether stocks, bonds, or ETFs: Many Swiss people invest their money in securities. Depending on the provider, investing can be expensive, as an analysis by moneyland.ch shows. Choosing an affordable broker can save you a lot of money.

A growing number of Swiss people are investing their money in the stock market. In fact, over the long term, the returns on broadly diversified stock investments have historically outperformed those of more conservative investment options, such as savings accounts—although there is no guarantee of this, and losses are always possible. However, high investment fees can significantly reduce returns.

The online comparison service moneyland.ch has examined the fees charged by the major traditional banks and online brokers in Switzerland. As the analysis shows, the cost differences between providers are considerable. The study was based on three profiles: passive portfolio, occasional trader, and frequent trader. “Depending on individual usage, the actual fees may differ significantly from the profiles presented here,” notes Dan Urner, editor at moneyland.ch. It is therefore worth comparing trading providers based on your personal usage.

These provider fees make a difference

Most investment costs depend on the chosen trading provider. The most significant factors are transaction fees (brokerage commissions) when buying and selling securities, as well as regular custody and account maintenance fees. Exchange rate fees are also a factor. Some brokers charge separate exchange fees, though these tend to have only a minor impact. Regardless of the provider, stamp duties apply to every transaction.

The analysis takes into account any custody and base fees, as well as brokerage commissions and stamp duties for one year. It assumes a specific portfolio value and any transactions on various stock exchanges. Product costs for funds and ETFs are not included. The study assumes the use of online banking; therefore, any surcharges for phone orders are not taken into account, Urner summarizes.

Profile 1: These Providers Are the Most Cost-Effective for a Passive Portfolio

Not all investors actively buy and sell securities. For many, the sole purpose is to hold their securities in a custody account. For the “passive portfolio” profile, moneyland.ch assumes such an investor: they do not execute any transactions and simply hold their existing securities in a custody account. The account holds securities with a total value of approximately 45,000 Swiss francs.

The provider that charges no custody or base fees wins the cost comparison: Saxo Bank. Consequently, this profile incurs no costs at all, with the exception of any product-specific fees. Trade Direct (48.60 Swiss francs) and Postfinance (72 Swiss francs) follow in second and third place.

Profile 2: These Providers Are the Most Affordable for Occasional Traders

For the occasional trader profile, moneyland.ch assumes a portfolio value of around 45,000 Swiss francs and a total of twelve transactions per year.

Saxo Bank takes first place in the cost comparison here as well, by a fairly wide margin, with total fees and charges amounting to 68.30 francs. Cornèrtrader (245.35 francs) and Postfinance (345.45 francs) round out the top three.

Profile 3: These Providers Are the Most Affordable for Frequent Traders

For the frequent trader profile, moneyland.ch assumes a portfolio value of approximately 75,000 francs and 70 transactions per year.

Here, too, Saxo Bank clearly comes out on top. Its total costs amount to 748.20 francs. Cornèrtrader follows with 1,275.10 francs. Swissquote ranks third with 2,433.50 francs.

Smartphone Banks as an Alternative

Those who want to invest in stocks and ETFs can also turn to smartphone banks (neobanks) as an alternative. These offer attractive terms, especially for small investors. “For larger amounts, specialized online brokers may be more cost-effective. It’s also important to note that the range of securities and services is somewhat limited compared to traditional brokers,” explains Urner.

Those who prefer to manage their investments on a computer rather than on a smartphone are generally better off avoiding smartphone banks, as these platforms only provide access via an app. moneyland.ch has compiled further information on investing with smartphone banks in a specialized guide.