Why invest from Switzerland
Switzerland offers favourable conditions:
- Capital gains exempt for private individuals (vs 30%+ in France/EU)
- No capital gains tax (except professional trading)
- Wide broker choice Swiss and international
- Monetary stability (CHF is a safe-haven currency)
Swiss brokers
Swissquote
- Swiss leader, CHF 9–20 per order by platform and size
- Multi-currency account, broad product range
- Very complete mobile app
- Custody fees: CHF 0–50/yr by volume
- Ideal for: active investors and larger portfolios
PostFinance e-trading
- Fees CHF 15–40 per order by market
- More expensive but simple if you already bank with PostFinance
- Free account with PostFinance current
Saxo Bank Switzerland
- Multi-asset (stocks, ETFs, options, FX, futures)
- Fees CHF 5–15 per order by plan
- Excellent platform for experienced traders
International brokers (Swiss IBAN possible)
Interactive Brokers (IBKR)
- Cheapest: CHF 1–4 per order, currency conversion at marginal cost
- Wide global market choice
- Complex interface for beginners
- Inactivity fees dropped since 2021
- Ideal for: active investors with bigger portfolios
Degiro (pre-2024) / Trade Republic (since 2024)
- Not ideal in Switzerland (residents prefer IBKR or Swissquote)
Neobanks offering investing
Yuh (Swissquote + PostFinance)
- Modern app, ETF investment from CHF 25
- Fee: 0.5% of amount invested
- Multi-currency, easy to use
- Ideal for beginners
Neon Invest
- Global ETFs, from CHF 0
- 0.5% fee
- Very simple mobile app
Frankly, VIAC (for pillar 3a)
- 3a ETF investing, low fees
- Not for free investing but excellent for retirement saving
ETFs: the recommended base
Why ETFs
- Automatic diversification
- Low fees (0.05–0.30% per year)
- Performance: ~7% per year on average over 30 yrs for World ETF
- Simplicity: buy in a few clicks
Popular ETFs
- iShares Core MSCI World (IWDA / IWRD): developed markets, 0.20% fee
- Vanguard FTSE All-World (VWCE): whole world incl emerging, 0.22% fee
- iShares Core S&P 500 (CSPX): US stocks, 0.07% fee
- Vanguard FTSE Developed World (VWRL): alternative, 0.22% fee
- iShares MSCI Switzerland (CSSMI): Swiss stocks, 0.35% fee
Simple strategy
- 80% World ETF + 20% Switzerland: for Swiss residents
- DCA (Dollar Cost Averaging): invest a fixed amount monthly
- Long term: minimum 10 yrs to reduce risk
Swiss investment taxation
Private individual
- Capital gains: exempt (huge Swiss advantage!)
- Dividends and interest: taxed as ordinary income (20–40% marginal)
- Wealth: taxed (0.1–1% by canton)
- Withholding tax: 35% withheld on Swiss dividends, recoverable in tax return
Professional trader (status to avoid)
- Very active trading can be requalified by the authority
- Criteria: volume, frequency, leverage, economic dependence
- Consequences: gains taxed as income (20–40%)
Tips
- Start small: open Yuh or Swissquote with CHF 1,000–5,000
- Invest regularly: monthly DCA, automated if possible
- World ETF as base: 80% of portfolio in MSCI World or FTSE All-World
- Don't trade actively: risk of loss, unfavourable tax
- Cash reserve: 3–6 months of expenses on current account before investing the rest
- Diversify: stocks + bonds by age (simple rule: age in % = bonds)
- 10+ year horizon: only invest money you don't need within 10 yrs
