Comment by koakuma-chan 4 days ago
My bank also charges a trade fee which I think is bullshit, but at least it's a major bank. It's like $10 so doesn't matter all that much, not sure how much it would be for Switzerland, but you could just buy the stocks in larger batches if trades are expensive.
Not sure how it's like over in EU, but in Canada, at this point, I assume all fin tech startups are scam. Neo financial and wealth simple are definitely fucking scam. Major banks may suck but at least you get what you pay for.
They require a paid subscription to use USD. They claim to have customer support, but the button isn't actually working, it does nothing. At least they respond by email. That's all I found so far, but I haven't actually made any trades yet.
$10 may not feel like much, but it's the proportional costs that you have to figure out.
If that's e.g. for a monthly $1000 investment, it means 1% of your savings is lost in fees each time. That'll be 1% that's not going into savings. If you end up with a million by some time, that small fee will have cost you 1% of that, which is $10k.
"It's just a cup of coffee" -> "that's a 10 000$ cup of coffee". But if you only save 200 a month, that 5% is 200k you've lost by the end.
One percent is often considered a reasonable cost ratio, but it's definitely worth considering what the real numbers are for a given option.
With the amount people usually trade $10 is a huge percentage. When you factor that in with the missed compound interest of that money you usually lose tens of thousands of dollars until retirement, likely more.
There is no need for a big bank here, in Europe. If one of those regulated companies goes bankrupt the etf is still yours and transferable to a different institution.
War in Europe is the remaining risk factor, but if that happens it won't matter anyway.