What does investing cost?
Updated
by
Laurène
- Basic costs occur due to regulations and laws.
- Financial services typically have management fees.
- On top, you might also come across unwanted and hidden charges.
Have a look at the list below to learn the important difference.
1. Basic investment costs – taxes and rates
Stamp duty
0.075-0.15% per transaction
The stamp duty is a Swiss tax that is paid whenever buying and selling investments. It only occurs when you make trades.
Currency exchange rate
Per transaction
Buying and selling investments in other currencies always comes with a cost, just like when you exchange money when you’re abroad.
Spread costs
Per transaction
This is the difference in prices which can occur when buying and selling investment products.
2. Management/service fee
This is a fee you pay to somebody for managing your investments that can be a fund, your bank, an asset manager or your favourite financial assistant.
3. Typical extra charges
Watch out for these hidden costs when selecting your provider.
- Custody fee
a fee you pay to your bank for holding your investments
- Trading fees
fees for buying and selling investments
- Entry fee
a fee to buy into an investment e.g. a fund
- Exit fee
a fee to sell an investment e.g. a fund
- Strategy adjustment fees
A fee which is charged if your strategy needs to change because of a change in your financial life
- Swiss tax statement
Producing a tax statement can often add an additional fee
- Pillar 3a payment confirmation
Producing a pillar 3a payment confirmation can often add an additional fee
How does Selma keep the costs low?
Selma works on keeping your costs transparent and low by:
- Charging all necessary costs under one monthly management fee
- Managing your money automatically
- Negotiating better fees with partner banks on your behalf
- Trading in the most efficient way to keep transaction costs to a minimum
Learn more about Selma service fee here.
