How to Find the Right Stockbroker

Many Swiss banks offer stockbrokerage services that you can use to invest in stocks, exchange-traded funds (ETFs), bonds, and other products. Financial service providers that specialize in trading are often referred to as stockbrokers. Nearly all Swiss banks offer stock brokerage, though many use technology provided by specialized stockbrokers.

You can use a stock brokerage account to buy, hold, and sell securities.

With so many different stock brokerage accounts available, keeping an overview can be difficult. This moneyland.ch checklist shows you what to look at when choosing a stockbroker. Important: The order in which points are listed may not reflect the importance of individual points in your specific situation. The importance of each criterion can vary based on your personal priorities.

1. Does the stockbroker have the asset classes I want to invest in?

In order to find out which stockbroker is the right match, you first have to know what you want to invest in. That, in turn, depends largely on your personal investment goals.

Not all asset classes and products are offered by all stockbrokers. Less widely-used asset classes like forex are only offered by a few banks. On the other hand, investment vehicles like stocks, ETFs, and bonds are offered by most stockbrokers. You can filter Swiss stock brokerage accounts based on the asset classes offered using the interactive online trading comparison on moneyland.ch. That enables you to get an overview of which platforms offer the asset classes you need.

2. Does the broker offer the specific securities you want to invest in?

Some stockbrokers let you search for specific stocks, bonds, ETFs, and other securities on their website. If you already know exactly which company, ETF, or other security you want to invest in, find out which stockbrokers offer that security using its ISIN. Some banks let you search for securities on their websites. If that is not possible, contact the bank and ask, or open a demo account.

3. How high are the fees for your investment needs?

This point is absolutely key because the success of your investments largely depends on the fees you have to pay. Differences between individual stockbrokers are huge, so comparing is worth it.

Make sure to compare the total costs for your investment activities, including both stock brokerage fees and custody fees. Tip: The interactive stockbroker comparison on moneyland.ch lets you compare based on your specific needs. You can either choose one of the default profiles, or create a custom profile.

4. How secure is the stockbroker?

When choosing a stockbroker, you should pay attention to how your money and securities are secured. All of the stockbrokers included in the online trading comparison on moneyland.ch hold bank licenses from Swiss financial markets supervisory authority Finma.

You should exercise exceptional caution when considering foreign stockbrokers. Take a close look at the broker’s reputation, which country it is headquartered in, and which supervisory authority oversees it. As a general rule, you should only consider using foreign stockbrokers if you are an experienced investor. You can find more information in the moneyland.ch guide to foreign stockbrokers for Swiss investors.

You can learn if and how your wealth held at Swiss banks is protected from the risk of bank insolvencies in the guide to Swiss bank depositor protection.

5. Is the online platform user-friendly?

Fees are not the only thing to consider when choosing a stockbroker. How usable and clear the broker’s online trading platform is can also have a big impact on your investment experience. Some stockbrokers let you create free demo accounts to try out their platforms. Be aware that demo accounts are simulations, and you cannot use them to buy and sell real assets.

Among others, these Swiss stock brokers let you open demo accounts free of charge:

• Cornèrtrader
• Saxo Bank Schweiz
• Swissquote

If you tend to use your phone for trading, then you should try out the broker’s mobile app as well.

6. Which kinds of orders does the stockbroker offer?

Which broker would work best for you also depends on which kinds of stock orders are available. All stockbrokers offer market order, and limit orders are also widely offered. But more specialized order types (like if-done orders) may only be offered by a handful of brokers. Tip: You can filter stock brokerage accounts based on the kind of orders they offer using the online trading comparison on moneyland.ch. Only brokers that include the order types you specify will be included in comparison results.

7. Which trading software can I use?

Which software you can use for trading has a big influence on quality and usability. Some Swiss trading platforms are compatible with external analysis tools. If there is a specific trading program that you prefer to use, then you should check whether that software can be linked to the stock brokerage account you are considering. Metatrader is one example of external software that is widely used in trading – particularly for forex trading.

8. Which stock exchanges can you trade on?

Not all stockbrokers have access to all stock exchanges. Smaller or more specialized exchanges (the Athens Stock Exchange in Greece, for example) are only accessible through some brokers. If you want to trade on specific exchanges, it is worth filtering brokers based on which exchanges they offer. You can do that in the online trading comparison on moneyland.ch.

9. Does the stockbroker offer other features and services?

Many investors value supplemental features offered by some stockbrokers. Alerts that inform you about price developments or important events in real-time are one example. Some stockbrokers also offer many other supplemental services. Some stockbrokers offer complimentary consultation and free seminars. Some give you the option of also placing orders over the phone, though you may pay an additional fee.

You can filter the results of the interactive online trading comparison on moneyland.ch based on the supplemental features and services you need. Only brokers that offer the specified features and services appear in the comparison.

More on this topic:
Compare Swiss stockbrokers now
How to invest money in Switzerland
Checklist for choosing the right stocks
Checklist for choosing the right ETFs