Neon vs IBKR

[jez]

I've seen that neon has 0% fee for investment plans and there's no conversion fees since it's done at the BX Swiss (so no commissions). So would it be more interesting, for example, to invest in NASDAQ 100 each month via Neon and have theoretically no fees (except the stamp), or do it via IBKR ? The only "issue" I see is that you can't buy partial stocks via Neon but I don't think it's a massive problem.

 

[Baptiste Wicht]

Hi @jez

It will depend on how much you are planning to invest. For small to medium portfolios, these will be excellent conditions.

But for large conditions, it's not that good because of a few things:

1. You need to settle on the Global Stocks FTSE ETF from Invesco. It's not too bad, but it's already twice mor expensive than VT.
2. You cannot use a US ETF, which means losing 15% of US dividends (a cost of 1.5% * 60% * 15% = 0.135% extra yearly fee)
3. You pay the stamp duty (you won't with IB)
4. You will need to pay the fee when selling. 0.5% on a large or very large portfolio can be significant.

I did not do the math to see where the cutoff is, but mathematically, IB has many advantages. I am not saying that Neon investment plan is bad (far from it), but it's always a hard comparison with IB.