Hello
I want to do long-term investing and buy shares monthly. I made a brokers account recently (IBKR) and want to buy the S&P 500 ETF. I'm facing some questions regarding currency, since I'm Swiss and the ETF can be traded in several currencies (CHF, EUR, USD).
My plan was to do monthly payments from the bank into the brokers account and have a schedule that automatically buys the shares every month. However, the bank transfers cost 20 CHF unless I do it in EUR (SEPA transactions). This fee could add up quickly if I do recurrent payments over years, so I thought it's maybe better to transfer EUR and do all the trading in EUR? Do you see any issues with that? In which currency do other Swiss investors trade S&P500 ETFs?
My understanding is that since S&P 500 base currency is USD, I will anyway be subject to currency fluctuations and conversion rates when buying and selling shares. So maybe long-term it shouldn't matter much whether it is in EUR or CHF?
Thank you in advance for any feedback.
PS: First time posting here. The PoorSwiss articles and forum helped me a lot so far, thank you so much for that!
I want to do long-term investing and buy shares monthly. I made a brokers account recently (IBKR) and want to buy the S&P 500 ETF. I'm facing some questions regarding currency, since I'm Swiss and the ETF can be traded in several currencies (CHF, EUR, USD).
My plan was to do monthly payments from the bank into the brokers account and have a schedule that automatically buys the shares every month. However, the bank transfers cost 20 CHF unless I do it in EUR (SEPA transactions). This fee could add up quickly if I do recurrent payments over years, so I thought it's maybe better to transfer EUR and do all the trading in EUR? Do you see any issues with that? In which currency do other Swiss investors trade S&P500 ETFs?
My understanding is that since S&P 500 base currency is USD, I will anyway be subject to currency fluctuations and conversion rates when buying and selling shares. So maybe long-term it shouldn't matter much whether it is in EUR or CHF?
Thank you in advance for any feedback.
PS: First time posting here. The PoorSwiss articles and forum helped me a lot so far, thank you so much for that!