What does investing cost?

Updated 5 months ago by Patrik Schaer

Investing always comes with costs – no matter which provider you choose. 
  • 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. 

As a Selma client, you automatically receive great currency exchange rates via Selma’s partner bank.

Spread costs

Per transaction 

This is the difference in prices which can occur when buying and selling investment products. 

With Selma, you might encounter this minor cost mainly when turning the “sustainability preference” on. To change your preference, Selma has to sell some products to then buy new ones.

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.

💡 Take a stern look at management fees above 1% per year. High management fees can eat up your profits over the years.

3. Typical extra charges

Watch out for these hidden costs when selecting your provider. 

At Selma, your investments are handled for one monthly fee + product costs. There are no extra service chargers.

  • 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


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