Neon Invest summary

An interesting stock account in Switzerland is Neon Invest. Here is the Neon Invest article summary.

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⚠️ My goal with this article is not to make propaganda for Neon Invest. In other words, the purpose of this article is to summarize the positive and negative aspects of Neon Invest.

Presentation of the stock market account

Neon Invest is an option of the Neon Bank Account. It is super convenient because it is a bank account and a stock account as well.

The goal of owning a stock market account with Neon Invest is to hold stock market securities in order to make financial investments, and to grow your money mainly with stock market securities.

I have already summarized the Neon bank account in the article The Neon Bank Account Summary. I wrote that at the time of writing this article, Neon is one of my favorite bank accounts because the commissions are decent!

In this article I will summarize only the trading aspect.

Types of possible investments

👉 Let's mention that I am mainly interested in stock returns and ETFs. !

Indeed, other investments will not be analyzed in this article.

In reality, Neon Invest allows you to invest in:

AND F
Stock market shares
Crypto

Registration

👉 Regarding registration, opening the account is simple and 100% digital. In reality, it takes around ten minutes and Neon requires few documents.

As a condition to register, you must:

Residing in Switzerland
Be at least 18 years old

Note that if you already have a Neon account, this step is not necessary.

Account types scholarship holders

As I write this. Neon has only one stock account available.

Neon Invest Commissions

⚠️ Each person is responsible for the financial consequences of their investments. Investing involves a risk of losing money.

Annual Commissions

Maintenance Fees & Inactivity Fees

Stock account maintenance fees	0 CHF
Inactivity fees & custody fees	0 CHF

👉 0 CHF per year to have an open stock market account. This is essential in a stock market account.

Account Commissions

Bank Transaction Fees

Entry of money into the Neon account (bank transfer)	0 CHF
Outflow of money from Neon account (bank withdrawal)	0 CHF

👉 In reality, Neon is a bank account and a trading account. Therefore, there is no need to transfer money from investments!

Bankruptcy guarantee and interest

Guarantee in the event of bank failure (liquidity)	100,000 CHF
Guarantee in the event of bank failure (stock market securities)	Transfer stock portfolio to another stock account
Negative interest on invested money	0 CHF
Negative interest money not invested	0 CHF

Neon Invest is linked to Bank Lenzburg. This guarantees the first CHF 100,000 in liquidity to the client in the event of Neon's bankruptcy. Like any traditional bank in Switzerland.

With Neon invest, there are no negative interests.

In the event of Neon Invest going bankrupt, the liquidity in the account is guaranteed up to CHF 100,000.

Regarding stock market securities, in the event of bankruptcy, they are transferable to another bank account.

Exchange rates and currencies

Ability to exchange currencies	Yes ✅
Exchange rate	0 %

👉 Neon Invest has no foreign currencies! In fact, you can only own money in the currency of your Neon bank account, that is to say in CHF.

In reality, when you buy a stock with a foreign currency, the money is converted automatically.

This is not a problem because the exchange rate when you buy a stock or ETF is 0%!

Choice of ETF's and stocks

ETF and stock selection

The essentials

Note that Neon Invest is new. In fact, it has only been open to the public since July 2023. As a result, the choice for trading is limited for the moment.

On the other hand, I think that the choice regarding stock market products is acceptable for a passive shareholder. In addition, the choice will expand over the years.

👉 So, the main stocks and ETFs are available.

US ETFs

US ETF Selection

No ✖️

Unfortunately, Neon Invest does not offer US ETFs. Therefore, investing in the US stock market is limited.

It's a shame because TER is generally better compared to Irish ETFs.

Purchase price of an ETF and share

👉 Stocks and ETFs have the same pricing. In addition, it's simple ! It comes down to:

ETF's and shares in CHF	0.50% + 0.075 % federal stamp
ETF's and stocks in a foreign currency	1% + 0.15 % federal stamp

Here are some examples of the (approximate) commission charged by Neon Invest.

Note that the result will depend on the exchange rate of the day!

1 Swiss ETF at 100 CHF	0.57 CHF
3 Swiss ETFs at 100 CHF	1.72 CHF
5 Swiss ETFs at 100 CHF	2.87 CHF
10 Swiss ETFs at 100 CHF	5.75 CHF
1 foreign currency ETF at 100 CHF	1.15 CHF
3 foreign currency ETFs at 100 CHF	3.45 CHF
5 foreign currency ETFs at 100 CHF	5.75 CHF

Commission-free ETFs ? 🧐

👉 A special feature of Neon Invest is some ETFs with 0% commissions!

This is not entirely true. In reality, the customer pays a discount on the normal price.

ETF's 0%

Stamp duty = 0.15%
Trading fees = minimum 1 CHF

Here is an example

ETF's 0% at 5 CHF purchase price

Stamp duty = 0.01 CHF
Trading fees = minimum 1 CHF
= 1.01 CHF

It's an interesting principle! Having ETF partners that allow a reduction in the purchase price! On the other hand, the choice is currently very limited.

Dividend commission

Dividend commission in CHF	0 CHF
Foreign Currency Dividend Commission	1.5%

A particularity of Neon, rather negative, It is the act of paying to receive a dividend in a foreign currency.

In fact, Neon's banking partner requests a commission of 1.5% for a dividend with a foreign currency.

In reality, this commission makes Neon Invest less attractive for those who prefer to receive foreign dividends.

Taxation

For a Swiss resident, each year, a document concerning the taxation of stock market investments is available on the application.

Important details for the investor are written. For example, portfolio management, dividends distributed, income tax or dividend tax.

Application functionality

The +

The application is easy to use

The application is complex against cyber attacks according to my knowledge

The commissions are well detailed

Good overview of stock market movements

Nice design

THE -

Not a lot of ETFs available

No possibility of paying for an ETF or share at a fixed rate

The application sometimes lacks stability

Customer service

👉 Customer service is very good.

In fact, I sent emails several times with my doubts. HAS On each occasion they responded to me within a few hours and their responses are always very detailed.

Summary

To conclude, here is my summary regarding the Neon Invest stock account.

Services	Commission
Inactivity Fees & Account Maintenance Fees	Free
Reimbursement limit in case of bankruptcy (liquidity)	100,000 CHF
Reimbursement of securities in the event of bankruptcy	Without limit
Commission Money Entry (payment)	Free
Cash Out Commission (Withdrawal)	Free
Access to stock exchanges	The main stock exchanges
Access to the US stock exchange	Actions -> Yes ETF's -> No
Access to the main stocks and ETFs	Limited choice
Exchange rate	0 %
Foreign ETF Commissions	1.15%
ETF's CH Commissions	0.575%
Equity commissions	CH shares = 0.575% Foreign shares = 1.15%
Stock market maintenance costs	Free
Dividend fees	Dividends CH = 0% Foreign dividends = 1.5%

Overall, the Neon Invest stock app is pretty good 😉

➡️ Regarding stock market fees, Neon Invest is interesting if you use it to buy or sell shares with small amounts. On the other hand, it can be expensive if you invest large amounts.

Plus, the customer service is very good!

My opinion

To conclude, Neon Invest is undoubtedly one of the cheapest brokers in Switzerland. Unfortunately, the choice of a good economic broker in Switzerland is not very wide.

For a passive investor looking to grow their money over the long term, a simple stock market investment with a few stocks or ETFs is a good option. Neon Invest is a good broker!

👉 Regarding small monthly amounts to invest. Neon Invest is a good broker because the commissions are low.

⚠ On the other hand, Neon Invest is still a bit expensive compared to IB or Degiro for large amounts. to invest.

Proposal

In my opinion, there will need to be a fixed or percentage commission at the client's choice. For example, for a purchase of a foreign stock, the commission would be a maximum of 2.50 CHF or 1% of the transaction?

This would allow the client to choose according to the amount to invest and compete with fixed-price stock market accounts such as Interactive Brokers or Degiro.

Neon Invest App Installation

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