Neon Invest: Brokerage Account Reviews and Fees. Let's analyze and compare pricing, investments, my opinion, and competing brokers.
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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.
Introduction
Is Neon Invest a good brokerage account for investing in Switzerland?
If you're looking for a simple way to invest in the stock market from Switzerland, you've probably already heard of Neon Invest.
The idea is interesting: to have one's own bank account and investment account in the same application.
But one important question remains:
Is Neon Invest really a good long-term investment?
In reality, the answer depends mainly on the amount you invest, the frequency of your purchases, and the products you wish to buy.
In this article, I will therefore examine Neon Invest from several angles:
- the costs
- ETFs and stocks available
- the simplicity of the application
- the main advantages and disadvantages
- and compare Neon versus Yuh, Saxo and Interactive Brokers.
⚠️ Important: This article is not an investment recommendation. Investing in the stock market carries a risk of capital loss. Fees can also change: always check the broker's current terms and conditions before opening an account.
Neon Invest: what exactly is it?
Neon Invest is the "investment" section of the Neon app. It allows you to manage everything in one place:
bank account → savings → investments
You can, in particular, invest in stocks and ETFs, directly from the application.
Neon Invest was launched in 2023 with the goal of making investing simpler and more accessible from a mobile application.
What investments can be made with Neon?
Neon Invest allows you to invest in, among other things:
- of the shares
- of the AND F
- certain other investment products offered in the application
In this article, I will mainly focus on to ETFs, because these are the products that interest me most for a long-term investment strategy.
Open a Neon Invest account
The account opening is digital and is done directly from the application.
If you already have a Neon account, the experience is particularly simple since the investment is integrated into your existing account.
To create a Neon account, use your smartphone. Note that registration takes approximately 15 minutes and requires your official documents.
Neon Invest fees
With Neon, pricing is relatively simple.
Childcare fees: CHF 0
Neon does not charge custody fees for investments.
This means you can keep your ETFs or shares without paying every year simply because you own them.
Inactivity Fees : 0 CHF
Neon does not charge any inactivity fees.
Bank transactions: Free
Since Neon is also a bank account, there are no fees for depositing or withdrawing money.
Exchange rate : Free
Neon does not increase prices with the exchange rate.
However, we will analyze ETF pricing next.
Commission on dividends : 1,5%
This is one of the main drawbacks of Neon Invest.
The dividends you receive are taxed at 1.5%. It's a shame, because some Swiss companies don't charge a fee for this service.
How much does a purchase with Neon cost?
Neon's current pricing is as follows:
| Invest | Neon Commission |
|---|---|
| Swiss ETF | 0,50 % |
| International ETF | 1% |
| Swiss ETF Federal Stamp | 0.075% |
| Federal Stamp International ETF | 0,15% |
| Minimum per transaction outside of investment plans | 1 CHF |
We conclude that the approximate commissions are:
- 0.575% for a Swiss ETF
- 1.15% for an international ETF
These are reasonable commissions, especially considering there's no markup based on the exchange rate. However, it's a high commission for large transactions. Let's look at some examples:
4 pricing examples
Let's consider four examples:
- Swiss ETF for 100 CHF
- Swiss ETF for 1,000 CHF
- Irish ETF for 100 CHF
- Irish ETF for 1,000 CHF
Here is the approximate commission that Neon's customer will pay:
- Swiss ETF for 100 CHF = approximately 1.05 CHF in fees
- Swiss ETF for 1,000 CHF = approximately 5.75 CHF in fees
- Irish ETF for 100 CHF = approximately 1 CHF in fees
- Irish ETF for 1,000 CHF = around 10 CHF in fees
We have reached some conclusions regarding pricing:
- ETFs under CHF 300 are economical
- International ETFs up to CHF 600 have very high fees.
- International ETFs with a value of over CHF 600 have very high fees.
ETFs at 0 %?
Neon also offers a investment plan with certain ETFs benefiting from 0 % trading fees.
Note: "0 % trading fees" does not mean "completely free investment". Some fees, such as stamp duty, are payable.
In truth, with this plan, if you invest every month in the same eligible ETF, you only pay a few cents.
Note that there are some interesting ETFs in this plan. For example, the S&P 500 Xtrackers or the Nasdaq 100 Xtrackers.
Why is this interesting?
Because you will only pay a few cents per month and in the long term, you will save hundreds of CHF in commissions, while earning thousands of CHF in compound interest.
Is the choice of ETFs sufficient?
Yes and no…
Neon currently offers a fairly simple selection of ETFs, but in my opinion, sufficient.
There are essential ETFs, even if the choice is limited.
However, the problem stems primarily from the absence of US ETFs.
American ETFs?
Neon does not currently offer the option to invest in US ETFs. This is unfortunate, as these ETFs have very low TER fees.
In my opinion, this is the major drawback of Neon Invest.
The Neon app: simple or complicated?
Neon's goal is clearly to make operations simple.
You don't need to know a multitude of order types or complex parameters to buy an ETF. Neon gets straight to the point.
That's what I particularly appreciate about Neon Invest, it's very essentialist with its application.
Client service
In my personal experience, this is a positive point of Neon.
I have contacted customer service several times with different questions and have generally received quick and detailed answers.
Of course, this is my personal experience and it does not guarantee that every customer will have exactly the same experience.
Neon's security and bankruptcy
This is a question that is sometimes forgotten when choosing a broker.
What happens if the broker goes bankrupt?
Two things need to be distinguished:
1. Your cash
Neon is linked to Hypothekarbank Lenzburg, a Swiss bank. Bank deposits are covered by the Swiss deposit guarantee scheme within the limits set by regulations.
In conclusion: Neon indicates protection up to 100,000 CHF per client for the cash in question.
2. Your stocks and ETFs (securities)
Neon applies the separation of titles.
In other words, the money from your investments with Neon Invest does not belong to the Neon company.
In the event of Neon's bankruptcy, your securities will be transferred to a broker of your choice. or converted into cash in your account a few months later.
Neon Invest: the summary
If I had to summarize Neon in a few points:
👍 What I like
- Simple application
- Bank account + investment in the same place
- No childcare fees
- Easy-to-understand pricing
- Beginner-friendly
- Opportunity to invest regularly
- Investment plans with certain ETFs at 0 % trading fees
- Account suitable for small amounts
👎 What I like less
- Fees can become significant on large orders.
- No option to invest in a US ETF
- Commission on dividends received
Neon, Yuh, Saxo or Interactive Brokers?
There is no «"best broker" across the board Among these 4 brokers, the best choice depends on your profile.
Here's how I would compare them.
| Neon Invest | Yuh | Sax | Interactive Brokers | |
|---|---|---|---|---|
| Philosophy | Simple and integrated with the bank account | Simple and mobile | Full broker | Very comprehensive broker |
| AND F Swiss and Irish | ✅ Yes | ✅ Yes | ✅ Very wide selection | ✅ Very wide selection |
| American ETF | No | No | Yes | Yes |
| Childcare fees | 0 CHF | 0 CHF | 0 CHF | 0 CHF |
| Small investment | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐ |
| Large investment | ⭐⭐ | ⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
| Simplicity | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐ |
| Product selection | ⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
| ETF savings plans | ✅ | ✅ | ✅ | Depending on the instruments/configuration |
| Beginner investor | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐ |
| Experienced investor | ⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
Note: This table is intentionally simplified.
My opinion on Neon Invest
I think Neon Invest is a very good broker for beginners and small investors.
If you invest every month from the list of no-fee ETFs, it's an excellent option, even for large investors.
I think the app's simplicity is a major advantage. I like simple interfaces with few charts to analyze, and Neon Invest is very simple.
However, I find that the lack of choice of the main US ETFs is a major drawback of Neon, as the TER is cheaper.
Furthermore, the dividend commission of 1.5% is not negligible. This is also a negative aspect of Neon Invest.
See Neon Invest's current rates
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FAQ: Neon Invest: Reviews and Fees for the Stock Market Account
What are Neon Invest's actual fees?
Neon Invest stands out for its total transparency : 0 CHF childcare fees, 0 CHF commission on ETFs (limited selection), and 0 CHF inactivity fee. In practical terms, you don't pay that the scholarship fees (included in the spread) and Neon's fees.
Is it really possible to invest with just 1 CHF on Neon Invest?
Yes indeed! Neon Invest allows you to buy ETF fractions, which means you can start with 1 CHF (or even less). Note that this is ideal for beginners or those who want to test passive investing without risk.
Is Neon Invest suitable for passive investors?
Absolutely. Neon Invest is specially designed For passive investors: No-fee ETF, Automatic DCA (regular investment), and a ultra-simple interface. Indeed, it is one of the best solutions for a long-term ETF portfolio in Switzerland.
Which ETFs are available without fees on Neon Invest?
Neon Invest offers a commission-free ETF selection, notably :
- iShares Core MSCI World (SWDA)
- Vanguard FTSE All-World (VWCE)
- Lyxor MSCI EM (EMIM)
In concrete terms, these ETFs cover global markets with ultra-low operating costs (TER) (0.10% to 0.20%).
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Neon Invest: Reviews and Fees for the Stock Market Account
Neon Invest: Reviews and Fees for the Stock Market Account
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