As a digital asset manager, we are often faced with the question with our clients of whether an existing securities portfolio should be transferred when switching to us or whether it would be better to sell it and transfer the cash. Of course, this mainly depends on the quality of the respective securities and also whether it is worthwhile in terms of costs for the value of the portfolio. However, many people are not aware that securities can be transferred at all.
This process, known as a securities transfer, can seem daunting, but it is actually a straightforward process that can be completed relatively quickly and easily.
In this article, you’ll learn how securities transfers between banks in Switzerland work, how much they usually cost, and what you should keep in mind.
Contents
What is a securities transfer?
A securities transfer is the process of transferring securities from one bank or broker to another. This can involve the transfer of stocks, bonds or other types of financial instruments. During the transfer, the ownership of the securities is updated so that they are in the name of the new owner at the new bank or broker.
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How does a securities transfer work?
The process of a securities transfer usually involves three steps:
- Initiation: the customer contacts the receiving bank or broker to initiate the transfer process. The customer must provide information about the securities to be transferred, including the name and number of securities, current custodian, and account numbers.
- Authorization: once the receiving bank or broker receives the transfer request, he/she contacts the current custodian and requests authorization to transfer the securities. The current custodian usually requires a written authorization from the client, which may need to be notarized.
- Transfer: once approval is received, the receiving bank or broker initiates the transfer of the securities. This may involve sending physical certificates or updating ownership records electronically. However, in today’s world, the latter is more likely to be the case.
How much does a securities transfer cost?
The cost of a securities transfer can depend on a number of factors, including the type of securities being transferred, the size of the transfer, and the fees charged by the banks or brokers involved.
In general, the cost of a securities transfer can range from a few hundred to several thousand Swiss francs. The costs are often charged per position to be transferred, which is why a portfolio with fewer positions is always cheaper than a portfolio with several positions, regardless of the number of securities. The costs are therefore proportional to the number of positions and not to the size of the portfolio, which is why it is generally only worth transferring several positions for larger portfolios.
What should you consider when transferring securities?
If you are considering a securities transfer, there are some important things to keep in mind:
- Timing: Transferring securities can take some time, so it’s important to plan ahead if you need to transfer your securities by a certain date.
- Cost: As mentioned earlier, the cost of transferring securities can vary widely. Make sure you know all the costs involved before you initiate a transfer.
- Risks: Although securities transfers are generally safe, there is always a risk that something will go wrong. Be sure to choose a reputable bank or broker to minimize the risk of problems.
Conclusion
In summary, securities transfers between banks in Switzerland are a common and straightforward process. While there are costs and risks involved, these can be minimized with careful planning and a little diligence.
If you are considering a securities transfer, be sure to do your research and choose a bank or broker that can provide the support and advice you need. And if you are looking for a digital asset manager to help you manage your investment portfolio, we are here for you!
