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Buying shares in Switzerland: A short guide for 2025
Switzerland offers particularly favourable conditions for buying shares. According to the Swiss National Bank (SNB), around 239 banks with a total of 2,400 to 2,500 branches operated in Switzerland in 2022. This diversity is also reflected in a broad range of investment apps, online brokers, and fintech firms that facilitate market access for private investors.
Investing in shares typically serves objectives such as wealth accumulation, diversification, and leveraging long-term opportunities in financial markets. However, it is advisable not to jump in blindly: time, commitment, and a minimum level of experience are essential. This guide provides an overview of key principles, platforms, and tips to help beginners make informed decisions.
The basics: how and where to buy shares in Switzerland?
Opening an account or securities deposit with a bank, broker, or fintech firm is the first step. Afterwards, you have several options for investing in shares. Depending on your level of preparation and the support you require, there are three main approaches:
1. Self-directed investing
With a securities account, you can buy and sell stocks independently, maintaining full control over your investment strategy.
Advantages: maximum freedom, self-paced management, potentially lower overall costs.
Risks: time-consuming, requires sound financial knowledge, no professional advice.
2. Guided investing
You can invest with professional support, either through personal advisory services or digital solutions such as robo-advisors and ETF savings plans. This allows you to retain control while benefiting from expert recommendations.
Advantages: professional advice, avoids common beginner mistakes, significant time savings.
Risks: higher fees, potentially limited product selection.
3. Wealth management
You can also delegate your investment decisions entirely to a professional wealth manager, either through a traditional or digital provider.
Advantages: minimal effort, continuous portfolio management by experts.
Risks: higher management fees, loss of decision-making control.
Important: Your financial needs may change over time. You can start independently and later delegate some of the management to professionals – or vice versa. It is advisable to regularly assess whether your chosen approach still suits your goals.
Comparison of the best online trading platforms
The table below presents a selection of well-known Swiss and international providers, ranging from traditional banks to specialised brokers and fintech firms. The focus is on costs, available markets, user experience, and customer service.
Key selection criteria
Fees: Includes transaction costs, custody or flat fees, and foreign exchange fees.
Product range: Not all platforms provide access to every stock exchange or asset class.
Security & regulation: Swiss providers are typically regulated by FINMA, while foreign brokers fall under respective authorities (e.g. BaFin, SEC).
Usability: Some platforms are highly beginner-friendly (e.g. Neon, PostFinance), while others cater to advanced traders (e.g. Saxo, Interactive Brokers).
Customer service: Whether multilingual hotlines, branch networks, or personal advisory services are available may be crucial for some investors.
Tips for successfully starting in the stock market
1. The right mix matters
Studies show that around 80% of long-term portfolio performance depends on asset allocation across stocks, bonds, and other investments.
Shares: Offer higher return potential but come with greater price fluctuations.
Bonds: Provide stability but generally lower returns.
Commodities: Add diversification but can be highly volatile.
In the long run, it is essential to find a balanced mix of risk and reward that suits your investment horizon and risk profile.
2. Beware of (hidden) fees
Fees remain one of the most common return killers. Different types of charges, such as trading, custody, or management fees, can add up significantly. Consider this example:
8% gross return without fees: CHF 100 grows to CHF 2,170 over 40 years.
8% gross return with 2% fees: CHF 100 grows to just CHF 1,030 over 40 years.
Even seemingly small differences (1% vs. 2% fees) can have a substantial impact. Be mindful of transparent pricing models and additional fees (e.g. for currency conversion, account management, or custody). Even low-cost offers may include hidden costs that significantly reduce net returns. Therefore, it is always worth calculating the full cost structure before investing.
3. Review and adjust your portfolio regularly
Market developments and personal circumstances can change over time. Investors who rarely review their portfolios risk significant deviations from their original asset allocation. An annual or semi-annual "rebalancing" is recommended to return to your target allocation. Additionally, your risk tolerance may evolve over time. If so, your strategy should be adjusted accordingly.
Legal aspects of buying shares in Switzerland
Financial market supervision
The Swiss financial market is highly regulated and transparent. The Swiss Financial Market Supervisory Authority (FINMA) oversees banks and brokers, ensuring customer funds are protected and institutions comply with legal requirements.
Identity verification for account opening
To open a securities account in Switzerland, customers must provide valid identification. This process is part of the country’s strict anti-money laundering regulations.
Taxes & withholding tax
Capital gains from share sales are generally tax-free for private investors, provided they are not classified as "professional securities traders." However, Swiss company dividends are subject to a 35% withholding tax, which can be reclaimed through tax returns. Foreign securities may also be subject to withholding tax, which can often be partially refunded under double taxation agreements (e.g. US stocks via Form W-8BEN).
Stamp duty & other fees
Transactions conducted through Swiss brokers are subject to a stamp duty of 0.075% for domestic securities and 0.15% for foreign securities. While these amounts may seem small, they can add up over time, especially with frequent trading, and significantly reduce overall returns. Therefore, investors should always take tax and regulatory factors into account when comparing platforms and investment strategies.
Professional advice
When making major investment decisions, it is advisable to seek professional support—for example, from wealth managers, tax experts, or specialised lawyers. These professionals can provide tailored guidance on how national and international regulations affect your personal situation, helping you better assess potential risks and costs.
Switzerland is one of the most attractive places to invest in stocks, thanks to its stable economy, strict regulations, and extensive financial infrastructure. Whether you choose to invest as a DIY investor, opt for guided solutions, or fully delegate your portfolio management, it is essential to keep an eye on your risk tolerance, time commitment, and fee structures.
