Frequently asked questions

How secure is my data?

We do not share your data. We operate under the following laws of Switzerland:

What can Simplewealth do for me?

If you are over 18 years old and a resident of Switzerland, then you are eligible to open a Simplewealth account. While we only advertise to persons in Switzerland, you may also be able to open a Simplewealth account if you live in another country. Your questions will be answered on the message function or by email: contact@simplewealth.ch.

Can I close my account at anytime?

While we would be sorry to see you go, you can choose to close your Simplewealth account at any time. Upon confirmation, your portfolio will be liquidated and your money will be returned to you via bank transfer.

Do you charge any trading commission fees?

No, Simplewealth does not charge any trading commission fees.

When does Simplewealth charge me for its advisory fee?

Simplewealth management fees are deducted on the first day of every calendar month. As an example, the management fee for investing during the month of September will be deducted on September 1st. If your Account in the first month is below CHF 48’000 then your first month is free. If your Account in the first month is CHF48’000 or more then your monthly fee will be calculated on a pro-rata basis by reference to the start date of your investment.

Do you charge any exit fees?

No, Simplewealth does not charge any exit fees. However, if you decide to close your account before the end of the month, you will still be billed for the entire duration of the month.

May I add money into my Simplewealth account from a bank account under a different name?

Due to regulatory and security reasons, you can only transfer funds from a bank account that is registered under your name.

What should I do if I need help adding money to my Simplewealth account?

You can contact us via the messaging service on our website or email us at contact@simplewealth.ch and we will reply as soon as possible.

What is an ETF?

An exchange-traded fund (ETF) is an investment fund that mimics the performance of a particular index, such as the S&P 500 or the Swiss Market Index. An ETF can hold assets such as stocks, commodities, and derivatives. Simplewealth evaluates dozens of ETFs for attractive investments based on certain criteria such as cost, liquidity, and tax efficiency for Swiss residents.

How much does Simplewealth charge for its services?

For accounts of CHF 48’000 or more, Simplewealth charges an annual management fee of 0.5% of the total value of your Account. This fee is charged monthly. So, the fee is the total value of your account *0.5%/12 For accounts under CHF 48’000, Simplewealth charges a monthly fee of CHF20 per month. This is charged on the first day of the calendar month (so the remainder of your first month is free. This fee changes to 0.5% when your account is over CHF 48’000. This is the only account fee that you pay. There are no additional custody fees, account opening fees, administration fees, entry or exit fees. Additionally, there is a fee embedded in exchange-traded funds (ETFs) charged by the manager of the ETF. This Fee is usually within the range of 0.00% to 0.30%.

What is the fee if my account drops below CHF 48’000?

If the value of your Account drops below CHF48’000 due to market movements your fee will remain at 0.5%. If the value of your Account drops below CHF48’000 due to withdrawals your fee may change to CHF 20 a month.

Do you give a fee break for larger accounts?

At the moment, we do not offer fee breaks for larger accounts. You pay 0.5% of your total investment regardless of your account size.

Can I open more than one account?

Yes, you can open as many Simplewealth accounts as you like. Each account will be charged the applicable fee based on the value of that account. So, if you are considering two accounts maybe check with us first to save you incurring additional fees.

Can I export my Simplewealth dashboard data to another tool?

At the moment, no. But rest assured, we are working on that.

What is the point of the questionnaire?

The purpose of the questionnaire is to determine your individual risk profile. Understanding your willingness and capacity to take risk is important for us to act as your investment advisor. We want to provide you with the most appropriate investment strategy, and so we designed the questionnaire in line with regulatory requirements and industry best practice.

Do you charge any account custody fees?

No, you will not pay any additional custodial fees on your Simplewealth accounts. Any custody costs are included in your monthly management fee.

Can I hold an account at another broker and ask Simplewealth to manage it?

At this time, Simplewealth only works with Interactive Brokers as its brokerage partner. But, we are working on this.

How do you select the ETFs in my portfolio?

Simplewealth looks for ETFs with:

What is the minimum amount I can invest with Simplewealth?

The minimum investment amount is currently at CHF 6’000. Please note that your management fee varies depending on the value of your Account. For accounts of CHF 48’000 or more, Simplewealth charges an annual management fee of 0.5% of the total value of your Account. This fee is charged monthly. So, total value of your account *0.5%/12 For accounts under CHF 48’000, Simplewealth charges a monthly fee of CHF20 per month. This is charged on the first day of the calendar month (so the remainder of your first month is free. This fee changes to 0.5% when your account is over CHF 48’000.

How do I add money to my Simplewealth account?

You will receive the bank account details for our broker, Interactive Brokers to fund your Account after you have signed your Asset Management Agreement.

You can make an initial investment and regular deposits - such as weekly, monthly or quarterly.

Can I make regular investments?

Yes, you can invest as often as you like. In fact, we recommend making regular weekly, monthly or quarterly, contributions to your investment account to help you reach your investment objectives faster.

Where is my money actually being kept?

Your account (comprising your money and your ETFs) is held in a segregated custody account in your name at Interactive Brokers LLC. Interactive Brokers is a member of the Securities Investor Protection Corporation (SIPC) in the USA. This means your assets are insured against Interactive Brokers bankruptcy for up to 500,000 USD.

Why does my portfolio mix remain the same no matter how much I invest?

Simplewealth’s investment methodology is based on Modern Portfolio Theory. This states that returns are best maximised through an optimal mix of asset classes (based on your attitude to risk) and not through individual investment selection. Therefore, the investment selection for your account is not linked to the amount you invest.

How often does Simplewealth rebalance my portfolio?

We do not rebalance your Simplewealth account according to a fixed time period (such as annually). Instead, we rebalance your portfolio when movements in the market shift your current portfolio allocation too far from your targeted asset allocation. With that said, we are continuously monitoring the status of your portfolio. We also use your regular deposits as opportunities to optimize rebalancing.

Can you help me report my taxes?

Simplewealth provides you with an annual statement about your Simplewealth account to help you complete your tax return. If you are liable to complete a US Tax Return you can request a Form 1099 and Form 8949. Simplewealth does not otherwise provide tax advice services and assumes no responsibility for the tax consequences of any transaction. Please consult your tax advisor if you have any questions related to the tax consequences of opening an account or have any questions related to the reporting of your taxes.

How much can I withdraw, and are there fees?

You can make withdrawals when you like. Simplewealth does not charge fees when you withdraw funds or if you decide to close your account. If the value of your Account drops below CHF48’000 due to withdrawals your management fee may change to CHF 20 a month. If you make more than 1 withdrawal in a month Interactive Brokers may charge an additional fee. If you make a withdrawal and your account falls below CHF 6’000, we may close your account.

How do I make a partial withdrawal from my account?

To withdraw some of the funds from your account, send an email to contact@simplewealth.ch detailing the amount you want to withdraw. The minimum withdrawal amount is CHF 1’000. Your money will be sent to you via bank transfer. We may need you to follow additional instructions from Interactive Brokers.

How long does it take to withdraw my funds?

It usually takes 3 to 5 business days before your funds are “available” in your bank account. When you request a withdrawal from Simplewealth, we will send you an email to verify the request. Once you confirm, we will order our broker to execute the trades to liquidate some positions. This can take 2-3 business days. When the trades have settled and the cash is available to withdraw, we will make an electronic transfer from your account to your bank account. While the money will be transferred at the end of the day that the transfer is made, it can take 1-2 business days for your bank to show the funds as “available” to you. This is consistent with normal banking practices. Any withdrawals must go to a bank account in your name. If you request a withdrawal to a bank account different from the account from which you deposited the funds, we might ask you additional questions for your security.

How does Simplewealth protect the assets in my account?

Your account (comprising your money and your ETFs) is held in a segregated custody account in your name at Interactive Brokers LLC. Interactive Brokers is a member of the Securities Investor Protection Corporation (SIPC) in the USA. This means your assets are insured against Interactive Brokers bankruptcy for up to 500,000 USD. Additionally, Simplewealth is only authorised to issue trading instructions on your behalf. You are the only person who can deposit funds to, and withdraw funds from, your account. Lastly, we don’t loan out or borrow assets from your Simplewealth account. Your assets belong to you at all times.

Why does Simplewealth use Interactive Brokers as a broker?

Simplewealth uses Interactive Brokers as the custodian for your account and as its brokerage partner for the following reasons. It has an outstanding reputation, having been elected Best Online Broker 2019 and a Top Online Broker for Nine Consecutive Years by Barron’s (a Dow Jones media company). It also makes good use of technology and has relatively low fees allowing us to provide you with a premium service at a minimal cost.

What happens if Simplewealth is bought or stops business?

If such an event occurred, your account at Interactive Brokers would stay under your total control. You will be able to: Transfer your account to another broker; Keep the account as-is and manage it yourself; or Liquidate the account and wire your assets to your personal bank account.

Get a free preview of your investment profile

Take a few minutes to answer some questions and we’ll show you what your portfolio would look like at Simplewealth.

Your answers will be kept confidential and you won’t pay anything until you make your initial investment.

Get a free preview

2

Fill in your personal details online and upload your identity documents

3

Simplewealth helps you to open an account with our custodian

4

Fund your account