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Frequently asked questions

How secure is my data?

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

  • Article 43 of Law on Exchanges and trading
  • Federal Act on Data Protection
  • Swiss Penal code (especially articles 143, 273, 320 and 321)

What can Simplewealth do for me?

Think of Simplewealth as your personal investment advisor. Based on your background and risk profile, we offer you a diversified portfolio. We also take care to periodically rebalance your portfolio so that it continues to match your preferences and investment goals.

Am I eligible to open a Simplewealth account?

If you are over 18 years old and a resident of Switzerland, then you are eligible to open a Simplewealth account.

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 anytime. Upon confirmation, your portfolio will be liquidated and your assets 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 bill me for its advisory fee?

Simplewealth advisory fees are billed on the first day of every month. As an example, the advisory fee for investing during the month of September will be billed to you on September 1st.

The only exception to this is your first monthly advisory fee, which will be calculated on pro rata basis depending on 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 at support@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?

Simplewealth charges an annual advisory fee of 0.5% of your total investment.

This includes most of the fee you can think of: management fee, custody fee, account opening fee, administration fee.

Additionally, there is a fee embedded in exchange-traded funds (ETFs) perceived by the issuer of the funds. The fee for ETFs in Swiss Francs ranges anywhere between 0.05% and 0.30%.

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, provided that CHF 25’000 has been invested into your account.

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 an investor’s willingness to take risk is crucial for us as investment advisors. We want to provide you with the best possible investment strategy, and so we designed the questionnaire in line with regulatory requirements and industry best practice.

Why do you recommend the same ETFs to everyone?

Simplewealth’s investment methodology is based on Modern Portfolio Theory, which states that returns are best maximised through an optimal mix of asset classes and not through individual security selection.

Do you charge any account custody fees?

No, you will not pay any custodial fees on your Simplewealth accounts. It’s included in our 0.5% annual advisory 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.

How do you select the ETFs in my portfolio?

Simplewealth looks for ETFs with:

  • The lowest annual expense ratios
  • Minimal tracking error
  • Sufficient liquidity
  • Authorization to trade in Switzerland and CHF-hedging

How are the fees calculated?

Simplewealth charges an annual advisory fee of 0.5% of your total investment. This amount is to be paid in monthly installments and is adjusted accordingly depending on the size of your investment.

What is the minimum amount I can invest with Simplewealth?

The minimum investment amount is currently at CHF 6’000.

How do I add money to my Simplewealth account?

Once you have signed up and we have verified your account, you will receive your individual bank account details including an IBAN from our broker, Interactive Brokers.

You can add money directly into your Simplewealth account by wiring funds to this IBAN. You will receive an email confirmation from Simplewealth and from Interactive Brokers once your funds have been successfully transferred.

Where is my money actually being kept?

Your assets are held in a brokerage account registered under your name at Interactive Brokers LLC. They are our custodian and a member of SIPC. Thus, your assets are insured up to 500 000 USD in case of bankruptcy.

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

Simplewealth’s investment methodology is based on Modern Portfolio Theory, which states that returns are best maximised through an optimal mix of asset classes and not through individual security selection. Therefore, your allocations are not linked to the amount you invest.

How often does Simplewealth rebalance my portfolio?

We do not rebalance your Simplewealth portfolio according to a fixed cadence. Instead, we rebalance your portfolio when movements in the market shift your current portfolio allocation too far from your targeted portfolio allocation. With that said, we are continuously monitoring the status of your portfolio.

We also use deposits and withdrawals as opportunities for interim rebalancing.

Can you help me report my taxes?

Simplewealth does not provide tax advice services and assumes no responsibility for the tax consequences of any transaction. Please consult your tax advisor if you have any issues related to the reporting of your taxes.

Where can I get the documents I need for my tax declarations?

You can download previous years’ tax documents from your Simplewealth account dashboard.

Does Simplewealth charge fees to withdraw funds?

No, Simplewealth does not charge fees when you withdraw funds or if you decide to close your account.

I live outside of Switzerland. Can I still open an account?

At this time, we require all Simplewealth clients to have a permanent Swiss address due to financial regulations.

How much can I withdraw?

You can withdraw minimums of CHF 1’000 as often as you like, as long as your minimum investment amount in your Simplewealth account remains above CHF 6’000.

How does Simplewealth protect the assets in my account?

Your assets are kept in a segregated account by our broker and custodian Interactive Brokers. 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 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.

How do I make a partial withdrawal from my account?

To withdraw some of the funds from your account, log in to your Simplewealth dashboard and click the “Withdraw” button. The minimum withdrawal amount is CHF 1’000.

Your withdrawn assets will be sent to you via bank transfer. Keep in mind that we cannot make partial withdrawal requests that would leave your Simplewealth account below CHF 6’000.

Why does Simplewealth use Interactive Brokers as a broker?

Simplewealth uses Interactive Brokers as its brokerage partner for the following reasons: an outstanding reputation, having been elected by Barron’s “Best for International Traders” in 2016, relatively low fees enable us to provide you with a premium service at a minimal cost and online account opening.

How long does it take to withdraw my funds?

Withdrawals usually take 3 to 5 business days before your funds are back from your Simplewealth account to 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. We will then wire cash from your broker account to your bank account. This usually takes 1-2 business days.

Also, if you request a withdrawal to a bank account different from the account from which you deposited the funds, we might ask you additional question for your security.

What happens if Simplewealth is bought or stops business?

If such an event occured, your brokerage account would stay under your total control.

You will then be able to: Transfer your account to another broker Keep the account as-is and manage it yourself Liquidate the account and wire your assets on your personal bank account

Get a free preview of your investment profile

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

Your answers will be 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 the necessary documents

3

Simplewealth reviews your profile and opens your account within 3 days

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Start your investment with CHF 6,000