Investing: Getting Started with Index Funds
Low-cost ETF investing in Switzerland — where to open an account, and why simplicity beats stock-picking.
The short answer
Buy the whole global market with a single low-cost world index ETF (0.2% fees vs 1.5% for active funds), from CHF 50–100 a month at a discount broker — Interactive Brokers, DEGIRO or Saxo Bank — and let decades of compounding do the work. No stock-picking needed.
For most people the long-term savings engine is not the bank account but low-cost index funds (ETFs). Switzerland has a well-regulated set of discount brokers — Interactive Brokers, DEGIRO and Saxo Bank are the three most recommended by the Swiss FIRE community — where you can buy world index ETFs for small monthly amounts. The core idea is deliberately boring: own the whole global market, keep costs tiny, and let decades of compounding do the work.
Why index funds, not individual stocks
A single world index ETF holds thousands of companies across dozens of countries in one purchase, which diversifies away the risk of betting on any one stock or country. The fees matter enormously over 30 years: a 0.2% fund fee versus a 1.5% actively managed fund can easily mean six figures of difference in final wealth. The Swiss FIRE bloggers who retired early did it with this approach, not with picking winners.
Choosing a broker
The three discount brokers most recommended for Swiss residents — Interactive Brokers, DEGIRO and Saxo Bank — all offer low or zero commission on recurring ETF purchases and access to world index ETFs. Which one is cheapest depends on your purchase size and frequency, and the Mustachian Post keeps a regularly updated full comparison. If you are also building a 3a, many banks now let you invest that too, rather than leaving it in a 1% account.
Starting small, staying consistent
You do not need a big starting amount: monthly savings plans let you buy fractions of an ETF for as little as CHF 50–100. The key variables are the savings rate (see the budgeting guide) and time in the market — not timing the market. Historically, long horizons have smoothed out every crash, which is why the advice from the FIRE community is always the same: start early, automate the monthly purchase, and resist the urge to check the balance during a panic.
Frequently asked questions
Is investing worth it for a student with only a small amount?
Yes, within reason — starting young is the biggest advantage in investing, and even small recurring amounts into a world-index ETF can compound over decades. But only invest money you will not need in the next few years, and build an emergency buffer beforehand so a dip does not force you to sell.
What is the cheapest way to invest in Switzerland?
The cheapest popular route is buying a low-cost world-index ETF through a discount broker such as Interactive Brokers, DEGIRO or Saxo, making recurring purchases and keeping transaction and custody fees low. Because Swiss tax treats foreign dividends heavily, many investors prefer accumulating ETF classes that reinvest rather than distribute income.
How do Swiss taxes treat investment gains?
Realised capital gains on privately-held securities are generally tax-free in Switzerland; you owe tax on dividend income, and most cantons apply wealth tax to the value of your assets. This makes an accumulating ETF, which reinvests its dividends, a comparatively tax-efficient way to hold a portfolio.
Sources & further reading
Tools we recommend
Interactive Brokers
Low feesThe low-cost broker most recommended by the Swiss FIRE community for recurring world-index ETF purchases. Transparent pricing, no custody fees.
Visit Interactive Brokers
DEGIRO
Low feesA discount broker popular with Swiss index investors, with a large ETF range and low per-trade commissions.
Visit DEGIRO
Saxo Bank
Low feesA licensed Danish/Swiss broker in the FIRE community's standard three (with Interactive Brokers and DEGIRO), solid for larger portfolios.
Visit Saxo BankDisclosure: some links on this page are affiliate links. If you sign up through them, we may earn a small commission at no extra cost to you. HospoGrad is an independent, student-run community and is not affiliated with or endorsed by these companies.
About the author
Bahram Khanlarov
Swiss-based hospitality & property operator in Montreux, building practical resources for hospitality-management students and graduates across Switzerland.
Still figuring out Swiss money?
Ask the community about salaries, taxes, insurance and banking in Switzerland, or share what you’ve learned from your own first payslips.
Discuss on the forumKnow someone starting out in Switzerland?
Forward this guide to a classmate, friend or colleague — the short answer at the top makes it worth their while.