DEGIRO increased prices for securities, options and futures

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I’ve been using DEGIRO for many months now. And I just got the news that DEGIRO will increase its fees for securities, options and futures. At first I was afraid that this would increase my fees for investing. Fortunately, it turns out this is not the case. So far, I have been quite satisfied with my experience with DEGIRO.

The increase is due to new European Regulations (MIFID II). These regulations are made to better protect investors. And also to improve the efficiency of the stock market. These rules apply to investment firms and trading platforms, such as DEGIRO. They increase the requirements on the internal execution of client orders. This lead to increased costs for DEGIRO on the execution of orders. They decided to adjust their fees because of this.

Three products will become more expensive. Securities (except for US and Canadian markets) will see 0.018% extra fee. Futures and options will see a 0.15 EUR extra fee. That means that Swiss securities are now 5 CHF + 0.058%. And an option on Eurex is now 0.90 EUR per contract.

This is not a huge difference. But it’s still noticeable for people using these products. Fortunately for me, I’m only buying ETFs. And the price of ETFs did not change! For passive investor using only ETFs, this will not make any difference!

The new tariffs will be active from August 15th. However, DEGIRO is saying it’s temporary. This should last at most 18 months. In fact, they are looking for options on how to make it back to the previous low. I think that shows that they are really committed to keep the fees very low. While still keeping the same level of service. We’ll see how that goes. I’ll keep you informed anyway.

What do you think of these new fees ? Does that impact you ?

The three-fund portfolio – Keep it simple

Posted on Categories Broker, ETF, Investment, Switzerland2 Comments on The three-fund portfolio – Keep it simple
This post is part 7 of 7 in the series Investing – All about investing.

In the previous posts of the Investing series, we have covered the basics of the stocks and bonds. We also have covered index funds, in the form of mutual funds and Exchange Traded Funds (ETFs). You should now have a good idea of how you want to invest. The problem remains on how to invest!

This is a very important question and one that you should spend some time thinking about. There is no one-size-fits-all investment in my opinion. There are many kinds of investment that work. For some of them, you’ll need some knowledge and time to make it work. The three-fund portfolio is a very simple portfolio made of three funds that should work for most people.

In this post, we are going to cover two things. How much bonds you should have and what is the Three-Fund Portfolio. Since there are also some direct variations of the three-fund portfolio, I’m also going to cover them!

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Exchange Traded Fund (ETF) Arbitrage

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This post is part 6 of 6 in the series Investing – All about investing.

In part 4 of the Investing series, we have covered Exchange Traded Funds (ETF). In this post, I’ve mentioned that ETF used arbitrage to follow closely the price of the index. If the price of the stocks in the index go up, the price of the ETF should follow. And if the price of the stocks go down, the price of the ETF should follow as well. But if the price of the ETF goes up because of stock market trading, something should correct the price quickly. This is where arbitrage plays a big role.

In this post, we are going to see how Exchange Traded Funds are created. And also what is arbitrage ? How it makes sure the price of ETF stay in sync with the price of the index. It’s a bit of a complicated subject. But I think it’s important to know exactly how financial instrument are working before investing in them.

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Exchange Traded Funds – ETFs

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This post is part 4 of 5 in the series Investing – All about investing.

In the previous post of the Investing series, we talked about mutual funds. They are a great tool for investment. And especially passive funds with very low fees, thanks to index investing.

This is all great, but the problem with mutual funds is their availability. If you are lucky, you have access to Vanguard. And you can directly invest in their low fees mutual funds. There are other like Vanguard, but they are the most famous ;) If you are not lucky, for instance, if you live in Switzerland, you don’t have any easy access to good mutual funds. I can bet that your bank does not offer cheap passive funds.  At least mine doesn’t! Here comes Exchange Traded Funds!

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Cash, Bonds and Stocks

Posted on Categories Broker, Investment2 Comments on Cash, Bonds and Stocks
This post is part 2 of 5 in the series Investing – All about investing.

In the first post of the Investing series, I covered the basics of investing. This should have given you a few important rules you should follow before you invest. However, we didn’t cover into details how to invest. In this post, I’m going to cover the main financial instruments that you can use to invest: Cash, Bonds and Stocks.

We are going to see the advantages and disadvantages of each of these instruments. By the end of this post, you should have a better understanding of them. And you can always ask questions for more information :)

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The basics of investing

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This post is part 1 of 5 in the series Investing – All about investing.

 

This is the first post I’m going to write about Investing. I’m going to try to cover as much as possible on the different forms of investing. In this first post of the series, we are going to see what is investing in the broad sense.

I don’t yet know how many posts will be in this series. I will try to cover the basics, the stocks, the funds, Exchange Traded Funds (ETFs) and so on :) Hopefully, it will be interesting for some of you and it will motivation some people to motivate.

I’m no financial advisor. I’m not nearly an expert investor. This post is just what I know about investing from my experience and from research. 

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How to buy an ETF (VT) on Degiro

Posted on Categories Broker, ETF, Investment5 Comments on How to buy an ETF (VT) on Degiro

In this post, we are going to see how to buy an Exchange Traded Fund (ETF) on DEGIRO. Vanguard Total World (VT) is the main part of my new portfolio. So I’m going to use VT as an example. The process is exactly the same with any ETF you buy.

I decided to use DEGIRO after comparing with several other brokers. The main advantage of DEGIRO is its very low fees. You can read my full review of DEGIRO if you want more information. This post assumes you already have an account with DEGIRO. If not, you can open one account very quickly.

Note: Links to DEGIRO are affiliate links. If you use them to create an account, you will receive 20 CHF and I will receive 20 CHF.

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How to see total result on the mobile Degiro application

Posted on Categories Broker, Tips2 Comments on How to see total result on the mobile Degiro application

In my review of DEGIRO, I mentioned that something I really didn’t like was that it was not possible to see the total result of the position in the mobile application. The application is only able to display the daily result of each position of your portfolio. Personally, I don’t really care about daily variations of my portfolio. I’m much more interested in the total results of my portfolio.

I just found out it was in fact possible to see this information on the DEGIRO mobile application. It is just not really intuitive. Or maybe, it’s just me. But once you know it, it’s really easy to use. Since it was not easy for me to find it, I’m going to post my findings for all of you!

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My review of Degiro as a broker for Swiss investor

Posted on Categories Broker, ETF, Investment, Switzerland2 Comments on My review of Degiro as a broker for Swiss investor

(This post was first published on Mustachian Post. Thanks a lot to MP for the opportunity of guest posting.)

I’ve now been using DEGIRO for about four months. It’s now time for a review of the tool.

I would like to mention that I never tried any other broker. I decided to use Degiro four months ago based on costs. Moreover, I’m a computer scientist, so no issues with potential tech issues. Finally, my portfolio is very small, so my experience may not compare to yours.

Note: The links to DEGIRO are affiliate links. If you use them to create an account, you will receive 20 CHF and I will receive 20 CHF as well.

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Degiro updated its Cash Funds structure

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DEGIRO just updated a few things about the cash you hold in your account.

Since Netherlands investment firms are not permitted to hold cash, Degiro invest the cash from your account in a money market fund. There is a separate money market fund for each currency that you can hold with Degiro. Money market funds are principally investing in government bonds, with very high quality. However, the interest rates are very low and even negative for many European countries. Therefore, some money market funds, such as the EUR or CHF cash funds, have a negative interest rate.

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