Is DEGIRO really cheaper than Interactive Brokers?

Posted on Categories Broker, ETF, Investment, Switzerland2 Comments on Is DEGIRO really cheaper than Interactive Brokers?

You may have read that I am using DEGIRO has my broker. In fact, I chose DEGIRO mainly because of its very low fees. I am very satisfied with my experience with DEGIRO. I have not had a big problem since I started using it, about a year ago.

Interactive Brokers is also a very popular broker. It has been there for much longer than DEGIRO who is a very young broker. And it also has very low fees. When I chose DEGIRO over Interactive Brokers, I did it because I thought it was cheaper.

In this post, we are going to compare once again DEGIRO and Interactive Brokers. I am going to do the comparison in details including the two different account types of DEGIRO. In the default account of DEGIRO (Basic), your shares can be lent to other investors. This is not something that is done by default with Interactive Brokers. Therefore, my previous comparison was not very fair! This time, I am going to try to make it better.

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How I made $2’000’000 on the stock market – Book Review

Posted on Categories Books, Broker, Investment2 Comments on How I made $2’000’000 on the stock market – Book Review

No, I did not make two million dollars in the stock market. But I just read a book about a man who did ;) I finished reading “How I made $2,000,000 in the stock market”.

This book tells the story of Nicolas Darvas who made two million dollars in the stock market, in less than two years. Nicolas Darvas is not a professional investor, but a dancer. He is touring around the world, going from one show to another. The book tells his story from his beginnings with many mistakes to the successful. I thought it was a very interesting story. You can learn many things from his mistakes and from his successes. Even though the book is quite, I think it is still mostly relevant to today. You

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DEGIRO increased prices for securities, options and futures

Posted on Categories Broker, News6 Comments on DEGIRO increased prices for securities, options and futures

I have 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 here 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 is still noticeable for people using these products. Fortunately for me, I am 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 is 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 keeping the fees very low. While still keeping the same level of service. We will see how that goes. I will keep you informed anyway.

Conclusion

The most important fact is that the new increase in fees does not impact investors in ETFs. It only impacts investors that focus on buying stocks and bonds on the stock market. Since I do not plan to do that any time soon, I am not worried about this increase in fees.

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 have mentioned that ETF used arbitrage to follow closely the price of the index. If the price of the stocks in the index goes up, the price of the ETF should follow. And if the price of the stocks goes 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 is a bit of a complicated subject. But I think it is 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 via your bank. 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 do not have any easy access to good mutual funds. I can bet that your Swiss bank does not offer cheap passive funds.  At least mine does not! This is where Exchange Traded Funds (ETFs) are being a very good investment tool!

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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 did not cover into details how to invest. In this post, I am going to cover the most important financial instruments that you can use to invest: Cash, Bonds and Stocks.

All these instruments are quite different. They are all important. If you are serious about investing, you should be aware of them. 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

Posted on Categories Broker, FIRE, Frugality, InvestmentLeave a comment on The basics of investing
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, Investment11 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 am 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 did not 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 do not really care about the daily variations of my portfolio. I am much more interested in the total results of my portfolio. This is what most long-term investors should care about.

However, 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 is just me. But once you know it, it is really easy to use. Since it was not easy for me to find it, I am going to post my findings for all of you!

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