First deposit at DEGIRO and first ETF investment

Posted on Categories Broker, ETF, Investment3 Comments on First deposit at DEGIRO and first ETF investment

After having opened my DEGIRO account recently, it was time to use my DEGIRO account. My first deposit reached my DEGIRO broker account! Let’s start with the good, there is no fee for transfer! I’ve transferred 1000 CHF and exactly 1000 CHF arrived in my account. I was afraid of a hidden fee or transfer fee.

With the bad now: The transfer took 8 days. I sent the transfer Friday 17th, the bank debited it from my account Monday 20th. It only arrived today, Tuesday 28th on my broker account. I’ve contacted DEGIRO several times in the meantime to ask about the whereabouts of my money. They did have an issue with their bank (CIC Bank, Basel). The bank was not transferring the money statements to them for about a week. So, normally, this should not be so slow. I’m inclined to give them the benefit of the doubt for this one. I’ll see what happens to my second transfer. I sent it yesterday and it should arrive tomorrow on my DEGIRO account. If this issue is something that happens regularly, this is really bad thing for DEGIRO, but we’ll see.

With some part of this money, I bought 13 shares of Vanguard Total World Stock ETF (VT) at 73.16 USD. This ETF is a passive fund that holds 7955 stocks in the entire world, weighted by capitalization. It contains around 50% of the stocks from US and the rest is from the entire world. The fund contains 2.6% of stocks from Switzerland. It has a very low Total Expense Ratio (TER) is 0.11%, which is very low and absolutely fine for me.

Since this ETF is in the list of free ETF offered by DEGIRO, I didn’t pay any fee to buy the shares. Nevertheless, I paid a small fee for the currency conversion. I paid 0.19CHF on an order of 936.80 CHF, which means a fee of 0.02%. This is pretty good since I was paying around 0.5% fee for funds on PostFinance ๐Ÿ™‚

The buy was pretty easy do on DEGIRO, no issues here. At first, not very clear, but it turned out quite OK. I’ll post more information on the future on how to use DEGIRO. I received a mail notification for both the deposit and the trading transactions. Everything seems fine.

I’m not totally sure on my final portfolio, but VT will definitely be a part of it and probably a large part at that. I’ll keep you up to date as soon as I update my portfolio.

Opened a broker account on DEGIRO

Posted on Categories Broker, ETF3 Comments on Opened a broker account on DEGIRO

After reading a lot about funds and low-cost index funds in particular and the inefficiency of most actively managed funds , I decided I will stop giving my money to fund managers. Therefore, I decided to start investing in passive index funds rather than active funds. Moreover, I also decided to only focus on no-load funds. Currently, I was investing with PostFinance funds, but the Total Expense Ratio (TER) of these funds is high and PostFinance is charging a 0.5% percent load on each buy of funds.Since we don’t access to excellent mutual funds such as Vanguard funds here, I decided to invest in Exchange Traded Fund (ETF) versions of the funds. This means I need a broker to invest. I looked at the trading offer of PostFinance but it is insanely expensive.Therefore I decided to find a new broker with significantly lower fees.

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