At first, I wanted to publish a regular post for Christmas. But I figured that people do not want to read more than one thousand words on Christmas. So this post is just here to wish all of you a Merry Christmas!
I cannot believe that December went by so fast! I really did not see it pass through. But it was a good month. We just did our Christmas tree. one week ago. Tonight, we are going to celebrate with my family.
I will not post again until next year. This is the last post of the year! I am probably going to go back to a schedule of two posts a week next year, on Tuesday and Thursday. So the next post should arrive on the first of January with the review of December 2018!
In one week, the year will be over. This is almost time to review our goals and make a point in our budget and plan to Financial Independence. I already started working on the goals for next year. This should come soon :)
But that is enough about me, have a great Christmas! What are you doing for the night?
I am selling a lot of things online. For this, the main site I am using is Ricardo. This is an auction website. You set a start price and an optional instant price and people can bid on your item. The highest bidder will win after a set time for the auction. I have found out Ricardo to work quite well for my needs. I have made several hundreds of Swiss francs on this website.
However, Ricardo is not free. You pay some fees to sell your things online. Even though I would prefer using a free service, I found out that my things sell better on Ricardo than on free alternatives. Yesterday, Ricardo just announced that they updated their fees. The new fee model will be active from September 13th. In this post, I am going to describe the changes and exactly what this means for you if you want to sell things online on Ricardo. We are going to look at when you are actually saving money compared to before and when you are losing money.
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.
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?
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.
These days, I have made many updates on the blog. Since the migration to self-hosted WordPress, I have improved the performance of the website, fixed the HTTPS version of the site and cleaned up my WordPress plugins. I am hoping that this will improve the experience of the readers of the blog.
In this post, I am going to describe the changes I have done recently. The goal is to improve the performance of the website as well as the Search Engine Optimization (SEO) of the website. This will be a blogging and hosting post, nothing really related to finance here :)
Yesterday, the Swiss people were voting on several objects. The No-Billag initiative was one of them, as I mentioned earlier. This initiative wanted to remove the Billag tax. This tax supports the Swiss TV and Radio services. This tax is currently around 450 CHF. But the government will reduce the tax next year to 365 CHF. Unfortunately, the Swiss citizens strongly refused the initiative :(
I have to say that I am quite disappointed in my fellow citizens today. It seems like people like to pay inconsiderate taxes. Thus, we will still have to pay this tax. The only upside is that the tax will be less expensive next year. But that is still a tax paying for nothing I am using.