Ricardo increases its fees for selling online

Posted on Categories Frugality, News, Side Hustle, SwitzerlandLeave a comment on Ricardo increases its fees for selling online

I’m selling a lot of things online. For this, the main site I’m 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’ve found out Ricardo to work quite well for my needs. I’ve 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’m 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.

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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?

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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Updates on the blog

Posted on Categories Blogging, News5 Comments on Updates on the blog

These days, I’ve made many updates on the blog. Since the migration to self-hosted WordPress, I’ve 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’m going to describe the changes I’ve 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 :)

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No Billag: Swiss people like to pay taxes

Posted on Categories News, Spending, Switzerland4 Comments on No Billag: Swiss people like to pay taxes

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’m quite disappointed in my fellow citizens today. It seems like people like to pay inconsiderate taxes. Thus, we’ll still have to pay this tax.

There is a BIG problem with this tax. There are two parts to the tax, one part for the radio and one part for the television. If you have a car, you need to pay the radio tax even if you never listen to radio. I never listen to the radio. If you have a television or internet, you need to pay the TV tax even if you never watch TV. Again, I never watch TV. Moreover, this tax is only to pay for Swiss radio and TV services. So if you have a TV and only watch foreign TV network, you still have to pay the tax to finance Swiss TV networks. This makes no sense at all and the Swiss should have refused the initiative yesterday. Now, we need to pay this tax for a long time again with no reason.

To sum up, I will have to pay 365 CHF each year for Radio and TV services that I never use.

There is one slight possibility that I recently came across. When I first registered to this terrible tax, they told me that having internet was enough to need to pay the tax. But, looking at the official conditions, you need to have an account on an online TV service to pay the tax. Thus, I’m going to ask them to remove me from the TV tax and pay only for the radio tax. This should at least save me some money. I’m even inclined to remove my radio from my car to not pay anymore, but that’s a bit extreme.

What do you think about this ? What did you vote ?