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 ?
After a disappointing June 2018 month, we managed to get back up to speed in July 2018. We had some strong savings this month. Nothing extraordinary, but pretty good still. We were able to increase our net worth significantly.
Since today is Swiss national day, Happy National Day to all my Swiss readers.
We went to Orléans one week this month. I also spent one week in the army. It was my last five days to serve in the army! Other than that, nothing special happened. It was a good month overall. Let’s go into the details now 🙂
Continue reading “July 2018 – Getting back up to speed”
We have talked about many things now in the Investing series. We have covered index funds in details. Finally, we have covered several portfolios such as the Three-Fund portfolio and its variants and a few other lazy portfolios. But there is something we haven’t covered yet. It’s Target Retirement Funds.
Many people are investing for retirement. They may know for instance that they want to retire in 20 years. Given that and their age, it’s likely that their allocation to bonds will increase over the years until retirement. Most people will do that by changing their allocation every few years. Either by rebalancing or by injection of new capital. But there is another way. Target Retirement Funds will automatically change their bond allocation overtime.
In this post, I’m going to cover Target Retirement Funds. We are going to see what is good with them and what is not.
Continue reading “Target Retirement Funds – Too much simplicity ?”
In the previous post of the Investing series, we discovered the Three-Fund Portfolio and its variants. It is a simple portfolio made of only three funds. It’s really simple to manage yet very effective and diversified. We also saw the two-fund and one-fund portfolio. They are even more simple and yet have many advantages. But there are more lazy portfolios that are available.
People have proposed many more portfolios over the years. In this new post, I’m going to cover more of these portfolios. They are called lazy portfolios because they are all using index funds. And you can kee the allocation of the different funds for many years. Instead of choosing stocks, which is difficult, you choose stock funds or bond funds. You can either use mutual funds or Exchange Traded Funds (ETFs) depending on what you prefer and what you have access to.
Continue reading “More lazy portfolios”
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!
Continue reading “The three-fund portfolio – Keep it simple”
Last week, we went to Orléans in France. I went there to present a paper for some work that I did at my previous company. The presentation was 5 days, but the first day was only starting late in the night. Friday was finished in the morning. And Thursday was social tours by the conference. So we had quite some time for us. That’s why Mrs The Poor Swiss decided to come around as a small vacation.
All around, it was a great trip in a really beautiful city. We had a great time. I wanted to share this travel for you. And also share some of the pictures we took 🙂
Continue reading “Our trip to Orléans, France – Beautiful city”
Our food budget is something that we are managing to keep quite low. Last year, it was still too high. So I changed some of my habits and now we manage to keep our food budget around 400 CHF in average. For two people. This may seem high, but for Switzerland, I think it’s quite reasonable.
To reach this low food budget, we are doing several things. Mainly, the idea is to compare several shops and only shop where you can get the best bargain. If you all the way, you should compare for each product. But who got the time ? The idea is more to select one cheap shop as the main shop and then buy some cheaper things in other shops but less often.
In this post, I’m going to list 5 things we do, and that you could do too, to keep our food budget low.
Continue reading “5 things to do to keep your food budget small”
Last week, I published a list of things I hate about Switzerland. Even though there are some things I really dislike about Switzerland, I love leaving in Switzerland. In this post, I’m going to list the things I really love about Switzerland. While there was only 5 things in my hate list, there are 11 in my love list 🙂 And there are not the only things I love about Switzerland. This tells you that I really have many more things I like about it than things I don’t like.
Before you read what I love about Switzerland, you should be aware of my situation 🙂 You have to remember that I live in the Swiss countryside. I live in a very small village. And I don’t like cities. Some people like cities more than villages, but I would hate living in a city. I also like hiking a lot and I like being outside. This will be reflected in some of the things I like the most about Switzerland.
Below, you’ll find 11 things I love about Switzerland. They have almost nothing to do with money. And they are in no particular order 😉
Continue reading “11 Things I Love about Switzerland – Beautiful country”
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.
Continue reading “Exchange Traded Fund (ETF) Arbitrage”
While I really like Switzerland and I plan to spend all my life here, there some things I really don’t like about it. In this post, I’m going to discuss the five things I hate about Switzerland.
I’m not about to leave Switzerland and I hope I will never have to. There will be a post coming up about the things I love about Switzerland and they will be more numerous 😉 But I think it’s important to realize that no country is perfect. Some things should definitely be improved in Switzerland.
Continue reading “5 Things I hate about Switzerland”