I am new to EFTs and I am about to open an account with IB to invest my capital(cash) that sits in Europe (in Euro).
I have already spent -hours- looking at the documents/guides . Despite that I would appreciate your help regarding the following points because the information are a lot and I am getting a bit confused:
- does it make sense to buy European domiciled ETFs (note that the ETFs would invest globally)?
Notes: the reason why I choose to buy European ETF and subscribe to IB is due to my mobility. I am trying to build a portfolio where I don’t want to be forced to sell my assets in case I have to move to another country (most likely in Europe).
Just for information, this is where I plan to invest:
(30%) Lyxor Core MSCI World (DR) UCITS ETF
ISIN LU1781541179 (or something equivalent)
(70%)Xtrackers Global Sovereign UCITS ETF 1C EUR hedged
- Is there a way to predict the fees before purchasing assets with IB? Some kind of calculator?
Notes: I will choose a tiered pricing model. I tried to use the IB demo version and I could see a cost estimation but it is not clear what is the pricing model configured (IB support did not help). Based on the document I expect to pay between 50Fr and 100 Fr when I buy/sell ETFs. Is that a good assumption?
I asked the same question to IB but they did not answer.
- Interactive Brokers (IB) registration, tax details:
Option “eligibility for a U.S. benefit tax treaty” : does it make sense to answer “yes” when my plan is to invest in European ETFs and I am not a US citizen ( I am European)?
This is recommended here (section 13), I suppose that probably that aspect can be used for tax/commission deduction. The reference document does not explain why it is recommneded.
Ref. IB subscription guide: How to open an Interactive Brokers account? - Mustachian Post?
- ETF :. accumulating vs. distributing
I would prefer to use accumulating ETFs but ,according to the link below, accumulating ETFs are more complicated in terms tax declaration . Should I really care about that aspect in case I use an accountant for my tax declaration??
“If the swiss tax authorities cannot figure out what is dividends and what is course gains, simply everything is taxed, including the usually not taxed course gains.”
- reinvesting dividends: does IB offer some kind of reinvestment advantages/bonus for reinvesting dividends ? I read on Investopedia that some brokers offer this kind of feature.