@_MP linked to a PDF containing a list of ETFs free of transaction fees on Degiro.
Unfortunately I’m having a hard time locating some of these ETFs. For example, no matter what search criteria I use, I simply cannot find the Vanguard Total World Stock Index Fund ETF (ISIN: US9220427424).
For those who have a Degiro account, are you able to find this particular ETF?
I’ve the same problem so i called the Degiro support and they told me that all ETF based on US Stock Exchange are not tradable any longer.
With my big surprise I told them that this is new to me and no information has been provided. Moreover, there’s a file on their website which is showing a long list of free-commission ETFs including all Vanguards.
Conclusions, I’ll be selling all my positions and close Degiro account and move it to somewhere else.
Thanks for the advice Nugget.
All positions are currently positive and fees are considerably low for these selling operations.
Now the challenge is to understand which broker to target to continue my investments.
Incredible timing. I transferred CHF 15k to Degiro in recent weeks and then spent all of Saturday and Sunday reading through the entirety of this forum’s posts before deciding which funds to invest in. Fortunately the first fund I looked for on Monday was VT (thus leading to the creation of this post); therefore, I assume the changes potentially took effect on January 1st.
In the meantime I had sent an email to Degiro’s support. I don’t expect the response will be different than what was provided to @Cangarooo over the phone, but I’ll post it here nonetheless.
In light of this news, I will also be closing my Degiro account and opening with IB.
Dear Client, You are receiving this notice as you maintain permissions to trade one or more markets impacted by the MiFID II directive through which the smallest permitted trading increment or, tick size, will be subject to a mandatory regime starting 2 January 2018.
I will ask Swissquote concerning this subject
The new law applies to European state members and countries in the European Economic Area and not to Switzerland. Normally, there would be no impact for retail investors based in Switzerland.
I work for a Swiss Financial Company and as far as I understand, MIFID II is really a mess. At the beginning it seems to only be for european countries. However since half of the clients of swiss financial companies are europeans, this companies have to be Mifid-compliant. Plus, it also concerns the custodian of the client.
Finally, the regulation has been finalized very late and every financial institution had a very unclear view of what to do by November 2017, let alone to implement it by January 3rd 2018.
So although stricto sensu this regulation does not apply in Switzerland, financial companies have agreed in a consensus to apply it as well in Switzerland, because if a client sue you and you are not MIFID II compliant, you can lose your banking license.
I agree it’s a complete mess and nobody has the same understanding of the law. In fact, you have two new laws at the same time: MIFID II and PRIIPs.
In my understanding, a European client could sue a Swiss company if the Swiss company is not MIFID II compliant.
However, a Swiss customer cannot sue a Swiss company if they are not MIFID II compliant.
It works again. I have tried it with a limit order and a way too low limit because I’m waiting for a transaction to arrive. But there was no pop up this time which told me that the product is closed. So as soon as my money arrives I will try a real transaction.
After emailing Degiro back on Monday specifically about the VT fund, this afternoon I finally received the following response:
“European legislation requires issuers of derivatives and investment funds to provide investors with documentation. The goal of this documentation is to protect and inform investors. The products concerned, mostly foreign listed ETFs and derivatives, will no longer be available for purchase on our platform from 2 January 2018. This restriction applies until the correct documentation is available. The holding and selling of these products remains possible.”
I assume that’s boilerplate text since a) they didn’t mention the specific fund by name, and b) as pointed out by @Erma, by this point the fund was actually already available again.