First steps investing

Hi everyone,

I’m very new into this. Following what I have read in the MP blog I have created a Degiro account and a IB account.

  1. As I want to start slow, I think the best would be to start with Degiro buying VWRL, right? Leaving IB and the VT for the future.
  2. With the current market situation, I was thinking to buy 1000 CHF per week until 20k CHF and then 250 CHF per week. I thought that because the market volatility. Or is it better to do it monthly?

What do you think? Any recommendations?

Thank you in advance!

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Since you’ve already “created” your IB account, you’d be paying inactivity fees anyway, wouldn’t you? VT might be slightly less expensive and - if you can recuperate the withholding tax - a bit more tax-efficient than VWRL.

The first three months are free but indeed it makes sense to stick with IB

Thanks for the answers! It makes total sense, but even for an small portfolio? I would take me years to reach the 100k

And what do you think about the question 2)?

Why did you ALREADY created an acocunt at IB then ?

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You can invest 2k a week for 10 weeks, then 1k a month. But there is no definitve answer to that question.

I’m playing around with the simulated account. I still didn’t finish the application process.

I have created a Degiro account too and I don’k know what ETF chosse…if VT or VWRL ?
VWRL is a distribution etf? And VT?


VT is not available in Degiro, you need to use IB. I think the best with Degiro is VWRL

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Thanks! I prefer Degiro for <100k

i think in general this should be very good, especially as you start with a big discount due to the corona situation! Dollar Cost averaging (buying in fixed intervals) might be a psychologically very good thing in those volatile times.
of course your numbers (weekly, 1k, 250 later,…) are just as arbitrary as others, but in no way inappropriate. you have a high change of becoming very happy with this in 10 years from now!

Degiro isn’t just cheaper for <100k. Let’s assume you invest once per month in VT or VWRL (free ETF in Degiro). The question is at what point will Degiro charge more than 120CHF/year.

Degiro will charge 0.1% for FX and 1 Euro + 3% of the dividend. With quarterly dividends (2.1% in total) that’s 4 Euro + 0.063% of you total assets. You also lose 15% of your dividends on taxes that you can’t recover over DA-1. Let’s assume 60% of the ETF is made of US companies and thus you lose 15% of 60% of those 2.1% in dividends, that’s another 0.189% drag on your assets. So we are looking at 0.252% in total + 4 Euro.

120 CHF – 4 Euro = 115.8 CHF
115.8 CHF / 0.252% = 45’950 CHF

Degiro gets more expensive for >46k in assets. If you buy once a month an additional ETF which isn’t for free, it gets more expensive for >35k in assets. If you buy 2 ETFs once a month which aren’t for free, it gets more expensive for >23.5k in assets.

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I don’t know if I undestood your point of view…so…Degiro isn’t interesting with distribution ETF?
Maybe it’s better buy a Acumulation ETF

Doesn’t really matter because dividends will be charged in both cases?