First steps investing

Investing / Portfolios
1

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!

1 Like
2

Why?

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.

3

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

4

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)?

5

Why did you ALREADY created an acocunt at IB then ?

1 Like
6

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

7

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

8

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?

Thanks

9

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

1 Like
10

Thanks! I prefer Degiro for <100k

11

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!

12

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.

1 Like
13

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

14

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