Brokers for DCA with 300 eu p/m

[muslim_2010]

Hi everybody, after learning a lot on here, i have set up an emergency fund and want to put the rest of my savings into some etf’s like VWCE and AGGU.

I would like to do this by dollar cost averaging and putting in about €300 p/m. I read that de Giro would be the cheapest broker to do this with. However, they don’t offer fractional shares, so putting in exactly 300 a month isn’t really possible if im correct?

Does anybody have good recommendations for brokers where this is possible (im looking to keep doing this 300 pm for at least 5+ years, so a reliable broker would be nice)

Thanks in advance!

 

[righteousnessishisbelt]

@muslim_2010 Hi I also use Degiro for a similar amount and I just transferred the desired amount every month and buy the maximum number of shares I can, eventually the remaining money adds up to an extra share.

 

[muslim_2010]

@righteousnessishisbelt Good idea, thanks! One question, isn’t the strategy behind dca that if the price is low you automatically buy more shares because you invest the same amount. With this method of buying you describe, you might actually buy more shares at a higher price (if for example the share price is up when you accumulated enough residual on your broker account to buy and extra share) or do you think this averages out?

 

[swordfish11]

@muslim_2010 VWCE costs ~90€. At 300 monthly DCA, we're talking about 1 extra share on every 30. Plus or minus a few euro on that extra share isn't going to make or break the bank either way.

 

[righteousnessishisbelt]

@muslim_2010 It averages out although in fact if the price is lower the remaining will be bigger and the threshold for the extra share lower. The key behind DCA is actually that it takes the emotional part out of it and allows you to be a constant investor.

 

[kenton777]

@muslim_2010 Vwce dont have kid documents in all local langue so pay attention to it
If its not with ur langue its not avaible for u …

 

[aubreyreeser]

@muslim_2010 DEGIRO will cost you 1€/order*, no matter the size or ammount:

• 3 shares of ETF A at 100€/share of the same company, it will cost you 300€ + 1€
• 1 share of ETF A at 100€ + 2 shares of ETF B at 100€: 100€ + 200€ + 2€

In addition, you pay 2,5€/year for every exchange you're operating in if it's not your home country.

And 0.25% if the ETF is traded in another currency.

As far as I know, those are all the charges you will pay if you trade EFTs in DEGIRO without contracting anything else (such as real-time prices).

*Except in Tradegate, where it is 3,90€

*There is a selection of ETFs for which, in some exchanges, DEGIRO won't charge you anything for the first transaction every month.