Degiro or IBKR

[marija321]

Hello

I am considering moving my broker accounts from my bank and Trade Republic to Degiro or IBK

I live in the EUROzone.

I wonder which one would be the best for me.

a. I am not a trader (short term). I am more an investor with buy and hold strategy

b. I will more likely do between one to five trade per month with amount for each around 500 EUR

c. I want to buy mostly in the US markets (stocks, ETF and also REIT)

d. Occasionally I will buy on Europe markets (London, Paris, Franckfurt and Amsterdam)

e. I may stay a while without being active (eventhough I tend to prefer DCA)

f. I am not very much familiar with options and futures and put/call but that is something I do consider graduating to in the future.

Obviously, the ice on the cake is that the lower the fees on transactions but also on account management, the happier I am.

**** Please, the comparison I am looking for is Degiro vs IBK so refrain to suggest another one.

Thanks to all.

 

[chinenyea]

@marija321 IB just cancelled all monthly fees for customers that have less than 100K in their account, so its now a very good option.

As you live in the EU, you will not be allowed to buy US ETF's and funds.

 

[marija321]

@chinenyea

As you live in the EU, you will not be allowed to buy US ETF's and funds.

What do you mean ?

 

[chinenyea]

@marija321 This

As an EU based retail investor, you are only allowed to buy products that have a KFID document.

Most (all) US based ETFs (VT, VTI, etc) do not have it, so you are not allowed to buy them. You will have to buy UCITS ETFs.
There are ways around it through options but that is not for the inexperienced.

 

[marija321]

@chinenyea Well
Thanks
As far as I can buy the commission free etf from Degiro that are based on us markets I will be happy

 

[chinenyea]

@marija321 Of course, based on US market that is no problem. You can also buy them at IBKR, not free but cheap enough.

 

[indent]

@marija321 for core broad ETF's from commissions free list (really all you need if you prefer simpler approach) - Degiro (the only cost is annual exchange connection fee, 2.5 E for each exchange)

https://www.degiro.ie/fees/commission-free-etfs

US stocks - IB is cheaper, also if you consider dividends no additional processing fees (Degiro has these for custody account, but not for the basic one )..and bonus, you can buy fractional shares

if you need some special ETFs or something not covered in the list of free ones in Degiro - IB is slightly cheaper (around 1.25E for transactions on European exchanges)

no inactivity fee for both now, if you want to minimize fees for core ETFs then Degiro, if you want cheaper fees for stocks - IB, or use both for different purpose

 

[marija321]

@indent

- IB, or use both for different purpose

I love the suggestion

 

[sherzei]

@indent To me IBKR fees are incredible dificult to understand from their site. That's why I've not opened an account until now

 

[marija321]

@sherzei

To me IBKR fees are incredible dificult to understand from their site.

I concur

 

[sherzei]

@marija321 Sorry not being helpful in answering you question. But I'm curious to know why you've left Trade Republic. I thought it was a nice broker, in fact, i was waiting for it to be available here

 

[marija321]

@sherzei Trade Republic is in my humble opinion easy as a broker and I like the simplicity of the operations and the fees.

Yet,

1. I use TR mainly for US market and the fees (with respect of the amount that I trade), TR is more expensive.
2. That is the main issue for me. In TR the price are shown is EUR even for US market. Thus I need all the time when I put some order with limit to take into account the change rate. That sucks. I want to follow and put orders directly in USD
3. When I get USD dividend they are converted in EUR and I have no control on teh convertion rate and when I decide to reinvest, the USD dividend are converted back to EUR (still some fees).
4. Last, I like the fact that in case my share are loaned by IBK, I get 50% of the commision.
5. I LOVE the new feature to invest the money on TR from Credit Card but it does not compensate all the point above

Of course these are my arguments