What do ye guys use to invest

[porcupine73]

Hi all

Im just beginning to educate myself on investing and I was curious as to what would ye use.Ive seen that banks have investment accounts, companies like zurich or sites like degiro or trade212? Do ye invest lump sums or as ye earn?

 

[lazy_pink_nights]

@porcupine73 I use Degiro for my 'safe' investments so I have a good bit of my capital in there invested in established companies and some long term investments. I also use interactive brokers but that is for my 'fun' money. I put about 800 in that account a year ago and i have not and will not deposit more into it, I use that to trade pennystocks with the extended hours trading and complex order types degiro does not offer. Degiro is great for long term and etfs. I also try to deposit into degiro when i have more than i like in my bank as I am less likely to spend my money on useless shite online when I can put that money into stocks for my retirement.

 

[porcupine73]

@lazy_pink_nights sounds like a good option. Id be more inclined to do the monthly investing as well and treat it like I do my pension in that the money is taken out before I even notice its gone.

 

[lazy_pink_nights]

@porcupine73 I'm sure you could create a standing order to make monthly deposits into DEGIRO or IB. If you plan on using the account as a pension type account I'd recommend DEGIRO as IB have monthly fees for data and account maintenance etc.

 

[kinzie]

@lazy_pink_nights I would think you are using these accounts backwards, no? To me, IB is the better platform. Are you paying €10/month for IB?

 

[lazy_pink_nights]

@kinzie No there are no monthly fees for certain customers depending on age and other factors. IB is much better. With degiro I only need low fees as I'm just buying and holding. IB is better for trading

 

[nabidreams]

@lazy_pink_nights On the penny stocks, Degiro almost offers none. Any particular reason why you chose interactive brokers? Are they low fee too?

 

[lazy_pink_nights]

@nabidreams

Degiro offers most of the pennystocks listed on the nasdaq but it does not list any OTC stocks. Degiro also only allows you to trade in normal market hours. IB on the other hand has almost all the pennystocks available and you can trade pre and post market with order types like OCA , trailing stop losses etc unlike DEGIRO

 

[nabidreams]

@lazy_pink_nights Cheers ! Thx

 

[funnjng]

@porcupine73 i started off with eToro, but i wouldn't recommend. They use CFDs meaning you don't actually own the underlying securities. Also, they are notorious for having downtimes when ever something happens in the market.

T212 aren't bad, but i would suggest using commission based broker such as Degiro - studies have shown that the commission free model (Payment for order flow) really costs you more in the long run.

 

[daniel001]

@funnjng When trading stocks on eToro it states "you are buying the underlying asset"

Why does everyone say it's CFDs?

 

[nebcom]

@funnjng

the commission free model (Payment for order flow) really costs you more in the long run.

Don't think payment for order flow is allowed in the EU (and the UK won't have changed their laws yet). Think Trading212 is just taking a loss on customers for the sake of growth, rather than getting paid that way.

 

[funnjng]

@nebcom oh my mistake i didn't know it was illegal

But i don't think they're focused on growth, i heard that they have restricted sign ups for s lot of people since January. Either way, i would prefer to know what my costs are with commissions instead of hidden costs, as they need to be profiting somehow

 

[phoenix_spirit]

@funnjng They make most of their profits on massive CFD spreads from what I hear. Trading212 isn't perfect but with scripts and pies you can essentially sidestep deemed disposal

 

[nebcom]

@funnjng Bit late, bit I came across this FT article that goes into how they make money. In short, they make money on CFDs now and plan to make more with a 'premium' option in future.

 

[nabidreams]

@porcupine73 Started using Degiro about 4 months ago. Had a few brushes with investment portfolio management from AIB and the likes and it didn't seem that useful in terms of gains given the heavy fee they charge on everything for active management. Crypto is another one(using bitpanda) but it's high risk. No matter what don't invest money you can't afford to lose. Haven't gotten any ETFs yet; the sheer fear of having to calculate the taxes on it is making me hold back.

 

[nebcom]

@nabidreams

Haven't gotten any ETFs yet; the sheer fear of having to calculate the taxes on it is making me hold back.

It's nowhere near as hard as people on Reddit make it out to be!

Degiro send you a form at the end of the year, that sums up all of your orders for the year (date bought, amount bought, price, commission, exchange rate if applicable, etc.). Then in 8 years you just need to get the price on the same date of the 8th year from the price charts on Degiro.

Also, you only have to pay tax on gains between Jan and Nov by the 15th of December, and tax on gains in Dec by the 31st of January. So, even if you pay in every month, you'll only have to work it out twice a year (in Dec and Jan).

 

[porcupine73]

@nebcom is this the same for ETFs..my understanding might be wrong but I read that you have to pay tax on the 8th year even if they didnt go up in value?I may have read that completely wrong though

 

[startupchristian]

@porcupine73 I initially used Degiro before transferring all my positions to Interactive Brokers (IB).

I use IB as it's technically superior to Degiro. IB primarily serves professional traders and investors. It's a public company dating back to 1978 with nearly 1700 employees and 24 offices in 14 countries.

Degiro is a private company based in the Netherlands with 200 employees that was founded in 2008. There's no comparison really.

Degiro is also missing many investment trusts I'm interested in.

 

[porcupine73]

@startupchristian is IB more for experienced investors rather then starting off do you think?