[loorloop]

Thanks Jerome for this warning. The fees are "significant" (but let's not forget that there are the savings of the IB transaction minimum):
10€ per line + external cost

“External cost” probably refers to the costs charged by the new broker.

I was thinking that given the relatively low brokerage fees, it would be better to sell everything and then buy back your portfolio from your new broker (which allows you to do some arbitrage at the same time). Or maybe there is the possibility of having these fees financed by the new broker?

 

[loorloop]

Thank you very much Jérôme for the details 1) and 2) that I did not know.

Indeed, for a portfolio greater than 100,000 USD it seems much better to me to be with IB, moreover it is a very solid broker… And the exchange service is much simpler.

Degiro therefore seems to be a good broker to start with (customer service in French, no minimum deposit of 10,000, and no minimum fees of 120$ or 36$ for under-25s) and nothing prevents you from moving everything to IB with a larger portfolio.

@Ether I have only been there for a month which means I cannot recommend the broker at this time. I am simply observing how they work and their fees.

I only have a small capital for now. For 200,000/500,000 Too early to say especially since I have no certainty about their ability to correctly process dividends. I would rather say no. I would rather put my money at IB from 100,000 especially since there are no more these famous fees as Jérôme pointed out.

In particular, Degiro is necessarily linked to ONE bank account in your name…! A little trip to Europe, how do you do it? You have to change USD into CHF, then once your CHF is in your account into EUR with another service (a broker or transferwise). Same for sending money to a distant European uncle… Very annoying then.

Personally, for traveling I use a EUR account at N 26 which charges no fees on foreign currency transactions, so the way Degiro works is a no-go for me in the long term.

[loorloop]

However, please note that I received a strange message from them yesterday saying that my account was in debit of €1.28 (without specifying the identifier...) and that I had to regularize my situation, but there were no problems on my two accounts... I don't understand, in short...

With a little more hindsight I could tell you whether or not I recommend the broker in terms of customer service, and especially the correct or incorrect treatment of dividends.

I forgot to mention that on a large selection of ETFs (including the emerging countries bond in Jérôme's EX-US strategy), it is possible to have one free order per month (this can be useful if you want to put some liquidity on bonds for example) and +1 if each new order is both in the same direction as the first and more than €1000.

[loorloop]

Good morning,

I am at Degiro with a Basic account. In my opinion the Basic account (and not Custody) with them is more interesting than with IB.

With a Basic account there are no dividend processing fees (unlike Custody) the only fees for Buy and Hold are the brokerage fees in the United States (0.5€ + 0.004 per share); 2.5€ per year of connection fees to the stock exchange, and 0.1% (of the amount exchanged) of exchange fees during an automatic transaction. Note that it is possible to deactivate the automatic exchange (which automatically converts both during a brokerage in a foreign currency and the receipt of dividends in a foreign currency (exchanged in the base currency of the CHR or EUR account) and to receive dividends in USD and not CHF. If the automatic exchange is deactivated, a manual exchange transaction can be made (10€ + 0.02% of the amount); note that it is possible at any time to deactivate/reactivate the automatic exchange.

No Mystik, the Custody profile does not give access to more products, it is a basic account but with Custody, the securities are deposited outside of Degiro which only executes and does not hold the securities. In basic, Degiro keeps the securities with them and can potentially be lent to make short sales. Note that there are these famous dividend and coupon fees present in the Custody profile and not in the basic.

Afterwards it is possible to "improve the basic account (but impossible to change a custody account) to Active, which allows access to more products such as options, to use margin effects, short selling, etc.

I asked the question regarding the risk associated with the loan of securities with a Basic account, here is the broker's response:
The risk associated with securities lending at DEGIRO is minimal or non-existent for several reasons. The first is that on average, the volume of securities lent by DEGIRO is approximately 1%, which is a very small proportion of the securities held. In addition, when a client wishes to carry out a short transaction, a minimum guarantee of 104% of the value of the short position is required. Also note that no default has ever been observed following a securities loan.

I imagine that at IB (to be verified), it's the same, the securities can be used by others to make short sales. However, I don't agree with Jérôme: the fees are much higher at IB because there is a minimum fee of 10$ per month (also charged if inactive)... If you have been trading for a long time, IB is more interesting in particular because the changes are blinding but for pure Buy and Hold, 120$ per year is huge I think...

However, for the French, it is currently impossible to open a PEA but they are doing everything they can to be the first foreign broker to be able to do so.

I personally have two securities accounts, one in EUR and one in CHF, both as a Swiss tax resident.

 

[loorloop]

Thanks for the advice Jérôme,

So, I waited at least until we broke the MM50 in daily.
And only 1/3 of my capital available: 8 titles at 57$38/u

At this price we are slightly below my objectives but it is true that there is not much (or I am blind) to get our teeth into these days. 🙂

[loorloop]

Thanks for your reply Jérôme 🙂

Why would you perhaps wait a little longer before buying?

Is this because the stock could potentially fall further since it has entered a downtrend or for some other reason?

As a beginner, I would tend to want to go for it since it meets my objectives (payout – of 66%, minimum 4.5% of yield and 10% of increase on average) so I would like to understand how you reason. 🙂

[loorloop]

Hi Jerome,

Target shares suffered a very large drop in late February 2017 following the announcement of results.

Do you think this is a buying opportunity or that the sustainability of the dividend will potentially no longer be assured in the future?

Thank you for your reply

Felix

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