Buying €5000 of Irish Shares

C

catweazle

Registered User
Messages
17
I am looking at buying 5000 euros of Irish shares for the first time, as regards ceapest stockbroker I am looking at maybe just going with my AIB on-line account which uses Goodbody, they will charge me 1.25% commision and account maintenace of 26 euros a year.

Maybe its just laziness but it sems to be the easiest way of getting set up without getting current accounts statements etc to sign up with another stockbroker as I already have a current account there.

I intend to just leave the shares for a two-three year period there, am I losing out on much money if I dont go with them or is the amount miniscule to be getting too worked up over

Thanks

John
 
I'm sure that you can get a better deal on charges by shopping around.

Don't forget that you will pay 1% stamp duty on purchases, any gains arising at disposal will be assessable for CGT and any dividend payments will be assessable for income tax (after deduction of witholding tax).

Have you considered buying units in a low charges unit linked fund instead of investing directly in equities? Some of the key posts should deal with the pros and cons of each approach.
 
catweazle said:
I intend to just leave the shares for a two-three year period there, am I losing out on much money if I dont go with them or is the amount miniscule to be getting too worked up over
Click to expand...

2-3 years = too short I agree... Shares = long term investment unless you would like to speculate (=bet)...
 
Hi Catweazle,I was in the same position recently and invested €5000 in what's called an ISEQ Fund. This was a Dolmen product but all of the main stockbrokers do them. That was the minimum investment but I felt it was better than buying shares myself. The management fee was less than 1% and given the big collapses in shares at the time it appealed to me.(I've no connection with that company and similar products are widely available!) Apologies also if you really just want to buy the shares and other options are not required.Good luck
 
No I agree, 2-3 years is the minimum i will keep it in for, I would hope to keep it in for longer but I am thinking worst case scenario, getting married next year so maybe might need some for baby in a couple of years.

I reckon that the Irish banks offer good value for money at their current share price so it is a speculative punt more than anything else.

I know maybe I am being lazy but I just set up a current account in Halifax recently and I was dismayed with all the requirements and hoops I had to go through for money Laundering regulations.

I just want the quiet life and get the shares bought quickly and with the least hassle. I have looked at ODL Securities but was just turned off at the requirements needed
 
I just bought a few thousands worth of shares in BOI with sharewatch. It was my first time and it was simple over the phone. All I had to do was transfer the money from my account to them and ring and they do the trade there and then and tell you exactly the price of the shares. Cost was €50 for the trade and another €50 whenever I sell. Also 1% stamp duty but thats unavoidable.
 
John Rambo said:
Hi Catweazle,I was in the same position recently and invested €5000 in what's called an ISEQ Fund. This was a Dolmen product but all of the main stockbrokers do them. That was the minimum investment but I felt it was better than buying shares myself. The management fee was less than 1% and given the big collapses in shares at the time it appealed to me.(I've no connection with that company and similar products are widely available!) Apologies also if you really just want to buy the shares and other options are not required.Good luck
Click to expand...

I appreciate that Dolmen are saying that the expenses on their fund are 1%. But are they including other costs like transactions, registrations etc? I make this point because as far as I can see these funds track the index by reinvesting your dividends (2 - 2.5%).

Correct me if I'm wrong here but the true annual cost of tracking the index is this figure (2.5%) and not 1%
 
You must log in or register to reply here.
Back
Top