ETF Broker

tomred

Registered User
Messages
42
Hi,

I would be grateful for some more advice on what broker to use for purchasing ETF's. Apologies if there is some duplication here but I have read the threads on cheapeast brokers and ETF's but am still struggling to get a complete picture when trading ETF's.

I have c. 50K to invest and already have a Goodbody account with a spread of Irish/UK equities (I also have a QL account). I would now like to use this remaining 50K to invest in some ETF's such as Oil, China, energy or maybe Nasdaq but am still unsure who is the best broker to obtain these through (maybe Campbell O Connor, Sharewatch, keytrade or maybe stay with Goodbody?)

My key questions are can these brokers give me access to ETF's in different markets and which will give me the best deal in terms of cost and service.

Also, Can these brokers give me a list of possible ETF's or do I need to source these myself? I already have a few ideas from previous threads.
 
Any broker should be able to provide you with a trading service in ETFs. If they already deal on any of the exchanges where the ETFs are traded, then you're okay. Therefore, you should have access to most ETFs traded.

As for a listing, the main ETF provider is IShares (either UK or US based). There are other US based providers such as Vangard and Proshares. Lyxor is another company, based in France I think.

Between those 4 you'll get the majority of ETF products available.
 
Also, Can these brokers give me a list of possible ETF's or do I need to source these myself? I already have a few ideas from previous threads.

Biggest Euro market for ETF's is [broken link removed]
There is a bigger range available in the US, try www.morningstar.com or yahoo finance to get a list of whats available.

I would steer clear of any of the Irish Brokers. They cost too much.
 
thanks, any thoughts on the best / most accessible non-irish brokers, Keytrade or etrade maybe?
 
I would be very interested in the best/cheapest way to get into the ETF game also but am unsure as to how cheap it can be - see my last post here:
http://www.askaboutmoney.com/showthread.php?t=45096

If someone uses keytrade for example then where can you set up your crest account - with them or somewhere in Ireland?

Also is there any tax advantage or disadvantage to using keytrade over an Irish broker?
 
Keep coming across posts recommending Keytrade but it doesn't look up to much to me. Should look at Interactive Brokers - covers all major world markets, prices are rock bottom.
 
I have gone through all the stages of registration for Interactve Brokers and now at the stage where they require a 5K minimum deposit.


That was two weeks ago.

One of my main concerns is its ease of use. I have nightmares of flashing red and green quotes all over the place and accidentally picking the wrong stock type or whatever and realising my mistake a week later.
 
I totally agree, they are ideal for anyone who trades frequently.

I am looking for an alternative for my partner, she will be a very passive investor so no annual fee or minimum commission would be a prerequisite.
Being limited to Euronext and Xetra is not a problem as she will only be buying ETFs. If anyone knows of better than Keytrade please me know. It seems that they charge a fixed fee per 50,000 so 51,000 will cost double 50000 so definitely for smaller orders.

Keytrade
Euronext < 5000 € 14.95
Euronext, Xetra, Milan per €50000 € 24.95
London per £50000 £29.95
Nyse, Nasdaq, Amex per $50000 $29.95
 
I have gone through all the stages of registration for Interactve Brokers and now at the stage where they require a 5K minimum deposit.


That was two weeks ago.

One of my main concerns is its ease of use. I have nightmares of flashing red and green quotes all over the place and accidentally picking the wrong stock type or whatever and realising my mistake a week later.

Yes, IB targets frequent traders and that is who it is best suited to. However, I wouldn't worry about placing the wrong order, etc. If you want to keep it simple and stick to ordinary market or limit orders, you can do so. They also offer a WebTrader service for clients who "require a simpler trading interface". Even using the more powerful TWS platform need not be a headache of "flashing red and green quotes" - just limit the number of real-time quotes to the handful of stocks you are following.
 
I have been looking into buying ETFs. I'm in the process of picking a stockbroker. Here's what I've learned so far.

Interactive Brokers told me you need to be trading at least a year and to have traded your chosen product 100 times. That rules me out though I don't know how they'd check.

TD Ameritrade said they are unable to open new accounts for people with addresses in Ireland because of a recent "thorough review of legal regulations in your country(Ireland)".

Irish brokers seem expensive. National Irish Bank and Sharewatch seem to be the cheapest. Not much information on NIB website. They're sending me out more info.

Keytrade are looking good for me at the moment but I don't like their €35 charge for moving stock out of their account.

Can anyone suggest more stockbrokers to buy ETFs with euros?
 
Interactive Brokers told me you need to be trading at least a year and to have traded your chosen product 100 times. That rules me out though I don't know how they'd check.

They don't check such things.
 
I also am doing some looking about at the moment, by my understanding it looks like www.keytrade.com cost €9.95 for purchasing an ETF (any quantity), whereas most brokers would charge the same as for stock purchase.
Can anyone confirm if my understanding is correct on this?
 
I have been looking into regular investments in ETFs, Shares and ETCs (still have to research these a bit more). I am hoping to invest approx. €1000 per month over the next X years (minimum 15-20 years). In addition I have Quinn Life, Rabodirect and NIB accounts.

On the advice of many posters I have been looking into different ETF Brokers. I have been put off the Irish brokers as their commissions are *expensive* for regularish purchases. Like others on this board I have been very interested in Keytrade and Interactive Brokers (IB) and have done some research.

Please correct the below if I have made any errors in my calculations! With my regular investment strategy of €1000 p.m. comparing Keytrade and IB:

- Keytrade would cost €9.95 for each purchase of ETFs, $29.95 (€23) for a purchase of US shares and £29.95 for LSE ETCs. Forgetting about ETCs, with a 50/50 mix of shares/ETFs... it will cost approx. €200 in charges.

- With IB there is a monthly charge of $10 per month and then for a €1000 purchase of ETFs or Shares it will cost approx. €1 to €4 per trade. So, my calculation is approx. $130 (€100) in charges. The foreign exchange charges seem very good and the range of ETFs available is excellent. They don’t seem to track the ISEQ but I could use Quinn for that.


This napkin calculation would favour IB provided I maintain the regular investment plan.

IB’s Trader Workstation seems quite complex, but the Web Trader interface seems fine. I guess that you can grow into the *many* trading options available. I have a few questions that I would be grateful for answers:

- The China/Japan etc. ETFs seem much cheaper than the Quinn products with management fees quoted ranging from 0.3% to 0.7% (with Lyxor for example)… even with 0.1% commission, that is about half the cost of Quinn – am I missing something?

- How secure would my investments be in comparison to an Irish broker? They don’t seem to do Crest accounts, but have a trading history of 30 years and they talk about insurance on each account to $30M. Has this put people off? I suppose I am asking, why would people use an Irish broker if they plan to trade on-line?

- I would have to do all my own tax returns – How arduous have people found this? Are the revenue commissioners fine with on-line brokers? I am thinking of dividends in particular and that 8 year rule that I have heard about (through Rabo) on calculating tax on unrealised gains.

Sorry for the long message - thanks for any advice offered!
 
€1 to €4 per trade. So, my calculation is approx. $130 (€100) in charges.

I trade US markets via my IB a/c so am not certain about European charges, but I thought 4 euro was min charge.

- The China/Japan etc. ETFs seem much cheaper than the Quinn products with management fees quoted ranging from 0.3% to 0.7% (with Lyxor for example)… even with 0.1% commission, that is about half the cost of Quinn – am I missing something?

You're right, the fact that QL has a reputation as a low-cost provider says a lot about the Irish market. 1% is pricey for an index fund and most ETFs are in the range you mentioned (or less again).

- How secure would my investments be in comparison to an Irish broker? They don’t seem to do Crest accounts, but have a trading history of 30 years and they talk about insurance on each account to $30M. Has this put people off? I suppose I am asking, why would people use an Irish broker if they plan to trade on-line?

See below link for security info. Upcoming IPO will value firm in region of $10 billion. Don't know why anyone would bother with an Irish broker (unless it's purely Irish stocks one is interested in).

http://www.interactivebrokers.com/en/general/about/ibgStrength.php?ib_entity=llc

- I would have to do all my own tax returns – How arduous have people found this? Are the revenue commissioners fine with on-line brokers? I am thinking of dividends in particular and that 8 year rule that I have heard about (through Rabo) on calculating tax on unrealised gains.


IB allows you to print daily/monthly/yearly statements. Also provides gain/loss reports, breakdown of dividends earned ,etc, at least for US accounts. Revenue have no reason to have any problems with any on-line broker. Am no tax expert but it shouldn't be much of a headache.
 
Thanks charttrader,

For €1000 trades per month, I think that I will be at the minimum value for most stocks/ETFs.

I have checked out the on-line reviews of brokers and they were very positive for Interactive Brokers, with the few complaints about day-trading performance, which is irrelevant to me.
 
Thanks charttrader,

For €1000 trades per month, I think that I will be at the minimum value for most stocks/ETFs.

I have checked out the on-line reviews of brokers and they were very positive for Interactive Brokers, with the few complaints about day-trading performance, which is irrelevant to me.

Ironically, I would say that IB is best suited to day trading - lightning execution, smart routing technology, rock bottom commissions. A subject for another thread, however.
 
Charttrader
What is situation with IB regarding stamp duty
1) DO they deduct 1% for traders in Ireland ,or do you have to declare yourself in tax returns
2) Does this apply to all trades even daytrades?
3) Are they correct that in Ireland etf have same stamp duty as equities
Regards
Patt
 
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