I might point out that an intermediary or "middleman" can, in fact, earn their pound of flesh.
I've been advising on buying ETFs since they first launched in the UK back in 2000.
Since then, the number and variety of funds on offer has expanded dramatically.
There are now about 500 ETFs in Europe, from around 40 different issuers and with over 300 listed in London alone. In addition there are over 100 Exchange Traded Commodities.
In order to buy an ETF you will need a broker and I'd say that you really need a broker who can offer access to multiple exchanges and multiple currencies.
A typical Irish Broker is going to pitch their costs at around 1.5% for a small trade with a minimum price for a deal of about €30. So, you are looking at about 3% for the round trip of buying and selling.
Even if you can beat them down to say 0.5% (good luck), you are still looking at least 1% for an execution only service with no advice.
Furthermore, the lower cost brokers generally can't offer more than a few markets and so you won't be able to buy all the funds you might need.
Then there are the taxation issues associated with "offshore" investments which, for the average investor, add another layer of complexity.
Finally, if you want to invest in ETFs through your pension, you need a self-directed pension and, again, typically, you are having to deal with your local Irish Broker and a pension provider with all their costs.
If anyone is looking for investment advice and has a decent lump sum (about €100k or more) in addition to advice fees, we'd be looking at the following costs for dealing in ETFs in the following markets:
Germany 0.15% Min €15
London 0.15% Min £10
American Exchange 0.15% Min $12
New York Exchange 0.15% Min $12
Nasdaq 0.15% Min $12
Euronext 0.15% Min $15
Singapore 0.18% Min SGX20
Swiss 0.15% Min CHF23
Stockholm 0.25% Min SEK50
If you'd like more information, please private message me.