60K investment safety split between 3 different online brokers?

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LLB123

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I have 60k to invest and want to do it via an online brokers/fintech for ease of use and so I can keep an eye on the go and also because I primarily want to use some USD I have on deposit earning nothing.

Strategy:
20k EU - Trade Republic in a single share 'proxy ETF' (Berkshire)
20k EU - Revolut; 5k each in four tried and trusted popular tech shares (Apple/Nvidia etc).
20k USD - eToro entirely in Vanguard VOO ETF

I'd prefer from a growth and compounding point of view to just put the whole shebang into a single ETF and forget about it, but all of the online brokers protection limits seem to only run to 20k for securities, which makes me think it's 'safer' to split it up.
Am I missing anything? I'm aware of the ETF deemed disposal thing but when the time comes will more than likely dispose any gains in the US where I plan to retire!
 
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LLB123 said:
I'm aware of the ETF deemed disposal thing but when the time comes will more than likely dispose any gains in the US where I plan to retire!
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The ETF deemed disposal rules are irrelevant if you're buying shares that will be taxed under CGT rules (and income tax if there are dividends). Or is the Vanguard thing an ETF? If it is and you're taxable in Ireland across any 8 year anniversaries then surely you'll be liable for the deemed disposal taxes?

I concluded a while back that the deemed disposal taxation rules and rates rendered it too messy to invest in ETFs and I plumped for diversified conglomerate shares like BH instead.
 
Yes Vanguard is an ETF, I've edited above for clarity. Aiming to retire or at least part-reside in the US over next 10 years all going well, but prepared to suck up the deemed disposal if at the time I'm still tax resident here.
 
Nothing wrong with your investment choice per se as far as I can see but it's difficult to know for sure without more knowledge about your overall situation - e.g. if you had a high rate loan then that might merit reduction/clearing with the spare cash etc.
 
ClubMan said:
I concluded a while back that the deemed disposal taxation rules and rates rendered it too messy to invest in ETFs and I plumped for diversified conglomerate shares like BH instead.
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I'd happily invest the lot in BH but with only 20k protection limit for online brokers makes me pause!
 
LLB123 said:
20k USD - eToro entirely in Vanguard VOO ETF
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Check with eToro that you're actually investing in an ETF and not a CFD.

eToro General Risk Disclosure

eToro encourages responsible trading. As a regulated platform we are required to notify our clients of the risks involved with online trading.
www.etoro.com

CFD stands for “Contract For Difference,” meaning you are not buying the underlying asset, but, rather, purchasing a contract to settle the difference in the initial and ending price of the asset.
 
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OK, that's thrown me, what's the difference essentially? Aware at least that CFDs are more complex trading instruments, so does make the eToro investment more of a shareholding. And thus gains liable to CGT?
 
CFDs - you don't own anything listed on a stock exchange, it's basically an IOU between you and eToro. It may be leveraged, carrying a lot more risk and you could be subject to a margin call where they close out your position at unfavourable price. The fees may be higher.

Unless you are 100% sure you are directly buying the underlying ETF, don't use eToro.
 
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This info is gold, thank you so much for the heads up. Is this the same for all eToro offerings including shares? Could switch my strategy to Berkshire only at eToro and use Trade Republic for the ETF, but I can't see an offering for Vanguard or equivalent on the Trade Republic platform.
 
I don't use eToro, but this person explains it well:
 
Corola said:
I don't use eToro, but this person explains it well:
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Interesting because unless I'm mistaken, the CFD is essentially a deemed disposal workaround since CGT rules apply. But perhaps not worth a 20k holding if it's merely a 'bet'!
 
LLB123 said:
I can't see an offering for Vanguard or equivalent on the Trade Republic platform.
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VOO is a US-domiciled ETF, but you can find the equivalent Irish-domiciled versions, for example VUAA for S&P500 index or VWCE for FTSE All-World index.

Unless you have a specific reason for wanting US-domiciled VOO, then Irish-domiciled is safer.
 
Corola said:
VOO is a US-domiciled ETF, but you can find the equivalent Irish-domiciled versions, for example VUAA for S&P500 index or VWCE for FTSE All-World index.

Unless you have a specific reason for wanting US-domiciled VOO, then Irish-domiciled is safer.
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Exactly what I need. Very much appreciate your help @Corola, thank you so much.
 
LLB123 said:
the CFD is essentially a deemed disposal workaround since CGT rules apply.
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Workaround or loophole to be closed perhaps.

It's not exactly the same because the US-domiciled ETFs you could buy as a CFD are not subject to gross roll-up in the same way. They are distributing, i.e. obliged to pay out their dividends on which you would be subject to income/exit tax. Whereas the Irish-domiciled ETFs are accumulating, i.e. reinvesting their dividends free from tax which is the reason for deemed disposal.
 
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just on a little side note regarding Trade republic, i started putting 1000 euro into it per month from feb 2022 onwards, and mainly picking up well known shares with the 1000 euro, sometimes 4x250 euro , 2x500 and pick nice well known shares (Lilly/apple/tesla/NVidia/amazon etc etc) its been working well for me, (little bit of a wobble last month when the share prices fell) my question is , how secure is trade republic? , should i think about selling up and removing money out of there once you reach say 20K
 
Interesting point, you seem to know a lot on this topic, what ETF would you recommend then and on what platform?
 
irishfinanceguy said:
Interesting point, you seem to know a lot on this topic, what ETF would you recommend then and on what platform?
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You can compare globally diversified ETFs on this list.

Accumulating is more tax-efficient than distributing.
Lower fees (TER) are better than higher fees.
Larger fund size is more reliable than smaller fund size.

The best World ETFs

The easiest way to invest in the global stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
www.justetf.com
 
I currently have a degiro account which I'm very happy with. Easy to use, quick transfers of funds in and out of the account etc. However I'm aware of the brokers protection limits of 20k for securities. I'm looking around at opening another account with one of the other low cost platforms and have read good and bad reviews on IBKR, etoro etc.

I'm now thinking of opening a second account on degiro. I can use the same email address, bank details etc. and just use a new username. If I deposit up to 20k in the second account does this come under a separate protection limit? Maybe a question for degiro but thought I'd put it out here first.
 
Radiowriter said:
I'm now thinking of opening a second account on degiro. I can use the same email address, bank details etc. and just use a new username.
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Will they let you do that? Presumably as part of the anti money laundering/know your customer regulations they'll ask for your PPSN and then see that it's already on file because you already have an account?
 
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