Comparison of trading charges between Davy and SAXO

Hi,

I am considering opening an account for some buy and hold ETFs and I was looking to compare the total charges between Davy and SAXO.

The conventional wisdom seems to be that Davy are very expensive but when I run the numbers it looks like they are broadly the same.

I would be interested in getting second opinions please to see if there any any charges I have missed.

Using this document from Davy I estimate the charges to be:

• 0.5% - Commission charge (one-off)
  
• 0.1% - Overseas ETF charge (one-off)
  
• €25 - Overseas Custody charge (one-off)
  
• €20 - Quarterly account maintenance charge (quarterly)

Using and I estimate the charges to be:

• 0.1% - Commission charge (on say the XETRA exchange) (one-off)
  
• 0.12% - Custody charge (annual)
• €200 - inactivity fee (annual) (first year = €100)

Here are the trading charges for a notional €100,000 invested with both:


Even ignoring the inactivity charge with SAXO makes the SAXO cost €850 which is just a shade cheaper than Davy. Where SAXO seem to hit you is the annual custody charge.

How do those numbers look - any mistakes in the calculations?

I am about to do the same myself also for ETFs.....Any reason why you are not considering Degiro? I am currently going through the very long process of transferring funds from PTSB (will only allow 5,000 a day to be transferred) to Degiro. They seem to have the cheapest transactions costs...Perhaps you could extend your analysis to include their costs?

OP, the math is hard to follow without showing, in saxos case what you are doing to arrive at these numbers?
whats the 150 pa

ircoha said:

OP, the math is hard to follow without showing, in saxos case what you are doing to arrive at these numbers?
whats the 150 pa

Click to expand...

Sorry, I thought I had the tables pasted correctly - here is another attempt that might make it clearer:

landlord said:

I am about to do the same myself also for ETFs.....Any reason why you are not considering Degiro? I am currently going through the very long process of transferring funds from PTSB (will only allow 5,000 a day to be transferred) to Degiro. They seem to have the cheapest transactions costs...Perhaps you could extend your analysis to include their costs?

Click to expand...

Hi Landlord,

Firstly, thanks for your recent work on tracking the issues / costs on ETFs - got me thinking. I am looking at it for a self administered pension rather than as an individual so I am more limited in my broker options.

However I will run the figures for Degiro later, I reckon they will trump both but I was veering towards Davy because I liked the idea of dealing with a local company who were regulated here (hopefully that counts for something!). I just wanted to see how much more Davy was and it looks to me that they are not much worse.

Personally I think the trick is to look at the cost over a number of years and see how it compares, the headline figures are misleading and there is probably a benefit to dealing with a locally regulated company.

I'll let you know when the numbers are done.

landlord said:

I am currently going through the very long process of transferring funds from PTSB (will only allow 5,000 a day to be transferred) to Degiro.

Click to expand...

You can go into the branch and make a large value payment (Swift) for 50c. Much quicker and less hassle (assuming you have a branch nearby)

landlord said:

I am about to do the same myself also for ETFs.....Any reason why you are not considering Degiro? I am currently going through the very long process of transferring funds from PTSB (will only allow 5,000 a day to be transferred) to Degiro. They seem to have the cheapest transactions costs...Perhaps you could extend your analysis to include their costs?

Click to expand...

landlord - I ran the figures for degiro and they are better alright:


I vaguely remember a thread here recently discussing the merits of degiro and questioning whether they were as 'stable / safe' as the other guys in the market. Cannot remember where that one ended up.......

Personally, I would still probably stick with Davy - just because they are based here and regulated here.

Even though they are 153% more expensive or 0.62% of your overall portfolio!

Actually as I write that out I start thinking about it again!

Best of luck with it all.

Davy's are very expensive your example deals with a one off purchase , you may be in a position to buy more down the line , financial circumstances change a lot , if you are buying more the difference be much greater.

What are your thoughts on Goodbody prices?

I see from there website:

• €32 per trade minimum commission.
• 1.25% commission up to €25,000.
• 0.50% commission on balance.

Stamp Duty
Stamp duty is chargeable on the purchase of Irish and UK securities.
The rates are:

• Irish Shares: 1.0%
• UK shares: 0.5%

A charge of €19.05 is included on all US and European purchases and sales.

Overseas Broker Charge

Varies depending on the market and broker. Typical fee: 0.20%.

Other fees:

• €21.49 per annum Account Maintenance Charge. This charge is subject to VAT.
• €13 Stock Transfer Out Charge, per line of stock, with a minimum charge of €40.
• €15 Consolidated Tax Voucher replacement.

I don't understand what the last 2 costs mean.

I'd be thinking about buying small amounts every month (approx EUR200) and from the cost above it looks like I wouldn't have much left to buy shares with.

Thanks.