Degiro Pension 0.20% fee

A

AJAM

Registered User
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384
In the Netherlands, Degiro offer a pension with only a 0.2% annual fee.
degiro.nl/pensioenrekening

So next time Degiro ask you for feedback (which they frequently do), tell them you would love them to offer a pension or PRSA service in Ireland. If there is enough demand they may well be tempted to do it. It would transform the self directed pension landscape in Ireland.
 
the real issue here in Ireland is the pension authority.

it makes no sense to have the central bank and a separate pensions regulator

this is a classic example of regulation pushing up costs with no benefit whatsoever to consumers

Although I’d be hesitant to have more than a couple of grand with De Giro
 
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When you become a client, you give DEGIRO the right to lend out your securities.


DEGIRO clients' assets are segregated in separate entities and thus protected against insolvency of DEGIRO. In the unlikely event that the segregated assets cannot be returned to clients, DEGIRO falls under the German Investor Compensation Scheme, which compensates any losses from non-returned assets up to 90% (with a maximum of EUR 20,000).

I don’t expect my clients assets to be lent out to third parties in order to subsidise custody and trading fees.

there’s no such thing as a free lunch. If you are paying buttons to trade, you must be paying elsewhere
 
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Open to correction, but I think you can opt out of giving them the right to lend your securities. Caveat: Have not researched it in any detail, as not personally affected. Also, have to agree that the fees seem almost low to be sustainable.
 
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Yes, I opted out of lending by opening my account with the . I consequently pay slightly higher commission on some transactions, but immaterial in the grand scheme of things.

Although this doesn't really protect me from the underlying risk of broker insolvency, which is not unique to Degiro.

There are also some more exotic/dangerous optional capabilities I can't access with a Custody account - like derivatives or trading on margin. But I believe it's possible to open another separate Degiro account if I do want those.
 
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I think the issue here is (a) the small size of the Irish pension fund market and (b) the even smaller size of the subset of the Irish pension fund market made up of clued-in people who would actually know enough about this stuff to use it. At 0.2% there's no room for any sales commission, so it would only be direct sales or referrals from fee-only brokers. Minorities of an already small market. Let's say they raised €100 million in pension funds over a period of years. Income of €200,000 per year. As a multi-national business that wouldn't make it worthwhile. They'd have to design products to fit the Irish pension rules. They'd need to apply to the Pensions Authority for approval of products. I understand this application and approval process is quite onerous. They'd have to design documentation and adapt IT systems to do it. Sorry but I can't see it happening to cater for the small numbers of clued-in Irish punters and Askaboutmoney regulars who would use it.
 
I have an account with Degiro but do not use it for trading as they do not allow pension account.

I had a pension account with IB in the UK but had to close it due to brexit.

IB Ireland has no plans to make pension account trading available to Irish customers.

I eventually, after many searching and asking, discovered that Davey offer a brilliant pension trading account for those who want to trade their own account.

I now have a pension account with MyDavey login and can place live trades online with Irish and UK shares - with NO FEES!

The other markets have fees attached so are not worth trading imho.

Davey charge 1% per annum of pension fund value in account, which is reasonable and acceptable given that they charge no trading fees.

Irish stamp duty is 1% and UK stamp duty is 0.5%.
 
Where do you find out whether this is the case for your trading settings within degiro?
I can't find anywhere on my " personal settings" or "trading settings" where this is indicated only that I have a "basic trading" account so cannot trade options or futures
 
Article43 said:
Davey charge 1% per annum of pension fund value in account, which is reasonable and acceptable given that they charge no trading fees.
Click to expand...

Article43 said:
I now have a pension account with MyDavey login and can place live trades online with Irish and UK shares - with NO FEES!
Click to expand...

I refuse to do business with Davy after they were fined over €4 million by the Central Bank last year for breaking market rules. If the senior management of a firm will act like this towards their clients for personal gain, I wouldn't trust the culture of the firm as a whole, notwithstanding the subsequent sale of Davy to Bank of Ireland. But that's just my view on this.

Anyway, I can get a lower cost trading platform from Independent Trustee Company and Conexim.
 
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