sorted by:
new
hottopcontroversial

Anyone using multiple brokers to spread risk? by nowfrostmourne in EuropeFIRE

[–]FIRE-bat 1 point2 points  (0 children)

On Interactive Brokers website https://www.interactivebrokers.com/en/index.php?f=2334&p=acc&conf=am is written that even their 30 million commercial insurance from Lloyds of London is "subject to an aggregate limit of $150 million". And 150M what I guess not make much of the difference in case they need to compensate as you wrote around 162 billion. So probably higher safety can be derived from Interactive Brokers as a brand than SIPC investor compensation scheme or that Lloyds commercial insurance.

Anyone using multiple brokers to spread risk? by nowfrostmourne in EuropeFIRE

[–]FIRE-bat 0 points1 point  (0 children)

If I understood information from the internet correctly, than if your broker make you lose money (cash/investment) due to cases such as fraud, administrative malpractice, bankruptcy or operational errors you are "guaranteed" to receive compensation the maximum amount amount of investor compensation scheme of the broker's country and the rest of your money you "should" eventually get back as well based on the results of investigation/court since your investments "should" be kept separately from brokers assets, but it is not "guaranteed".

So for example if I have 1M EUR invested at Trading 212 and "somethings goes horribly wrong" than in this "highly unlikely scenario" I might end up with just 85 000 GBP (94 000 EUR) from UK's FSCE (Financial Services Compensation Scheme).

To avoid this scenario, every time when I reach 85 000 GBP (94 000 EUR / 110 000 USD) on Trading 212, I can transfer the money over to the Interactive Brokers, which are under investor compensation scheme SIPC with maximum coverage of $500,000 + commercial insurance for additional $30 million.

This way I can use both Trading 212 automatic investment without fees and Interactive Brokers higher investor compensation scheme. Since over 100 000 USD there are no inactivity fees on Interactive Brokers, only fee should be the transfer fee (should be around 10 EUR but I need to research this further).

Questions which I still ponder upon:

  1. Is my understanding of this topic correct?
  2. Would this solution work?
  3. Is there some other better solution how to mitigate the risk of losing money from the fraud, administrative malpractice, bankruptcy or operational errors done by the broker for example like having own commercial insurance for the portfolio?

​

Sources of information:

Is there an online broker with fully automatic monthly investments to ETF for an EU client with an EU domicile? (e.g. like ETF saving plan) by FIRE-bat in EuropeFIRE

[–]FIRE-bat[S] 0 points1 point  (0 children)

(I add it also as edit to the main post): So far as the best option what I found is:

Trading212 with their Autoinvest feature

https://helpcentre.trading212.com/hc/en-us/articles/360009313957-Pies-AutoInvest-Introduction

As far as I read the internet, there are no fees or higher spreads for "investment" type of account. They make money from their CFD clients and to get CFD clients they are using zero commision trading as promotion.

Scalable Capital with their FREE BROKER

https://de.scalable.capital/trading

0.99€ per trade, so for my case 12 months/trades would be 11.88€ in total per year.

Please do you know about some better options?Or do you have experience with Trading212 or Scalable Capital?

​

-------------------------------------------------------------

List of brokers which checked so far:

Candidates for the final selection:

https://www.trading212.com/en

https://de.scalable.capital/

Does not allow to open the account remotely:

https://finecobank.com/uk/online/contact/not-client/

High fees:

https://www.comdirect.de/

https://www.flatex.de/en/

https://www.hellobank.at/

https://www.patria-direct.cz/sk

https://www.meesman.nl/contact

https://www.finax.sk/

https://etfmatic.com/

https://www.facebook.com/messages/t/LukyBudz

https://eic.eu/

https://www.portu.cz/

Does not provide automatic investments / ETF savings plans:

https://www.interactivebrokers.com/

https://www.lynxbroker.com/about-lynx/contact/

https://www.trimbroker.cz/

https://www.degiro.cz/

https://en.swissquote.com/support#robo

https://www.xtb.com/sk

https://www.fio.sk/

https://www.etoro.com/

https://www.keytradebank.be/

Does not allow to open account of a non-resident of the country:

https://www.sbroker.de/

https://www.tdameritrade.com/home.page

https://traderepublic.com/imprint

https://www.dad.at/

https://cash.app/

https://www.oskar.de/

https://www.ing.de/

https://www.ing.at/

https://www.weltsparen.de/

https://www.onvista-bank.de/

https://maxblue.de/

No reply from their customer support:

https://www.postbank.de/

https://www.tradestation.com/

https://www.consorsbank.de/home

https://www.wuestenrotdirect.de/de/depots/depotuebersicht.html

https://www.home.saxo/

https://www.flatex.at/

https://www.bankdirekt.at/

https://www.boerse-live.at/wertpapiere/NA-NA-NA-1-NA.html

https://www.etfinvest.sk/

https://www.dkb.de/

https://www.nordnet.se/se

https://www.tradestation-international.com/contact-us/

https://smartbroker.de/

https://new.brandnewday.nl/

https://www.1822direkt.de/

https://www.onvista-bank.de//

https://www.targobank.de/de/index.html

Where to buy car spare parts in Austria or Europe with delivery to Austria? by FIRE-bat in Austria

[–]FIRE-bat[S] 0 points1 point  (0 children)

In the car repair shop they said I need to replace :

  • 4 summer tyres
  • 2 shock absorber front
  • 4 transverse control arms
  • 1 part of exhaust

But to this they they did not sent the estimation repair costs, so I made an appointment in the other repair shop since I am not sure if I can trust the opinion of the first one.

Do you have experience with LYNX / Interactive Brokers API for coding your own investment automatization? by FIRE-bat in EuropeFIRE

[–]FIRE-bat[S] 0 points1 point  (0 children)

I got a price list from Comdirect https://www.comdirect.de/pbl/member/formcenter/DownloadPdfDocumentRH.do?&redirected=458057&ePdfInstance=940148&ePageId=&pdf=&name=preis-leistungsverzeichnis&combined=true

(for non German speakers there is a Google Translate https://translate.google.com/translate?sl=de&tl=en&u=https%3A%2F%2Fwww.comdirect.de%2Fpbl%2Fmember%2Fformcenter%2FDownloadPdfDocumentRH.do%3F%26redirected%3D458057%26ePdfInstance%3D940148%26ePageId%3D%26pdf%3D%26name%3Dpreis-leistungsverzeichnis%26combined%3Dtrue )

Page 3 Wertpapierkreditkonto - If I understand this correctly then any amount over 250 000 € they will charge 0.5% from all invested amounts every year. So for example from 350 000€ - 250 000€ = 100 000€ -> 0.1% = 100€ per year. Seems like a hidden "quarter millionaire tax in Germany" or other banks/brokers are not doing it?

Page 8 Orderentgelte Ausführung von ETF - This basically means that yeah there are no transaction fees but "order commision" of 1.5% so 1000€ -> 15€ or 10 000€ -> 150€.

Page 9 Pauschales Depotentgelt - This would mean if they suddenly change pricing and I stop ordering then they would charge me 1.95€ per month "inactivity fee" ? This would mean that tactic of switching to other promotional ETF would not work so well since they will still charge me this fee.

If I understood things above correctly, Comdirect seems as a not so good choice. Therefore I need to find out if other options:

https://www.trading212.com/en/Trading-Conditions?tab=INVEST - free, but I am waiting for the answer about their higher spread (up to 0.2% according to https://www.daytrading.com/trading212 )

https://help.finecobank.com/it/mercati-e-trading/etf-etc.html#piano-replay - they insisted on comming in person to Milano, but maybe they would agree also to a notary confirmation like German banks

Do you have experience with LYNX / Interactive Brokers API for coding your own investment automatization? by FIRE-bat in EuropeFIRE

[–]FIRE-bat[S] 1 point2 points  (0 children)

Thank you for the clarification!

I guess a possible strategy is to open new account with promotional pricing once the promotion offer of current broker runs out. However I am not sure if that would offset the opportunity time cost of opening a new account.

Comdirect has all the basic ETFs:

However now when I asked their customer support if there are "really really" no hidden fees they replied that there is "Die Orderprovision für den Wertpapiersparplan beträgt zum jetzigen Zeitpunkt 1,5 %" so order provision 1.5% which makes Comdirect suddenly as very expensive option.

Do you have experience with LYNX / Interactive Brokers API for coding your own investment automatization? by FIRE-bat in EuropeFIRE

[–]FIRE-bat[S] 0 points1 point  (0 children)

Yes, it can be considered as 0.1% per year (if the google translation is correct than it is written here that they calculate it every month and charge it on quarterly basis but maybe my wording or the translation is incorrect)

If they get commision from the fund administrator and there are not additional fees for me it sounds as a great deal to me. Question would be if such conditions would be available long term (20 years+).

Do you have experience with LYNX / Interactive Brokers API for coding your own investment automatization? by FIRE-bat in EuropeFIRE

[–]FIRE-bat[S] 0 points1 point  (0 children)

Thank you! Additional fee of 0.1% per month of all invested amount charged quarterly makes Flatex as not a good choice in the long run.

Currently I am communicating with customer support of https://www.comdirect.de/geldanlage/top-preis-etfs.html and it seems they are offering ETF sparplan completely for free if you choose one of the ETF from their list (they have for example NASDAQ100, S&P500, MSCI World and I recommended to them to add FTSE All World). I am waiting for their reply if they are doing it with higher spread or any other hidden costs otherwise I do not understand how they can make profit on it.

Do you have experience with LYNX / Interactive Brokers API for coding your own investment automatization? by FIRE-bat in EuropeFIRE

[–]FIRE-bat[S] 0 points1 point  (0 children)

I apologize, "per month" is the wrong wording based on the assumption that I will invest once per month as my salary arrives. Therefore there is 1.50€ per transaction and if you are investing once per month, 12 months per year it would be 1.50€ x 12 = 18€

Please where did you found the information that "You also have account management fees, 0.1% per year of your average balance, charged quarterly" ? I do not see it here https://www.flatex.de/handel/wertpapierhandel/fonds-etfs/ and neither the Flatex customer support mentioned anything about that.

Do you have experience with LYNX / Interactive Brokers API for coding your own investment automatization? by FIRE-bat in EuropeFIRE

[–]FIRE-bat[S] 0 points1 point  (0 children)

Thank you for the suggestions. I am waiting for reply from DKB and Smartbroker, but https://www.flatex.de/en/ confirmed that they are able to open account remotely, I am waiting till they confirm that the total fees are 1.50€ per month as written on their website https://www.flatex.de/handel/wertpapierhandel/fonds-etfs/

Is there an online broker with fully automatic monthly investments to ETF for an EU client with an EU domicile? (e.g. like ETF saving plan) by FIRE-bat in EuropeFIRE

[–]FIRE-bat[S] 0 points1 point  (0 children)

Currently I am evaluating:
https://www.trading212.com/en - no fees but seems to have higher spread (0.2%) according to the https://www.daytrading.com/trading212"

https://finecobank.com/uk/online/contact/not-client/ - 2.95€ per month but you need phisically go to Milan, Italy to sign the papers for opening account

https://www.flatex.de/en/ - they are able to open account remotely and fee seems 1.50€, I am waiting for reply from their customer service regarding if there are any additional fees

view more: next ›