Beginning to Invest - All questions go here please

timetogo1

outonawing wrote: »

Trading 212 do fractionals.

Yep. But the guy I was responding to was asking about automatically reinvesting dividends. Trading 212 do fractionals but they don't drip.

Bob24

timetogo1 wrote: »

Trading 212 do fractionals but they don't drip.

They actually do, within their “pie” feature (currently in public beta and fully live soon if I am not mistaken): https://helpcentre.trading212.com/hc/en-us/articles/360009635178-Dividend-reinvesting-DRIP-

timetogo1

Bob24 wrote: »

They actually do, within their “pie” feature (currently in public beta and fully live soon if I am not mistaken): https://helpcentre.trading212.com/hc/en-us/articles/360009635178-Dividend-reinvesting-DRIP-

I joined Trading 212 in May. One of the reasons was their Pie feature. It was a beta then

The fractionals though has been dead handy. I wouldn't have spent over a grand for 1 share of Tesla or Amazon or Google etc. so I've been buying .1 a month of them. That's worked out OK.

arleitiss

How do banks view transactions to brokers when reviewing it on mortgage application?

Bob24

arleitiss wrote: »

How do banks view transactions to brokers when reviewing it on mortgage application?

They’ll ask for you brokerage account statements to make sure the money going out of your current account is indeed hitting a brokerage account under your name.

I don’t think there is any problem at all with having a brokerage account as such. But obviously if they see someone funnelling large amounts of money to the stock market and with a history of losing that money on wrong short term bets, they will have a concern.

s3ndnudes

Does anyone know if there is a maximum number of different stock holdings you can have in Degiro? Currently have about 10 stocks and about 5 ETFS. Does anyone know the maxium number of different stocks you can have?

Shedite27

s3ndnudes wrote: »

Does anyone know if there is a maximum number of different stock holdings you can have in Degiro? Currently have about 10 stocks and about 5 ETFS. Does anyone know the maxium number of different stocks you can have?

Doubt it, I'm around 40

s3ndnudes

Brilliant- was hoping that would be the answer. Couldn't see an answer on the degiro page so heres hoping theres no limit.

CertifiedSimp

Am I right in saying a Ucits S&P 500 is the same as the Vanguard S&P one in the US?

Why is there different S&P500 ETFs?

And does it say whether dividends or reinvested or not in Degiro? And I guess deemed disposal is after 8 years right?

masterK

As a total newbie to investing could somebody list the cons of using something like the copy trader functionality on Etoro? On one hand copying some of the top long term performers seems like a very safe approach looking at some of their returns sounds too good to be true. Are their returns accurate or am I missing something?

1123heavy

masterK wrote: »

As a total newbie to investing could somebody list the cons of using something like the copy trader functionality on Etoro? On one hand copying some of the top long term performers seems like a very safe approach looking at some of their returns sounds too good to be true. Are their returns accurate or am I missing something?

A lot of it all seems too good to be true, especially when they tell you on platforms like degiro that 70% of investors lose on their investments. I am yet to invest in anything and trying to carefully navigate where the best point to start is

Timmaay

Pure snake oil. If them "top preforming long term investors" were actually that good etoro would hire them for themselves and become filthy rich themselves, instead of just generously giving away their knowledge to random punters like yourself. Instead it's more likely them "top preforming" lads are simply investors who have got lucky across the last few months (ie ridden the tech bubble), and there is no guarantee that their success will continue, instead there is a large chance that say the tech bubble will crash, their trades will turn bad and in turn drop your account very quickly.

Brian201888

Trying to get my head around tax implications before dipping my toes in the water. ETF's seemed like the way to go but the deemed disposal rule puts a spanner in thing really as that sounds messy if I'm drip feeding things on a monthly basis when it comes time to deal with.

Looking at a long term view having already maxed my pension contributions, plan would be to invest 10% of my income into long term ( 20 years plus ) shares, if I hold individual shares I've no tax implications until such a time as I sell them correct?

Not entirely happy with the idea of buying individual shares in terms of diversification, if I was to copy the shares being used by a tracker and drip feed into say the top 20 of them re-balancing every 6 months or so as that changes would that be a daft way of going about things?

Not even sure if that's possible with DeGiro as I'd be buying fractional shares in that case?

I want the diversity of a tracker but without the tax implications I suppose

Taylor365

Brian201888 wrote: »

Trying to get my head around tax implications before dipping my toes in the water. ETF's seemed like the way to go but the deemed disposal rule puts a spanner in thing really as that sounds messy if I'm drip feeding things on a monthly basis when it comes time to deal with.

Looking at a long term view having already maxed my pension contributions, plan would be to invest 10% of my income into long term ( 20 years plus ) shares, if I hold individual shares I've no tax implications until such a time as I sell them correct?

Not entirely happy with the idea of buying individual shares in terms of diversification, if I was to copy the shares being used by a tracker and drip feed into say the top 20 of them re-balancing every 6 months or so as that changes would that be a daft way of going about things?

Not even sure if that's possible with DeGiro as I'd be buying fractional shares in that case?

I want the diversity of a tracker but without the tax implications I suppose

No fractional shares on Degiro.


What do you want to track? Look at the industries and select the dominating companies from each with good balance sheets.


Any dividends will be taxed each year.


CGT on sale if greater than the pathetic €1270 allowance each year. (Its £12,000 north of the border)

borderfox11

Brian201888 wrote: »

Trying to get my head around tax implications before dipping my toes in the water. ETF's seemed like the way to go but the deemed disposal rule puts a spanner in thing really as that sounds messy if I'm drip feeding things on a monthly basis when it comes time to deal with.

Looking at a long term view having already maxed my pension contributions, plan would be to invest 10% of my income into long term ( 20 years plus ) shares, if I hold individual shares I've no tax implications until such a time as I sell them correct?

Not entirely happy with the idea of buying individual shares in terms of diversification, if I was to copy the shares being used by a tracker and drip feed into say the top 20 of them re-balancing every 6 months or so as that changes would that be a daft way of going about things?

Not even sure if that's possible with DeGiro as I'd be buying fractional shares in that case?

I want the diversity of a tracker but without the tax implications I suppose

Was in the same boat as you - ended up buying some US ETFs and then buying a portfolio of European stocks also

Empty_Space

I've been buying some individual stocks using degiro.
Is this a pointless excercise if you live in Ireland?. This country seem to tax so much I'm wondering if it's worth the risk..

timetogo1

Empty_Space wrote: »

I've been buying some individual stocks using degiro.
Is this a pointless excercise if you live in Ireland?. This country seem to tax so much I'm wondering if it's worth the risk..

€1270 per year (per person) is tax free. So if you're going to make more than the €1270 get your other half (if you have one) to open an account.
The risk is not huge, imo, if you know what you're doing.

Empty_Space

timetogo1 wrote: »

€1270 per year (per person) is tax free. So if you're going to make more than the €1270 get your other half (if you have one) to open an account.
The risk is not huge, imo, if you know what you're doing.

I already made that, no other half I'd trust.

Empty_Space

Empty_Space wrote: »

I already made that, no other half I'd trust.

1200 really is pathetic. I already pay tax on wage!!
UK is about 30k except. Robbing Irish ********ers

timetogo1

Empty_Space wrote: »

1200 really is pathetic. I already pay tax on wage!!
UK is about 30k except. Robbing Irish ********ers

It's £12300 in the UK. It's not going to change in Ireland any time soon. We have some far left politicians that would have coniptions if that tfa was attempted to be raised.

Jim2007

Empty_Space wrote: »

I've been buying some individual stocks using degiro.
Is this a pointless excercise if you live in Ireland?. This country seem to tax so much I'm wondering if it's worth the risk..

The stats say otherwise https://ec.europa.eu/taxation_customs/sites/taxation/files/taxation_trends_report_2019.pdf

Avoiding accumulating wealth because you have to pay taxes on it is not something I’d go along with.

Shedite27

Yeah, you only pay tax on profits. So if you are paying tax then you've made a profit.

The only risk is your ability to pick stocks, if you've picked the right ones you'll make profit.

Bob24

Jim2007 wrote: »

The stats say otherwise https://ec.europa.eu/taxation_customs/sites/taxation/files/taxation_trends_report_2019.pdf

Avoiding accumulating wealth because you have to pay taxes on it is not something I’d go along with.

Agree it isn't a reason not to invest, but it is a fact that Ireland is hammering small individual stock market investors in terms of taxation:
1) Our CGT rate is amongst the highest in Europe: https://taxfoundation.org/capital-gains-tax-rates-in-europe-2020/
2) Our CGT exemption threshold is very low (€1,270 vs £12,300 in the UK)
3) Our dividend taxation is *the* highest in Europe: https://taxfoundation.org/dividend-tax-rates-europe-2020/
4) We don't have any type of tax insulated trading account for small investors (like ISA in the UK, PEA in France, etc).
5) We have our very unique deemed disposal rule and high taxation on ETFs which means we can be taxed 41% on profits we haven't even realised (i.e. this is taxation of potential gains rather than actual gains).


In aggregate, Ireland's taxation level is indeed rather low vs the rest of Europe. But it is mostly because corporate tax and employer social contributions are a fraction of what most other countries are applying. Other taxes tend to be either average or higher vs the rest of the continent.

For us small individual investors, even the usual suspects of high taxation like France, Belgium, and Nordic countries almost look like tax heavens. And forget about Estonia which is beyond heaven.

Shedite27

Bob24 wrote: »

Agree it isn't a reason not to invest, but it is a fact that Ireland is hammering small individual stock market investors in terms of taxation:
1) Our CGT rate is amongst the highest in Europe: https://taxfoundation.org/capital-gains-tax-rates-in-europe-2020/
2) Our CGT exemption threshold is very low (€1,270 vs £12,300 in the UK)
3) Our dividend taxation is *the* highest in Europe: https://taxfoundation.org/dividend-tax-rates-europe-2020/
4) We don't have any type of tax insulated trading account for small investors (like ISA in the UK, PEA in France, etc).
5) We have our very unique deemed disposal rule and high taxation on ETFs which means we can be taxed 41% on profits we haven't even realised (i.e. this is taxation of potential gains rather than actual gains).


In aggregate, Ireland's taxation level is indeed very low vs the rest of Europe. But it is mostly because corporate tax and employer social contributions are a fraction of what most other countries are applying. Other taxes are in par or higher.

For us small individual investors, even the usual suspects of high taxation like France, Belgium, and Nordic countries almost look like tax heavens. And forget about Estonia which is beyond heaven.

What's the Estonia system? I always wondered if you instead and never sold, then moved to Belgium/Estonia for a year in your retirement and cashed out while living there, would that get you the proceeds of a lifetime of gains tax-free?

Bob24

Shedite27 wrote: »

What's the Estonia system? I always wondered if you instead and never sold, then moved to Belgium/Estonia for a year in your retirement and cashed out while living there, would that get you the proceeds of a lifetime of gains tax-free?

They have moderate CGT (20%) and I believe investment accounts which serve as tax wrappers like ISAs in the UK and allow to reinvest gains without paying tax and defer tax obligations (to be double-checked).

But one main attraction is 0% taxation on dividend regardless of your income level. So for example if you keep investing in dividend paying UK investment trusts which you don't intend to sell, you will grow your wealth every month (both through your contributions and the capital appreciation of the trusts) while growing an increasingly larger cashflow from your dividend income, and you will no pay tax at all on any of that.

Monaghan4Sam

Hi guys, I'm looking into making options trades, how can that be done, I'm in the process of setting up an account with interactive brokers and tastyworks. Do I set my base currency as euro or USD? Roughly what sort of fees am I looking at for using these brokers?
Advice much appreciated

Jesper

Can anyone suggest a way to open a trading account for someone else? I've God Children who I would like to invest early for and accumulate CAGR over the long term. They are under 18. I trade on DeGiro personally.

ACitizenErased

Hi lads. Complete newbie here to trading. Looking to start buying stocks on Trading212.
Only issue I have right now is getting my head around the tax.
Am I right in saying that the only tax I'll have to pay is the profit earned on the sale of the shares, as long as it's over the CGT threshold (1270 as far as I know)?
I don't want to be messing with ETFs as I've heard that there's some 8 year tax thing here in Ireland.

Shedite27

ACitizenErased wrote: »

Hi lads. Complete newbie here to trading. Looking to start buying stocks on Trading212.
Only issue I have right now is getting my head around the tax.
Am I right in saying that the only tax I'll have to pay is the profit earned on the sale of the shares, as long as it's over the CGT threshold (1270 as far as I know)?
I don't want to be messing with ETFs as I've heard that there's some 8 year tax thing here in Ireland.

Any dividends get counted as Income too so you have to pay income tax on that every time you get a dividend.

Yeah ETF's are messy.

ACitizenErased

Shedite27 wrote: »

Any dividends get counted as Income too so you have to pay income tax on that every time you get a dividend.

Yeah ETF's are messy.

And how do I go about paying CGT/IT? Would it be worth calling into the Revenue office if I'm completely clueless about that?