Beginning to Invest - All questions go here please

Shedite27

PCros wrote: »

So I signed up to Degiro and I have a quick one.

When buying under "Limit" say with Nio, do I put in the bid price x 10 for 10 shares? This is currently $58.35.

Limit box = $58.35 (or whatever you're willing to pay for one share)
Number box = 10

PCros

Shedite27 wrote: »

Limit box = $58.35 (or whatever you're willing to pay for one share)
Number box = 10

Thanks for the reply.

Below is Nio at the moment
-Bid - 58.41
-Latest -$57.98

So what do you mean when you say what ever I am willing to pay? Should I not pay the price that is required for the share?

Sorry total noob here.

Shedite27

PCros wrote: »

Thanks for the reply.

Below is Nio at the moment
-Bid - 58.41
-Latest -$57.98

So what do you mean when you say what ever I am willing to pay? Should I not pay the price that is required for the share?

Sorry total noob here.

If you select the "Market" drop down, it'll buy the share at whatever the price is when the transaction takes place (58.31 right now - https://finance.yahoo.com/quote/NIO?p=NIO&.tsrc=fin-srch). You just need to put in the number of shares you want then.

If you put in the "Limit" drop down you can select the max price (say $58), and wait/hope for the price to come down to that at some point today. I usually do that, within the first hour of trading each day (2:30-3:30) there's usually some bouncing around so wouldn't be unusual for it to come down 1/2%

On the other hand, if it's a stock you're planning on holding for a few months/years, a few cents here and there isn't gonna change much

PCros

Shedite27 wrote: »

If you select the "Market" drop down, it'll buy the share at whatever the price is when the transaction takes place (58.31 right now - https://finance.yahoo.com/quote/NIO?p=NIO&.tsrc=fin-srch). You just need to put in the number of shares you want then.

Thanks again.

With the "Market" option when I put in 10 shares the following pops up...

"This order exceeds your spending limit. The worst possible execution value (incl. fees) is 968.7181 EUR and the free space is 700.01 EUR. When placing a market order the platform takes sudden price changes into account when calculating a worst case execution scenario. In this case, please reduce size or place a limit order."

So do I need to have way more cash in the pot to work with this?

Shedite27

PCros wrote: »

Thanks again.

With the "Market" option when I put in 10 shares the following pops up...

"This order exceeds your spending limit. The worst possible execution value (incl. fees) is 968.7181 EUR and the free space is 700.01 EUR. When placing a market order the platform takes sudden price changes into account when calculating a worst case execution scenario. In this case, please reduce size or place a limit order."

So do I need to have way more cash in the pot to work with this?

Yeah maybe Degiro consider a worst case scenario. Just put in a limit of $60 and you'll be grand so, that will execute at the current price at 2:30 (assuming it's not above $60)

PCros

Shedite27 wrote: »

Yeah maybe Degiro consider a worst case scenario. Just put in a limit of $60 and you'll be grand so, that will execute at the current price at 2:30 (assuming it's not above $60)

Ok perfect thanks, appreciate your time!

VertBlue

Thanks Shedite.

I have set up a stocks and shares ISA and put in a lump sum to start with along with setting up a monthly DD. While it is tempting to get carried away with the exciting day trading that is happening at the moment, I intend to follow a 'set and forget' approach and will likely choose a couple of index funds alongside a couple of companies I feel good about over the long term

VonLuck

Shedite27 wrote: »

Pretty much, S&P is calculated by the weighting of the Market Cap of each company. At the moment the S&P is about 6% Apple and 5% Microsoft, down to 0.01% Under Armour.

So a 5bn fund, that has another $1m to invest, should allocate 6% of that to Apple, 0.01% of that to Under Armour

Thanks. That's very clear. Obviously only applies to index funds which follow the indexes.

I'm would have thought that there could only be one provider of an index fund for any one market then? I mean an S&P 500 index fund by Provider A surely will perform exactly the same as Provider B, right?

Reading a description of index funds online it says "they have fund managers whose job it is to make sure that the index fund performs the same as the index does." How does that work then if the allocation % is set by the index itself?

Shedite27

VonLuck wrote: »

Thanks. That's very clear. Obviously only applies to index funds which follow the indexes.

I'm would have thought that there could only be one provider of an index fund for any one market then? I mean an S&P 500 index fund by Provider A surely will perform exactly the same as Provider B, right?

Reading a description of index funds online it says "they have fund managers whose job it is to make sure that the index fund performs the same as the index does." How does that work then if the allocation % is set by the index itself?

There'd be companies added to and from the S&P every so often so they need to rebalance that, also they probably wouldn't buy every one of the 500 companies every time more funds arrive, so they need to balance the inflows.

EltonJohn69

Hi

I’m sure this has been asked before but is there a good app for buying shares ? Tried to download Robinhood and it’s not available in Ireland.

Thanks

Jim2007

VonLuck wrote: »

Thanks. That's very clear. Obviously only applies to index funds which follow the indexes.

I'm would have thought that there could only be one provider of an index fund for any one market then? I mean an S&P 500 index fund by Provider A surely will perform exactly the same as Provider B, right?

Reading a description of index funds online it says "they have fund managers whose job it is to make sure that the index fund performs the same as the index does." How does that work then if the allocation % is set by the index itself?

No and it may well be that neither A nor B do a good job of tracking the target index on top of that.


Providers do not immediately reconstitution a fund when you buy or sell your shares in a fund. They do it once or twice a day, so there are timing differences which may impact the outcome depending on rules of the fund as to how this is handled.



Again they don't buy shares on behalf of each fund they manage, they will generate net orders across the funds. So for instance the moving of an S&P400 to S&P500 can result in a net purchase, no order or a net sale. Again depending on the rules for the transfer pricing this can have an impact.


After the close of business on the stock exchange, there follows a clatter of corrections for all kinds of reasons. During this period the fund is also calculating the NAV and depending on which corrections they take into account, it may cause differences.


There is also the possibility that the fund will use synthetics to represent part of the index as opposed to taking a position in a particularly difficult share to handle.


The bottom line is that contrary to what many people think, you are not buying the index, you are buying a fund that attempts to track it. And all the usual rules apply:


= Check the rules under which it is managed and how the fund attempts to track the index.
= Check the NAV versus the officially released one.
= Examine the tracking error over time.

VonLuck

Jim2007 wrote: »

No and it may well be that neither A nor B do a good job of tracking the target index on top of that.


Providers do not immediately reconstitution a fund when you buy or sell your shares in a fund. They do it once or twice a day, so there are timing differences which may impact the outcome depending on rules of the fund as to how this is handled.

Interesting. I would have thought there would be a level of automation involved by the provider thus minimising the variance from Provider A and Provider B e.g. optimal timing of purchases.

I'm afraid you've lost me on a lot of what you've said and it looks like there's a lot more for me to research. I guess that's why I'm asking these questions.

...moving of an S&P400 to S&P500 can result in a net purchase, no order or a net sale

...possibility that the fund will use synthetics to represent part of the index as opposed to taking a position in a particularly difficult share to handle.

Can you explain what these two sentences mean in very basic terms?

outonawing

PCros wrote: »

So I signed up to Degiro and I have a quick one.

When buying under "Limit" say with Nio, do I put in the bid price x 10 for 10 shares? This is currently $58.35.

You select day order or gtc(good till cancelled). then input the price per share that you are prepared to pay. Next input the number of shares that you want to buy. You will be shown the cost in € (assuming your account is in €). If you're happy, click place order and sit back.

Ooops, I should read all posts before replying 🤭

circadian

Alright folks looking for a new broker.

Been using Degiro for a few years now and made some lovely gains on slow burners but I'm looking to become a little more active. I like the fees which aren't extortionate but for swing trading and the sorts it really doesn't cut the mustard.

Any recommendations for something a bit more active? I've used etoro in the past and found it was lacking a lot of stocks that Degiro had and also the UI was cluttered with crap and it feels all a bit like a gambling app.

mw2101

Does anyone have any recommendations on what platform to use for investing in investment trusts? Degiro has a very limited offering e.g. doesn’t have Scottish Mortgage Investment Trust or Personal Asset Trust. Similarly, etoro doesn’t have Personal Asset Trust either.

Any guidance would be greatly appreciated.

VonLuck

mw2101 wrote: »

Does anyone have any recommendations on what platform to use for investing in investment trusts? Degiro has a very limited offering e.g. doesn’t have Scottish Mortgage Investment Trust or Personal Asset Trust. Similarly, etoro doesn’t have Personal Asset Trust either.

Any guidance would be greatly appreciated.

I believe Trading 212 is an option, but I tried to sign up during the week and they have temporarily stopped taking new customers due to the influx lately.

Also I've heard Monks Investment Trust being recommended on DeGiro, although I don't know enough about it myself to be able to advise one way or the other.

VonLuck

VonLuck wrote: »

I believe Trading 212 is an option, but I tried to sign up during the week and they have temporarily stopped taking new customers due to the influx lately.

Also I've heard Monks Investment Trust being recommended on DeGiro, although I don't know enough about it myself to be able to advise one way or the other.

Trading 212 will now allow you to enter your email on a 'waitlist' and they will contact you when they have worked through their backlog.

chabsey

I just signed up to XTB and after a lot of back and forth with verification of who I was, sending various bank statements etc I got approved today. First thing was to transfer money into my account and I got told there was an error. Suspecting AIB might be blocking it I called them and they said they'd blacklisted that company and there was no way possible to transfer the money to them!

I might have just dodged a bullet but they certainly seemed legit. For reference I was trying to use the XTB app, called XStation I believe and I had talked to a rep a couple of times over the phone. I'm concerned now given the amount of info I've provided them with that they're a scam. Anyone using them? Is this the legit app?

https://play.google.com/store/apps/details?id=com.xtb.xmobile2&hl=en_IE&gl=US

mw2101

Thanks everyone for their replies. I'm surprised that Degiro doesn't have more investment trusts on their platform. Is there a reason does anyone know for this?

Monks Investment Trust is one that's on my radar at the moment - I have a concern that its portfolio is somewhat overvalued at the moment and that an investment now could amount to buying in as what may turn out to be the peak.

Drumpot

Did a search and don’t really see it answered.

Why would somebody not use Revolut for shares and Crypto? Is it limited offering of shares , limited information (it’s a basic platform) , fees or something else? I’m guessing Revolut is ok for introduction investments but at what stage do people move onto different platforms?

Saw some people suggest using Binance for crypto. Is the “risk” or concern people have that a crypto could take off and because you don’t actually own it through Revolut and you are relying on Revolut and brokerage they use to protect it and honor its value if you try to cash?

Shedite27

Drumpot wrote: »

Did a search and don’t really see it answered.

Why would somebody not use Revolut for shares and Crypto? Is it limited offering of shares , limited information (it’s a basic platform) , fees or something else? I’m guessing Revolut is ok for introduction investments but at what stage do people move onto different platforms?

Saw some people suggest using Binance for crypto. Is the “risk” or concern people have that a crypto could take off and because you don’t actually own it through Revolut and you are relying on Revolut and brokerage they use to protect it and honor its value if you try to cash?

Personally, I used Revolut when starting out but when I wanted more reporting (for tracking profit and CGT), more analysis, and bigger variety of shares Degiro made sense. Although I outgrew Degiro also now and have to use IB for some things.

Also, Revolut's Crypto and Shares platforms are seperate. You can't sell Shares, then spend the money on Crypto the same day, you need to get the money out of the share account which takes time, then buy Crypto

Brian201888

Trying to wrap my head around this 8 year deemed disposal rule for ETF's

For ease lets say I invested €1000 in an ETF this year and in 8 years it was worth €2000 it's the case then after 8 years that I pay tax on that €1000 profit at 41% yeah?

That bit makes some sense but then going forward from there another 8 years and we say that the fund is now worth €4,000, am I paying tax on the profit based on my original investment as in I've made €3000 profit or on the increase from the €2,000 when I was last taxed on it?

And then finally when I come to close out of it altogether what am I paying tax based on?

Bob Harris

Brian201888 wrote: »

Trying to wrap my head around this 8 year deemed disposal rule for ETF's

For ease lets say I invested €1000 in an ETF this year and in 8 years it was worth €2000 it's the case then after 8 years that I pay tax on that €1000 profit at 41% yeah?

That bit makes some sense but then going forward from there another 8 years and we say that the fund is now worth €4,000, am I paying tax on the profit based on my original investment as in I've made €3000 profit or on the increase from the €2,000 when I was last taxed on it?

And then finally when I come to close out of it altogether what am I paying tax based on?

Have fun with this

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-27/27-01a-02.pdf

Taylor365

Drumpot wrote: »

Did a search and don’t really see it answered.

Why would somebody not use Revolut for shares and Crypto? Is it limited offering of shares , limited information (it’s a basic platform) , fees or something else? I’m guessing Revolut is ok for introduction investments but at what stage do people move onto different platforms?

Saw some people suggest using Binance for crypto. Is the “risk” or concern people have that a crypto could take off and because you don’t actually own it through Revolut and you are relying on Revolut and brokerage they use to protect it and honor its value if you try to cash?

What does Revolut do with shares you buy? Who really owns them? Are they lent out for short selling? etc.


Most no commission brokers are doing just that, so adding risk.

Shedite27

Brian201888 wrote: »

Trying to wrap my head around this 8 year deemed disposal rule for ETF's

For ease lets say I invested €1000 in an ETF this year and in 8 years it was worth €2000 it's the case then after 8 years that I pay tax on that €1000 profit at 41% yeah?

That bit makes some sense but then going forward from there another 8 years and we say that the fund is now worth €4,000, am I paying tax on the profit based on my original investment as in I've made €3000 profit or on the increase from the €2,000 when I was last taxed on it?

And then finally when I come to close out of it altogether what am I paying tax based on?

Year 16 tax would only be on the 2000 profit between year 8-16.

The problem is a lot of people would have tot ake from their fund to pay the tax bill at year 8. So by year 9, their fund is down about 25% compared to year 8. It adds up when compounding

Brian201888

It seems so against longterm growth, is there any campaigns to see that change?

tomstud12

Hey Guys,

I got into forex trading while back and I just wanted to ask, do I have to pay tax or anything on my trading profits? Because I saw somewhere that in Ireland if you have a primary job and trading is just on the side that it's taken in as spread betting. Is this true? I found it hard to believe because let's say someone made €100000 in one year from trading and he also has a job he hardly does not have to pay any tax on the €100000

I'm still a bit new to forex but I've earned a bit now and wondering what I do as I wouldn't want the revenue to get onto me at the end of the year asking where I got all this money from.

Shedite27

Brian201888 wrote: »

It seems so against longterm growth, is there any campaigns to see that change?

I agree, but no real movement against it from what I see. It's an easy source of income for the government. It was brought in during the recession as there were laods of rich Irish lads who had their savings stored away accumulating and weren't due to cash in until they cashed in 30 years later. The Government thought it was a good way to get cash every 8 years.

I'd prefer a movement to change the CGT myself, both increasing the allowance and bringing the rate back to 25% to 33%. Proabbly wishful thinking tho. Any policy would be seen as a tax break for the rich

firstquater

chabsey wrote: »

I just signed up to XTB and after a lot of back and forth with verification of who I was, sending various bank statements etc I got approved today. First thing was to transfer money into my account and I got told there was an error. Suspecting AIB might be blocking it I called them and they said they'd blacklisted that company and there was no way possible to transfer the money to them!

I might have just dodged a bullet but they certainly seemed legit. For reference I was trying to use the XTB app, called XStation I believe and I had talked to a rep a couple of times over the phone. I'm concerned now given the amount of info I've provided them with that they're a scam. Anyone using them? Is this the legit app?

https://play.google.com/store/apps/details?id=com.xtb.xmobile2&hl=en_IE&gl=US

XTB is legit. I use them. There is papal option to transfer funds, no fees and funds available in 1 minute. Thats what I use.

Robson99

Folks bit of advice needed.
Looking to invest 500 per month. Account with trading 212. Should I
A. Set up an investment PIE with say 10 companies say made up of mixture of 90% blue chip and 10% more volatile

B. Set up PIE with say 50% blue chip and 50% Investment trusts ( Scottish mortgage, Bankers Inv Trust, Allianz Tech etc )

C. Just pick 2 or 3 Blue Chip and 2 or 3 Inv Trusts and put a say a hundred into each monthly ?

Basically is the PIE option any use ?
I just want it to do more than sitting in the bank with a bit of risk. I will still be having a float for other single companies that I would put a few bob separately into.