Stockbroker for beginner investor

PingO_O

Hi guys I'm very new to value investing, just learning the basics and have recently turned to looking at index funds or etfs.

My question is what is the best and cheapest online/discount broker to use for buying maybe once a year, even twice at a push.

I have to say as a beginner with a small sum starting out the charges for trading are awful! :mad:

FernandoTorres

I use www.firstrade.com. $6.95 per trade and no annual management charges. Platform is pretty good and I've never had a problem with it.

PingO_O

Cheers man, it looks like they've no management or inactivity fees either which is great. Thanks again!

Helpneeded86

That platform only cover the US tho is that the case?

PingO_O

I think it may be helpneeded86, why where are you thinking of investing?

there's keytrade

Helpneeded86

Id like to probably have access to the following

NASDAQ
NYSE
FTSE
ISEQ
ASX

In saying that im new to all this and wont be investing big. Il look to put 500 or so in something like this with cheap commission. It will be a case of a few eggs in the one basket admittedly but at least if i research a little it will be an experience if nothing else.

I have small investments in USOP & GGG. When is ay small it is bigger than the figure im talking about here.

Are Keytrade as low on commission?

samsamson

Keytrade have no annual management fees and costs per transaction of usually around €15 - €25 if I recall correctly. Somebody else can correct me on that!

PingO_O

I looked up keytrade and they seem to have good rates, different prices for different markets but i really only glanced at it, you'd need to really make sure you know what the charges are so I'll have to look at it closer. Thanks for mentioning it bluewolf

FernandoTorres

Yeah Firstrade only has access to the US markets but any company I've wanted to invest in has always had a US listing so not a problem for me.

PingO_O

FernandoTorres wrote: »

Yeah Firstrade only has access to the US markets but any company I've wanted to invest in has always had a US listing so not a problem for me.

Hmm, what do you think of currency risk? My aim is to try and buy companies and hold them but if I had to sell at some stage I could make a loss if the dollar fell against the euro.

green_beret

PingO_O wrote: »

Hi guys I'm very new to value investing, just learning the basics and have recently turned to looking at index funds or etfs.

My question is what is the best and cheapest online/discount broker to use for buying maybe once a year, even twice at a push.

I have to say as a beginner with a small sum starting out the charges for trading are awful! :mad:

i use td investing, much cheaper than the irish brokers , i use online execution only

Helpneeded86

PingO_O wrote: »

Hmm, what do you think of currency risk? My aim is to try and buy companies and hold them but if I had to sell at some stage I could make a loss if the dollar fell against the euro.

You ask and answer your own question !!

There is risk of course.

PingO_O

Helpneeded86 wrote: »

You ask and answer your own question !!

There is risk of course.

Guess i did

Say you bought shares in a U.S. company now though,and some years later you had to sell for whatever reason, would the money go into your account as dollars?

Helpneeded86

PingO_O wrote: »

Guess i did

Say you bought shares in a U.S. company now though,and some years later you had to sell for whatever reason, would the money go into your account as dollars?

I cant say for trading but ive had money in dollars on poker sites for years and the money will always go back to your bank in your own currency.

Im pretty certain you just have the ride the currency fluctuations here aswell.

FernandoTorres

You transfer Euro to the Firstrade account and it's converted to Dollars by the bank or whatever method you use (Currencyfair is good). Then you invest dollars through your account. If you sell, the dollars go back into your account and if you want the money then you'll have to convert the dollars to Euro and send back to an Irish account.

Yes there's currency risk but also potential gain. I've benefitted from the weak Euro through my US holdings. Considering most of your assets will be Euro, it's not bad to have a bit of diversification.

PingO_O

Thanks Fernandotorres, that means if I had to sell a company I thought wasn't going to keep doing well I could just buy into a different one with my dollars and wouldn't have to necessarily worry about currency fluctuations.

FernandoTorres

Exactly, it's only when you repatriate it to Ireland that you have to worry about the currency rates. Always take a note of the rate you get for each transaction for your records.

oodes

Sorry for the hijack , but are you taxed by Irish government if you trade through Firstrade?

robp

oodes wrote: »

Sorry for the hijack , but are you taxed by Irish government if you trade through Firstrade?

I have never heard of a situation here the broker you choose influences how much you are compelled to pay to the Irish tax man.

oodes

robp wrote: »

I have never heard of a situation here the broker you choose influences how much you are compelled to pay to the Irish tax man.

If you buy stocks through an Irish stockbroker do you not pay stamp duty to the government? Maybe I'm wrong

robp

oodes wrote: »

If you buy stocks through an Irish stockbroker do you not pay stamp duty to the government? Maybe I'm wrong

I am a beginner so my expertise is limited but you pay stamp duty if you buy off the Iseq. I would have thought that is same if it an Irish broker or a German broker. There are exemptions such as Irish domiciled ETFs that avoid stamp duty but that is the case as they are traded in London not Dublin.

oodes

Cool enough , thanks for clearing that up.

Sonnenblumen

oodes wrote: »

If you buy stocks through an Irish stockbroker do you not pay stamp duty to the government? Maybe I'm wrong

If you purchase shares in any company listed on the Irish Stock Exchange (ISEQ) the stockbroker you will incur a Stamp Duty charge equivalent to 1% of the value of shares purchased. The charge is deducted at source and will be passed to the Irish Gov.

The Stamp Duty charge for purchasing shares in UK listed companies (FTSE/AIM stock markets) is 0.5%.