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Stockbroker for beginner investor

  • 11-02-2013 8:36pm
    #1
    Registered Users, Registered Users 2 Posts: 228 ✭✭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:


Comments

  • Registered Users, Registered Users 2 Posts: 730 ✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 228 ✭✭PingO_O


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


  • Registered Users, Registered Users 2 Posts: 526 ✭✭✭Helpneeded86


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


  • Registered Users, Registered Users 2 Posts: 228 ✭✭PingO_O


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


  • Posts: 0 CMod ✭✭✭✭ Ximena Attractive Pimple


    there's keytrade


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  • Registered Users, Registered Users 2 Posts: 526 ✭✭✭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?


  • Registered Users, Registered Users 2 Posts: 376 ✭✭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!


  • Registered Users, Registered Users 2 Posts: 228 ✭✭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 :)


  • Registered Users, Registered Users 2 Posts: 730 ✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 228 ✭✭PingO_O


    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.


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  • Banned (with Prison Access) Posts: 11 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


  • Registered Users, Registered Users 2 Posts: 526 ✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 228 ✭✭PingO_O


    You ask and answer your own question !!

    There is risk of course.

    Guess i did :D

    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?


  • Registered Users, Registered Users 2 Posts: 526 ✭✭✭Helpneeded86


    PingO_O wrote: »
    Guess i did :D

    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.


  • Registered Users, Registered Users 2 Posts: 730 ✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 228 ✭✭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.


  • Registered Users, Registered Users 2 Posts: 730 ✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 45 oodes


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


  • Banned (with Prison Access) Posts: 1,934 ✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 45 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


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  • Banned (with Prison Access) Posts: 1,934 ✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 45 oodes


    Cool enough , thanks for clearing that up.


  • Registered Users, Registered Users 2 Posts: 5,834 ✭✭✭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%.


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