How to by Banks of Ireland Shares.

Hollister11

Hi,
I'm interested in buying bacn of ireland shares, and i'm wondering the best way to go about it.
Should i go into the bank and buy shares from them, or should i start open an online trading account.
I know one TD investments which is a online .ie site. They charge €15 per transaction.
Any details/advice but be greatly appreciated.

sozbox

If you have an AIB bank account you can buy them through their share dealing feature?

Ace2007

sozbox wrote: »

If you have an AIB bank account you can buy them through their share dealing feature?

You might well be able to do that, but perhaps should point out the charges for a newbie, from which I can see they are fairly expensive.

ulinbac

Hollister11 wrote: »

Hi,
I'm interested in buying bacn of ireland shares, and i'm wondering the best way to go about it.
Should i go into the bank and buy shares from them, or should i start open an online trading account.
I know one TD investments which is a online .ie site. They charge €15 per transaction.
Any details/advice but be greatly appreciated.

Hi Hollister,

A lot of people use Davy for their Irish trading. They are ok for basic stuff but I find their tools, research facilities and general website quite poor.

When you set up an account you will have to obviously deposit cash. The broker will probably charge you a quarterly fee for managing your account (approx. €20). You will also be charged a transaction fee from the broker for placing placing a trade and closing a trade. Davy charges €14.99 for each trade. So when you buy the trade you will have a charge of €14.99 and another when you sell €14.99.

Next there is stamp duty of 1% in Ireland. So if you buy €100 in shares you have to pay a tax called stamp duty of 1% which would be €1.

When you buy a trade you are quoted 2 prices (BUY and SELL). You are can only BUY the share at a higher price then you can sell. The gap between these prices is called the spread. For example if a stock is quoted at 100(SELL)/101(BUY) the spread is 1 or 1/100 which is 1%.

So total costs to buy a share are:

Broker Transaction (BUY and SELL): of €29.99
Broker Account Management: €20 per quarter
Stamp Duty: 1% of purchase Amount. Only Applicable for BUY side
Spread: Differs per Share but €1 in example.

I recently bought a share this week and as soon as I bought it I was down 3.98% taking into account the above. The share will have to rise by 4% for me to make a profit.

When purchasing shares ask yourself why you are buying it. is it becuase of research or because others told you. When the general public start talking about a share it tends to be overpriced.

You also need to ask yourself how long you want to hold the share and at what price will you take a profit OR MORE IMPORTANTLY A LOSS!! Don't tell yourself it will bounce back and try and catch a falling knife.

the Golden rule in Trading is ONLY TRADE WITH MONEY YOU CAN AFFORD TO LOSE, whether its a fiver of a couple of €k. Also, if you're in debt and think a share will clear it then think again. You will be emotional about the share and more than likely lose. Clear your debt first!!!

Hope this helps and good luck!

Ace2007

Great advice ulinbac, I wasn't aware of the stamp duty on shares, how exactly is this paid, is the charge taken from the online platform automatically or do you have to declare this yourself like CGT.

Also can you elaborate a little more of the cost of the spread -why does one need to pay the difference - the question might sound stupid, but my (little) understanding was that if I wanted to buy a shares worth say €2000, I pay the transaction costs per trade, and yearly admin fee and the stamp duty. Now are you saying that I may have to pay the % difference between the buy and sell side.

I'm assuming if the buy/sell side are the same there is no charge? but if there was say a 1% difference I would have to pay an extra 20euro?

ulinbac

Ace2007 wrote: »

Great advice ulinbac, I wasn't aware of the stamp duty on shares, how exactly is this paid, is the charge taken from the online platform automatically or do you have to declare this yourself like CGT.

It is paid when you make the transaction and will show when you are making the trade. You get a breakdown of the cost on the left hand side.

If by chance you have an English Bank account you should trade through your ISA. No taxes on any gains, should you have any

Download The Naked Trader on Amazon. There is a free download. Great advice and common sense for a start. I try to relisten to it on long trips and hungover days

RANDAL

Hi guys, seriously considering buying bank of Ireland shares as an investment, any recommendations on who I should use.

Prezatch

There is a handy price comparison of Irish brokers here - https://www.degiro.ie/fees.html

ulinbac

RANDAL wrote: »

Hi guys, seriously considering buying bank of Ireland shares as an investment, any recommendations on who I should use.

Hi Randal,

Why do you want to buy BOI? Is that the only share you will hold?