Degiro Question

Uncle Mclovin

So I have my account activated and have funds deposited.

This is my first time investing so having a little trouble making the first purchase.

Basically I have €2,000 and I want to buy whatever I can of the Vanguard VOO. I'm trying to buy but I'm unsure of what to put in the limit order box.

Got this from Degiro website but don't really understand it.

Limit Order
You set a minimum price (in case of a sell) or maximum price (in case of a buy) for which you want to execute your Order. Your Order will never be executed at a worse price than your limit price. If the price that you have stated is not attainable at that time, your Order will be sent to the place of execution at which the most economical (best-price) execution is expected. For some products, you can choose to which place of execution the Order must be sent. You should then select 'own routing'.

I apologise if this is a stupid question but any help would be appreciated.

Sabre Man

You enter the price you want to pay per share in the Limit box. Then you go to the Number box and click the up arrow to increase the number of shares. The Amount (€) box will tell you how much it will cost but please note that any fees are not included.

Before clicking Place order you can play around with the Limit and Number boxes to see how much it would cost.

Uncle Mclovin

Thanks Sabre Man.

The price per unit is $188.80. About €167

If I put in a limit of 100 and click number of shares to 22 that brings me to €1,934.

I just don't understand that. Do I not have to pay €167 per share?

Wheety

I'm not on Degiro but by reading the posts here, it seems to me that the share price is $188.80 but you're saying you are willing to pay a maximum of $100 per share?

22 x $100 = $2200 = €1,945.46 (according to xe.com) which is close enough to your 'cost'.

I presume this order would just be left as pending as no one will sell their shares for that price.

Uncle Mclovin

Thanks Wheety. That explains it. I wasn't saying I'd only pay €100. I was just trying to understand how the ordering system worked.

I have the order in now. How long could an order be pending?

What price do people normally offer when making an offer? Would they go pretty close to current share price or the exact share price when ordering?

I'm learning quickly here.

Wheety

I was just talking about the example you posted if putting in 100 in the maximum box.

Going by the blurb from the Degiro website you posted, it seems that you put in your maximum value you're willing to pay and you won't be charged more than this. Kind of like on EBay when you put in your maximum bid.

Now, as said I'm not a member on Degiro but I think you would probably have to have your maximum above the current price if you want to buy now. Otherwise you're waiting for the price to drop.

I'm not 100% sure about this so maybe wait until someone more knowledgeable than me turns up

iainBB

I am with them and the limit option is odd.

There is not below or above for the limit so how does it know. I normally set a below limt to sell at and an upper limit to sell at. But there version does not make sense.
I put a limit on thinking it was below and it sold the stock right away at current market price.

iainBB

Took a screenshot of the options available.

Sabre Man

Uncle Mclovin wrote: »

Thanks Wheety. That explains it. I wasn't saying I'd only pay €100. I was just trying to understand how the ordering system worked.

I have the order in now. How long could an order be pending?

What price do people normally offer when making an offer? Would they go pretty close to current share price or the exact share price when ordering?

I'm learning quickly here.

If you want to buy fast at the current price you can offer more than the current price, eg. if the current price is 185 and you offer 187 you may get it for 185.3 as the prices are constantly changing.

Conversely, if you'd like to buy but think the current price is a bit high, you could offer 180 as the limit and use a GTC order (good until cancelled), which will be in force until you either get the shares or you cancel or change your order.

Best of luck!

Sabre Man

iainBB wrote: »

I am with them and the limit option is odd.

There is not below or above for the limit so how does it know. I normally set a below limt to sell at and an upper limit to sell at. But there version does not make sense.
I put a limit on thinking it was below and it sold the stock right away at current market price.

Which values and settings did you use?

iainBB

Sabre Man wrote: »

If you want to buy fast at the current price you can offer more than the current price, eg. if the current price is 185 and you offer 187 you may get it for 185.3 as the prices are constantly changing.

Conversely, if you'd like to buy but think the current price is a bit high, you could offer 180 as the limit and use a GTC order (good until cancelled), which will be in force until you either get the shares or you cancel or change your order.

Best of luck!

But at the limit plus or minus.

Buy when stock reached the high
But when stock reaches this low

Both are valid on stock buying plans reaching new high,above trading lines. Or as op buy when this low.

Chiarrai92

Hey a question completely unrelated to the rest of the thread but
Im likely to make my first 2-3 buys on the stock market this week. Just curious what kind of book keeping facilities are on degiro. I mean if i was to sell shares ( i intend to buy + hold indefinitely) will it tell me exactly what profit i made + dividends with and without DWT etc? Obviously il keep paper records and do abit of math but will all information il need for tax purposes be available on some tab?

iainBB

Chiarrai92 wrote: »

Hey a question completely unrelated to the rest of the thread but
Im likely to make my first 2-3 buys on the stock market this week. Just curious what kind of book keeping facilities are on degiro. I mean if i was to sell shares ( i intend to buy + hold indefinitely) will it tell me exactly what profit i made + dividends with and without DWT etc? Obviously il keep paper records and do abit of math but will all information il need for tax purposes be available on some tab?

You get what you pay for with them .no it's not fully clear .of course there is a complete transaction history but no fancy calculation or etc.

Side note. the buy and hold strategy of stock purchase of yesteryear I think is long gone.

Phoebas

Another Degiro question.
If I buy shares using Degiro and Degiro go bust/go rogue/get bought/something else, what happens to my share ownership?

i.e. who do I have to trust when I use Degiro?

Chiarrai92

Phoebas wrote: »

Another Degiro question.
If I buy shares using Degiro and Degiro go bust/go rogue/get bought/something else, what happens to my share ownership?

i.e. who do I have to trust when I use Degiro?

Check out the "irishbrokers that sell US shares" thread the same question was asked there.

Pablo Escobar

Phoebas wrote: »

Another Degiro question.
If I buy shares using Degiro and Degiro go bust/go rogue/get bought/something else, what happens to my share ownership?

i.e. who do I have to trust when I use Degiro?

I think they're underwritten by the Dutch Central Bank, so perhaps them?

topper_harley2

iainBB wrote: »

You get what you pay for with them .no it's not fully clear .of course there is a complete transaction history but no fancy calculation or etc.

Side note. the buy and hold strategy of stock purchase of yesteryear I think is long gone.

That's a fair "can open, worms everywhere" side note onto an otherwise normal post

iainBB

topper_harley2 wrote: »

That's a fair "can open, worms everywhere" side note onto an otherwise normal post

Sorry
I just hear that a lot about buy and hold never sell . It's a different world now. We need to retire it.

topper_harley2

No need to apologise!

It depends....Not everyone wants to be a day trader after coming home from their 9-5!

robp

iainBB wrote: »

topper_harley2 wrote: »

That's a fair "can open, worms everywhere" side note onto an otherwise normal post

Sorry
I just hear that a lot about buy and hold never sell . It's a different world now. We need to retire it.

There could well come a period were major economies no longer grow but we are not there yet so buy and hold still works.

iainBB

robp wrote: »

There could well come a period were major economies no longer grow but we are not there yet so buy and hold still works.

It can work but good at working. I think not

Companies go up and down , collapse and merge economy go up and down.
Since 2000 the world has changed. Perhaps dollars averaging would be close to a buy and hold but the old traditional buy and hold is long gone as a GOOD way of turning a profit.

Of course it still exists I hear it every day buy some novice investor. It was invented a long time ago when market climb and climb. But old habits die hard.

Prowetod

Has anyone had to fill out the W-8BEN form as a result of buying shares in the US? There's one field which I'm unsure of: US taxpayer ID number. Anyone know what to put in here?

Sabre Man

Prowetod wrote: »

Has anyone had to fill out the W-8BEN form as a result of buying shares in the US? There's one field which I'm unsure of: US taxpayer ID number. Anyone know what to put in here?

Do you have a screenshot of the form?

jive

Prowetod wrote: »

Has anyone had to fill out the W-8BEN form as a result of buying shares in the US? There's one field which I'm unsure of: US taxpayer ID number. Anyone know what to put in here?

You don't have to fill it in (the taxpayer ID #, if you're Irish living in Ireland dealing with US shares).

Chiarrai92

hey i bought 3 different Irish shares 2-3 weeks ago but looking at my account tab on Degiro it shows up that i paid this "London/Dublin Transaction Tax " what exactly is that tax?

AdMMM

It's stamp duty of 1% of any amount purchased over E1,000.

varese.10

Can I invest in the chinese stock market with degiro? I want to invest on alibaba and other chinese companies 
Thank you

kokiyou

Stupid question:

I want to invest 10k in each of two VANGUARD stocks, one for US and one for INTL. Using DeGiro commission free investment this would mean I'd only pay the yearly fee to have stocks in NYSE which is 2.50 euro plus the annual management fees that VANGUARD themselves would charge on those two stocks?

https://www.degiro.ie/data/pdf/ie/commission-free-etfs-list.pdf

Note this example I am ignoring ForEx fees.

From this I would pay expense ratio of 0.04% per year for VTI stocks. Therefore if I put 10,000 euro in this stock I'd pay 4 euro in E.R. fees to Vanguard each year and 2.50 for exchange fees and nothing to DeGiro as it is on the commission free list? 6.50 per year costs, while if it had repeat performance in 2018 I'd have 17% gains lets call it 1700 euro. If I sold them after one year I'd pay only CGT of 33% on this 1700, or would there be other fees (ignoring FX fees) when selling? Similarly as these would be US Domiciled ETFs (right?) I could hold these long term for 10 years and not pay any deemed disposal costs after 8 years correct? (I understand that this year was a bull run and 17% next year is overly optimistic just using it as an example)