Trading Stocks/Bonds Online for First-Time Investors

Sweg

Hi All,
I have just graduated college, and working in my first full-time job.
I understand that interest rates in banks, etc. are not great so I want to try and invest my money in the market.
I'd like to know is there some way I can trade stocks/shares online myself, rather than going through a broker, who just sell you products that they want you to buy, so they can get commission from you?
I want to try and cut out the middle man, so I pay the minimal amount in fees to 3rd parties, etc.
Has anyone done this themselves? Or could you suggest to me where the best place to do this is?

Finally, I would appreciate any additional advice you would have for me as a first-time invester.

Dardania

Check out a broker DeGiro - many people here use them. Minimal costs, although there is lingering questions in some people's minds as to what would happen to your funds if DeGiro wound up in the morning (not in my mind, I personally use them)

And question why you are investing - is it for gambling, is it for short/medium term savings, is it for pension? That will help guide your decisions...

Sweg

Dardania wrote: »

Check out a broker DeGiro - many people here use them. Minimal costs, although there is lingering questions in some people's minds as to what would happen to your funds if DeGiro wound up in the morning (not in my mind, I personally use them)

And question why you are investing - is it for gambling, is it for short/medium term savings, is it for pension? That will help guide your decisions...

Hi Dardania,
Thanks for your response!
I'll look into DeGiro then.
Ideally, I want to set up separate accounts for all of those things.
1. Gambling, I have bookmakers accounts already, so I will use them for the gambling aspect!
2. Short/Medium term savings - This is where I would want to start off I think. I understand that I have to be patient though.
3. Pension - I have a pension scheme set up with my employer currently, but I need to check what fees they are taking from this. I would like to create an account that looks after a Pension also.

Sweg

I have started to read up on fiduciary laws/rules also.
My limited understanding of these is that your fiduciary has to legally put your interests ahead of their own.
Is there any of these existing in Ireland?

topper_harley2

Firstly you need to have 6 months of expenses in a emergency fund i.e. an instant access saver. It doesnt really matter about the interest rate, but you may as well have it in the highest one. Look at the savings "best buys" thread in https://www.askaboutmoney.com/threads/savings-best-buys.90481/.

The main this is it must be instant access. The purpose of this is to ensure you don't immediately go into the red if you lost your job. You would be OK for 6 months, giving you time to get back on your feet. You should never spend this money.

For your pension, you cant really do much about the charges (its the provider, not your employer that will be charging). Assuming you are contributing something like 5% and employer is matching it, you are much better off leaving it here (to get the employer match, basically free money). You won't notice much difference in take home pay due to tax benefits, but your fund will be building up in background.

Once pension is rolling along each month, I would set up a standing order for the day after you get paid to transfer say E500 from your salary into the highest interest regular saver account you can find. This currently is KBC (again see saving best buys). This way, you pay yourself first, and you wont be tempted to spend the money. You dont say how much you spend on rent, so I am just throwing out E500 per month as a possible target. This will basically be the beginning of a house deposit, for if/when ye do decide to buy. If you decide to emigrate, it will serve similar purpose, unless you plan on renting for life. Also, it is good to get into habit of regular savings, as banks will look for this if you do go for mortgage, or even a car loan etc. (PS never get a loan to buy a car)

At same time, I would set up another standing order for E25 per week to go into small holiday fund. This way, you don't feel like its all doom and gloom saving for nothing. This will amount to E1200 in a years time, and you wont even notice it. This will be a very nice trip then as a reward, and you will feel like its for free, as its not coming out of your current account.

That should be a good start. To be honest, I wouldn't bother investing (or trading stocks) outside a pension wrapper in Ireland at your age. There is so much more to rounded financial plan than just investing. For example, if you are just out of college, I'd guess you're around 21. If you saved E500 per month, which is E6K per annum, for next ten years you have E60000 at 31 years old, you have your house deposit ready to go. In Ireland, pension and house deposits are the corner stones, rather than investments, again in my opinion.

Finally, I suggest you search this forum for tips for beginners, Degiro etc. This exact question is asked about once a week....

wordofwarning

topper_harley2 wrote: »

This currently is KBC (again see saving best buys).

AFAIK EBS offers the best rate on regular savings. But opening an account with EBS is an event. You need to get an appointment with the a bank manager etc etc.

topper_harley2 wrote: »

|To be honest, I wouldn't bother investing (or trading stocks) outside a pension wrapper in Ireland at your age. There is so much more to rounded financial plan than just investing. For example, if you are just out of college, I'd guess you're around 21.

It depends. You have the €1,270 capital gains tax exemption each year. If you buy, stocks that have no dividend payouts or poor dividend payouts eg Berkshire Hathaway, Ryanair etc. You could do ok each year without paying any tax.

topper_harley2

1111

wordofwarning wrote: »

AFAIK EBS offers the best rate on regular savings. But opening an account with EBS is an event. You need to get an appointment with the a bank manager etc etc.

Yep my bad, that was copy from an old post. EBS is indeed the best buy for regular saver at moment

wordofwarning wrote: »

It depends. You have the €1,270 capital gains tax exemption each year. If you buy, stocks that have no dividend payouts or poor dividend payouts eg Berkshire Hathaway, Ryanair etc. You could do ok each year without paying any tax.

Yep, as I said above, "in my opinion"