Beginning to Invest - All questions go here please

pioneerpro · 25-02-2021 4:34pm

Finical wrote: »

Legend, thank you so much for the reply. I really appreciate that. Explained it perfect!

I'm referring to the commission revolut charge can that be included as a cost?

Yeah, commission is part of the acquisition of your capital asset. Stuff like real-time trading info or charting add-ons for an online exchange can't if you're PAYE, no more than a 2nd monitor for trading can.

So if you had to pay a sub per month for Revolut's service, that can't be deducted, but any cost inherent in the trade itself can (routing fee/commission - i.e. the €7.50 per trade DeGiro takes on Frankfurt exchange).

Finical · 25-02-2021 4:47pm

Nimil wrote: »

Yes. Calculation is based on net profit, which is (net proceeds) - (cost of acquisition). So you can subtract fees from the sale and add them to the purchase.

Example: buy 1 share for €100 & €5 purchase fee, sell it 6 months later for €150 and €10 fee, net profit is (150-10) - (100+5) = 140 - 105 = €35

Note that this is only for transaction fees. If your broker charges a monthly or yearly maintenance or connectivity fee, then that can't be included as a cost for cgt calculations.

pioneerpro wrote: »

Yeah, commission is part of the acquisition of your capital asset. Stuff like real-time trading info or charting add-ons for an online exchange can't if you're PAYE, no more than a 2nd monitor for trading can.

So if you had to pay a sub per month for Revolut's service, that can't be deducted, but any cost inherent in the trade itself can (routing fee/commission - i.e. the €7.50 per trade DeGiro takes on Frankfurt exchange).

Thank you both so much. This forum is an absolute blessing.

26-02-2021 12:07pm

As someone with a very limited knowledge of the stocks and shares what are the benefits to investing in Ireland.

Tax on ETF’s seem fairly harsh so possibly not a great investment.
Any articles you read tell us to diversify so if ETF’s are not the way to go are people buying loads of separate stocks? Is that not really difficult to manage time wise?

I’m sure I’m missing something very obvious but more of an observation.

endainoz · 26-02-2021 12:12pm

[Deleted User] wrote: »

As someone with a very limited knowledge of the stocks and shares what are the benefits to investing in Ireland.

Tax on ETF’s seem fairly harsh so possibly not a great investment.
Any articles you read tell us to diversify so if ETF’s are not the way to go are people buying loads of separate stocks? Is that not really difficult to manage time wise?

I’m sure I’m missing something very obvious but more of an observation.

Isnt buying into an etf the literal definition of diversification?

Are the tax and charges really that high to put people off the idea? I might start paying into one once revolut start offering the option.

Shedite27 · 26-02-2021 12:18pm

Deleted User wrote: »

As someone with a very limited knowledge of the stocks and shares what are the benefits to investing in Ireland.

Well first off, savings interest rates are zero, so the benefit of investing is making more money from your extra funds. Yes you need to pay tax on the gain, but keeping 67% of gains is better than keeping 100% of no gain.

Deleted User wrote: »

Tax on ETF’s seem fairly harsh so possibly not a great investment.
Any articles you read tell us to diversify so if ETF’s are not the way to go are people buying loads of separate stocks? Is that not really difficult to manage time wise?

I’m sure I’m missing something very obvious but more of an observation.

If you buy an ETF, you get taxed 41% on the gain, and get charged the gain every 8 years.

If you buy a basket of 20/30 stocks, you only get charged 33% on the gain, and get charged the gain when you sell (so in theory could hold and let it grow for 30 years).

A lot of people think they can outperform the ETF's by going it alone, so your gain can be bigger than ETF's too. Yes, it is more time consuming so I guess it's how much work you're willing to put in for the extra €'s

26-02-2021 12:39pm

endainoz wrote: »

Isnt buying into an etf the literal definition of diversification?

Are the tax and charges really that high to put people off the idea? I might start paying into one once revolut start offering the option.

Yes the ETF would be for sure, it just seems the tax is fairly harsh and then there is the 8 year rule from what I can tell, if you wish to invest for 15-20 years it seems fairly difficult for your average Joe (possibly I’m over complicating it in my head)

26-02-2021 12:41pm

Shedite27 wrote: »

Well first off, savings interest rates are zero, so the benefit of investing is making more money from your extra funds. Yes you need to pay tax on the gain, but keeping 67% of gains is better than keeping 100% of no gain.

If you buy an ETF, you get taxed 41% on the gain, and get charged the gain every 8 years.

If you buy a basket of 20/30 stocks, you only get charged 33% on the gain, and get charged the gain when you sell (so in theory could hold and let it grow for 30 years).

A lot of people think they can outperform the ETF's by going it alone, so your gain can be bigger than ETF's too. Yes, it is more time consuming so I guess it's how much work you're willing to put in for the extra €'s

Appreciate the response, makes sense and like I say I’m certainly no expert.

True about the savings interest rates here, next to useless. I’m certainly interested in investing in the future but I would like to have a thorough understanding before investing anywhere

Jim2007 · 26-02-2021 12:47pm

Deleted User wrote: »

As someone with a very limited knowledge of the stocks and shares what are the benefits to investing in Ireland.
.

None if you take the cold, calculating approach, in fact holding a large block of Irish stocks over the long haul can have a serious impact on performance.

The majority of Irish stocks fall into the category of penny stocks and micro caps, in other words the precise stocks the literature on portfolio construction warns you against loading up on. At best they should make up a low single digit in any Euro Group portfolio.

26-02-2021 2:17pm

Jim2007 wrote: »

None if you take the cold, calculating approach, in fact holding a large block of Irish stocks over the long haul can have a serious impact on performance.

The majority of Irish stocks fall into the category of penny stocks and micro caps, in other words the precise stocks the literature on portfolio construction warns you against loading up on. At best they should make up a low single digit in any Euro Group portfolio.

Food for thought certainly, it’s all a bit of a minefield to me but will absolutely take advice of those more knowledge than myself.

Jim2007 · 26-02-2021 2:35pm

Deleted User wrote: »

Food for thought certainly, it’s all a bit of a minefield to me but will absolutely take advice of those more knowledge than myself.

Read, read, read, there are plenty of good reading lists out there

connie147 · 26-02-2021 4:23pm

Just want to thank the posters who go out of yere way to post information that makes sense to a beginner like me. (note Im still learning and have to look up some of the shortened lingo).

I know its a minefield out there, but reading the various threads here on boards has made the introduction much easier to follow and gives great advice on where and how to go about reading up on options.

Connie

Robson99 · 26-02-2021 5:11pm

Do you get caught for the 8 year rule on investment funds ? Ie SMT, Allianz etc

Saudades · 26-02-2021 6:39pm

Robson99 wrote: »

Do you get caught for the 8 year rule on investment funds ? Ie SMT, Allianz etc

No, the 8 year rule doesn't (currently) apply to any Investment Trust.

Taylor365 · 26-02-2021 8:38pm

Can we please for the love of god get the tax situation for Ireland stickied?

Every 10 posts its a copy and paste job.

VonLuck · 01-03-2021 9:15am

Can anyone recommend a good app that notifies you of company news? I don't mean general business news, but more like that you're able to tag individual companies and it would send you push notifications as soon as relevant news is announced.

timetogo1 · 01-03-2021 10:59am

VonLuck wrote: »

Can anyone recommend a good app that notifies you of company news? I don't mean general business news, but more like that you're able to tag individual companies and it would send you push notifications as soon as relevant news is announced.

Seeking Alpha. Create your portfolio and you can filter all of the news by your portfolio. Then on the app you can set which alerts go to email or to your app or both.

Realistically I filter all of my Seeking Alpha emails into one group so I can skim down them in my email app and have disabled notifications on my phone for the app. Getting alerted every time there's news on your companies can be annoying.

funkey_monkey · 01-03-2021 11:14am

Anyone got any thoughts on Match Group Inc?

VonLuck · 02-03-2021 9:59am

timetogo1 wrote: »

Seeking Alpha. Create your portfolio and you can filter all of the news by your portfolio. Then on the app you can set which alerts go to email or to your app or both.

Realistically I filter all of my Seeking Alpha emails into one group so I can skim down them in my email app and have disabled notifications on my phone for the app. Getting alerted every time there's news on your companies can be annoying.

Am I right in saying that's only for US markets? Can't seem to find any tickers for any UK companies for example.

ddarcy · 02-03-2021 10:16am

VonLuck wrote: »

Am I right in saying that's only for US markets? Can't seem to find any tickers for any UK companies for example.

They have non-us as well. It’s just a bit hidden

For instance Tesco is tscdf and Volkswagen is vwapy.

If you’re only looking for news, this should be good enough. I can trade those symbols, which I believe is a proxy to the London stock exchange and Frankfurt. But seeking alpha should give you the news regardless, so should be what you’re looking for.

You can also try yahoo finance, it collects everything and gives everything for you. Not sure if you can email one you create your portfolio though, I haven’t tried it.

blah · 03-03-2021 4:05pm

I fairly new to this but I am doing well over the last few weeks with ARGO blockchain. Should I put a stop loss in place in case there's a big drop? Obviously if it drops below the stop and bounces back I will lose out on some gains. Just wondering what people do for these kind of unrealised gains.

Shedite27 · 03-03-2021 4:35pm

blah wrote: »

I fairly new to this but I am doing well over the last few weeks with ARGO blockchain. Should I put a stop loss in place in case there's a big drop? Obviously if it drops below the stop and bounces back I will lose out on some gains. Just wondering what people do for these kind of unrealised gains.

Unless you need the money this year, I think you're still safe with Argo, it had its monthly trading update today, company still moving very positively in the right direction. They're bringing more mining machines online over the next few months so it's only going to get better each month. There's a possibility it lists on the Nasdaq too over the summer so it'll jump a nice bit when it gets to there.

ddarcy · 04-03-2021 1:25pm

blah wrote: »

I fairly new to this but I am doing well over the last few weeks with ARGO blockchain. Should I put a stop loss in place in case there's a big drop? Obviously if it drops below the stop and bounces back I will lose out on some gains. Just wondering what people do for these kind of unrealised gains.

It always good to have a stop loss. Maybe look at a trailing stop loss. If it drops below you can always buy back in.

Bob24 · 05-03-2021 5:20pm

Robson99 wrote: »

Have €500 to €1000 to invest / save monthly.
Don't really have time or knowledge to be watching daily for investing so was thinking of setting an investment PIE on T212 with the following investment trusts

Monks Inv Trust 50% ( good mix)
Scottish MT 15% (riskier than Allianz)
Allianz Tech 15% ( safer than all in SMT)
Pacific Horizon 15% ( best Asian one I can put in )
Hipgnosis Songs 5% ( an alternative kicker )

Long term goal is to save for 8 - 10 years and see then.
Any opinions on above appreciated.

Bob24 wrote: »

I personally wouldn’t combine Scottish Mortgage and Pacific Horizon, unless you are clearly aware and happy with their correlations.

Both are managed by the same investment firm and share the same investment strategy (obviously besides the geographical restriction for Pacific Horizon which could be considered an Asia-only Scottish Mortgage). I.e. they are likely to have overlaps and to be quite correlated.

Just to point out, the very scenario I was alluding to is now playing out: Scottish Mortgages and Pacific Horizon taking a big plunge at the same time because there is a rotation away form tech and innovation stocks.

05-03-2021 5:50pm

Turns out trading 212 may have done me a solid in not letting me sign up yet!

Monks deffo more "solid" than SMT.

crystalbrite · 07-03-2021 11:00am

Bob24 wrote: »

Just to point out, the very scenario I was alluding to is now playing out: Scottish Mortgages and Pacific Horizon taking a big plunge at the same time because there is a rotation away form tech and innovation stocks.

I can't find any of these investment trusts on Degiro.

Are these all on trading 212?

Is trading 212 better than Degiro for an Irish person if you want to invest in Investment Trusts?

Also I think I've read that T212 allows you to buy fractional shares and set up a Pie chart to split your monthly money deposit between.

I have a Degiro account but haven't invested in anything yet. Maybe it's better now to change over to T212 before I start.

Anyone have a strong opinion/preference of Degiro vs T212 or vice versa?

Bob24 · 07-03-2021 11:40am

crystalbrite wrote: »

I can't find any of these investment trusts on Degiro.

Are these all on trading 212?

Is trading 212 better than Degiro for an Irish person if you want to invest in Investment Trusts?

Also I think I've read that T212 allows you to buy fractional shares and set up a Pie chart to split your monthly money deposit between.

I have a Degiro account but haven't invested in anything yet. Maybe it's better now to change over to T212 before I start.

Anyone have a strong opinion/preference of Degiro vs T212 or vice versa?

T212 is more polished and has cheaper fees (well, no fees). Basically it is trying to make trading/investment more fun and accessible.

But I’d say DEGIRO is more of a proper broker as in it gives access to more markets and doesn’t lock you into their platform (unless things have changed T212 doesn’t allow to transfer positions from and to another broker, which IMO is rather dodgy).

Specifically on Investment Trusts though, for some reason DEGIRO has delisted many of them recently and is refusing to give a clear explanation (you’ll find some posts asking them on social media and they just say “risk management” or “compliance” as a token excuse while all other brokers are fine with these trusts). This is one reason I now find them hard to recommend for an Irish long term investor (since ITs are a great véhicule for us).

07-03-2021 2:05pm

Is there another broker available in Ireland that allows fractional trading and also allows you to transfer shares to another broker if needs be?

(I know of revolut but would rather not use them).

Bob24 · 07-03-2021 4:54pm

Lilian Plain Ponytail wrote: »

Is there another broker available in Ireland that allows fractional trading and also allows you to transfer shares to another broker if needs be?

(I know of revolut but would rather not use them).

Interactive Brokers which is on of the most respected brokers in the world is available to Irish residents, and I believe they offer fractional shares, but it might be mostly with US equities.

It is aimed at professional and sophisticated investors though, so the UI doesn’t look as polished and offers a lot more options competed to T212 or DEGIRO, which is bound to be intimidating for someone who is just getting started. Fees are competitive with DEGIRO but there is a minimum monthly send of 10 euros if the portfolio value is below 100k.

So it has some drawbacks for a beginner but it is very reliable and probably offers the best market reach you can get as an Irish individual investor.

RMDrive · 07-03-2021 5:19pm

Bob24 wrote: »

T212 is more polished and has cheaper fees (well, no fees). Basically it is trying to make trading/investment more fun and accessible.

But I’d say DEGIRO is more of a proper broker as in it gives access to more markets and doesn’t lock you into their platform (unless things have changed T212 doesn’t allow to transfer positions from and to another broker, which IMO is rather dodgy).

Specifically on Investment Trusts though, for some reason DEGIRO has delisted many of them recently and is refusing to give a clear explanation (you’ll find some posts asking them on social media and they just say “risk management” or “compliance” as a token excuse while all other brokers are fine with these trusts). This is one reason I now find them hard to recommend for an Irish long term investor (since ITs are a great véhicule for us).

If it wasn't for the ETF taxing setup in Ireland, would this still be the case?

07-03-2021 5:27pm

Bob24 wrote: »

Interactive Brokers which is on of the most respected brokers in the world is available to Irish residents, and I believe they offer fractional shares, but it might be mostly with US equities.

It is aimed at professional and sophisticated investors though, so the UI doesn’t look as polished and offers a lot more options competed to T212 or DEGIRO, which is bound to be intimidating for someone who is just getting started. Fees are competitive with DEGIRO but there is a minimum monthly send of 10 euros if the portfolio value is below 100k.

So it has some drawbacks for a beginner but it is very reliable and probably offers the best market reach you can get as an Irish individual investor.

Thanks.

My initial plan had been to use T212 until I built to a substantial amount, then transfer to something more "reliable" at that stage (say in 5 years maybe, or longer). But neither T212, Etoro or revolut offer the option to move your shares, instead you have to sell everything (which means TAX) and move cash. I did not realize this. This is a non runner for me. (Revolut and T212 say share transfer will be available "in the future" but who knows).

Given this, I had then considered sacrificing the option to buy fractional and use DeGiro, however these appear to not offer a number of Investment Trusts I would like, which will be the backbone of my portfolio, ruling this option out.

So basically, by default, the only option really left is interactive brokers? I will have to investigate fee structures. A tenner a month is ok, but I will have to calculate how best to carry out my investments to avoid exceeding that and see if there are any other fees that could cripple my gains. I will be investing only 5k or so a year, initially (progressively reaching 10k per year after 7 years), and had planned to regularly top up my holdings (6 to 10) with smallish amounts every fortnightly payday or so (hence desire for fractional), this would have to change and was probably a bad idea to begin with.

Beginning to Invest - All questions go here please

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