Using DeGiro

Anyone having trouble placing orders? Says I can't do it's because "There is a possibility that your order could be executed against one of your existing orders. This is not allowed."

I have stop loss on my positions, these are hardly the reason

ANXIOUS wrote: »

Any idea why Air Asia isn't listed?

It seems like it is listed in Taiwan/KL and DEGIRO doesn’t give access to the these stock exchanges?

Hi guys. Just a quick question, if I buy shares with degiro am I eligible to receive a dividend if the company I own shares in declares one ???

adam88 wrote: »

Hi guys. Just a quick question, if I buy shares with degiro am I eligible to receive a dividend if the company I own shares in declares one ???

You will own part of the company, so yes dividends will be coming your way :-) (keep in mind that in effect a dividend is cash which is taken out of the company and distributed to its owners - i.e. distributing dividends in effect reduces the value of the company and its shares, so it is only fair for that amount to go to every shareholder).

Just known 2 things:
- if you are on a custody profile, Degiro’s fees to process dividends can be quite steep (this is in the price list but not indicated clearly when you chose your profile type)
- depending on the country where the company is located, there can be withholding tax applied to the dividend amount (which can often be fully or partially offset against you income tax obligations in Ireland, but it will depend on Ireland’s tax agreements with those countries and require a bit of paperwork).

adam88 wrote: »

Thanks for the info. I’m going to have to do my homework on the figures. New to stocks and that and trying to find my way around. Only gonna invest single digit ‘000 €€ this year. What I make might not be worth it when all these fees are taken into account with degiro. I just want a simple easy to use stock buying company.

No worries. If you are on a “Basic” profile there is no fee at all to receive dividends with Degiro (the difference with the “Custody” profile I mentioned is that you allow them to occasionally lend part of your shares to others in order to make money, which is principle is fine as they get collaterals, but some people don’t really like that - I am one of these). FYI the dividends processing fees for custody customers are € 1.00 + 3.00% of dividend (maximum 10.00%). It is not crazy but it ads up, especially if you have small positions on companies which pay low dividends on a quarterly basis rather than larger yearly dividends (if you have 1000 euros worth share from a company with a 4% yearly dividend yield which pays on a quarterly basis, they will give you 10 euros dividend per quarter on which 1 euro will be kept by Degiro, ie 10% - but if your dividend amount is much higher then it will be much less than 10%).

At the end of the day, even with those fees they are one do the best options available to Irish residents for someone who is getting started.

The same share (or different share types for the same company) can be listed on different stock exchanges in different currencies yes (it is the case for Ryanair). But it will usually be maximum 3 or 4 listings and doesn’t have to be the case for all companies.

If you type a company name on here it it will show you the different listings: https://finance.yahoo.com/

Btw, I am not super familiar with Ryanair, but I don’t think it is the kind of company you buy for dividends.

Thanks for the info. Got a bit to learn or it will be an expensive lesson. Few K that I can afford to lose if things go wrong. Obviously the plan is to make a few bob not for it to be an expensive past time

AlmightyCushion wrote: »

Actually this reminds me. For anyone who is Irish resident, if you use N26 or any other non Irish IBAN bank account as your main account they will not apply the reduced withholding tax for US dividends. Once you have selected an Irish IBAN account as your main back account on DeGiro you can just resubmit the W8-BEN again and you will qualify for the reduced rate again. Took a couple of months of over and back with their customer service before I got that sorted.

Good to know, although if this is their official policy it makes absolutely no sense for them to be doing that :-/

Which bank you are using is completely irrelevant to withholding tax rates, and if they want to confirm you are tax resident in Ireland and entitled for the reduced rate, they can simply ask you to provide a tax residence certificate from revenue. I believe they are also not able to provide the correct reduced level of withholding tax for other countries (I read that for French dividends they apply the default rate for French residents which is double the rate for non residents) - they really need to sort these things.

AlmightyCushion wrote: »

The real issue is Irish people resident in Ireland who close their Irish account and only have an account with a non Irish IBAN. Their is no way for them to get around it without opening an account with an Irish IBAN or using a friends/family members or something like that.

Yes, and even from Degiro’s perspective it doesn’t help with their regulatory requirements.

I assume their reason for doing it is that for them if you have an account with an Irish bank you are a tax resident in ireland and thus entitled for the reduced rate.

But this is not even accurate as you could well have an account with an Irish bank and not be a tax resident here. So with their method not only as you said they are denying access to the reduced rate to people who qualify for it because they don’t have an Irish account, but they are also potentially letting people who are not entitled for the reduced rate slip through the net simply because they have an Irish account.

Other brokers I have deal with have asked for proofs that you are a tax resident in similar situation (a tax residence certificate from Revenue, an P21, or this type of thing) which seems more appropriate to me ... I guess it boils down to the fact that manually checking those documents is more expensive to them that having their system automatically make a decision based on the location of then bank.

adam88 wrote: »

Can someone quickly go through this withholding tax for me ??? Irish resident, Irish back account will be buying some US shares.

Is withholding tax a portion of the dividend that they keep back when paying out the dividend??! What happens to this money ,?!?

30% (or 15% if you fill in w8ben). It belongs to US.

Bob Harris wrote: »

Has anyone had the experience of the price on Degiro being much higher than the real market price?
Trying to get some shares in a company on the NASDAQ - real price about 14.50$ Degiro is about 18.50$

The quote is probably delayed?

But it doesn’t matter. You can place a limit order for whichever price you want. It will be sent to the exchange and executed whenever it can be matched to a sell order.

Taylor365 wrote: »

30% (or 15% if you fill in w8ben). It belongs to US.

Can I write it off against my own taxes

adam88 wrote: »

Can I write it off against my own taxes

Others might confirm, but as I understand Revenue should automatically offset the 15% once you report it to them as US dividends (if you don’t fill out the form, they would do you a favour and offset 30% though).