Cheap and safe way to buy and hold an ETF

[ndublinooc]

Does anyone have suggestions on a cheap and safe way of buying and holding an ETF? By safe I mean the broker has a base in Ireland and secure backing since as far as I know you must hold ETFs through a broker in a nominee account with associate risk if the broker goes bust. NIB have a good service in this regard IMO if you have a bank a/c with them, any other ideas?

 

[Zenith63]

They don't have to go in a nominee account, they can be lodged in a personal CREST account, meaning they are in your name not the broker's. Still not as good as holding the certs yourself because the broker could sell your shares without your knowledge, but certainly better then a nominee account.

So you need to find a broker that will do personal CREST accounts, most do. On the regular broker side of things I know Campbell O'Connor & Co do as I buy ETFs form them and have them lodged in my CREST account (which costs €50 per annum). For an online broker you can use Sharewatch who will also lodge ETFs to a personal CREST account, just be careful which account you open with them because there are a few different types with different charge implications.

 

[piccu]

I was just about to ask a very similar question.

There are a number of ETFs I am interested in buying. I've been doing a little financial spreadbetting for a while now, with mixed results, and I'd like to invest in some unleveraged vehicles.

I've seen and heard Sharewatch mentioned a few times. Are they the best option for these investment vehicles?

Thank you.

 

[Daytrader]

In terms of security, lots of brokers have insurance covering accounts. I believe Sharewatch has accounts insured for losses up to 1 million. So I don't believe it is necessary to have a crest account always. For me, it is an added cost that can be forgone if you explore your options.

In terms of cost, Campbell o 'connor and other traditional brokers will charge you about 1 to 1.5% to buy/sell an ETF. That's 3% your ETF trade has to move before covering commission cost.. Sharewatch will charge you .30% or thereabouts. Renaissance Financial Markets and TD waterhouse are by far the cheapest online brokers in Ireland for providing access to ETFs. There is a comparison of their costs [broken link removed]

They don't have to go in a nominee account, they can be lodged in a personal CREST account, meaning they are in your name not the broker's. Still not as good as holding the certs yourself because the broker could sell your shares without your knowledge, but certainly better then a nominee account.

So you need to find a broker that will do personal CREST accounts, most do. On the regular broker side of things I know Campbell O'Connor & Co do as I buy ETFs form them and have them lodged in my CREST account (which costs €50 per annum). For an online broker you can use Sharewatch who will also lodge ETFs to a personal CREST account, just be careful which account you open with them because there are a few different types with different charge implications.