Interactive brokers vs degiro vs irish stockbroker

Susie2017

Frequent Poster
Messages
149
Hi. I have set up accounts with Degiro and Interactive brokers. Im having last minute doubts as to whether I should use an Irish stockbroker and if the shares I purchase should be in a crest account or certificated format. I know if I buy them online I will not hold the actual certificates. I have also read on here that if the online operators were to go bust this could in theory pose a risk to my stocks if creditors come after the online companies. I know both degiro and IB have been around a good few years now and perhaps my worries are unfounded. What do others use for secure purchase. Im looking to buy US shares and perhaps some ishares ETFs and hold them for 10 years. I want to at least reduce the risk of losing the shares if an online broker company goes belly up.
 

LoveTrees

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72
Hi Susie, just try to extend the brokers like I do just in case. I have Interactive Investor, IG and Degiro but I don't know if - with a hard Brexit - I might have to move away from IG and II... :(
 

EmmDee

Registered User
Messages
145
Hi. I have set up accounts with Degiro and Interactive brokers. Im having last minute doubts as to whether I should use an Irish stockbroker and if the shares I purchase should be in a crest account or certificated format. I know if I buy them online I will not hold the actual certificates. I have also read on here that if the online operators were to go bust this could in theory pose a risk to my stocks if creditors come after the online companies. I know both degiro and IB have been around a good few years now and perhaps my worries are unfounded. What do others use for secure purchase. Im looking to buy US shares and perhaps some ishares ETFs and hold them for 10 years. I want to at least reduce the risk of losing the shares if an online broker company goes belly up.
Brokers operating under EU regs are required to hold client assets separated from their own assets so that in the event of a bankruptcy the assets would be protected and could be delivered back to clients. The exception to this would be where the client is borrowing cash or stock from the broker and other assets are pledged as collateral.

There have obviously been examples where brokers have been discovered not to have done this - but generally smaller firms. But you could certainly ask Degiro and Interactive. The question to ask is could they could describe their client asset policy and how they segregate client assets. I would guess that they hold the assets with a third party custodian.
 

Ravima

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2,450
has the judgement in the W&R Morrogh case been overturned? This was a Cork based stockbroker that went bust but the liquidator was able to claim the nominee account as an asset to pay his fees!!
 

ashambles

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428
If you're considering an Irish broker, it may be useful to know that for 2019 that one traditional option Goodbody state their annual charge will be 100e + VAT, a 66% hike on the 2018 charge.
 

Susie2017

Frequent Poster
Messages
149
I was told by Goodbody that the annual fee is 120 euro. Plus 1% annually of the first 25000. 0.5 percent of amounts over 25000. This seems v expensive compared to Degiro and IB. Are there any other suggestions given doubts over IG ?
 

Susie2017

Frequent Poster
Messages
149
Can anyone advise on the above. Also I would like to buy etfs from ishares, can I do that directly with them or is there any other expense free route to purchase them.
 

MrEarl

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1,725
I was told by Goodbody that the annual fee is 120 euro. Plus 1% annually of the first 25000. 0.5 percent of amounts over 25000. This seems v expensive compared to Degiro and IB. Are there any other suggestions given doubts over IG ?
I'm a Goodbody customer. While they are not cheap, I find them good to deal with, I can get paperwork to them fairly easily if ever I need to (i.e. if I want to drop in share certs, to get them added to my online account), and I know where to find their offices in a hurry if I ever have a serious problem (which I hopefully never will). All in all, that's worth paying a relatively small premium for imho.
 

Gordon Gekko

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3,612
A sensible observation. Wait for the flurry of posts and people looking for help when bucketshop.com goes bust or Johnny dips his fingers in the till.

Regulated activities are expensive, end of story.
 

Susie2017

Frequent Poster
Messages
149
Thank you Gordon. I am willing to pay an amount to have security for my shares. Could any Goodbody users outline any further costs. If i buy a number of different etfs is the fee calculated annually based on their value on a particular date? Could i buy multiple etfs without worrying about extra fees for each transaction ?
 

Zenith63

Frequent Poster
Messages
262
Thank you Gordon. I am willing to pay an amount to have security for my shares. Could any Goodbody users outline any further costs. If i buy a number of different etfs is the fee calculated annually based on their value on a particular date? Could i buy multiple etfs without worrying about extra fees for each transaction ?
I'm in a similar position to you Susie and also looking to hold in CREST (or certificated as worst case), was saddened when Campbell O'Connor made their announcement recently as I had used them for this in the past, really nice guys.

One thing to note on Goodbody is that their Online product appears to be a pooled nominee account, not a CREST PMA in your name. Obviously Goodbody are fairly big and a well known name in Ireland, but just calling his out given that you mentioned CREST/certificated originally.

Re. the fees, they're fairly well detailed on their site (https://www.goodbody.ie/help.html). €100+VAT per year for your account. No further fees for holding your standard shares, your other costs to Goodbody then are per transaction. Note that buying three ETFs all at once is three transactions, not one. The transaction fees are 1% on the first €25k of a transaction and 0.5% thereafter, with a €25 minimum. So if you wanted to buy €5000 in three different ETFs (total investment of €15k), you'd be looking at three times €50 (€150 total) transaction fees (plus stamp duty if applicable). If you wanted to put €15k into a single ETF the fee would also be €150, so you're not being penalised for buying multiple ETFS at these investment sizes. However if you are doing smaller amounts where you're paying the €25 minimum fee (lets say you want to invest €500 in a single ETF, then the fee on that will be the minimum €25) the you will be penalised slightly or if you're investing over €25k where you could benefit by the lower 0.5% rate on anything over €25k then you would pay less fees to put say €50k in a single ETF than to divide it up among say three ETFs.
 
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