All brokers will sell at one price and buy at another, that difference is one of the ways they make their money. Some spreads are bigger than others. I'd say revolut and trade republics spread would be bigger than most. Basically if you bought a stock and tried to sell it immediately, assuming a static market, you would lose money.
Trade Republic Savings Plans
- Thread starter candyman
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Do you use an online broker? Would there be others you'd recommend in terms of spread?
I have had a look at them but didn't understand them yet. I have over 300eur in Trading 212 but haven't invested the cash yet. I was going to buy the Finnish company Neste but they only have the ADR stock.
I do use them, and think they are great for allowing access to the average punter. You'd need to be trading much bigger amounts to get better spreads, but in the online world, not sure how you would even compare the spreads to be honest. Rule of thumb for me would be the smaller the trade they allow, the bigger the spread I'd assume, but don't take that as gospel
My monthly investment amount is only just under 150 at the moment.
Homewardbound11
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Just looking into the wealth savings plan for TR. what are the tax implications when disposing/ or how is this calculated . Is it treated as an investment or is selling of stocks/ etfs.
I’m assuming it’s an investment plan with some time limit/ maturity.
I’m assuming it’s an investment plan with some time limit/ maturity.
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Homewardbound11
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Thanks everyone . So if I set a savings plan of say 100 euro per month the share price is 200 euro , does it mean I don’t purchase on month 1 but buy one share in month 2? Or is it I buy 0.5 of a share month 1 at that value and so on .?
@Homewardbound11 If you set the savings plan to 100eur per month for any stock it will purchase 100eur worth of that stock each month. Edit: You can't buy a whole share with the savings plans - this can only be done as a manual purchase where a 1eur fee applies. You can't go below 1eur in the savings plans purchase events.
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Homewardbound11
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. So that it it’s just a savings plan ?. So when you go to withdraw its Gains tax?.
I hope the statements are good on TR as it must be a nightmare to work out when selling from each transaction that has occurred from say monthly savings . Ie purchasing US stocks there is an exchange rate with each transaction . Looking at my first saving . Day 1 , was 1.81 euro below the initial amount saved . I am assuming this is exchange rates but it isn’t mentioned anywhere .
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If you're purchasing an individual share (or fraction of a share) with the savings plan, then capital gains tax will apply when you sell the shares and receive the cash in your Trade Republic account. I would recommend a spreadsheet to keep track of how many shares you purchase each month and how much you paid in EUR.
Homewardbound11
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If you're purchasing an individual share (or fraction of a share) with the savings plan, then capital gains tax will apply when you sell the shares and receive the cash in your Trade Republic account. I would recommend a spreadsheet to keep track of how many shares you purchase each month and how much you paid
This is where I’m struggling with the savings plan. There is no mention of ex rates with the dollar . Surely when calculating your gains/losses the exchange rate given at the buy and sell is important . TR seem to be missing that or meaning-full information when you sell. The report “billing execution” reports
Quantity ,average rate and amount .
This is where I’m struggling with the savings plan. There is no mention of ex rates with the dollar . Surely when calculating your gains/losses the exchange rate given at the buy and sell is important . TR seem to be missing that or meaning-full information when you sell. The report “billing execution” reports
Quantity ,average rate and amount .
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Yes, for non Euro denominated instruments the foreign exchange rates at acquisition and disposal are relevant when calculating CGT liabilities. You can use Central Bank/ECB forex rates for such purposes. Revenue should have guidance documentation on this issue.
Euro Exchange Rates and ECB Interest Rates | Central Bank of Ireland
European Central Bank exchange rates and interest rates, updated daily.
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Kind of hard to make out what you're asking with your usage or not of punctuation and grammar/syntax...
The savings plan is setting up automatic purchase events for buying a portion of a stock or ETF or commodity or whatever. Selling is done manually and then withdrawing or transferring out would be a separate step. At the time you sell a portion or all of your holdings you then have to do your tax return in the agreed timeframe with the Revenue.
The statements are fairly bare bones. For instance the document for a US dividend shows the dollar amount of the dividend, the withholding tax, and then the euro amount you receive. You would have to tot up your deductions and work out the profit for compiling your CGT return. First in first out or something perhaps as well...
Can't make out what you're saying re 1.81eur below the initial amount saved... are you referring to the current value of your holding? Stocks go up and down, is that not it?
Your Account Statement shows the amount in € so you don't need to know the exchange rate. CGT is calculated on the gain in €.
Homewardbound11
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Thanks Corola,
In a round about way that is what I’m asking .
A normal tax return for me when selling shares is working out the exchange rate on the day of execution (ex rates from the excel sheet of rates from the revenue website) . Then subtracting any costs involved in the selling and exchange rates to work out gains or losses . Usually the purchase of a shares has all this information too.
What I was trying to see on the trade republic savings plan if this was the same . In my case purchasing 0.69 of a Berkshire B share listed on the NYSE at a cost of 441 euro . I was trying to find out if there were exchange rates fees involved that was built into the 441 euro value . How was it determined that 441 euro was equilivent to 1 Berkshire share on the 02 of September . As it turns out Berkshire on the 02 of September ranges from $502 to $497 dollars . If I use the revenue exchange rate for September it is 1.165.
So not too far away .
But should it not be more transparent as to what euro value they are putting on the purchase of a share ?
I hope this makes sense and apologies to the previous poster if it my question seemed poorly written or muddled
Let's say one share of BRK.B on 02-Sep was $500.
Revenue's fx rate is 1.165, so one share is €429.
But you actually paid €441, so there were fees of €12.
So when calculating your gain the buy cost you should use is €441.
The sell cost similarly is the actual amount received in € not the theoretical cost with Revenue's fx rate.
The currency conversion is already handled by Trade Republic so you don't need to do any additional calculation. If you had a broker account in the US and bought and sold stocks in $, that is when you would need to do a conversion using Revenue's fx rates.
Revenue's fx rate is 1.165, so one share is €429.
But you actually paid €441, so there were fees of €12.
So when calculating your gain the buy cost you should use is €441.
The sell cost similarly is the actual amount received in € not the theoretical cost with Revenue's fx rate.
The currency conversion is already handled by Trade Republic so you don't need to do any additional calculation. If you had a broker account in the US and bought and sold stocks in $, that is when you would need to do a conversion using Revenue's fx rates.
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